NOV (NOV) 8-K Unaudited Pro Forma Consolidated Financial Statements

Exhibit 99.1

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

The unaudited pro forma consolidated financial statements of National Oilwell Varco, Inc. have been derived from our historical consolidated financial statements and are being presented to give effect to the separation of NOW Inc. into an independent, publicly traded company. Effective with the filing of the National Oilwell Varco, Inc.’s Form 10-Q for the period ending June 30, 2014, NOW Inc. will be reported as a discontinued operation of National Oilwell Varco, Inc. The unaudited pro forma consolidated balance sheet has been prepared as though the separation of NOW Inc. occurred on March 31, 2014. The unaudited pro forma consolidated income statements have been prepared as though the separation of NOW Inc. occurred on January 1, 2011. Pro forma adjustments represent intercompany revenue and intercompany cost of revenue that were previously eliminated, but will be considered third party sales after the separation. Such transactions will continue after the separation. The following unaudited pro forma consolidated financial statements should be read in conjunction with our historical financial statements and accompanying notes.

The unaudited pro forma consolidated financial statements are for illustrative purposes only, and do not reflect what our financial position and results of operations would have been had the separation occurred on the dates indicated and are not necessarily indicative of our future financial position and future results of operations.

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

March 31, 2014

(In millions)

				Separation			Pro Forma
	Historical			of NOW Inc.			Adjustments		Pro Forma
ASSETS
Current assets:
Cash and cash equivalents	$	3,688		$	(175	)	$	—	$	3,513
Receivables, net		5,310			(754	)		—		4,556
Inventories, net		5,659			(839	)		—		4,820
Costs in excess of billings		1,520			—			—		1,520
Deferred income taxes		325			(29	)		—		296
Prepaid and other current assets		709			(29	)		—		680
Total current assets		17,211			(1,826	)		—		15,385
Property, plant and equipment, net		3,437			(104	)		—		3,333
Deferred income taxes		479			(15	)		—		464
Goodwill		8,875			(330	)		—		8,545
Intangibles, net		4,953			(67	)		—		4,886
Investment in unconsolidated affiliates		402			—			—		402
Other assets		123			(1	)		—		122
Total assets	$	35,480		$	(2,343	)	$	—	$	33,137
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,391		$	(313	)	$	—	$	1,078
Accrued liabilities		2,717			(100	)		—		2,617
Billings in excess of costs		2,079			—			—		2,079
Accrued income taxes		484			(7	)		—		477
Deferred income taxes		427			—			—		427
Total current liabilities		7,098			(420	)		—		6,678
Long-term debt		3,149			—			—		3,149
Deferred income taxes		2,088			(17	)		—		2,071
Other liabilities		353			(2	)		—		351
Total liabilities		12,688			(439	)		—		12,249
Commitments and contingencies
Stockholders’ equity:
Common stock—par value $.01; 1 billion shares authorized; 428,852,227 shares issued and outstanding at March 31, 2014		4			—			—		4
Additional paid-in capital		8,933			—			—		8,933
Accumulated other comprehensive income (loss)		(41	)		17			—		(24	)
Retained earnings		13,801			(1,921	)		—		11,880
Total Company stockholders’ equity		22,697			(1,904	)		—		20,793
Noncontrolling interests		95			—			—		95
Total stockholders’ equity		22,792			(1,904	)		—		20,888
Total liabilities and stockholders’ equity	$	35,480		$	(2,343	)	$	—	$	33,137

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

Three Months Ended March 31, 2014

(In millions, except per share data)

				Separation			Pro Forma
	Historical			of NOW Inc.			Adjustments			Pro Forma
Revenue	$	5,777		$	(1,077	)		189	(a)	$	4,889
Cost of revenue		4,381			(971	)		189	(a)		3,599
Gross profit		1,396			(106	)		—			1,290
Selling, general and administrative		535			(44	)		—			491
Operating profit		861			(62	)		—			799
Interest and financial costs		(26	)		—			—			(26	)
Interest income		4			—			—			4
Equity income in unconsolidated affiliates		10			—			—			10
Other income (expense), net		—			—			—			—
Income before income taxes		849			(62	)		—			787
Provision for income taxes		260			(21	)		—			239
Net income		589			(41	)		—			548
Net income (loss) attributable to noncontrolling interests		—			—			—			—
Net income attributable to Company	$	589		$	(41	)	$	—		$	548
Net income attributable to Company per share:
Basic	$	1.38		$	—		$	—		$	1.28
Diluted	$	1.37		$	—		$	—		$	1.28
Cash dividends per share	$	0.26		$	—		$	—		$	0.26
Weighted average shares outstanding:
Basic		428			—			—			428
Diluted		429			—			—			429

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

Three Months Ended March 31, 2013

(In millions, except per share data)

				Separation			Pro Forma
	Historical			of NOW Inc.			Adjustments			Pro Forma
Revenue	$	5,307		$	(1,072	)	$	141	(a)	$	4,376
Cost of revenue		4,043			(975	)		141	(a)		3,209
Gross profit		1,264			(97	)		—			1,167
Selling, general and administrative		513			(39	)		—			474
Operating profit		751			(58	)		—			693
Interest and financial costs		(28	)		—			—			(28	)
Interest income		3			—			—			3
Equity income in unconsolidated affiliates		19			—			—			19
Other income (expense), net		(21	)		(2	)		—			(23	)
Income before income taxes		724			(60	)		—			664
Provision for income taxes		224			(19	)		—			205
Net income		500			(41	)		—			459
Net loss attributable to noncontrolling interests		(2	)		—			—			(2	)
Net income attributable to Company	$	502		$	(41	)	$	—		$	461
Net income attributable to Company per share:
Basic	$	1.18		$	—		$	—		$	1.08
Diluted	$	1.17		$	—		$	—		$	1.08
Cash dividends per share	$	0.13		$	—		$	—		$	0.13
Weighted average shares outstanding:
Basic		426			—			—			426
Diluted		428			—			—			428

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2013

(In millions, except per share data)

				Separation			Pro Forma			8-K
	Historical			of NOW Inc.			Adjustments			Pro Forma
Revenue	$	22,869		$	(4,296	)	$	648	(a)	$	19,221
Cost of revenue		17,380			(3,911	)		648	(a)		14,117
Gross profit		5,489			(385	)		—			5,104
Selling, general and administrative		2,066			(161	)		—			1,905
Operating profit		3,423			(224	)		—			3,199
Interest and financial costs		(111	)		—			—			(111	)
Interest income		12			—			—			12
Equity income in unconsolidated affiliates		63			—			—			63
Other income (expense), net		(41	)		2			—			(39	)
Income before income taxes		3,346			(222	)		—			3,124
Provision for income taxes		1,018			(75	)		—			943
Net income		2,328			(147	)		—			2,181
Net income attributable to noncontrolling interests		1			—			—			1
Net income attributable to Company	$	2,327		$	(147	)	$	—		$	2,180
Net income attributable to Company per share:
Basic	$	5.46		$	—		$	—		$	5.12
Diluted	$	5.44		$	—		$	—		$	5.09
Cash dividends per share	$	0.91		$	—		$	—		$	0.91
Weighted average shares outstanding:
Basic		426			—			—			426
Diluted		428			—			—			428

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2012

(In millions, except per share data)

				Separation			Pro Forma
	Historical			of NOW Inc.			Adjustments			Pro Forma
Revenue	$	20,041		$	(3,414	)	$	567	(a)	$	17,194
Cost of revenue		14,702			(3,118	)		567	(a)		12,151
Gross profit		5,339			(296	)		—			5,043
Selling, general and administrative		1,782			(128	)		—			1,654
Operating profit		3,557			(168	)		—			3,389
Interest and financial costs		(49	)		—			—			(49	)
Interest income		10			—			—			10
Equity income in unconsolidated affiliates		58			—			—			58
Other income (expense), net		(71	)		3			—			(68	)
Income before income taxes		3,505			(165	)		—			3,340
Provision for income taxes		1,022			(57	)		—			965
Net income		2,483			(108	)		—			2,375
Net loss attributable to noncontrolling interests		(8	)		—			—			(8	)
Net income attributable to Company	$	2,491		$	(108	)	$	—		$	2,383
Net income attributable to Company per share:
Basic	$	5.86		$	—		$	—		$	5.61
Diluted	$	5.83		$	—		$	—		$	5.58
Cash dividends per share	$	0.49		$	—		$	—		$	0.49
Weighted average shares outstanding:
Basic		425			—			—			425
Diluted		427			—			—			427

NATIONAL OILWELL VARCO, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2011

(In millions, except per share data)

				Separation			Pro Forma
	Historical			of NOW Inc.			Adjustments			Pro Forma
Revenue	$	14,658		$	(1,641	)	$	458	(a)	$	13,475
Cost of revenue		10,161			(1,440	)		458	(a)		9,179
Gross profit		4,497			(201	)		—			4,296
Selling, general and administrative		1,560			(73	)		—			1,487
Operating profit		2,937			(128	)		—			2,809
Interest and financial costs		(40	)		—			—			(40	)
Interest income		18			—			—			18
Equity income in unconsolidated affiliates		46			—			—			46
Other income (expense), net		(39	)		—			—			(39	)
Income before income taxes		2,922			(128	)		—			2,794
Provision for income taxes		937			(43	)		—			894
Net income		1,985			(85	)		—			1,900
Net loss attributable to noncontrolling interests		(9	)		—			—			(9	)
Net income attributable to Company	$	1,994		$	(85	)	$	—		$	1,909
Net income attributable to Company per share:
Basic	$	4.73		$	—		$	—		$	4.52
Diluted	$	4.70		$	—		$	—		$	4.50
Cash dividends per share	$	0.45		$	—		$	—		$	0.45
Weighted average shares outstanding:
Basic		422			—			—			422
Diluted		424			—			—			424

NATIONAL OILWELL VARCO, INC.

NOTES UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

(a) Pro forma adjustments represent intercompany revenue and intercompany cost of revenue that were previously eliminated, but will be considered third party sales after the separation. Such transactions will continue after the separation.