Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | NOV | |
Security Exchange Name | NYSE | |
Entity Registrant Name | NOV INC. | |
Entity Central Index Key | 0001021860 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 395,535,931 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-12317 | |
Entity Tax Identification Number | 76-0475815 | |
Entity Address, Address Line One | 10353 Richmond Avenue | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 77042-4103 | |
City Area Code | 346 | |
Local Phone Number | 223-3000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 468 | $ 816 |
Receivables, net | 1,867 | 1,905 |
Inventories, net | 2,278 | 2,151 |
Contract assets | 814 | 739 |
Prepaid and other current assets | 261 | 229 |
Total current assets | 5,688 | 5,840 |
Property, plant and equipment, net | 1,878 | 1,865 |
Lease right-of-use assets, operating | 381 | 372 |
Lease right-of-use assets, financing | 176 | 172 |
Deferred income taxes | 484 | 488 |
Goodwill | 1,602 | 1,562 |
Intangibles, net | 508 | 450 |
Investment in unconsolidated affiliates | 247 | 211 |
Other assets | 341 | 334 |
Total assets | 11,305 | 11,294 |
Current liabilities: | ||
Accounts payable | 823 | 904 |
Accrued liabilities | 767 | 870 |
Contract liabilities | 533 | 532 |
Current portion of lease liabilities | 99 | 94 |
Current portion of long-term debt | 44 | 13 |
Accrued income taxes | 6 | 22 |
Total current liabilities | 2,272 | 2,435 |
Long-term debt | 1,764 | 1,712 |
Lease liabilities | 564 | 558 |
Deferred income taxes | 92 | 70 |
Other liabilities | 292 | 277 |
Total liabilities | 4,984 | 5,052 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 395,503,573 and 393,945,659 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 4 | 4 |
Additional paid-in capital | 8,818 | 8,812 |
Accumulated other comprehensive loss | (1,520) | (1,493) |
Retained deficit | (1,056) | (1,155) |
Total Company stockholders' equity | 6,246 | 6,168 |
Noncontrolling interests | 75 | 74 |
Total stockholders’ equity | 6,321 | 6,242 |
Total liabilities and stockholders’ equity | $ 11,305 | $ 11,294 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 395,503,573 | 393,945,659 |
Common stock, shares outstanding | 395,503,573 | 393,945,659 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 2,155 | $ 1,962 |
Cost of revenue | 1,697 | 1,551 |
Gross profit | 458 | 411 |
Selling, general and administrative | 296 | 285 |
Operating profit | 162 | 126 |
Interest and financial costs | (24) | (21) |
Interest income | 8 | 8 |
Equity income in unconsolidated affiliates | 29 | 48 |
Other expense, net | (10) | (16) |
Net income before income taxes | 165 | 145 |
Provision for income taxes | 44 | 20 |
Net income | 121 | 125 |
Net income (loss) attributable to noncontrolling interests | 2 | (1) |
Net income attributable to Company | $ 119 | $ 126 |
Net income attributable to Company per share: | ||
Basic | $ 0.3 | $ 0.32 |
Diluted | 0.3 | 0.32 |
Cash dividends per share | $ 0.05 | $ 0.05 |
Weighted average shares outstanding: | ||
Basic | 394 | 392 |
Diluted | 397 | 396 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 121 | $ 125 |
Currency translation adjustments | (26) | 39 |
Changes in derivative financial instruments, net of tax | (10) | |
Changes in defined benefit plans, net of tax | (1) | 10 |
Comprehensive income | 94 | 164 |
Comprehensive income (loss) attributable to noncontrolling interest | 2 | (1) |
Comprehensive income attributable to Company | $ 92 | $ 165 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 121 | $ 125 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 83 | 77 |
Provision for inventory losses | 4 | |
Deferred income taxes | 25 | (2) |
Equity income in unconsolidated affiliates | (29) | (48) |
Stock-based compensation | 19 | 15 |
Other, net | 14 | (2) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables | 69 | (39) |
Inventories | (20) | (221) |
Contract assets | (75) | 48 |
Prepaid and other current assets | (32) | (10) |
Accounts payable | (105) | 53 |
Accrued liabilities | (144) | (201) |
Contract liabilities | (1) | |
Income taxes payable | (16) | (7) |
Other assets/liabilities, net | 12 | 7 |
Net cash used in operating activities | (78) | (202) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (69) | (57) |
Business acquisitions, net of cash acquired | (243) | |
Other | 1 | 5 |
Net cash used in investing activities | (311) | (52) |
Cash flows from financing activities: | ||
Borrowings against lines of credit and other debt | 83 | 1 |
Cash dividends paid | (20) | (20) |
Financing leases | (6) | (6) |
Other | (14) | (16) |
Net cash provided by (used in) financing activities | 43 | (41) |
Effect of exchange rates on cash | (2) | |
Decrease in cash and cash equivalents | (348) | (295) |
Cash and cash equivalents, beginning of period | 816 | 1,069 |
Cash and cash equivalents, end of period | 468 | 774 |
Cash payments during the period for: | ||
Interest | 6 | 4 |
Income taxes | $ 28 | $ 20 |
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 Loss [Member] | Retained Deficit [Member] | Total Company Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
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 | 125 | 126 | 126 | (1) | |||
Other comprehensive income, 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 | ||||||
Beginning Balance at Dec. 31, 2023 | 6,242 | $ 4 | 8,812 | (1,493) | (1,155) | 6,168 | 74 |
Beginning Balance, Shares at Dec. 31, 2023 | 394 | ||||||
Net income | 121 | 119 | 119 | 2 | |||
Other comprehensive income, net | (27) | (27) | (27) | ||||
Cash dividends, per common share | (20) | (20) | (20) | ||||
Transactions with non-controlling interests | 1 | 1 | (1) | ||||
Stock-based compensation | 19 | 19 | 19 | ||||
Common stock issued, shares | 3 | ||||||
Withholding taxes | (15) | (15) | (15) | ||||
Withholding taxes, shares | (1) | ||||||
Other | 1 | 1 | 1 | ||||
Ending Balance at Mar. 31, 2024 | $ 6,321 | $ 4 | $ 8,818 | $ (1,520) | $ (1,056) | $ 6,246 | $ 75 |
Ending Balance, Shares at Mar. 31, 2024 | 396 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash dividends, per common share | $ 0.05 | $ 0.05 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 in the United States (“GAAP”) 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 for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s 2023 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, 2024 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with GAAP 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, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories, net Inventories consist of (in millions): March 31, December 31, 2024 2023 Raw materials and supplies $ 469 $ 479 Work in process 269 230 Finished goods and purchased products 1,865 1,796 2,603 2,505 Less: Inventory reserve ( 325 ) ( 354 ) Total $ 2,278 $ 2,151 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 3. Accrued Liabilities Accrued liabilities consist of (in millions): March 31, December 31, 2024 2023 Compensation $ 173 $ 294 Vendor costs 167 133 Taxes (non-income) 69 112 Warranties 76 72 Insurance 52 44 Commissions 17 17 Fair value of derivatives 18 19 Interest 26 8 Other 169 171 Total $ 767 $ 870 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 4. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive 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, 2023 $ ( 1,432 ) $ ( 5 ) $ ( 56 ) $ ( 1,493 ) Accumulated other comprehensive loss before ( 26 ) ( 2 ) ( 1 ) ( 29 ) Amounts reclassified from accumulated other comprehensive — 2 — 2 Balance at March 31, 2024 $ ( 1,458 ) $ ( 5 ) $ ( 57 ) $ ( 1,520 ) The components of amounts reclassified from accumulated other comprehensive loss are as follows (in millions): Three Months Ended March 31, 2024 2023 Currency Derivative Employee Currency Derivative Employee Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ 1 $ — $ 1 $ — $ 1 $ — $ 1 Cost of revenue — 1 — 1 — 1 — 1 Other expense — — — — 2 — — 2 Selling, general and administrative — — — — — — 1 1 Tax effect — — — — — — — — $ — $ 2 $ — $ 2 $ 2 $ 2 $ 1 $ 5 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 ($ 2 ) million during the three months ended March 31, 2024 ; 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 the three months ended March 31, 2024 . |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments | 5. Segments Effective January 1, 2024, NOV consolidated its reporting structure into two segments: Energy Products and Services, and Energy Equipment. Segment disclosures pertaining to prior periods have been restated to reflect the change in reportable segments. Financial results by operating segment are as follows (in millions): Three Months Ended March 31, 2024 2023 Revenue: Energy Products and Services $ 1,017 $ 941 Energy Equipment 1,178 1,052 Eliminations ( 40 ) ( 31 ) Total revenue $ 2,155 $ 1,962 Operating profit: Energy Products and Services $ 121 $ 112 Energy Equipment 95 71 Eliminations and corporate costs ( 54 ) ( 57 ) Total operating profit $ 162 $ 126 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 two reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment. Total other items included in operating profit for the three months ended March 31, 2024 and March 31, 2023 , were a pre-tax credit of $ 3 million and $ 4 million, respectively, primarily related to gains on sale of previously reserved inventory. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combinations | 6. Business Combinations During the first quarter of 2024, our Energy Products and Services segment made two strategic acquisitions to enhance and expand our existing portfolio for a total consideration of $ 243 million, net of cash acquired. One of the two acquisitions involved White Deer Energy, a middle market private equity fund focused on energy investments. As the transaction involved a related party at the time it was entered into (e.g., directors Ben A. Guill and Eric L. Mattson both had an investment interest in certain White Deer Energy funds), the acquisition was approved by the disinterested members of the Company’s Board of Directors. At March 31, 2024, we provisionally recorded $ 112 million of goodwill and amortizable intangible assets; $ 63 million of PP&E, including financing and operating lease right of use assets; $ 85 million of net working capital; and $ 17 million of finance and operating lease liabilities. The fair values of the assets acquired and liabilities assumed are preliminary and subject to change until we finalize our accounting for these acquisitions. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Energy Energy Products Energy Products Energy and Services Equipment Elims. Total and Services Equipment Elims. Total North America $ 537 $ 296 $ — $ 833 $ 502 $ 312 $ — $ 814 International 456 866 — 1,322 421 727 — 1,148 Eliminations 24 16 ( 40 ) — 18 13 ( 31 ) — $ 1,017 $ 1,178 $ ( 40 ) $ 2,155 $ 941 $ 1,052 $ ( 31 ) $ 1,962 Land $ 772 $ 427 $ — $ 1,199 $ 697 $ 485 $ — $ 1,182 Offshore 221 735 — 956 226 554 — 780 Eliminations 24 16 ( 40 ) — 18 13 ( 31 ) — $ 1,017 $ 1,178 $ ( 40 ) $ 2,155 $ 941 $ 1,052 $ ( 31 ) $ 1,962 Performance Obligations Net revenue recognized from performance obligations satisfied in previous periods was $ 6 million for the three months ended March 31, 2024 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, 2024 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,267 million. The Company expects to recognize approximately $ 1,079 million in revenue for the remaining performance obligations in 2024 and $ 3,188 million in 2025 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, 2023 $ 739 $ 532 Billings ( 275 ) 314 Revenue recognized 366 ( 301 ) Currency translation adjustments and other ( 16 ) ( 12 ) Balance at March 31, 2024 $ 814 $ 533 Royalty Revenue The Company recognizes royalty revenue due under various licenses for the Company's intellectual property, including for technology related to drill bits. The Company recognized revenue for drill bit licenses of approximately $ 16 million for the three months ended March 31, 2024 , and $ 20 million for the three months ended March 31, 2023. The Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. As such, revenue and the related receivables are recorded at a discount to reflect the delayed timing of future cash collections. As of March 31, 2024 , the receivables of $ 84 million, net of allowances of $ 13 million for credit losses and $ 20 million for the remaining timing related discount, are included in Other assets on the Consolidated Balance Sheets. These allowances do not impact the amount the Company is entitled to recover on its claims from the licensees in litigation. While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the credit quality of the receivables. See Note 15 for discussion of the ongoing litigation. 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, 2024, the allowance for credit losses totaled $ 75 million. The changes in the carrying amount of the allowance for credit losses are as follows (in millions): Balance at December 31, 2023 $ 72 Provision for expected credit losses 15 Recoveries collected ( 5 ) Other ( 7 ) Balance at March 31, 2024 $ 75 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Current portion of lease liabilities: Operating $ 72 $ 70 Financing 27 24 Total $ 99 $ 94 March 31, December 31, 2024 2023 Long-term portion of lease liabilities: Operating $ 347 $ 343 Financing 217 215 Total $ 564 $ 558 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Debt consists of (in millions): March 31, December 31, 2024 2023 $ 1.1 billion in Senior Notes, interest at 3.95 % payable December 1, 2042 $ 1,091 $ 1,091 $ 0.5 billion in Senior Notes, interest at 3.60 % payable December 1, 2029 496 495 Other debt 221 139 Total Debt 1,808 1,725 Less current portion 44 13 Long-term debt $ 1,764 $ 1,712 The Company has a revolving credit facility with a borrowing capacity of $ 2.0 billion through October 30, 2024, and a borrowing capacity of $ 1.8 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, 2024, the Company was in compliance with a debt-to-capitalization ratio of 24.5 % and had $ 50 million of outstanding borrowings under the facility, resulting in $ 1.95 billion of available funds. 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, 2024 , 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, 2024 , the Company has $ 104 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, 2024 included $ 34 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 $ 472 million of outstanding letters of credit at March 31, 2024, primarily in Norway and the United States, 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, 2024 and December 31, 2023, the fair value of the Company’s unsecured Senior Notes approximated $ 1,380 million and $ 1,316 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, 2024 and December 31, 2023 , the carrying value of the Company’s unsecured Senior Notes approximated $ 1,587 million and $ 1,586 million, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective tax rate for the three months ended March 31, 2024 was 26.7 %, compared to 13.8 % for the same period in 2023. The effective tax rate for 2024 was negatively impacted by a mix of earnings in higher tax rate jurisdictions, losses in certain jurisdictions with no tax benefit, and a shortfall related to previously recognized stock compensation deductibility, partially offset by the reduction of valuation allowances related to U.S. and state deferred tax assets. 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 losses in certain jurisdictions with no tax benefit. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, approximately 7.6 million shares remained available for future grants under the NOV Plan. The Company also has outstanding awards under its former stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Former Plan”), however the Company is no longer granting new awards under the Former Plan. On February 6, 2024, under the NOV Plan, the Company granted 1,110,478 stock options with a fair value of $ 7.90 per option and an exercise price of $ 17.52 per share; 2,571,356 restricted stock units with a fair value of $ 17.52 per share; and performance share awards (PSAs) to senior management employees with potential payouts varying from zero to 1,061,644 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 2024 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 $ 19 million for the three months ended March 31, 2024, and $ 15 million for the three months ended March 31, 2023. There was an income tax benefit of $ 4 million recognized in the Consolidated Statements of Income for stock-based compensation arrangements under the NOV Plan for the three months ended March 31, 2024 . There was no income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements under the NOV Plan for the three months ended March 31, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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, Currency 2024 2023 Colombian Peso COP 46,764 COP 57,487 South Korean Won KRW 26,739 KRW — Norwegian Krone NOK 2,668 NOK 2,179 Japanese Yen JPY 1,118 JPY 1,118 U.S. Dollar USD 853 USD 677 Brazilian Real BRL 291 BRL 291 Mexican Peso MXN 168 MXN 157 Euro EUR 134 EUR 102 Singapore Dollar SGD 27 SGD 23 South African Rand ZAR 25 ZAR 25 British Pound Sterling GBP 7 GBP 5 Danish Krone DKK 4 DKK 2 Canadian Dollar CAD 2 CAD 1 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 accumulated other comprehensive income of $ 3 million 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 loss recognized in other expense, net was $ 3 million for the three months ended March 31, 2024 and $ 5 million for the three months ended March 31, 2023. 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 2024 2023 Location 2024 2023 Derivatives designated as hedging Foreign exchange contracts Prepaid and other $ — $ 8 Accrued liabilities $ 4 $ 2 Foreign exchange contracts Other assets — — Other — 1 Total derivatives designated as hedging $ — $ 8 $ 4 $ 3 Derivatives not designated as hedging Foreign exchange contracts Prepaid and other $ 3 $ 11 Accrued liabilities $ 14 $ 17 Foreign exchange contracts Other assets — — Other — 1 Total derivatives not designated as $ 3 $ 11 $ 14 $ 18 Total derivatives $ 3 $ 19 $ 18 $ 21 |
Net Income Attributable to Comp
Net Income Attributable to Company Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Company Per Share | 13. Net Income 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, 2024 2023 Numerator: Net income attributable to Company $ 119 $ 126 Denominator: Basic—weighted average common shares outstanding 394 392 Dilutive effect of employee stock options and other 3 4 Diluted outstanding shares 397 396 Net income attributable to Company per share: Basic $ 0.30 $ 0.32 Diluted $ 0.30 $ 0.32 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 attributable to the Company allocated to these participating securities was immaterial for each of the three months ended March 31, 2024 and 2023 , respectively. The Company had stock options outstanding that were anti-dilutive totaling 17 million shares for the three months ended March 31, 2024, compared to 16 million shares for the three months ended March 31, 2023 . |
Cash Dividends
Cash Dividends | 3 Months Ended |
Mar. 31, 2024 | |
Dividends [Abstract] | |
Cash Dividends | 14. Cash Dividends Cash dividends were $ 20 million for both the three months ended March 31, 2024 and March 31, 2023 . 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, 2024 | |
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, and internal investigations of potential regulatory and compliance matters which may arise from the Company’s business activities. These regulatory matters and disputes may involve private parties and/or government authorities who may assert a broad variety of potential claims against the Company, such as employment law claims, collective actions or class action claims, 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 or from activities of the Company, alleged regulatory violations, alleged violations of anti-corruption and anti-bribery, trade, customs or other 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 may 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, or exclusions to coverage 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, 2024, the Company recorded reserves in an amount believed to be sufficient, given the estimated range of potential outcomes, for contingent liabilities 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 periodically assesses the potential for losses above the amounts accrued as well as potential losses for matters that are believed to be not probable, but which 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 and 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 the 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 many instances, the Company’s products and services embody or incorporate trade secrets or patented inventions. From time to time, we are engaged in 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 litigation against several companies involving royalties due under licenses for technology related to drill bits. This technology resulted in a portfolio of patents related to leaching technology, a revolutionary technology owned by the Company that improves the performance of drill bits and other products utilizing certain synthetic diamond parts. The Company previously sued several drill bit manufacturers for patent infringement and those lawsuits were resolved by a series of licensing agreements with various drill bit manufacturers. To settle and end litigation or to avoid litigation, the licensees were provided access to the portfolio of leaching patents owned by the Company in exchange for a royalty payment, as defined in each license agreement. The companies agreed to pay the royalties for the right to use the portfolio of patents, whether they used some, all or none of the specific patented claims in any particular patent. The license agreements each provide that they terminate on the date of the last to expire of the patents in the licensed portfolio. Having obtained the benefit of these licenses for more than a decade, all of the drill bit manufacturer licensees unilaterally stopped making royalty payments even though all of the patents in the portfolio have not expired. These companies have asserted, among other reasons, that they are entitled to stop making these payments because they have not elected to manufacture products covered by the unexpired patents. Some of these companies stopped making payments after the expiration of what are allegedly the patents in the portfolio that they elected to use. Others paid for some period of time after that date but have since stopped payment. The Company has sued asserting that failure to pay the royalties is a breach of the license agreements at issue. The Company is in litigation with most of the licensees seeking a judicial determination that it is entitled to be paid royalties pursuant to the terms of the licenses. The parties’ legal filings to date can be found in two cases currently pending in the United States District Court for the Southern District of Texas: Grant Prideco, Inc., et al. v. Schlumberger Tech. Corp., et al., No. 4:23-cv-00730; and Halliburton Energy Serv, Inc. v. Grant Prideco, Inc., et al., No. 4:23-cv-01789. While the Company strongly believes that the royalties for which it has sued are due and owing pursuant to the terms of the licensing agreements, there is inherent risk with the related litigation and the Company makes no assurances as to the outcome of such litigation. See Note 7 to the Consolidated Financial Statements for discussion of the financial impact of royalties. The protection of intellectual property is important to the Company’s performance, and as such, an adverse result in disputes related to our intellectual property could result in materially adverse financial consequences such as a decline in sales of products protected by patents, which could materially and adversely impact our financial performance. From time-to-time purchasers of our products and services or members of our supply chain or sales chain become involved in litigation, governmental investigations, internal investigations, political or other enforcement matters, or other dispute proceedings. In such circumstances, such proceedings may adversely impact the ability of purchasers of our products, entities providing financial support to such consumers or entities in the supply chain or sales 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 proceedings, at substantial cost to the Company. 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 presents challenges which could result in future liabilities (for example, alleged violation of those laws or 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. Trade regulations, supply chain regulations, and other regulatory compliance in different jurisdictions may conflict with one another or with contractual terms with our various counterparties. 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 and this could lead to negative impacts on revenue or earnings. 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 regarding the armed conflict in Ukraine, we ceased new investments in Russia and have curtailed our activities there. During the third quarter of 2022, we sold our business in Belarus and entered into an agreement to sell our business in Russia. The sale is subject to various government approvals in Russia and other jurisdictions. The Russian government continues to enact new laws impacting the exit of western companies from Russia, including some instances of expropriation of western businesses. We may incur additional costs as a result of conditions in Russia if we are unable to complete the transaction to sell our Russian business on the terms of the agreements. Geopolitical events continue to pose supply chain risks. 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 factors such as materials shortages, inflationary pressures, and limited manpower. We may face loss of workers, labor shortages, litigation, fines and/or other adverse consequences resulting from ongoing labor impacts. 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 and other contract provisions concerning 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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On April 9, 2024, NOV completed the divestiture of its Pole Products business. Pole Products is a leading manufacturer of premium spun-cast concrete, tapered steel, and innovative fiberglass poles for diverse applications. On April 25, 2024, the Company announced that its Board of Directors authorized and approved a share repurchase program for up to $ 1 billion of the currently outstanding shares of the Company’s common stock over a period of 36 months. Under the share repurchase program, the Company may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing and total amount of any stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 attributable to the Company allocated to these participating securities was immaterial for each of the three months ended March 31, 2024 and 2023 , respectively. |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): March 31, December 31, 2024 2023 Raw materials and supplies $ 469 $ 479 Work in process 269 230 Finished goods and purchased products 1,865 1,796 2,603 2,505 Less: Inventory reserve ( 325 ) ( 354 ) Total $ 2,278 $ 2,151 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): March 31, December 31, 2024 2023 Compensation $ 173 $ 294 Vendor costs 167 133 Taxes (non-income) 69 112 Warranties 76 72 Insurance 52 44 Commissions 17 17 Fair value of derivatives 18 19 Interest 26 8 Other 169 171 Total $ 767 $ 870 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive 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, 2023 $ ( 1,432 ) $ ( 5 ) $ ( 56 ) $ ( 1,493 ) Accumulated other comprehensive loss before ( 26 ) ( 2 ) ( 1 ) ( 29 ) Amounts reclassified from accumulated other comprehensive — 2 — 2 Balance at March 31, 2024 $ ( 1,458 ) $ ( 5 ) $ ( 57 ) $ ( 1,520 ) |
Components of Amounts Reclassified from Accumulated Other Comprehensive Loss | The components of amounts reclassified from accumulated other comprehensive loss are as follows (in millions): Three Months Ended March 31, 2024 2023 Currency Derivative Employee Currency Derivative Employee Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ 1 $ — $ 1 $ — $ 1 $ — $ 1 Cost of revenue — 1 — 1 — 1 — 1 Other expense — — — — 2 — — 2 Selling, general and administrative — — — — — — 1 1 Tax effect — — — — — — — — $ — $ 2 $ — $ 2 $ 2 $ 2 $ 1 $ 5 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Operating Segments | Financial results by operating segment are as follows (in millions): Three Months Ended March 31, 2024 2023 Revenue: Energy Products and Services $ 1,017 $ 941 Energy Equipment 1,178 1,052 Eliminations ( 40 ) ( 31 ) Total revenue $ 2,155 $ 1,962 Operating profit: Energy Products and Services $ 121 $ 112 Energy Equipment 95 71 Eliminations and corporate costs ( 54 ) ( 57 ) Total operating profit $ 162 $ 126 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Energy Energy Products Energy Products Energy and Services Equipment Elims. Total and Services Equipment Elims. Total North America $ 537 $ 296 $ — $ 833 $ 502 $ 312 $ — $ 814 International 456 866 — 1,322 421 727 — 1,148 Eliminations 24 16 ( 40 ) — 18 13 ( 31 ) — $ 1,017 $ 1,178 $ ( 40 ) $ 2,155 $ 941 $ 1,052 $ ( 31 ) $ 1,962 Land $ 772 $ 427 $ — $ 1,199 $ 697 $ 485 $ — $ 1,182 Offshore 221 735 — 956 226 554 — 780 Eliminations 24 16 ( 40 ) — 18 13 ( 31 ) — $ 1,017 $ 1,178 $ ( 40 ) $ 2,155 $ 941 $ 1,052 $ ( 31 ) $ 1,962 |
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, 2023 $ 739 $ 532 Billings ( 275 ) 314 Revenue recognized 366 ( 301 ) Currency translation adjustments and other ( 16 ) ( 12 ) Balance at March 31, 2024 $ 814 $ 533 |
Summary of Changes Carrying Amount of Allowance for Credit Losses | The changes in the carrying amount of the allowance for credit losses are as follows (in millions): Balance at December 31, 2023 $ 72 Provision for expected credit losses 15 Recoveries collected ( 5 ) Other ( 7 ) Balance at March 31, 2024 $ 75 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Components of Leases | Components of leases are as follows (in millions): March 31, December 31, 2024 2023 Current portion of lease liabilities: Operating $ 72 $ 70 Financing 27 24 Total $ 99 $ 94 March 31, December 31, 2024 2023 Long-term portion of lease liabilities: Operating $ 347 $ 343 Financing 217 215 Total $ 564 $ 558 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): March 31, December 31, 2024 2023 $ 1.1 billion in Senior Notes, interest at 3.95 % payable December 1, 2042 $ 1,091 $ 1,091 $ 0.5 billion in Senior Notes, interest at 3.60 % payable December 1, 2029 496 495 Other debt 221 139 Total Debt 1,808 1,725 Less current portion 44 13 Long-term debt $ 1,764 $ 1,712 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, Currency 2024 2023 Colombian Peso COP 46,764 COP 57,487 South Korean Won KRW 26,739 KRW — Norwegian Krone NOK 2,668 NOK 2,179 Japanese Yen JPY 1,118 JPY 1,118 U.S. Dollar USD 853 USD 677 Brazilian Real BRL 291 BRL 291 Mexican Peso MXN 168 MXN 157 Euro EUR 134 EUR 102 Singapore Dollar SGD 27 SGD 23 South African Rand ZAR 25 ZAR 25 British Pound Sterling GBP 7 GBP 5 Danish Krone DKK 4 DKK 2 Canadian Dollar CAD 2 CAD 1 |
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 2024 2023 Location 2024 2023 Derivatives designated as hedging Foreign exchange contracts Prepaid and other $ — $ 8 Accrued liabilities $ 4 $ 2 Foreign exchange contracts Other assets — — Other — 1 Total derivatives designated as hedging $ — $ 8 $ 4 $ 3 Derivatives not designated as hedging Foreign exchange contracts Prepaid and other $ 3 $ 11 Accrued liabilities $ 14 $ 17 Foreign exchange contracts Other assets — — Other — 1 Total derivatives not designated as $ 3 $ 11 $ 14 $ 18 Total derivatives $ 3 $ 19 $ 18 $ 21 |
Net Income Attributable to Co_2
Net Income Attributable to Company Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Numerator: Net income attributable to Company $ 119 $ 126 Denominator: Basic—weighted average common shares outstanding 394 392 Dilutive effect of employee stock options and other 3 4 Diluted outstanding shares 397 396 Net income attributable to Company per share: Basic $ 0.30 $ 0.32 Diluted $ 0.30 $ 0.32 Cash dividends per share $ 0.05 $ 0.05 |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 469 | $ 479 |
Work in process | 269 | 230 |
Finished goods and purchased products | 1,865 | 1,796 |
Inventory, Gross | 2,603 | 2,505 |
Less: Inventory reserve | (325) | (354) |
Total | $ 2,278 | $ 2,151 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Compensation | $ 173 | $ 294 |
Vendor costs | 167 | 133 |
Taxes (non-income) | 69 | 112 |
Warranties | 76 | 72 |
Insurance | 52 | 44 |
Commissions | 17 | 17 |
Fair value of derivatives | 18 | 19 |
Interest | 26 | 8 |
Other | 169 | 171 |
Total | $ 767 | $ 870 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 6,242 |
Ending Balance | 6,321 |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,432) |
Accumulated other comprehensive income (loss) before reclassifications | (26) |
Ending Balance | (1,458) |
Derivative Financial Instruments, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (5) |
Accumulated other comprehensive income (loss) before reclassifications | (2) |
Amounts reclassified from accumulated other comprehensive loss | 2 |
Ending Balance | (5) |
Employee Benefit Plans, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (56) |
Accumulated other comprehensive income (loss) before reclassifications | (1) |
Ending Balance | (57) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,493) |
Accumulated other comprehensive income (loss) before reclassifications | (29) |
Amounts reclassified from accumulated other comprehensive loss | 2 |
Ending Balance | $ (1,520) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Components of Amounts Reclassified from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 2,155 | $ 1,962 |
Selling, general and administrative | (296) | (285) |
Tax effect | (44) | (20) |
Net income attributable to Company | 119 | 126 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 1 | 1 |
Cost of revenue | 1 | 1 |
Other expense | 2 | |
Selling, general and administrative | 1 | |
Net income attributable to Company | 2 | 5 |
Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other expense | 2 | |
Net income attributable to Company | 2 | |
Derivative Financial Instruments, Net of Tax [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 1 | 1 |
Cost of revenue | 1 | 1 |
Net income attributable to Company | $ 2 | 2 |
Employee Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Selling, general and administrative | 1 | |
Net income attributable to Company | $ 1 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Changes in fair value of open derivatives | $ (2) |
Cumulative changes in the fair value of derivatives | $ 2 |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) Segment | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Operating profit | $ 162 | $ 126 |
Inventory Charges [Member] | ||
Segment Reporting Information [Line Items] | ||
Pre-tax credit | $ 3 | $ 4 |
Segments - Operating Segments (
Segments - Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 2,155 | $ 1,962 |
Total operating profit | 162 | 126 |
Operating Segments [Member] | Energy Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,017 | 941 |
Total operating profit | 121 | 112 |
Operating Segments [Member] | Energy Equipment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,178 | 1,052 |
Total operating profit | 95 | 71 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (40) | (31) |
Total operating profit | $ (54) | $ (57) |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) Acquisition | |
Business Combinations [Abstract] | |
Number of strategic acquisition | Acquisition | 2 |
Total consideration, net of cash acquired | $ 243 |
Goodwill and amortizable intangible assets | 112 |
Property, plant, and equipment | 63 |
Net working capital | 85 |
Finance and operating lease liabilities | $ 17 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregate Revenue by Destinations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | $ 2,155 | $ 1,962 |
Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,017 | 941 |
Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,178 | 1,052 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (40) | (31) |
Continental [Member] | Eliminations [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 24 | 18 |
Continental [Member] | Eliminations [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 16 | 13 |
Continental [Member] | Eliminations [Member] | Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (40) | (31) |
Continental [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 833 | 814 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 537 | 502 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 296 | 312 |
Continental [Member] | International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,322 | 1,148 |
Continental [Member] | International [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 456 | 421 |
Continental [Member] | International [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 866 | 727 |
Land and Offshore [Member] | Eliminations [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 24 | 18 |
Land and Offshore [Member] | Eliminations [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 16 | 13 |
Land and Offshore [Member] | Eliminations [Member] | Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (40) | (31) |
Land and Offshore [Member] | Land Destination [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,199 | 1,182 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 772 | 697 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 427 | 485 |
Land and Offshore [Member] | Offshore Destination [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 956 | 780 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Energy Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 221 | 226 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Energy Equipment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | $ 735 | $ 554 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Net revenue recognized from performance obligations satisfied in previous periods | $ 6 | ||
Remaining performance obligations | 4,267 | ||
Revenue | 2,155 | $ 1,962 | |
Allowance for credit losses | 75 | $ 72 | |
Royalty Revenue [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue | 16 | $ 20 | |
Receivables allowances for credit losses | 84 | ||
Net of related allowances for credit losses | 13 | ||
Receivable remaining allowance for Credit Loss | $ 20 |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail 1) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,267 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,079 |
Remaining performance obligations, expected to be recognized, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,188 |
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, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2023 | $ 739 |
Billings | (275) |
Revenue recognized | 366 |
Currency translation adjustments and other | (16) |
Balance at March 31, 2024 | 814 |
Balance at December 31, 2023 | 532 |
Billings | 314 |
Revenue recognized | (301) |
Currency translation adjustments and other | (12) |
Balance at March 31, 2024 | $ 533 |
Revenue - Summary of Changes Ca
Revenue - Summary of Changes Carrying Amount of Allowance for Credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2023 | $ 72 |
Provision for expected credit losses | 15 |
Recoveries collected | (5) |
Other | (7) |
Balance at March 31, 2024 | $ 75 |
Leases - Schedule of Components
Leases - Schedule of Components of Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current portion of lease liabilities: | ||
Operating | $ 72 | $ 70 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Financing | $ 27 | $ 24 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Total | $ 99 | $ 94 |
Long-term portion of lease liabilities: | ||
Operating | $ 347 | $ 343 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Financing | $ 217 | $ 215 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Total | $ 564 | $ 558 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,587 | $ 1,586 |
Other debt | 221 | 139 |
Total Debt | 1,808 | 1,725 |
Less current portion | 44 | 13 |
Long-term debt | 1,764 | 1,712 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,091 | 1,091 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 496 | $ 495 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
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 |
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 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Funds available under revolving credit facility | $ 1,950,000,000 | |
Capitalization ratio, Maximum | 60% | |
Capitalization ratio, Actual | 24.50% | |
Other debt | $ 221,000,000 | $ 139,000,000 |
Outstanding letters of credit under various bilateral letter of credit facilities | 472,000,000 | |
Carrying value of Unsecured Senior Notes | 1,587,000,000 | 1,586,000,000 |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of Unsecured Senior Notes | 1,380,000,000 | $ 1,316,000,000 |
Noncontrolling Interests [Member] | ||
Debt Instrument [Line Items] | ||
Other debt | 34,000,000 | |
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 | 1,800,000,000 | |
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 | $ 50,000,000 | |
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% | |
Borrowings | $ 104,000,000 | |
First payment | $ 10,000,000 | |
Line of credit repayments beginning date | 2022-12 | |
Line of credit repayments ending date | 2032-06 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 26.70% | 13.80% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Feb. 06, 2024 $ / shares shares | Mar. 31, 2024 USD ($) Installment shares | Mar. 31, 2023 USD ($) | |
Restricted Stock and Restricted Stock Units [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 2,571,356 | ||
Restricted stock granted fair value | $ / shares | $ 17.52 | ||
Number of equal annual vesting installments | Installment | 3 | ||
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. | ||
Performance-base restricted stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Description of performance goal | The 2024 PSAs can be earned based on performance against two established goals over a three-year period: | ||
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 1,061,644 | ||
TSR [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of performance shares awarded | 85% | ||
NVA [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of performance shares awarded | 15% | ||
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] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 19 | $ 15 | |
2018 Plan [Member] | Employee Stock Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock options granted | 1,110,478 | ||
Weighted average grant-date fair value of options | $ / shares | $ 7.9 | ||
Restricted stock granted fair value | $ / shares | $ 17.52 | ||
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 | 7,600,000 | ||
Income tax benefit recognized | $ | $ 4 | $ 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, $ in Millions | Mar. 31, 2024 COP ($) | Mar. 31, 2024 KRW (₩) | Mar. 31, 2024 NOK (kr) | Mar. 31, 2024 JPY (¥) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 BRL (R$) | Mar. 31, 2024 MXN ($) | Mar. 31, 2024 EUR (€) | Mar. 31, 2024 SGD ($) | Mar. 31, 2024 ZAR (R) | Mar. 31, 2024 GBP (£) | Mar. 31, 2024 DKK (kr) | Mar. 31, 2024 CAD ($) | Dec. 31, 2023 COP ($) | Dec. 31, 2023 KRW (₩) | Dec. 31, 2023 NOK (kr) | Dec. 31, 2023 JPY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 BRL (R$) | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 ZAR (R) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 DKK (kr) | Dec. 31, 2023 CAD ($) |
Forward Contracts [Member] | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Foreign currency, Cash flow hedging | $ 46,764 | ₩ 26,739 | kr 2,668 | ¥ 1,118 | $ 853 | R$ 291 | $ 168 | € 134 | $ 27 | R 25 | £ 7 | kr 4 | $ 2 | $ 57,487 | ₩ 0 | kr 2,179 | ¥ 1,118 | $ 677 | R$ 291 | $ 157 | € 102 | $ 23 | R 25 | £ 5 | kr 2 | $ 1 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Accumulated other comprehensive loss reclassified into earnings within the next twelve months | $ 3 | |
Gain (loss) recognized in other income (expense), net | $ (3) | $ (5) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 3 | $ 19 |
Liability Derivatives | 18 | 21 |
Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 8 | |
Liability Derivatives | 4 | 3 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 3 | 11 |
Liability Derivatives | 14 | 18 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 4 | 2 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 14 | 17 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 8 | |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 3 | 11 |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 1 | |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 1 |
Net Income Attributable to Co_3
Net Income 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, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income attributable to Company | $ 119 | $ 126 |
Denominator: | ||
Basic—weighted average common shares outstanding | 394 | 392 |
Dilutive effect of employee stock options and other unvested stock awards | 3 | 4 |
Diluted outstanding shares | 397 | 396 |
Basic | $ 0.3 | $ 0.32 |
Diluted | 0.3 | 0.32 |
Cash dividends per share | $ 0.05 | $ 0.05 |
Net Income Attributable to Co_4
Net Income Attributable to Company Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options outstanding | 17 | 16 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends [Abstract] | ||
Cash dividends paid | $ 20 | $ 20 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event [Member] - Common Stock [Member] $ in Billions | Apr. 25, 2024 USD ($) |
Subsequent Event [Line Items] | |
Stock repurchase program period | 36 months |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Share repurchase program authorized amount | $ 1 |