Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '8-K |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Trading Symbol | 'NOV |
Entity Registrant Name | 'NATIONAL OILWELL VARCO INC |
Entity Central Index Key | '0001021860 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,436 | $3,319 |
Receivables, net | 4,896 | 4,320 |
Inventories, net | 5,603 | 5,891 |
Costs in excess of billings | 1,539 | 1,225 |
Deferred income taxes | 373 | 349 |
Prepaid and other current assets | 576 | 574 |
Total current assets | 16,423 | 15,678 |
Property, plant and equipment, net | 3,408 | 2,945 |
Deferred income taxes | 372 | 413 |
Goodwill | 9,049 | 7,172 |
Intangibles, net | 5,055 | 4,743 |
Investment in unconsolidated affiliates | 390 | 393 |
Other assets | 115 | 140 |
Total assets | 34,812 | 31,484 |
Current liabilities: | ' | ' |
Accounts payable | 1,275 | 1,200 |
Accrued liabilities | 2,763 | 2,571 |
Billings in excess of costs | 1,771 | 1,189 |
Current portion of long-term debt and short-term borrowings | 1 | 1 |
Accrued income taxes | 556 | 355 |
Deferred income taxes | 312 | 333 |
Total current liabilities | 6,678 | 5,649 |
Long-term debt | 3,149 | 3,148 |
Deferred income taxes | 2,292 | 1,997 |
Other liabilities | 363 | 334 |
Total liabilities | 12,482 | 11,128 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock-par value $.01; 1 billion shares authorized; 428,433,703 and 426,928,322 shares issued and outstanding at December 31, 2013 and December 31, 2012 | 4 | 4 |
Additional paid-in capital | 8,907 | 8,743 |
Accumulated other comprehensive income (loss) | -4 | 107 |
Retained earnings | 13,323 | 11,385 |
Total Company stockholders' equity | 22,230 | 20,239 |
Noncontrolling interests | 100 | 117 |
Total stockholders' equity | 22,330 | 20,356 |
Total liabilities and stockholders' equity | $34,812 | $31,484 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 428,433,703 | 426,928,322 |
Common stock, shares outstanding | 428,433,703 | 426,928,322 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue | ' | ' | ' |
Sales | $15,489 | $13,794 | $10,659 |
Services | 3,732 | 3,400 | 2,816 |
Total | 19,221 | 17,194 | 13,475 |
Cost of revenue | ' | ' | ' |
Cost of sales | 11,107 | 9,335 | 7,055 |
Cost of services | 3,010 | 2,816 | 2,124 |
Total | 14,117 | 12,151 | 9,179 |
Gross profit | 5,104 | 5,043 | 4,296 |
Selling, general and administrative | 1,905 | 1,654 | 1,487 |
Operating profit | 3,199 | 3,389 | 2,809 |
Interest and financial costs | -111 | -49 | -40 |
Interest income | 12 | 10 | 18 |
Equity income in unconsolidated affiliates | 63 | 58 | 46 |
Other income (expense), net | -39 | -68 | -39 |
Income from continuing operations before income taxes | 3,124 | 3,340 | 2,794 |
Provision for income taxes | 943 | 965 | 894 |
Income from continuing operations | 2,181 | 2,375 | 1,900 |
Income from discontinued operations | 147 | 108 | 85 |
Net income | 2,328 | 2,483 | 1,985 |
Net income (loss) attributable to noncontrolling interests | 1 | -8 | -9 |
Net income attributable to Company | $2,327 | $2,491 | $1,994 |
Basic: | ' | ' | ' |
Income from continuing operations | $5.11 | $5.61 | $4.52 |
Income from discontinued operations | $0.35 | $0.25 | $0.21 |
Net income attributable to Company | $5.46 | $5.86 | $4.73 |
Diluted: | ' | ' | ' |
Income from continuing operations | $5.09 | $5.58 | $4.50 |
Income from discontinued operations | $0.35 | $0.25 | $0.20 |
Net income attributable to Company | $5.44 | $5.83 | $4.70 |
Cash dividends per share | $0.91 | $0.49 | $0.45 |
Weighted average shares outstanding: | ' | ' | ' |
Basic | 426 | 425 | 422 |
Diluted | 428 | 427 | 424 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $2,328 | $2,483 | $1,985 |
Other comprehensive income (loss) (net of tax): | ' | ' | ' |
Currency translation adjustments | -115 | 64 | -65 |
Derivative financial instruments | -37 | 99 | -63 |
Change in defined benefit plans | 41 | -33 | 14 |
Comprehensive income | 2,217 | 2,613 | 1,871 |
Net income (loss) attributable to noncontrolling interests | 1 | -8 | -9 |
Comprehensive income attributable to Company | $2,216 | $2,621 | $1,880 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Income from continuing operations | $2,181 | $2,375 | $1,900 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 738 | 616 | 549 |
Deferred income taxes | -336 | -90 | -341 |
Stock-based compensation | 92 | 80 | 73 |
Excess tax benefit from stock-based compensation | -20 | -25 | -22 |
Equity income in unconsolidated affiliates | -63 | -58 | -46 |
Dividend from unconsolidated affiliates | 66 | 61 | 45 |
Other | 72 | 77 | 65 |
Change in operating assets and liabilities, net of acquisitions: | ' | ' | ' |
Receivables | -516 | -492 | -630 |
Inventories | 238 | -974 | -555 |
Costs in excess of billings | -314 | -632 | 222 |
Prepaid and other current assets | 41 | -221 | -42 |
Accounts payable | 18 | 40 | 183 |
Billings in excess of costs | 582 | 324 | 354 |
Income taxes payable | 217 | -408 | 283 |
Other assets/liabilities, net | 84 | -41 | 108 |
Net cash provided by continuing operating activities | 3,080 | 632 | 2,146 |
Discontinued operations | 317 | -12 | -3 |
Net cash provided by operating activities | 3,397 | 620 | 2,143 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property, plant and equipment | -614 | -569 | -479 |
Business acquisitions, net of cash acquired | -2,397 | -1,767 | -1,008 |
Dividend from unconsolidated affiliate | ' | ' | 13 |
Other, net | 101 | 35 | 50 |
Net cash used in continuing investing activities | -2,910 | -2,301 | -1,424 |
Discontinued operations | -54 | -1,127 | -34 |
Net cash used in investing activities | -2,964 | -3,428 | -1,458 |
Cash flows from financing activities: | ' | ' | ' |
Borrowings against lines of credit and other debt | 2,609 | 5,575 | ' |
Payments against lines of credit and other debt | -2,609 | -2,937 | -390 |
Cash dividends paid | -389 | -209 | -191 |
Proceeds from stock options exercised | 58 | 113 | 96 |
Excess tax benefit from stock-based compensation | 20 | 25 | 22 |
Other | 7 | 17 | ' |
Net cash provided by (used in) continuing financing activities | -304 | 2,584 | -463 |
Discontinued operations | -1 | -1 | -1 |
Net cash provided by (used in) financing activities | -305 | 2,583 | -464 |
Effect of exchange rates on cash | -11 | 9 | -19 |
Increase (decrease) in cash and cash equivalents | 117 | -216 | 202 |
Cash and cash equivalents, beginning of period | 3,319 | 3,535 | 3,333 |
Cash and cash equivalents, end of period | 3,436 | 3,319 | 3,535 |
Cash payments during the period for: | ' | ' | ' |
Interest | 111 | 40 | 44 |
Income taxes | $1,099 | $1,572 | $945 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total Company Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
In Millions | |||||||
Beginning Balance at Dec. 31, 2010 | $15,862 | $4 | $8,353 | $91 | $7,300 | $15,748 | $114 |
Beginning Balance, shares at Dec. 31, 2010 | ' | 421 | ' | ' | ' | ' | ' |
Net income attributable to Company | 1,985 | ' | ' | ' | 1,994 | 1,994 | -9 |
Other comprehensive income, net | -114 | ' | ' | -114 | ' | -114 | ' |
Cash dividends, per common share | -191 | ' | ' | ' | -191 | -191 | ' |
Dividends to noncontrolling interests | -17 | ' | ' | ' | ' | ' | -17 |
Noncontrolling interest contribution | 21 | ' | ' | ' | ' | ' | 21 |
Stock-based compensation | 73 | ' | 73 | ' | ' | 73 | ' |
Common stock issued | 96 | ' | 96 | ' | ' | 96 | ' |
Common stock issued, shares | ' | 3 | ' | ' | ' | ' | ' |
Withholding taxes | -9 | ' | -9 | ' | ' | -9 | ' |
Excess tax benefit from stock-based compensation | 22 | ' | 22 | ' | ' | 22 | ' |
Ending Balance at Dec. 31, 2011 | 17,728 | 4 | 8,535 | -23 | 9,103 | 17,619 | 109 |
Ending Balance, shares at Dec. 31, 2011 | ' | 424 | ' | ' | ' | ' | ' |
Net income attributable to Company | 2,483 | ' | ' | ' | 2,491 | 2,491 | -8 |
Other comprehensive income, net | 130 | ' | ' | 130 | ' | 130 | ' |
Cash dividends, per common share | -209 | ' | ' | ' | -209 | -209 | ' |
Dividends to noncontrolling interests | -4 | ' | ' | ' | ' | ' | -4 |
Noncontrolling interest contribution | 20 | ' | ' | ' | ' | ' | 20 |
Stock-based compensation | 80 | ' | 80 | ' | ' | 80 | ' |
Common stock issued | 113 | ' | 113 | ' | ' | 113 | ' |
Common stock issued, shares | ' | 3 | ' | ' | ' | ' | ' |
Withholding taxes | -10 | ' | -10 | ' | ' | -10 | ' |
Excess tax benefit from stock-based compensation | 25 | ' | 25 | ' | ' | 25 | ' |
Ending Balance at Dec. 31, 2012 | 20,356 | 4 | 8,743 | 107 | 11,385 | 20,239 | 117 |
Ending Balance, shares at Dec. 31, 2012 | ' | 427 | ' | ' | ' | ' | ' |
Net income attributable to Company | 2,328 | ' | ' | ' | 2,327 | 2,327 | 1 |
Other comprehensive income, net | -111 | ' | ' | -111 | ' | -111 | ' |
Cash dividends, per common share | -389 | ' | ' | ' | -389 | -389 | ' |
Dividends to noncontrolling interests | -3 | ' | ' | ' | ' | ' | -3 |
Noncontrolling interest contribution | 10 | ' | ' | ' | ' | ' | 10 |
Disposal of noncontrolling interest, net | -25 | ' | ' | ' | ' | ' | -25 |
Stock-based compensation | 92 | ' | 92 | ' | ' | 92 | ' |
Common stock issued | 58 | ' | 58 | ' | ' | 58 | ' |
Common stock issued, shares | ' | 1 | ' | ' | ' | ' | ' |
Withholding taxes | -6 | ' | -6 | ' | ' | -6 | ' |
Excess tax benefit from stock-based compensation | 20 | ' | 20 | ' | ' | 20 | ' |
Ending Balance at Dec. 31, 2013 | $22,330 | $4 | $8,907 | ($4) | $13,323 | $22,230 | $100 |
Ending Balance, shares at Dec. 31, 2013 | ' | 428 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (Retained Earnings [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retained Earnings [Member] | ' | ' | ' |
Cash dividends, per common share | $0.91 | $0.49 | $0.45 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Nature of Business | |
We design, construct, manufacture and sell comprehensive systems, components, and products used in oil and gas drilling and production, provide oilfield services and supplies, and distribute products and provide supply chain integration services to the upstream oil and gas industry. Our revenues and operating results are directly related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies, drilling contractors and oilfield service companies, which in turn are affected by current and anticipated prices of oil and gas. Oil and gas prices have been, and are likely to continue to be, volatile. | |
Basis of Consolidation | |
The accompanying Consolidated Financial Statements include the accounts of National Oilwell Varco, Inc. and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Investments that are not wholly-owned, but where we exercise control, are fully consolidated with the equity held by minority owners and their portion of net income (loss) reflected as noncontrolling interests in the accompanying consolidated financial statements. Investments in unconsolidated affiliates, over which we exercise significant influence, but not control, are accounted for by the equity method. | |
On May 30, 2014, the Company completed the spin-off of its distribution business into an independent public company named NOW Inc. In conjunction with the spin-off of NOW Inc. the Company reviewed its reporting and management structure, and effective April 1, 2014, reorganized the Rig Technology, Petroleum Services & Supplies and remaining operations of Distribution & Transmission reporting segments into four new reporting segments. The new reporting segments are Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. | |
As a result of these changes, the Consolidated Financial Statements have been revised to reflect the spin-off of NOW Inc. as discontinued operations. In addition, Note 1, Note 2, Note 4, Note 12 and Note 15 to the Consolidated Financial Statements have been revised to reflect the spin-off off of NOW Inc., as discontinued operations and to recast the financial information to reflect the new reporting segments. Note 14, Note 16 and Note 17 have been revised to reflect the spin-off of NOW Inc., only. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. | |||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging” (“ASC Topic 815”) requires companies to recognize all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. | |||||||||||||||||||||||||
The Company records all derivative financial instruments at their fair value in its Consolidated Balance Sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments that the Company holds are designated as cash flow hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. | |||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventories consist of raw materials, work-in-process and oilfield and industrial finished products, manufactured equipment and spare parts. Inventories are stated at the lower of cost or market using the first-in, first-out or average cost methods. Allowances for excess and obsolete inventories are determined based on our historical usage of inventory on-hand as well as our future expectations related to our installed base and the development of new products. The allowance, which totaled $396 million and $338 million at December 31, 2013 and 2012, respectively, is the amount necessary to reduce the cost of the inventory to its net realizable value. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $381 million, $315 million and $275 million for the years ended December 31, 2013, 2012 and 2011, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 6 to the consolidated financial statements. | |||||||||||||||||||||||||
Long-lived Assets | |||||||||||||||||||||||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying value of assets used in operations that are not recoverable is reduced to fair value if lower than carrying value. In determining the fair market value of the assets, we consider market trends and recent transactions involving sales of similar assets, or when not available, discounted cash flow analysis. There have been no impairments of long-lived assets for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
The Company has approximately $9.0 billion of goodwill and $5.1 billion of identified intangible assets at December 31, 2013. Generally accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that such assets might be impaired. | |||||||||||||||||||||||||
Goodwill is identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Systems | Aftermarket | Technologies | & Production | Operations | |||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 943 | $ | 556 | $ | 3,683 | $ | 917 | $ | 52 | $ | 6,151 | |||||||||||||
Goodwill acquired during period | 145 | 89 | 80 | 395 | 291 | 1,000 | |||||||||||||||||||
Currency translation adjustments and other | 9 | 4 | 6 | 2 | — | 21 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 1,097 | $ | 649 | $ | 3,769 | $ | 1,314 | $ | 343 | $ | 7,172 | |||||||||||||
Goodwill acquired during the period | 179 | 256 | 665 | 803 | — | 1,903 | |||||||||||||||||||
Currency translation adjustments and other | 3 | 1 | (9 | ) | (11 | ) | (10 | ) | (26 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 1,279 | $ | 906 | $ | 4,425 | $ | 2,106 | $ | 333 | $ | 9,049 | |||||||||||||
Identified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical drawings acquired in acquisitions, and are being amortized on a straight-line basis over the estimated useful lives of 2-30 years. Amortization expense of identified intangibles is expected to be approximately $360 million in each of the next five years. Included in intangible assets are approximately $643 million of indefinite-lived trade names. | |||||||||||||||||||||||||
The net book values of identified intangible assets are identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig Systems | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Aftermarket | Technologies | & | Operations | ||||||||||||||||||||||
Production | |||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 56 | $ | 92 | $ | 3,134 | $ | 771 | $ | 20 | $ | 4,073 | |||||||||||||
Additions to intangible assets | 18 | — | 8 | 897 | 58 | 981 | |||||||||||||||||||
Amortization | (14 | ) | (3 | ) | (203 | ) | (81 | ) | (4 | ) | (305 | ) | |||||||||||||
Currency translation adjustments and other | 2 | — | 3 | (11 | ) | — | (6 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 62 | $ | 89 | $ | 2,942 | $ | 1,576 | $ | 74 | $ | 4,743 | |||||||||||||
Additions to intangible assets | 190 | 59 | 286 | 161 | — | 696 | |||||||||||||||||||
Amortization | (21 | ) | (6 | ) | (217 | ) | (113 | ) | (6 | ) | (363 | ) | |||||||||||||
Currency translation adjustments and other | 1 | — | (12 | ) | (10 | ) | — | (21 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 232 | $ | 142 | $ | 2,999 | $ | 1,614 | $ | 68 | $ | 5,055 | |||||||||||||
Identified intangible assets by major classification consist of the following (in millions): | |||||||||||||||||||||||||
Gross | Accumulated | Net Book | |||||||||||||||||||||||
Amortization | Value | ||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Customer relationships | $ | 3,522 | $ | (907 | ) | $ | 2,615 | ||||||||||||||||||
Trademarks | 877 | (152 | ) | 725 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,087 | (327 | ) | 760 | |||||||||||||||||||||
Total identified intangibles | $ | 6,129 | $ | (1,386 | ) | $ | 4,743 | ||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Customer relationships | $ | 4,093 | $ | (1,147 | ) | $ | 2,946 | ||||||||||||||||||
Trademarks | 893 | (195 | ) | 698 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,175 | (407 | ) | 768 | |||||||||||||||||||||
Total identified intangibles | $ | 6,804 | $ | (1,749 | ) | $ | 5,055 | ||||||||||||||||||
The Company performed its annual impairment analysis for its goodwill and indefinite-lived intangible assets during the fourth quarter of 2013, 2012 and 2011 each resulting in no impairment. The valuation techniques used in the annual test were consistent with those used during previous testing. The inputs used in the annual test were updated for current market conditions and forecasts. | |||||||||||||||||||||||||
Foreign Currency | |||||||||||||||||||||||||
The functional currency for most of our foreign operations is the local currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the U.S. dollar at current exchange rates are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates in effect during the period. Certain other foreign operations, including our operations in Norway, use the U.S. dollar as the functional currency. Accordingly, financial statements of these foreign subsidiaries are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets and related elements of expense. Revenue and expense elements are remeasured at rates that approximate the rates in effect on the transaction dates. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income. Net foreign currency transaction losses were $24 million, $18 million and $10 million for the years ending December 31, 2013, 2012 and 2011, respectively, and are included in other income (expense) in the accompanying statement of operations. | |||||||||||||||||||||||||
Historically, the Venezuelan government has devalued the country’s currency. During the first quarter of 2013, the Venezuelan government again officially devalued the Venezuelan bolivar against the U.S. dollar. As a result, the Company incurred approximately $12 million in devaluation charges in the first quarter of 2013. The Company’s net investment in Venezuela was $39 million at December 31, 2013. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
The Company’s products and services are sold based upon purchase orders or contracts with the customer that include fixed or determinable prices and that do not generally include right of return or other similar provisions or other significant post delivery obligations. Except for certain construction contracts and drill pipe sales described below, the Company records revenue at the time its manufacturing process is complete, the customer has been provided with all proper inspection and other required documentation, title and risk of loss has passed to the customer, collectability is reasonably assured and the product has been delivered. Customer advances or deposits are deferred and recognized as revenue when the Company has completed all of its performance obligations related to the sale. The Company also recognizes revenue as services are performed. The amounts billed for shipping and handling cost are included in revenue and related costs are included in cost of sales. | |||||||||||||||||||||||||
Revenue Recognition under Long-term Construction Contracts | |||||||||||||||||||||||||
The Company uses the percentage-of-completion method to account for certain long-term construction contracts in the Rig Systems and Completion & Production Solutions segments. These long-term construction contracts include the following characteristics: | |||||||||||||||||||||||||
• | the contracts include custom designs for customer specific applications; | ||||||||||||||||||||||||
• | the structural design is unique and requires significant engineering efforts; and | ||||||||||||||||||||||||
• | construction projects often have progress payments. | ||||||||||||||||||||||||
This method requires the Company to make estimates regarding the total costs of the project, progress against the project schedule and the estimated completion date, all of which impact the amount of revenue and gross margin the Company recognizes in each reporting period. The Company prepares detailed cost estimates at the beginning of each project. Significant projects and their related costs and profit margins are updated and reviewed at least quarterly by senior management. Factors that may affect future project costs and margins include shipyard access, weather, production efficiencies, availability and costs of labor, materials and subcomponents and other factors. These factors can impact the accuracy of the Company’s estimates and materially impact the Company’s current and future reported earnings. | |||||||||||||||||||||||||
The asset, “Costs in excess of billings,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs,” represents billings in excess of revenues recognized. | |||||||||||||||||||||||||
Drill Pipe Sales | |||||||||||||||||||||||||
For drill pipe sales, if requested in writing by the customer, delivery may be satisfied through delivery to the Company’s customer storage location or to a third-party storage facility. For sales transactions where title and risk of loss have transferred to the customer but the supporting documentation does not meet the criteria for revenue recognition prior to the products being in the physical possession of the customer, the recognition of the revenues and related inventory costs from these transactions are deferred until the customer takes physical possession. | |||||||||||||||||||||||||
Service and Product Warranties | |||||||||||||||||||||||||
The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with ASC Topic 450 “Contingencies” (“ASC Topic 450”). Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. The Company monitors the actual cost of performing these discretionary services and adjusts the accrual based on the most current information available. | |||||||||||||||||||||||||
The changes in the carrying amount of service and product warranties are as follows (in millions): | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 211 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 51 | ||||||||||||||||||||||||
Amounts incurred | (76 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 8 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 194 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 101 | ||||||||||||||||||||||||
Amounts incurred | (73 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 6 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 228 | |||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. | |||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||
We grant credit to our customers, which operate primarily in the oil and gas industry. Concentrations of credit risk are limited because we have a large number of geographically diverse customers, thus spreading trade credit risk. We control credit risk through credit evaluations, credit limits and monitoring procedures. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral, but may require letters of credit for certain international sales. Credit losses are provided for in the financial statements. Allowances for doubtful accounts are determined based on a continuous process of assessing the Company’s portfolio on an individual customer basis taking into account current market conditions and trends. This process consists of a thorough review of historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. Based on a review of these factors, the Company will establish or adjust allowances for specific customers. Accounts receivable are net of allowances for doubtful accounts of approximately $132 million and $120 million at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by ASC Topic 718 “Compensation – Stock Compensation” (“ASC Topic 718”). Under this guidance the fair value of stock option grants and restricted stock is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. | |||||||||||||||||||||||||
The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans. | |||||||||||||||||||||||||
Total compensation cost that has been charged against income for all share-based compensation arrangements was $86 million, $74 million and $68 million for 2013, 2012 and 2011, respectively. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $26 million, $22 million and $15 million for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Environmental Liabilities | |||||||||||||||||||||||||
When environmental assessments or remediations are probable and the costs can be reasonably estimated, remediation liabilities are recorded on an undiscounted basis and are adjusted as further information develops or circumstances change. | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates include but are not limited to, estimated losses on accounts receivable, estimated costs and related margins of projects accounted for under percentage-of-completion, estimated realizable value on excess and obsolete inventory, contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||
The Company accrues for costs relating to litigation claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and reasonably estimable. In circumstances where the most likely outcome of a contingency can be reasonably estimated, we accrue a liability for that amount. Where the most likely outcome cannot be estimated, a range of potential losses is established and if no one amount in that range is more likely than others, the low end of the range is accrued. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous judgments with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. | |||||||||||||||||||||||||
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): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||
Income from continuing operations | $ | 2,180 | $ | 2,383 | $ | 1,909 | |||||||||||||||||||
Income from discontinued operations | $ | 147 | $ | 108 | $ | 85 | |||||||||||||||||||
Net income attributable to Company | $ | 2,327 | $ | 2,491 | $ | 1,994 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Basic—weighted average common shares outstanding | 426 | 425 | 422 | ||||||||||||||||||||||
Dilutive effect of employee stock options and other unvested stock awards | 2 | 2 | 2 | ||||||||||||||||||||||
Diluted outstanding shares | 428 | 427 | 424 | ||||||||||||||||||||||
Per share data: | |||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.11 | $ | 5.61 | $ | 4.52 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.21 | |||||||||||||||||||
Net income attributable to Company | $ | 5.46 | $ | 5.86 | $ | 4.73 | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.09 | $ | 5.58 | $ | 4.5 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.2 | |||||||||||||||||||
Net income attributable to Company | $ | 5.44 | $ | 5.83 | $ | 4.7 | |||||||||||||||||||
Cash dividends per share | $ | 0.91 | $ | 0.49 | $ | 0.45 | |||||||||||||||||||
ASC Topic 260, “Earnings Per Share” (“ASC Topic 260”) requires companies with unvested participating securities 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 Company allocated to these participating securities was immaterial for the years ended December 31, 2013, 2012 and 2011 and therefore not excluded from net income attributable to Company per share calculation. | |||||||||||||||||||||||||
The Company had stock options outstanding that were anti-dilutive totaling 7 million, 5 million, and 3 million at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” (ASU No. 2013-02), which is an update for Accounting Standards Codification Topic No. 220 “Comprehensive Income”. The update improves the reporting of reclassifications out of accumulated other comprehensive income. The guidance was effective for the Company’s interim and annual reporting periods beginning January 1, 2013, and applied prospectively. There was no significant impact to the Company’s Consolidated Financial Statements from the adopted provisions of ASU No. 2013-02. | |||||||||||||||||||||||||
In March 2013, the FASB issued Accounting Standards Update No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force).” (ASU No. 2013-05), which amends Accounting Standards Codification Topic No. 830, “Foreign Currency Matters,” and Accounting Standards Codification Topic No. 810, “Consolidation,” to address diversity in practice related to the release of cumulative translation adjustments (“CTA”) into earnings upon the occurrence of certain derecognition events. ASU No. 2013-05 precludes the release of CTA for derecognition events that occur within a foreign entity, unless such events represent a complete or substantially complete liquidation of the foreign entity; however, derecognition events related to investments in a foreign entity result in the release of all CTA related to the derecognized foreign entity, even when a noncontrolling financial interest is retained. ASU No. 2013-05 also amends Accounting Standards Codification Topic No. 805, “Business Combinations,” for transactions that result in a company obtaining control of a business in a step acquisition by increasing an investment in a foreign entity from one accounted for under the equity method to one accounted for as a consolidated investment. ASU No. 2013-05 is effective for fiscal years beginning after December 15, 2013, and applied prospectively. Early adoption is permitted as of the beginning of the entity’s fiscal year. The Company is currently assessing the impact ASU No. 2013-05 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||
3. Derivative Financial Instruments | |||||||||||||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency exchange rate risk. Forward contracts against various foreign currencies are entered into 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). Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge). In addition, the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). | |||||||||||||||||||||||||||||
At December 31, 2013, the Company has determined that the fair value of its derivative financial instruments representing assets of $59 million and liabilities of $40 million (primarily currency related derivatives) 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. At December 31, 2013, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $19 million. | |||||||||||||||||||||||||||||
At December 31, 2013, the Company’s financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when the Company’s financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
Cash Flow Hedging Strategy | |||||||||||||||||||||||||||||
To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign currencies, the decrease in present value of future foreign currency revenues and expenses is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. | |||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of Other Comprehensive Income 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 remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), or hedge components excluded from the assessment of effectiveness, is recognized in the Consolidated Statements of Income during the current period. | |||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and expenses (in millions): | |||||||||||||||||||||||||||||
Currency Denomination | |||||||||||||||||||||||||||||
Foreign Currency | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Norwegian Krone | NOK | 10,503 | NOK | 6,281 | |||||||||||||||||||||||||
Euro | € | 406 | € | 389 | |||||||||||||||||||||||||
U.S. Dollar | $ | 357 | $ | 357 | |||||||||||||||||||||||||
Danish Krone | DKK | 278 | DKK | 134 | |||||||||||||||||||||||||
British Pound Sterling | £ | 23 | £ | 6 | |||||||||||||||||||||||||
Singapore Dollar | SGD | 17 | SGD | 14 | |||||||||||||||||||||||||
Canadian Dollar | CAD | 16 | CAD | — | |||||||||||||||||||||||||
Non-designated Hedging Strategy | |||||||||||||||||||||||||||||
The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar equivalent cash flows from the nonfunctional currency monetary accounts will be adversely affected by changes in the exchange rates. | |||||||||||||||||||||||||||||
For derivative instruments that are non-designated, the gain or loss on the derivative instrument subject to the hedged risk (i.e., nonfunctional currency monetary accounts) is recognized in other income (expense), net in current earnings. | |||||||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts (in millions): | |||||||||||||||||||||||||||||
Currency Denomination | |||||||||||||||||||||||||||||
Foreign Currency | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Norwegian Krone | NOK | 3,257 | NOK | 1,684 | |||||||||||||||||||||||||
Russian Ruble | RUB | 2,149 | RUB | 1,467 | |||||||||||||||||||||||||
U.S. Dollar | $ | 715 | $ | 967 | |||||||||||||||||||||||||
Euro | € | 310 | € | 225 | |||||||||||||||||||||||||
Danish Krone | DKK | 177 | DKK | 177 | |||||||||||||||||||||||||
British Pound Sterling | £ | 14 | £ | 9 | |||||||||||||||||||||||||
Swedish Krone | SEK | 4 | SEK | 5 | |||||||||||||||||||||||||
Singapore Dollar | SGD | 3 | SGD | 24 | |||||||||||||||||||||||||
Canadian Dollar | CAD | 3 | CAD | 2 | |||||||||||||||||||||||||
Brazilian Real | BRL | — | BRL | 135 | |||||||||||||||||||||||||
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 | December 31, | Balance Sheet | December 31, | ||||||||||||||||||||||||||
Location | 2013 | 2012 | Location | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC Topic 815 | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid and other current assets | $ | 35 | $ | 57 | Accrued liabilities | $ | 18 | $ | 5 | |||||||||||||||||||
Foreign exchange contracts | Other Assets | 5 | 24 | Other Liabilities | 9 | 1 | |||||||||||||||||||||||
Total derivatives designated as hedging instruments under ASC Topic 815 | $ | 40 | $ | 81 | $ | 27 | $ | 6 | |||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC Topic 815 | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid and other current assets | $ | 19 | $ | 24 | Accrued liabilities | $ | 13 | $ | 13 | |||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC Topic 815 | $ | 19 | $ | 24 | $ | 13 | $ | 13 | |||||||||||||||||||||
Total derivatives | $ | 59 | $ | 105 | $ | 40 | $ | 19 | |||||||||||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income | |||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||
Derivatives Designated as | Amount of Gain (Loss) | Location of Gain (Loss) | Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Hedging Instruments under | Recognized in OCI on | Reclassified from | Reclassified from | (Loss) Recognized in | Recognized in Income on | ||||||||||||||||||||||||
ASC Topic 815 | Derivatives (Effective | Accumulated OCI into | Accumulated OCI into | Income on | Derivatives (Ineffective | ||||||||||||||||||||||||
Portion) (a) | Income (Effective | Income (Effective | Derivatives (Ineffective | Portion and Amount | |||||||||||||||||||||||||
Portion) | Portion) | Portion and Amount | Excluded from | ||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) (b) | ||||||||||||||||||||||||||||
Effectiveness Testing) | |||||||||||||||||||||||||||||
Years Ended | Years Ended | Years Ended | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Revenue | 16 | (6 | ) | ||||||||||||||||||||||||||
Foreign exchange contracts | (42 | ) | 105 | Cost of revenue | (6 | ) | (26 | ) | Other income (expense), net | 12 | 8 | ||||||||||||||||||
Total | (42 | ) | 105 | 10 | (32 | ) | 12 | 8 | |||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||||
Hedging Instruments under | Recognized in Income | Recognized in Income on | |||||||||||||||||||||||||||
ASC Topic 815 | on Derivatives | Derivatives | |||||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | 18 | 19 | ||||||||||||||||||||||||||
Total | 18 | 19 | |||||||||||||||||||||||||||
(a) | The Company expects that $(16) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow. | ||||||||||||||||||||||||||||
(b) | The amount of gain (loss) recognized in income represents nil related to the ineffective portion of the hedging relationships for the each of the years ended December 31, 2013 and 2012, and $12 million and $8 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2013 and 2012, respectively. |
Acquisitions_and_Investments
Acquisitions and Investments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Acquisitions and Investments | ' | ||||||||||||
4. Acquisitions and Investments | |||||||||||||
2013 | |||||||||||||
On February 20, 2013, the Company completed its acquisition of all of the shares of Robbins & Myers, Inc. (“R&M”), a U.S.-based designer and manufacturer of products and systems for the oil and gas industry. Under the merger agreement for this transaction, R&M shareholders received $60.00 in cash for each common share for an aggregate purchase price of $2,378 million, net of cash acquired. In addition to R&M, the Company completed five acquisitions and other investments for an aggregate purchase price of $19 million, net of cash acquired. | |||||||||||||
The Company has included the financial results of R&M in its consolidated financial statements as of the date of acquisition with components of the R&M operations included in each of the Company’s segments. The Company believes the acquisition of R&M will advance its strategic goal of providing a broader selection of products and services to its customers. | |||||||||||||
The following table displays the total preliminary purchase price allocation for the R&M acquisition. The table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
Current assets, net of cash acquired | $ | 428 | |||||||||||
Property, plant and equipment | 250 | ||||||||||||
Intangible assets | 894 | ||||||||||||
Goodwill | 1,590 | ||||||||||||
Other assets | 49 | ||||||||||||
Total assets acquired | 3,211 | ||||||||||||
Current liabilities | 186 | ||||||||||||
Deferred taxes | 524 | ||||||||||||
Other liabilities | 123 | ||||||||||||
Total liabilities | 833 | ||||||||||||
Cash consideration, net of cash acquired | $ | 2,378 | |||||||||||
The Company has allocated $894 million to identifiable intangible assets (19 year weighted-average life). The intangible assets are amortizable and are comprised of: $635 million of customer relationships (18 year weighted-average life), $170 million of patents (20 year weighted-average life), $86 million of trademarks (20 year weighted-average life), and $3 million of other intangible assets (1 year weighted-average life). The amount allocated to goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill specifically includes the expected synergies and other benefits that the Company believes will result from combining its operations with those of businesses acquired and other intangible assets that do not qualify for separate recognition, such as assembled workforce in place at the date of acquisition. Goodwill resulting from the R&M acquisition is not deductible for tax purposes. Pro forma information is not included because the results of the acquired operations would not have materially impacted the Company’s consolidated operating results. | |||||||||||||
2012 | |||||||||||||
In the year ended December 31, 2012, the Company completed 17 acquisitions for an aggregate purchase price of $2,880 million, net of cash acquired. These acquisitions included: | |||||||||||||
• | All the shares of NKT Flexibles I/S (“NKT”), a Denmark-based designer and manufacturer of flexible pipe products and systems for the offshore oil and gas industry, acquired on April 4, 2012. The Company reported the NKT results within its Completion & Production Solutions segment from the date of acquisition. | ||||||||||||
• | All the shares of Enerflow Industries Inc. (U.S.) and certain assets of Enerflow Industries Inc. (Canada) (“Enerflow”), a Canada-based fabricator and manufacturer of pressure pumping, blending, and cementing equipment for use primarily in Canada and the U.S., acquired on May 16, 2012. The Company reported the Enerflow results within its Completion & Production Solutions segment from the date of acquisition. | ||||||||||||
• | All the shares of Wilson Distribution Holdings (“Wilson”), a U.S.-based distributor of pipe, valves and fittings as well as mill, tool and safety products and services, acquired on May 31, 2012. The Company reported the Wilson results within its discontinued operations from the date of acquisition. | ||||||||||||
• | All the shares of CE Franklin Ltd. (“CE Franklin”), a Canada-based distributor of pipe, valves, flanges, fittings, production equipment, tubular products and other general oilfield supplies to oil and gas producers in Canada as well as to the oil sands, refining, heavy oil, petrochemical, forestry and mining industries, acquired on July 19, 2012. The Company reported the CE Franklin results within its discontinued operations from the date of acquisition. | ||||||||||||
• | All the shares of Fiberspar Corporation (“Fiberspar”), a U.S.-based manufacturer of fiberglass-reinforced spoolable pipe for the oil and gas industry, acquired on October 10, 2012. The Company reported the Fiberspar results within its Wellbore Technologies segment from the date of acquisition. | ||||||||||||
The following table displays the total purchase price allocation for the 2012 acquisitions and summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
Total | |||||||||||||
Current assets, net of cash acquired | $ | 1,441 | |||||||||||
Property, plant and equipment | 248 | ||||||||||||
Intangible assets | 981 | ||||||||||||
Goodwill | 1,000 | ||||||||||||
Other assets | 2 | ||||||||||||
Total assets acquired | 3,672 | ||||||||||||
Current liabilities | 585 | ||||||||||||
Long-term debt | 1 | ||||||||||||
Other liabilities | 206 | ||||||||||||
Total liabilities | 792 | ||||||||||||
Cash consideration, net of cash acquired | $ | 2,880 | |||||||||||
The Company allocated $981 million to intangible assets (18 year weighted-average life). The intangible assets are amortizable and are comprised of: $473 million of customer relationships (20 year weighted-average life), $159 million of trademarks (16 year weighted-average life), and $348 million of other intangible assets (17 year weighted-average life). Goodwill specifically includes the expected synergies and other benefits that the Company believes will result from combining its operations with those of businesses acquired and other intangible assets that do not qualify for separate recognition, such as assembled workforce in place at the date of each acquisition. The $1,000 million allocated to goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill resulting from the NKT and CE Franklin acquisitions and a portion of the Enerflow acquisition is not deductible for tax purposes. Pro forma information is not included because the results of the acquired operations would not have materially impacted the Company’s consolidated operating results. | |||||||||||||
2011 | |||||||||||||
The Company completed nine acquisitions for an aggregate purchase price of $1,038 million, net of cash acquired. These acquisitions included: | |||||||||||||
• | The shares of Ameron International Corporation (“Ameron”), a U.S.-based manufacturer of highly engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets. | ||||||||||||
• | The shares of Conner Steel Products Holding Company, a U.S.-based manufacturer of storage and handling equipment for the oilfield services industry. | ||||||||||||
The following table displays the total purchase price allocation for the 2011 acquisitions and summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
All Other | |||||||||||||
Ameron | Acquisitions | Total | |||||||||||
Current assets, net of cash acquired | $ | 245 | $ | 106 | $ | 351 | |||||||
Property, plant and equipment | 402 | 41 | 443 | ||||||||||
Intangible assets | 142 | 131 | 273 | ||||||||||
Goodwill | 199 | 178 | 377 | ||||||||||
Other assets | 59 | 14 | 73 | ||||||||||
Total assets acquired | 1,047 | 470 | 1,517 | ||||||||||
Current liabilities | 154 | 80 | 234 | ||||||||||
Long-term debt | 16 | — | 16 | ||||||||||
Other liabilities | 173 | 56 | 229 | ||||||||||
Total liabilities | 343 | 136 | 479 | ||||||||||
Cash consideration, net of cash acquired | $ | 704 | $ | 334 | $ | 1,038 | |||||||
The Company allocated $273 million to intangible assets (16 year weighted-average life), comprised of: $119 million of customer relationships (14 year weighted-average life), $39 million of trademarks (35 year weighted-average life), and $115 million of other intangible assets (12 year weighted-average life). | |||||||||||||
Each of the acquisitions was accounted for using the purchase method of accounting and, accordingly, the results of operations of each business are included in the consolidated results of operations from the date of acquisition. A summary of the acquisitions follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of assets acquired, net of cash acquired | $ | 3,329 | $ | 3,672 | $ | 1,517 | |||||||
Cash paid, net of cash acquired | (2,397 | ) | (2,880 | ) | (1,038 | ) | |||||||
Liabilities assumed, debt issued and noncontrolling interest | $ | 932 | $ | 792 | $ | 479 | |||||||
Excess purchase price over fair value of net assets acquired | $ | 1,903 | $ | 1,000 | $ | 377 | |||||||
Inventories_net
Inventories, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories, net | ' | ||||||||
5. Inventories, net | |||||||||
Inventories consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials and supplies | $ | 1,175 | $ | 1,268 | |||||
Work in process | 798 | 905 | |||||||
Finished goods and purchased products | 3,630 | 3,718 | |||||||
Total | $ | 5,603 | $ | 5,891 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
6. Property, Plant and Equipment | |||||||||||||
Property, plant and equipment consist of (in millions): | |||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2013 | 2012 | |||||||||||
Land and buildings | 5-35 Years | $ | 1,494 | $ | 1,348 | ||||||||
Operating equipment | 3-15 Years | 2,960 | 2,463 | ||||||||||
Rental equipment | 3-12 Years | 758 | 712 | ||||||||||
5,212 | 4,523 | ||||||||||||
Less: Accumulated Depreciation | (1,804 | ) | (1,578 | ) | |||||||||
$ | 3,408 | $ | 2,945 | ||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
7. Accrued Liabilities | |||||||||
Accrued liabilities consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Customer prepayments and billings | $ | 673 | $ | 699 | |||||
Accrued vendor costs | 531 | 444 | |||||||
Compensation | 516 | 511 | |||||||
Warranty | 228 | 194 | |||||||
Taxes (non income) | 188 | 150 | |||||||
Insurance | 131 | 108 | |||||||
Accrued commissions | 97 | 77 | |||||||
Fair value of derivatives | 31 | 18 | |||||||
Interest | 11 | 14 | |||||||
Other | 357 | 356 | |||||||
Total | $ | 2,763 | $ | 2,571 | |||||
Costs_and_Estimated_Earnings_o
Costs and Estimated Earnings on Uncompleted Contracts | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Costs and Estimated Earnings on Uncompleted Contracts | ' | ||||||||
8. Costs and Estimated Earnings on Uncompleted Contracts | |||||||||
Costs and estimated earnings on uncompleted contracts consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Costs incurred on uncompleted contracts | $ | 7,608 | $ | 5,731 | |||||
Estimated earnings | 3,553 | 3,160 | |||||||
11,161 | 8,891 | ||||||||
Less: Billings to date | 11,393 | 8,855 | |||||||
$ | (232 | ) | $ | 36 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 1,539 | $ | 1,225 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,771 | ) | (1,189 | ) | |||||
$ | (232 | ) | $ | 36 | |||||
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
9. Debt | |||||||||
Debt consists of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 | 151 | 151 | |||||||
Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 | 500 | 500 | |||||||
Senior Notes, interest at 2.6% payable semiannually, principal due on December 1, 2022 | 1,396 | 1,395 | |||||||
Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 | 1,096 | 1,096 | |||||||
Other | 7 | 7 | |||||||
Total debt | 3,150 | 3,149 | |||||||
Less current portion | 1 | 1 | |||||||
Long-term debt | $ | 3,149 | $ | 3,148 | |||||
Principal payments of debt for years subsequent to 2013 are as follows (in millions): | |||||||||
2014 | $ | 1 | |||||||
2015 | 153 | ||||||||
2016 | — | ||||||||
2017 | 500 | ||||||||
2018 | — | ||||||||
Thereafter | 2,496 | ||||||||
$ | 3,150 | ||||||||
The Company has a $3.5 billion, five-year unsecured revolving credit facility which expires September 28, 2018, following a one year extension executed in September 2013. In August 2013, the Company initiated a commercial paper program. Borrowings under the commercial paper program are classified as long-term as the program is supported by the $3.5 billion, five-year revolving credit facility. At December 31, 2013, there were no commercial paper borrowings however, there were $947 million in outstanding letters of credit issued under the credit facility, resulting in $2,553 million of funds available under this revolving credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 0.875% subject to a ratings-based grid, or the prime rate. The credit facility contains a financial covenant regarding maximum debt to capitalization and the Company was in compliance at December 31, 2013. | |||||||||
The Company also had $3,056 million of additional outstanding letters of credit at December 31, 2013, primarily in Norway, that are under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. | |||||||||
The fair value of the Company’s Senior Notes are estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At December 31, 2013 and 2012, the fair value of the Company’s unsecured Senior Notes approximated $2,896 million and $3,190 million, respectively. At December 31, 2013 and 2012, the carrying value of the Company’s unsecured Senior Notes was $3,143 million and $3,142 million, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
10. Employee Benefit Plans | |||||||||||||||||
We have benefit plans covering substantially all of our employees. Defined-contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service, a percentage of current earnings and matching of employee contributions. Employees in our Norwegian operations can elect to participate in a defined-contribution plan in lieu of a local defined benefit plan. For the years ended December 31, 2013, 2012 and 2011, expenses for defined-contribution plans were $96 million, $82 million, and $54 million, respectively, and all funding is current. | |||||||||||||||||
Certain retired or terminated employees of predecessor or acquired companies participate in a defined benefit plan in the United States. None of the participants in this plan are eligible to accrue benefits. In addition, 1,353 U.S. retirees and spouses participate in defined benefit health care plans of predecessor or acquired companies that provide postretirement medical and life insurance benefits. Active employees are ineligible to participate in any of these defined benefit plans. Our subsidiaries in the United Kingdom and Norway also have defined benefit pension plans covering virtually all of their employees. | |||||||||||||||||
As a result of the Robbins & Myers acquisition in February of 2013, the Company acquired four qualified, defined benefit, noncontributory pension plans for certain U.S. employees, an unfunded defined benefit pension plan for eligible employees in Germany, as well as two defined benefit, one contributory, pension plans in the U.K. The U.S. pension plans are closed to all new participants and there are no further benefit accruals under these plans. In addition, 230 U.S. employees covered by a collective bargaining agreement participate in a health care plan that provides postretirement medical benefits (which also covers approximately 400 retirees and dependents). The arrangements in Germany and the U.K. are all closed to new entrants, but benefits continue to accrue for current participants. | |||||||||||||||||
As a result of the Ameron acquisition in October of 2011, the Company acquired a qualified, defined benefit, noncontributory pension plan for certain U.S. employees as well as the obligation to provide defined retirement benefits to eligible employees in the Netherlands. The U.S. plan at December 31, 2011 was closed to new participants not covered by a collective bargaining agreement and ceased all benefit accruals under the plan with respect to employees that are not covered by a collective bargaining agreement. In addition, 232 U.S. employees covered by a collective bargaining agreement participate in defined benefit health care plans that provide postretirement medical benefits. | |||||||||||||||||
Net periodic benefit cost for our defined benefit plans aggregated $10 million, $10 million and $14 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2013 and December 31, 2012, is as follows (in millions): | |||||||||||||||||
Pension benefits | Postretirement benefits | ||||||||||||||||
At year end | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Benefit obligation at beginning of year | $ | 655 | $ | 556 | $ | 30 | $ | 35 | |||||||||
Service cost | 7 | 6 | 1 | — | |||||||||||||
Interest cost | 31 | 27 | 2 | 1 | |||||||||||||
Actuarial loss (gain) | (10 | ) | 76 | (12 | ) | (2 | ) | ||||||||||
Benefits paid | (38 | ) | (26 | ) | (4 | ) | (4 | ) | |||||||||
Participants contributions | — | 1 | — | — | |||||||||||||
Exchange rate loss (gain) | 7 | 12 | — | — | |||||||||||||
Acquisitions | 194 | 11 | 28 | — | |||||||||||||
Curtailments | — | (8 | ) | — | — | ||||||||||||
Benefit obligation at end of year | $ | 846 | $ | 655 | $ | 45 | $ | 30 | |||||||||
Fair value of plan assets at beginning of year | $ | 517 | $ | 419 | $ | — | $ | — | |||||||||
Actual return | 72 | 49 | — | — | |||||||||||||
Benefits paid | (38 | ) | (26 | ) | (4 | ) | (4 | ) | |||||||||
Company contributions | 28 | 53 | 4 | 4 | |||||||||||||
Participants contributions | — | 1 | — | — | |||||||||||||
Exchange rate gain (loss) | 4 | 12 | — | — | |||||||||||||
Acquisitions | 123 | 9 | — | — | |||||||||||||
Fair value of plan assets at end of year | $ | 706 | $ | 517 | $ | — | $ | — | |||||||||
Funded status | $ | (140 | ) | $ | (138 | ) | $ | (45 | ) | $ | (30 | ) | |||||
Accumulated benefit obligation at end of year | $ | 811 | $ | 635 | |||||||||||||
Liabilities associated with the funded status of the defined benefit pension plans are included in the balances of accrued liabilities and other liabilities in the Consolidated Balance Sheet. | |||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate: | |||||||||||||||||
United States plan | 4.65% | 3.78% | |||||||||||||||
International plans | 3.50% - 4.40% | 3.30% - 4.40% | |||||||||||||||
Salary increase: | |||||||||||||||||
United States plan | N/A | N/A | |||||||||||||||
International plans | 2.00% - 4.40% | 2.00% - 3.87% | |||||||||||||||
The assumption rates used for net periodic benefit costs are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate: | |||||||||||||||||
United States plan | 3.80% | 4.58% | 4.95% | ||||||||||||||
International plans | 3.46% - 4.40% | 4.50% - 5.60% | 5.25% - 5.65% | ||||||||||||||
Salary increase: | |||||||||||||||||
United States plan | N/A | N/A | N/A | ||||||||||||||
International plans | 2.00% - 3.53% | 2.00% - 4.00% | 2.00% - 4.33% | ||||||||||||||
Expected return on assets: | |||||||||||||||||
United States plan | 6.30% | 6.33% | 5.50% - 6.50% | ||||||||||||||
International plans | 3.50% - 5.82% | 4.50% - 6.51% | 4.50% - 7.06% | ||||||||||||||
In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio. | |||||||||||||||||
The majority of our plans have projected benefit obligations in excess of plan assets. | |||||||||||||||||
The Company expects to pay future benefit amounts on its defined benefit plans of $47 million for each of the next five years and aggregate payments of $479 million. | |||||||||||||||||
Plan Assets | |||||||||||||||||
The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets. Our pension investment strategy worldwide prohibits a direct investment in our own stock. | |||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets carried at fair value (in millions): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
December 31, 2012: | |||||||||||||||||
Equity securities | $ | 204 | $ | — | $ | 204 | $ | — | |||||||||
Bonds | 139 | — | 139 | — | |||||||||||||
Other (insurance contracts) | 174 | — | 74 | 100 | |||||||||||||
Total Fair Value Measurements | $ | 517 | $ | — | $ | 417 | $ | 100 | |||||||||
December 31, 2013: | |||||||||||||||||
Equity securities | $ | 296 | $ | — | $ | 296 | $ | — | |||||||||
Bonds | 172 | — | 172 | — | |||||||||||||
Other (insurance contracts) | 238 | — | 131 | 107 | |||||||||||||
Total Fair Value Measurements | $ | 706 | $ | — | $ | 599 | $ | 107 | |||||||||
Level 3 inputs are unobservable (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumption about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The following table sets forth a summary of changes in the fair value of the Plan’s Level 3 assets (in millions): | |||||||||||||||||
Level 3 | |||||||||||||||||
Plan | |||||||||||||||||
Assets | |||||||||||||||||
Balance at December 31, 2011 | $ | 77 | |||||||||||||||
Actual return on plan assets still held at reporting date | 10 | ||||||||||||||||
Purchases, sales and settlements | 8 | ||||||||||||||||
Currency translation adjustments | 5 | ||||||||||||||||
Balance at December 31, 2012 | $ | 100 | |||||||||||||||
Actual return on plan assets still held at reporting date | 5 | ||||||||||||||||
Purchases, sales and settlements | 5 | ||||||||||||||||
Currency translation adjustments | (3 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 107 | |||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
11. Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative | Defined | ||||||||||||||||||||||||||||||||||||||||||||||||
Currency | Financial | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||
Translation | Instruments, | Plans, | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | Net of Tax | Net of Tax | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 133 | $ | 6 | $ | (48 | ) | $ | 91 | ||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | (65 | ) | (28 | ) | 20 | (73 | ) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (35 | ) | (6 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 68 | $ | (57 | ) | $ | (34 | ) | $ | (23 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | 64 | 77 | (29 | ) | 112 | ||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 22 | (4 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 132 | $ | 42 | $ | (67 | ) | $ | 107 | ||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | (90 | ) | (29 | ) | 48 | (71 | ) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (25 | ) | (8 | ) | (7 | ) | (40 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 17 | $ | 5 | $ | (26 | ) | $ | (4 | ) | |||||||||||||||||||||||||||||||||||||||
The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency | Derivative | Defined | Currency | Derivative | Defined | Currency | Derivative | Defined | |||||||||||||||||||||||||||||||||||||||||
Translation | Financial | Benefit | Translation | Financial | Benefit | Translation | Financial | Benefit | |||||||||||||||||||||||||||||||||||||||||
Adjustments | Instruments | Plans | Total | Adjustments | Instruments | Plans | Total | Adjustments | Instruments | Plans | Total | ||||||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | (16 | ) | $ | — | $ | (16 | ) | $ | — | $ | 6 | $ | — | $ | 6 | $ | — | $ | (11 | ) | $ | — | $ | (11 | ) | |||||||||||||||||||||
Cost of revenue | — | 6 | — | 6 | — | 26 | — | 26 | — | (38 | ) | — | (38 | ) | |||||||||||||||||||||||||||||||||||
Selling, general, and administrative | — | — | (8 | ) | (8 | ) | — | — | (6 | ) | (6 | ) | — | — | (7 | ) | (7 | ) | |||||||||||||||||||||||||||||||
Other income (expense), net | (25 | ) | — | — | (25 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Tax effect | — | 2 | 1 | 3 | — | (10 | ) | 2 | (8 | ) | — | 14 | 1 | 15 | |||||||||||||||||||||||||||||||||||
$ | (25 | ) | $ | (8 | ) | $ | (7 | ) | $ | (40 | ) | $ | — | $ | 22 | $ | (4 | ) | $ | 18 | $ | — | $ | (35 | ) | $ | (6 | ) | $ | (41 | ) | ||||||||||||||||||
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 or loss in accordance with ASC Topic 830 “Foreign Currency Matters” (“ASC Topic 830”). For the year ended December 31, 2013 a majority of these local currencies weakened against the U.S. dollar resulting in a net other comprehensive loss of $90 million upon the translation from local currencies to the U.S. dollar. Due to the sale of a foreign subsidiary during the second quarter of 2013, $25 million of currency translation gains were reclassified from accumulated other comprehensive income (loss) into other income (expense), net in the Consolidated Statements of Income. For the year ended December 31, 2012 a majority of these local currencies strengthened against the U.S. dollar resulting in a net other comprehensive income of $64 million upon the translation from local currencies to the U.S. dollar while for the year ended December 31, 201l a majority of these local currencies weakened against the U.S. dollar resulting in a net other comprehensive loss of $65 million. | |||||||||||||||||||||||||||||||||||||||||||||||||
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 to which they are designed to hedge are realized. The movement in other comprehensive income (loss) from period to period will be the result of the combination of changes in fair value for open derivatives and the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current or prior periods. The accumulated effect was other comprehensive loss of $37 million (net of tax of $18 million) for the year ended December 31, 2013, other comprehensive income of $99 million (net of tax of $39 million) for the year ended December 31, 2012 and other comprehensive loss of $63 million (net of tax of $25 million) for the year ended December 31, 2011. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
12. Commitments and Contingencies | |||||
We have received federal grand jury subpoenas and subsequent inquiries from governmental agencies requesting records related to our compliance with export trade laws and regulations. We have cooperated fully with agents from the U.S. Department of Justice (“DOJ”), the Department of Commerce Bureau of Industry and Security (“BIS”), the United States Department of Treasury, Office of Foreign Assets Control (“OFAC”), and U.S. Immigration and Customs Enforcement in responding to the inquiries. We have also cooperated with an informal inquiry from the Securities and Exchange Commission in connection with the inquiries previously made by the aforementioned federal agencies. We have conducted our own internal review of this matter. At the conclusion of our internal review in the fourth quarter of 2009, we identified possible areas of concern and discussed these areas of concern with the relevant agencies. We are currently negotiating a potential resolution with the agencies involved related to these matters. We currently anticipate that any administrative fine or penalty agreed to as part of a resolution would be within established accruals, and would not have a material effect on our financial position or results of operations. To the extent a resolution is not negotiated, we cannot predict the timing or effect that any resulting government actions may have on our financial position or results of operations. | |||||
In 2011, the Company acquired Ameron International Corporation (“Ameron”). On or about November 21, 2008, OFAC sent a Requirement to Furnish Information to Ameron. Ameron retained counsel and conducted an internal investigation. In 2009, Ameron, through its counsel, responded to OFAC. On or about January 21, 2011, OFAC issued an administrative subpoena to Ameron. OFAC and Ameron entered into Tolling Agreements. All of the conduct under review occurred before acquisition of Ameron by the Company. During the third quarter of 2013, the Company settled such matter with OFAC by paying an administrative fine in an amount that was not material to the Company. | |||||
On February 20, 2013, the Company acquired Robbins & Myers, Inc. (“R&M”). R&M was subject to an ongoing investigation by the DOJ and the BIS regarding potential export controls violations arising from certain shipments by R&M’s Belgian subsidiary to one customer in Iran, Sudan and Syria in 2005 and 2006. R&M has cooperated with the investigation and is currently negotiating a joint settlement with the DOJ and BIS. We currently anticipate that any administrative fine or criminal penalty agreed to as part of a resolution would be within established accruals, and would not have a material effect on our financial position or results of operations. To the extent a resolution is not negotiated, we cannot predict the timing or effect that any resulting government actions may have on our financial position or results of operations. | |||||
A gain of $102 million was recognized in the third quarter of 2013 related to a legal settlement. The gain was included in revenue of the Company’s Wellbore Technologies segment. | |||||
In addition, we are involved in various other claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters. As of December 31, 2013, the Company recorded an immaterial amount for contingent liabilities representing all contingencies believed to be probable. The Company has also assessed the potential for additional losses above the amounts accrued as well as potential losses for matters that are not probable but are reasonably possible. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for and except for the specific cases referred to above, will not materially affect our financial position, cash flow or results of operations. As it relates to the specific cases referred to above we currently anticipate that any administrative fine or penalty agreed to as part of a resolution would be within established accruals, and would not have a material effect on our financial position or results of operations. To the extent a resolution is not negotiated as anticipated, we cannot predict the timing or effect that any resulting government actions may have on 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 intention and experience. | |||||
Our business is affected both directly and indirectly by governmental laws and regulations relating to the oilfield service industry in general, as well as by environmental and safety regulations that specifically apply to our business. Although we have not incurred material costs in connection with our compliance with such laws, there can be no assurance that other developments, such as new environmental laws, regulations and enforcement policies hereunder may not result in additional, presently unquantifiable, costs or liabilities to us. | |||||
The Company leases certain facilities and equipment under operating leases that expire at various dates through 2066. These leases generally contain renewal options and require the lessee to pay maintenance, insurance, taxes and other operating expenses in addition to the minimum annual rentals. Rental expense related to operating leases approximated $336 million, $281 million, and $234 million in 2013, 2012 and 2011, respectively. | |||||
Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more at December 31, 2013, are payable as follows (in millions): | |||||
2014 | $ | 218 | |||
2015 | 169 | ||||
2016 | 116 | ||||
2017 | 87 | ||||
2018 | 71 | ||||
Thereafter | 415 | ||||
Total future lease commitments | $ | 1,076 | |||
Common_Stock
Common Stock | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Common Stock | ' | ||||||||||||||||||||||||
13. Common Stock | |||||||||||||||||||||||||
National Oilwell Varco has authorized 1 billion shares of $.01 par value common stock. The Company also has authorized 10 million shares of $.01 par value preferred stock, none of which is issued or outstanding. | |||||||||||||||||||||||||
Cash dividends aggregated $389 million and $209 million for the years ended December 31, 2013 and 2012, respectively. 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. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Under the terms of National Oilwell Varco’s Long-Term Incentive Plan, as amended during the second quarter of 2013, 39.5 million shares of common stock are authorized for the grant of options to officers, key employees, non-employee directors and other persons. Options granted under our stock option plan generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant. The purchase price of options granted may not be less than the closing market price of National Oilwell Varco common stock on the date of grant. At December 31, 2013, approximately 14.5 million shares were available for future grants. | |||||||||||||||||||||||||
We also have inactive stock option plans that were acquired in connection with the acquisitions of Varco International, Inc. in 2005 and Grant Prideco in 2008. We converted the outstanding stock options under these plans to options to acquire our common stock and no further options are being issued under these plans. Stock option information summarized below includes amounts for the National Oilwell Varco Long-Term Incentive Plan and stock plans of acquired companies. Options outstanding at December 31, 2013 under the stock option plans have exercise prices between $9.14 and $84.58 per share, and expire at various dates from January 28, 2014 to February 10, 2023. | |||||||||||||||||||||||||
The following summarizes options activity: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Exercise | of | Exercise | of | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||||
Shares under option at beginning of year | 9,473,482 | $ | 58.69 | 10,481,750 | $ | 47.2 | 11,039,544 | $ | 38.01 | ||||||||||||||||
Granted | 2,832,587 | 69.37 | 2,239,088 | 84.58 | 2,277,946 | 79.68 | |||||||||||||||||||
Cancelled | (303,417 | ) | 72.43 | (228,137 | ) | 60.28 | (241,174 | ) | 40.2 | ||||||||||||||||
Exercised | (1,366,459 | ) | 77.44 | (3,019,219 | ) | 82.26 | (2,594,566 | ) | 36.84 | ||||||||||||||||
Shares under option at end of year | 10,636,193 | $ | 63.29 | 9,473,482 | $ | 58.69 | 10,481,750 | $ | 47.2 | ||||||||||||||||
Exercisable at end of year | 5,831,091 | $ | 53.46 | 4,823,331 | $ | 43.99 | 5,073,965 | $ | 38.47 | ||||||||||||||||
The following summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Weighted-Avg | Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||||||
Range of Exercise Price | Contractual | Shares | Exercise | Shares | Exercise | ||||||||||||||||||||
$9.14—$45.00 | 4.36 | 3,201,686 | $ | 34.43 | 3,201,686 | $ | 34.43 | ||||||||||||||||||
$45.01—$70.00 | 8.17 | 3,361,420 | 67.84 | 622,464 | 61.32 | ||||||||||||||||||||
$70.01—$84.58 | 7.63 | 4,073,087 | 82.21 | 2,006,941 | 81.39 | ||||||||||||||||||||
Total | 6.82 | 10,636,193 | $ | 63.29 | 5,831,091 | $ | 53.46 | ||||||||||||||||||
The weighted-average fair value of options granted during 2013, 2012 and 2011, was approximately $24.11, $30.01 and $29.52 per share, respectively, as determined using the Black-Scholes option-pricing model. The total intrinsic value of options exercised during 2013 and 2012, was $64 million and $120 million, respectively. | |||||||||||||||||||||||||
The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise activity. The use of the Black Scholes model requires the use of extensive actual employee exercise activity data and the use of a number of complex assumptions including expected volatility, risk-free interest rate, expected dividends and expected term. | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Valuation Assumptions: | |||||||||||||||||||||||||
Expected volatility | 50.1 | % | 51.7 | % | 53.2 | % | |||||||||||||||||||
Risk-free interest rate | 0.9 | % | 0.9 | % | 2.1 | % | |||||||||||||||||||
Expected dividends | $ | 0.75 | $ | 0.57 | $ | 0.44 | |||||||||||||||||||
Expected term (in years) | 3.4 | 3.2 | 3.1 | ||||||||||||||||||||||
The Company used the actual volatility for traded options for the past 10 years prior to option date as the expected volatility assumption required in the Black Scholes model. | |||||||||||||||||||||||||
The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock options. The dividend yield assumption is based on the history and expectation of dividend payouts. The estimated expected term is based on actual employee exercise activity for the past ten years. | |||||||||||||||||||||||||
As stock-based compensation expense recognized in the Consolidated Statement of Income in 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. | |||||||||||||||||||||||||
The following summary presents information regarding outstanding options at December 31, 2013 and changes during 2013 with regard to options under all stock option plans: | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Weighted- | Remaining | Average | |||||||||||||||||||||||
Average | Contractual | ||||||||||||||||||||||||
Shares | Exercise | Term | Aggregate | ||||||||||||||||||||||
Price | (years) | Intrinsic Value | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 9,473,482 | $ | 58.69 | 6.86 | $ | 150,667,018 | |||||||||||||||||||
Granted | 2,832,587 | $ | 69.37 | ||||||||||||||||||||||
Exercised | (303,417 | ) | $ | 72.43 | |||||||||||||||||||||
Cancelled | (1,366,459 | ) | $ | 77.44 | |||||||||||||||||||||
Outstanding at December 31, 2013 | 10,636,193 | $ | 63.29 | 6.82 | $ | 183,849,267 | |||||||||||||||||||
Vested or expected to vest | 10,466,014 | $ | 63.29 | 6.82 | $ | 180,907,679 | |||||||||||||||||||
Exercisable at December 31, 2013 | 5,831,091 | $ | 53.46 | 5.37 | $ | 155,892,094 | |||||||||||||||||||
At December 31, 2013, total unrecognized compensation cost related to nonvested stock options was $74 million. This cost is expected to be recognized over a weighted-average period of two years. The total fair value of stock options vested in 2013, 2012 and 2011 was approximately $64 million, $55 million and $54 million, respectively. Cash received from option exercises for 2013, 2012 and 2011 was $58 million, $113 million and $96 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $39 million, $42 million and $43 million for 2013, 2012 and 2011, respectively. Cash used to settle equity instruments granted under all share-based payment arrangements for 2013, 2012 and 2011 was not material for any period. | |||||||||||||||||||||||||
Restricted Shares | |||||||||||||||||||||||||
The Company issues restricted stock awards and restricted stock units to officers and key employees in addition to stock options. During the year ended December 31, 2013, the Company granted 540,194 shares of restricted stock and restricted stock units with a fair value of $69.33 per share and 16,702 shares of restricted stock with a fair value of $69.17 per share. In addition, the Company granted performance share awards to senior management employees with potential payouts varying from zero to 368,860 shares. The restricted stock and restricted stock units were granted February 15, 2013 and vest on the third anniversary of the date of grant, except for a special grant of 16,352 restricted stock units which vest on the second anniversary of the date of grant (subject to the satisfaction of a performance condition). On May 22, 2013, the 16,702 restricted stock awards, with a fair value of $69.17 per share, were granted to the non-employee members of the board of directors. These restricted stock awards vest in equal thirds over three years on the anniversary of the grant date. The performance share awards were granted on March 22, 2013 and can be earned based on performance against established goals over a three-year performance period. The performance share awards are divided into two equal, independent parts that are subject to two separate performance metrics: 50% with a TSR (total shareholder return) goal (the “TSR Award”) and 50% with an internal ROC (return on capital) goal (the “ROC Award”). During the first quarter of 2013, the Company concluded that the performance conditions relating to the performance-based restricted stock awards granted on February 16, 2010 were not met. As a result, the Company reversed $8 million in previously recognized stock-based compensation expense related to performance-based restricted stock awards that did not vest. | |||||||||||||||||||||||||
The following summary presents information regarding outstanding restricted shares: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Grant Date | of | Grant Date | of | Grant Date | ||||||||||||||||||||
Units | Fair Value | Units | Fair Value | Units | Fair Value | ||||||||||||||||||||
Nonvested at beginning of year | 1,336,666 | $ | 67.56 | 1,606,047 | $ | 44.21 | 1,765,837 | $ | 42.15 | ||||||||||||||||
Granted | 758,176 | 69.07 | 482,428 | 83.79 | 374,425 | 79.53 | |||||||||||||||||||
Vested | (340,218 | ) | 69.29 | (406,844 | ) | 83.34 | (496,642 | ) | 64.22 | ||||||||||||||||
Cancelled | (239,534 | ) | 40.97 | (344,965 | ) | 30.39 | (37,573 | ) | 44.02 | ||||||||||||||||
Nonvested at end of year | 1,515,090 | $ | 73.73 | 1,336,666 | $ | 67.56 | 1,606,047 | $ | 44.21 | ||||||||||||||||
The weighted-average grant day fair value of restricted stock awards and restricted stock units granted during the years ended 2013, 2012 and 2011 was $69.07, $83.79 and $79.53 per share, respectively. There were 340,218; 406,844 and 496,642 restricted stock awards that vested during 2013, 2012 and 2011, respectively. At December 31, 2013, there was approximately $54 million of unrecognized compensation cost related to nonvested restricted stock awards and restricted stock units, which is expected to be recognized over a weighted-average period of two years. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
14. Income Taxes | |||||||||||||
The domestic and foreign components of income before income taxes were as follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 1,362 | $ | 1,697 | $ | 1,193 | |||||||
Foreign | 1,762 | 1,643 | 1,601 | ||||||||||
$ | 3,124 | $ | 3,340 | $ | 2,794 | ||||||||
The components of the provision for income taxes consisted of (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 632 | $ | 654 | $ | 450 | |||||||
State | 55 | 44 | 34 | ||||||||||
Foreign | 592 | 357 | 751 | ||||||||||
Total current income tax provision | 1,279 | 1,055 | 1,235 | ||||||||||
Deferred: | |||||||||||||
Federal | (157 | ) | (147 | ) | (23 | ) | |||||||
State | (12 | ) | (1 | ) | (3 | ) | |||||||
Foreign | (167 | ) | 58 | (315 | ) | ||||||||
Total deferred income tax provision | (336 | ) | (90 | ) | (341 | ) | |||||||
Total income tax provision | $ | 943 | $ | 965 | $ | 894 | |||||||
The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at U.S. statutory rate | $ | 1,093 | $ | 1,169 | $ | 978 | |||||||
Foreign income tax rate differential | (216 | ) | (149 | ) | (149 | ) | |||||||
State income tax, net of federal benefit | 27 | 29 | 20 | ||||||||||
Nondeductible expenses | 26 | 29 | 41 | ||||||||||
Tax benefit of manufacturing deduction | (33 | ) | (29 | ) | (37 | ) | |||||||
Foreign dividends, net of foreign tax credits | 32 | (116 | ) | 11 | |||||||||
Change in deferred tax valuation allowance | 40 | 80 | (18 | ) | |||||||||
Other | (26 | ) | (48 | ) | 48 | ||||||||
Total income tax provision | $ | 943 | $ | 965 | $ | 894 | |||||||
Significant components of our deferred tax assets and liabilities were as follows (in millions): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowances and operating liabilities | $ | 439 | $ | 368 | $ | 331 | |||||||
Net operating loss carryforwards | 51 | 25 | 14 | ||||||||||
Postretirement benefits | 49 | 54 | 14 | ||||||||||
Foreign tax credit carryforwards | 300 | 259 | 106 | ||||||||||
Other | 39 | 149 | 151 | ||||||||||
878 | 855 | 616 | |||||||||||
Valuation allowance for deferred tax assets | (133 | ) | (93 | ) | (13 | ) | |||||||
Total deferred tax assets | 745 | 762 | 603 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Tax over book depreciation | 306 | 268 | 204 | ||||||||||
Intangible assets | 1,757 | 1,448 | 1,398 | ||||||||||
Deferred income | 285 | 314 | 226 | ||||||||||
Accrued U.S. tax on unremitted earnings | 92 | 92 | 70 | ||||||||||
Other | 164 | 208 | 168 | ||||||||||
Total deferred tax liabilities | 2,604 | 2,330 | 2,066 | ||||||||||
Net deferred tax liability | $ | 1,859 | $ | 1,568 | $ | 1,463 | |||||||
The balance of unrecognized tax benefits at December 31, 2013 and 2012 was $127 million and $128 million, respectively. Included in the change in the balance of unrecognized tax benefits for the period ended December 31, 2013 is a $1 million reduction in the balance of unrecognized tax benefits resulted from the lapse of applicable statutes of limitations in foreign jurisdictions. Of the net decrease of $1 million in the balance of unrecognized tax benefits, the entire $1 million was recorded as a decrease of income tax expense in the current year and is reflected in the “other” category in the income tax rate schedule above. These unrecognized tax benefits are included in the balance of other liabilities in the Consolidated Balance Sheet at December 31, 2013. If the $127 million of unrecognized tax benefits accrued at December 31, 2013 are ultimately realized, $54 million would be recorded as a reduction of income tax expense. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Unrecognized tax benefit at beginning of year | $ | 128 | $ | 131 | $ | 118 | |||||||
Additions based on tax positions related to the current year | — | 2 | 9 | ||||||||||
Additions for tax positions of prior years | — | — | 13 | ||||||||||
Reductions for lapse of applicable statutes of limitations | (1 | ) | (5 | ) | (9 | ) | |||||||
Unrecognized tax benefit at end of year | $ | 127 | $ | 128 | $ | 131 | |||||||
The Company does not anticipate that the total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statutes of limitation within 12 months of this reporting date. | |||||||||||||
To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements consistent with the Company’s policy. During the year ended December 31, 2013, the Company recorded as an increase of income tax expense a $0.4 million net increase of accrued interest and penalties related to uncertain tax positions. At December 31, 2013, the Company has accrued approximately $8 million of interest and penalties relating to unrecognized tax benefits. These interest and penalties are included in the balance of other liabilities in the Consolidated Balance Sheet at December 31, 2013. | |||||||||||||
The Company is subject to taxation in the United States, various states and foreign jurisdictions. The Company has significant operations in the United States, Norway, Canada, the United Kingdom, the Netherlands, France and Denmark. Tax years that remain subject to examination by major tax jurisdictions vary by legal entity, but are generally open in the U.S. for the tax years ending after 2007 and outside the U.S. for the tax years ending after 2006. | |||||||||||||
In the United States, the Company has $20 million of net operating loss carryforwards as of December 31, 2013, of which $4 million will expire in 2025, $13 million will expire in 2026, $1 million will expire in 2027, $1 million will expire in 2029 and $1 million will expire in 2030. The potential benefit of $7 million has been reduced by a $7 million valuation allowance. Future income tax payments will be reduced in the event the Company ultimately realizes the benefit of these net operating losses. If the Company ultimately realizes the benefit of these net operating loss carryforwards, the valuation allowance of $7 million would reduce future income tax expense. | |||||||||||||
Outside the United States, the Company has $170 million of net operating loss carryforwards as of December 31, 2013, of which $1 million will expire in 2014, $9 million will expire in 2015, $7 million will expire in 2016, $4 million will expire in 2017, $14 million will expire in 2018, $12 million will expire in 2020, $21 million will expire in 2021, $20 million will expire in 2022, $1 million will expire in 2023 and $81 million will carry forward indefinitely. The potential benefit of $44 million has been reduced by a $22 million valuation allowance. Future income tax payments will be reduced in the event the Company ultimately realizes the benefit of these net operating losses. If the Company ultimately realizes the benefit of these net operating loss carryforwards, the valuation allowance of $22 million would reduce future income tax expense. | |||||||||||||
Also in the United States, the Company has $300 million of excess foreign tax credits as of December 31, 2013, of which $73 million will expire in 2018, $71 million will expire in 2020, $142 million will expire in 2022, and $14 million will expire in 2023. These credits have been allotted a valuation allowance of $101 million and would be realized as a reduction of future income tax payments. In addition, there is a reserve for uncertain tax positions of $73 million against a portion of these credits. | |||||||||||||
During 2013, the Company recorded $371 million in net deferred tax liabilities with a corresponding increase in goodwill related to the 2013 acquisition of Robbins & Myers Inc. | |||||||||||||
Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to $6,045 million and $4,620 million at December 31, 2013 and 2012, respectively. Those earnings are considered to be permanently reinvested and no provision for U.S. federal and state income taxes has been made. Distribution of these earnings in the form of dividends or otherwise could result in U.S. federal taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable in various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical; however, unrecognized foreign tax credit carryforwards would be available to reduce some portion of the U.S. liability. | |||||||||||||
Because of the number of tax jurisdictions in which the Company operates, its effective tax rate can fluctuate as operations and the local country tax rates fluctuate. The Company is also subject to audits by federal, state and foreign jurisdictions which may result in proposed assessments. The Company’s future tax provision will reflect any favorable or unfavorable adjustments to its estimated tax liabilities when resolved. The Company is unable to predict the outcome of these matters. However, the Company believes that none of these matters will have a material adverse effect on the results of operations or financial condition of the Company. |
Business_Segments_and_Geograph
Business Segments and Geographic Areas | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Business Segments and Geographic Areas | ' | ||||||||||||||||||||||||||||
15. Business Segments and Geographic Areas | |||||||||||||||||||||||||||||
Effective April 1, 2014, the Company’s operations were reorganized into four reportable segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. Within the four reporting segments, the Company has aggregated two business units under Rig Systems, one business unit under Rig Aftermarket, six business units under Wellbore Technologies and six business units under Completion & Production Solutions for a total of 15 business units. The Company has aggregated each of its business units in one of the four reporting segments based on the guidelines of ASC Topic 280, “Segment Reporting” (“ASC Topic 280”). | |||||||||||||||||||||||||||||
Rig Systems | |||||||||||||||||||||||||||||
The Company’s Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The segment designs, manufactures, and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the rig process and functionality. | |||||||||||||||||||||||||||||
Equipment and technologies in Rig Systems include: substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems, including drives and generators; and rig instrumentation and control systems. | |||||||||||||||||||||||||||||
The Rig Systems segment primarily supports land and offshore drillers. Demand for Rig Systems products primarily depends on drilling contractors’ and oil and gas companies’ capital spending plans, specifically capital expenditures on rig construction and refurbishment. | |||||||||||||||||||||||||||||
Rig Aftermarket | |||||||||||||||||||||||||||||
The Company’s Rig Aftermarket segment provides comprehensive aftermarket products and services to support land rigs and offshore rigs, and drilling rig components manufactured by the Rig Systems segment. | |||||||||||||||||||||||||||||
The segment provides spare parts, repair, and rentals as well as technical support, field service and first well support, field engineering, and customer training through a network of aftermarket service and repair facilities strategically located in major areas of drilling operations. | |||||||||||||||||||||||||||||
The Rig Aftermarket segment primarily supports land and offshore drillers. Demand for Rig Aftermarket products and services primarily depends on overall levels of oilfield drilling activity, which drives demand for spare parts, service, and repair for Rig System’s large installed base of equipment; and secondarily on drilling contractors’ and oil and gas companies’ capital spending plans, specifically capital expenditures on rig refurbishment and re-certification. | |||||||||||||||||||||||||||||
Wellbore Technologies | |||||||||||||||||||||||||||||
The Company’s Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance, including: solids control and waste management equipment and services, drilling fluids, premium drill pipe, wired pipe, tubular inspection and coating services, instrumentation, downhole tools, and drill bits. | |||||||||||||||||||||||||||||
The Wellbore Technologies segment focuses on oil and gas companies and supports drilling contractors, oilfield service companies, and oilfield rental companies. Demand for Wellbore Technologies products and services primarily depends on the level of oilfield drilling activity by oil and gas companies, drilling contractors, and oilfield service companies. | |||||||||||||||||||||||||||||
Completion & Production Solutions | |||||||||||||||||||||||||||||
The Company’s Completion & Production Solutions segment integrates technologies for well completions and oil and gas production. The segment designs, manufactures, and sells equipment and technologies needed for hydraulic fracture stimulation, including pressure pumping trucks and pumps, blenders, sanders, hydration units, injection units, flowline, manifolds and wellheads; well intervention, including coiled tubing units, coiled tubing, and wireline units and tools; onshore production, including composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, including floating production systems and subsea production technologies. | |||||||||||||||||||||||||||||
The Completion & Production Solutions segment primarily supports service companies and oil and gas companies. Demand for Completion & Production Solutions products depends on the level of oilfield completions and workover activity by oilfield service companies and drilling contractors and capital spending plans by oil and gas companies and oilfield service companies. | |||||||||||||||||||||||||||||
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies of the Company. The Company evaluates performance of each reportable segment based upon its operating income, excluding non-recurring items. | |||||||||||||||||||||||||||||
The Company had revenues of 11%, 11% and 13% of total revenue from one of its customers for the years ended December 31, 2013, 2012, and 2011, respectively. This customer, Samsung Heavy Industries, is a shipyard acting as a general contractor for its customers, who are drillship owners and drilling contractors. This shipyard’s customers have specified that the Company’s drilling equipment be installed on their drillships and have required the shipyard to issue contracts to the Company. | |||||||||||||||||||||||||||||
Geographic Areas: | |||||||||||||||||||||||||||||
The following table presents consolidated revenues by country based on sales destination of the use of the products or services (in millions): | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
United States | $ | 5,140 | $ | 6,040 | $ | 4,532 | |||||||||||||||||||||||
South Korea | 3,219 | 3,121 | 2,257 | ||||||||||||||||||||||||||
Singapore | 1,850 | 1,118 | 721 | ||||||||||||||||||||||||||
Norway | 1,102 | 736 | 689 | ||||||||||||||||||||||||||
China | 1,007 | 533 | 430 | ||||||||||||||||||||||||||
Brazil | 811 | 503 | 397 | ||||||||||||||||||||||||||
United Kingdom | 705 | 523 | 465 | ||||||||||||||||||||||||||
Canada | 625 | 728 | 608 | ||||||||||||||||||||||||||
Other Countries | 4,762 | 3,892 | 3,376 | ||||||||||||||||||||||||||
Total | $ | 19,221 | $ | 17,194 | $ | 13,475 | |||||||||||||||||||||||
The following table presents long-lived assets by country based on the location (in millions): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
United States | $ | 1,830 | $ | 1,606 | |||||||||||||||||||||||||
Brazil | 270 | 162 | |||||||||||||||||||||||||||
United Kingdom | 200 | 173 | |||||||||||||||||||||||||||
Denmark | 166 | 174 | |||||||||||||||||||||||||||
Canada | 123 | 131 | |||||||||||||||||||||||||||
South Korea | 115 | 112 | |||||||||||||||||||||||||||
Mexico | 101 | 87 | |||||||||||||||||||||||||||
Singapore | 94 | 93 | |||||||||||||||||||||||||||
Other Countries | 509 | 407 | |||||||||||||||||||||||||||
Total | $ | 3,408 | $ | 2,945 | |||||||||||||||||||||||||
Business Segments: | |||||||||||||||||||||||||||||
Rig | Rig | Wellbore | Completion & | Eliminations(1) | Discontinued | Total | |||||||||||||||||||||||
Systems | Aftermarket | Technologies | Production | Operations | |||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||
Revenues | $ | 8,450 | $ | 2,692 | $ | 5,211 | $ | 4,309 | $ | (1,441 | ) | $ | — | $ | 19,221 | ||||||||||||||
Operating profit | 1,594 | 729 | 915 | 613 | (652 | ) | — | 3,199 | |||||||||||||||||||||
Capital expenditures | 61 | 24 | 226 | 212 | 91 | — | 614 | ||||||||||||||||||||||
Depreciation and amortization | 82 | 26 | 420 | 210 | — | — | 738 | ||||||||||||||||||||||
Goodwill | 1,279 | 906 | 4,425 | 2,106 | — | 333 | 9,049 | ||||||||||||||||||||||
Total assets | 7,654 | 2,475 | 11,862 | 7,287 | 3,351 | 2,183 | 34,812 | ||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||||||
Revenues | $ | 7,077 | $ | 2,138 | $ | 5,184 | $ | 3,994 | $ | (1,199 | ) | $ | — | $ | 17,194 | ||||||||||||||
Operating profit | 1,685 | 594 | 983 | 684 | (557 | ) | — | 3,389 | |||||||||||||||||||||
Capital expenditures | 81 | 13 | 247 | 169 | 59 | — | 569 | ||||||||||||||||||||||
Depreciation and amortization | 64 | 18 | 389 | 145 | — | — | 616 | ||||||||||||||||||||||
Goodwill | 1,097 | 649 | 3,769 | 1,314 | — | 343 | 7,172 | ||||||||||||||||||||||
Total assets | 6,563 | 1,930 | 11,032 | 6,192 | 3,394 | 2,373 | 31,484 | ||||||||||||||||||||||
December 31, 2011: | |||||||||||||||||||||||||||||
Revenues | $ | 5,686 | $ | 1,876 | $ | 4,455 | $ | 2,483 | $ | (1,025 | ) | $ | — | $ | 13,475 | ||||||||||||||
Operating profit | 1,562 | 528 | 726 | 456 | (463 | ) | — | 2,809 | |||||||||||||||||||||
Capital expenditures | 70 | 10 | 245 | 103 | 51 | — | 479 | ||||||||||||||||||||||
Depreciation and amortization | 61 | 14 | 381 | 93 | — | — | 549 | ||||||||||||||||||||||
Goodwill | 943 | 556 | 3,683 | 917 | — | 52 | 6,151 | ||||||||||||||||||||||
Total assets | 4,743 | 1,569 | 10,799 | 4,020 | 3,555 | 829 | 25,515 | ||||||||||||||||||||||
-1 | 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 four reporting segments that are eliminated in consolidation. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
16. Quarterly Financial Data (Unaudited) | |||||||||||||||||
Summarized quarterly results, were as follows (in millions, except per share data): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 4,376 | $ | 4,680 | $ | 4,863 | $ | 5,302 | |||||||||
Gross profit | 1,167 | 1,173 | 1,360 | 1,404 | |||||||||||||
Income from continuing operations | 461 | 494 | 598 | 627 | |||||||||||||
Income from discontinued operations | 41 | 37 | 38 | 31 | |||||||||||||
Net income attributable to Company | 502 | 531 | 636 | 658 | |||||||||||||
Per share data: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations | 1.08 | 1.16 | 1.4 | 1.47 | |||||||||||||
Income from discontinued operations | 0.1 | 0.09 | 0.09 | 0.07 | |||||||||||||
Net income attributable to Company | 1.18 | 1.25 | 1.49 | 1.54 | |||||||||||||
Diluted: | |||||||||||||||||
Income from continuing operations | 1.07 | 1.15 | 1.4 | 1.47 | |||||||||||||
Income from discontinued operations | 0.1 | 0.09 | 0.09 | 0.07 | |||||||||||||
Net income attributable to Company | 1.17 | 1.24 | 1.49 | 1.53 | |||||||||||||
Cash dividends per share | 0.13 | 0.26 | 0.26 | 0.26 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Revenue | $ | 3,968 | $ | 4,206 | $ | 4,307 | $ | 4,713 | |||||||||
Gross profit | 1,214 | 1,228 | 1,247 | 1,354 | |||||||||||||
Income from continuing operations | 583 | 579 | 584 | 637 | |||||||||||||
Income from discontinued operations | 23 | 26 | 28 | 31 | |||||||||||||
Net income attributable to Company | 606 | 605 | 612 | 668 | |||||||||||||
Per share data: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations | 1.37 | 1.37 | 1.38 | 1.5 | |||||||||||||
Income from discontinued operations | 0.06 | 0.05 | 0.06 | 0.07 | |||||||||||||
Net income attributable to Company | 1.43 | 1.42 | 1.44 | 1.57 | |||||||||||||
Diluted: | |||||||||||||||||
Income from continuing operations | 1.36 | 1.35 | 1.36 | 1.49 | |||||||||||||
Income from discontinued operations | 0.06 | 0.06 | 0.06 | 0.07 | |||||||||||||
Net income attributable to Company | 1.42 | 1.42 | 1.43 | 1.56 | |||||||||||||
Cash dividends per share | 0.12 | 0.12 | 0.12 | 0.13 |
Spinoff_of_distribution_busine
Spin-off of distribution business | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Spin-off of distribution business | ' | ||||||||||||
17. Spin-off of distribution business | |||||||||||||
On May 30, 2014, the Company completed the previously announced spin-off (the “spin-off”) of its distribution business into an independent public company named NOW Inc., which trades on the New York Stock Exchange under the symbol “DNOW”. After the close of the New York Stock Exchange on May 30, 2014, the stockholders of record as of May 22, 2014 (the “Record Date”) received one share of NOW Inc. common stock for every four shares of NOV common stock held on the Record Date. No fractional shares of NOW Inc. common stock were distributed. Instead, the transfer agent aggregated any fractional shares into whole shares, sold those whole shares in the open market at prevailing rates and distributed the net cash proceeds, after deducting any taxes required to be withheld and any amount equal to all brokerage charges and commissions, pro rata to each holder who would otherwise have been entitled to receive fractional shares in the distribution. | |||||||||||||
In order to effect the spin-off and govern its relationship with NOW after the spin-off, the Company entered into a Separation and Distribution Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a Transition Services Agreement, a Master Distributor Agreement, and a Master Services Agreement. The Separation and Distribution Agreement governs the terms of the separation of the distribution business from NOV’s other businesses. Generally, the Separation and Distribution Agreement includes agreements between NOW and NOV relating to the restructuring steps needed to be taken to complete the separation, including the assets, equity interests and rights to be transferred, liabilities to be assumed, contracts to be assigned and related matters. The Separation and Distribution Agreement also governs the treatment of aspects relating to indemnification, insurance, litigation responsibility, confidentiality, management, intellectual property (including trademarks) and cooperation. | |||||||||||||
The Tax Matters Agreement governs respective rights, responsibilities and obligations of NOV and NOW with respect to deficiencies and refunds, if any, of federal, state, local, and foreign taxes for periods before and after the distribution, as well as taxes attributable to the separation and distribution, and related matters such as the filing of tax returns and the conduct of IRS and other audits. In addition, the Tax Matters Agreement imposes certain restrictions on NOW and its subsidiaries (including restrictions on share issuances, business combinations, sales of assets and similar transactions) that are designed to preserve the generally tax-free status of the separation and distribution. | |||||||||||||
The Employee Matters Agreement governs the compensation and employee benefit obligations with respect to the current and former employees of NOV and NOW and generally allocates liabilities and responsibilities relating to employee compensation and benefit plans and programs. The Employee Matters Agreement provides for the treatment of outstanding NOV equity awards. The Employee Matters Agreement also sets forth the general principles relating to employee matters, including with respect to the assignment of employees and the transfer of employees from us to NOW, the assumption and retention of liabilities and related assets, expense reimbursements, workers’ compensation, leaves of absence, the provision of comparable benefits, employee service credits, the sharing of employee information and the duplication or acceleration of benefits. | |||||||||||||
The Transition Services Agreement sets forth the terms on which NOV will provide to NOW, and NOW will provide to NOV, on a temporary basis, certain services or functions that the companies historically have shared. Transition services may include administrative, payroll, human resources, data processing, environmental health and safety, financial audit support, financial transaction support, legal support services, IT and network infrastructure systems and various other support and corporate services. The Transition Services Agreement provides for the provision of specified transition services generally for a period of up to 18 months. | |||||||||||||
The Master Distributor Agreement provides that NOW will act as a distributor of certain of NOV’s products. Under the Master Supply Agreement, NOW will supply products and provide solutions, including supply chain management solutions, to NOV. | |||||||||||||
The following table presents the carrying value of assets and liabilities of NOW (in millions): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 101 | $ | 138 | |||||||||
Receivables, net | 661 | 692 | |||||||||||
Inventories, net | 850 | 1,015 | |||||||||||
Deferred income taxes | 21 | 18 | |||||||||||
Prepaid and other current assets | 29 | 19 | |||||||||||
Total current assets of discontinued operations | 1,662 | 1,882 | |||||||||||
Property, plant and equipment, net | 102 | 61 | |||||||||||
Deferred income taxes | 15 | 11 | |||||||||||
Goodwill | 333 | 343 | |||||||||||
Intangibles, net | 68 | 74 | |||||||||||
Other assets | 3 | 2 | |||||||||||
Total assets of discontinued operations | $ | 2,183 | $ | 2,373 | |||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 264 | $ | 272 | |||||||||
Accrued liabilities | 99 | 113 | |||||||||||
Accrued income taxes | — | 6 | |||||||||||
Total current liabilities of discontinued operations | 363 | 391 | |||||||||||
Deferred income taxes | 16 | 9 | |||||||||||
Other liabilities | 2 | 2 | |||||||||||
Total liabilities of discontinued operations | $ | 381 | $ | 402 | |||||||||
The following table presents selected financial information regarding the results of operations of our distribution business, which is reported as discontinued operations (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue from discontinued operations | $ | 4,296 | $ | 3,414 | $ | 1,641 | |||||||
Income from discontinued operations before income taxes | 222 | 165 | 128 | ||||||||||
Income tax expense | 75 | 57 | 43 | ||||||||||
Income from discontinued operations | $ | 147 | $ | 108 | $ | 85 | |||||||
Prior to the spin-off, sales to NOW were $499 million, $450 million and $382 million for the years ended December 31, 2013, 2012 and 2011, respectively. Prior to the spin-off, purchases from NOW $149 million, $117 million and $76 million for the years ended December 31, 2013, 2012 and 2011, respectively. Prior to May 30, 2014, the spin-off date, revenue and related cost of revenue were eliminated in consolidation between NOV and NOW. Beginning May 31, 2014, this revenue and cost of revenue represent third-party transactions with NOW. |
SCHEDULE_II_NATIONAL_OILWELL_V
SCHEDULE II NATIONAL OILWELL VARCO, INC. VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
SCHEDULE II NATIONAL OILWELL VARCO, INC. VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
NATIONAL OILWELL VARCO, INC. | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | |||||||||||||||||
(in millions) | |||||||||||||||||
Balance | Additions | Charge | Balance | ||||||||||||||
beginning | (Deductions) | off’s | end of | ||||||||||||||
of year | charged to | and | year | ||||||||||||||
costs and | other | ||||||||||||||||
expenses | |||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
2013 | $ | 120 | $ | 32 | $ | (20 | ) | $ | 132 | ||||||||
2012 | 107 | 6 | 7 | 120 | |||||||||||||
2011 | 107 | 9 | (9 | ) | 107 | ||||||||||||
Allowance for excess and obsolete inventories: | |||||||||||||||||
2013 | $ | 338 | $ | 89 | $ | (31 | ) | $ | 396 | ||||||||
2012 | 281 | 99 | (42 | ) | 338 | ||||||||||||
2011 | 270 | 70 | (59 | ) | 281 | ||||||||||||
Valuation allowance for deferred tax assets: | |||||||||||||||||
2013 | $ | 93 | $ | 40 | $ | — | $ | 133 | |||||||||
2012 | 13 | 80 | — | 93 | |||||||||||||
2011 | 9 | 4 | — | 13 | |||||||||||||
Warranty reserve: | |||||||||||||||||
2013 | $ | 194 | $ | 101 | $ | (67 | ) | $ | 228 | ||||||||
2012 | 211 | 51 | (68 | ) | 194 | ||||||||||||
2011 | 215 | 40 | (44 | ) | 211 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging” (“ASC Topic 815”) requires companies to recognize all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. | |||||||||||||||||||||||||
The Company records all derivative financial instruments at their fair value in its Consolidated Balance Sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments that the Company holds are designated as cash flow hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventories consist of raw materials, work-in-process and oilfield and industrial finished products, manufactured equipment and spare parts. Inventories are stated at the lower of cost or market using the first-in, first-out or average cost methods. Allowances for excess and obsolete inventories are determined based on our historical usage of inventory on-hand as well as our future expectations related to our installed base and the development of new products. The allowance, which totaled $396 million and $338 million at December 31, 2013 and 2012, respectively, is the amount necessary to reduce the cost of the inventory to its net realizable value. | |||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $381 million, $315 million and $275 million for the years ended December 31, 2013, 2012 and 2011, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 6 to the consolidated financial statements. | |||||||||||||||||||||||||
Long-lived Assets | ' | ||||||||||||||||||||||||
Long-lived Assets | |||||||||||||||||||||||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying value of assets used in operations that are not recoverable is reduced to fair value if lower than carrying value. In determining the fair market value of the assets, we consider market trends and recent transactions involving sales of similar assets, or when not available, discounted cash flow analysis. There have been no impairments of long-lived assets for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
The Company has approximately $9.0 billion of goodwill and $5.1 billion of identified intangible assets at December 31, 2013. Generally accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that such assets might be impaired. | |||||||||||||||||||||||||
Goodwill is identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Systems | Aftermarket | Technologies | & Production | Operations | |||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 943 | $ | 556 | $ | 3,683 | $ | 917 | $ | 52 | $ | 6,151 | |||||||||||||
Goodwill acquired during period | 145 | 89 | 80 | 395 | 291 | 1,000 | |||||||||||||||||||
Currency translation adjustments and other | 9 | 4 | 6 | 2 | — | 21 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 1,097 | $ | 649 | $ | 3,769 | $ | 1,314 | $ | 343 | $ | 7,172 | |||||||||||||
Goodwill acquired during the period | 179 | 256 | 665 | 803 | — | 1,903 | |||||||||||||||||||
Currency translation adjustments and other | 3 | 1 | (9 | ) | (11 | ) | (10 | ) | (26 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 1,279 | $ | 906 | $ | 4,425 | $ | 2,106 | $ | 333 | $ | 9,049 | |||||||||||||
Identified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical drawings acquired in acquisitions, and are being amortized on a straight-line basis over the estimated useful lives of 2-30 years. Amortization expense of identified intangibles is expected to be approximately $360 million in each of the next five years. Included in intangible assets are approximately $643 million of indefinite-lived trade names. | |||||||||||||||||||||||||
The net book values of identified intangible assets are identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig Systems | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Aftermarket | Technologies | & | Operations | ||||||||||||||||||||||
Production | |||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 56 | $ | 92 | $ | 3,134 | $ | 771 | $ | 20 | $ | 4,073 | |||||||||||||
Additions to intangible assets | 18 | — | 8 | 897 | 58 | 981 | |||||||||||||||||||
Amortization | (14 | ) | (3 | ) | (203 | ) | (81 | ) | (4 | ) | (305 | ) | |||||||||||||
Currency translation adjustments and other | 2 | — | 3 | (11 | ) | — | (6 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 62 | $ | 89 | $ | 2,942 | $ | 1,576 | $ | 74 | $ | 4,743 | |||||||||||||
Additions to intangible assets | 190 | 59 | 286 | 161 | — | 696 | |||||||||||||||||||
Amortization | (21 | ) | (6 | ) | (217 | ) | (113 | ) | (6 | ) | (363 | ) | |||||||||||||
Currency translation adjustments and other | 1 | — | (12 | ) | (10 | ) | — | (21 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 232 | $ | 142 | $ | 2,999 | $ | 1,614 | $ | 68 | $ | 5,055 | |||||||||||||
Identified intangible assets by major classification consist of the following (in millions): | |||||||||||||||||||||||||
Gross | Accumulated | Net Book | |||||||||||||||||||||||
Amortization | Value | ||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Customer relationships | $ | 3,522 | $ | (907 | ) | $ | 2,615 | ||||||||||||||||||
Trademarks | 877 | (152 | ) | 725 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,087 | (327 | ) | 760 | |||||||||||||||||||||
Total identified intangibles | $ | 6,129 | $ | (1,386 | ) | $ | 4,743 | ||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Customer relationships | $ | 4,093 | $ | (1,147 | ) | $ | 2,946 | ||||||||||||||||||
Trademarks | 893 | (195 | ) | 698 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,175 | (407 | ) | 768 | |||||||||||||||||||||
Total identified intangibles | $ | 6,804 | $ | (1,749 | ) | $ | 5,055 | ||||||||||||||||||
The Company performed its annual impairment analysis for its goodwill and indefinite-lived intangible assets during the fourth quarter of 2013, 2012 and 2011 each resulting in no impairment. The valuation techniques used in the annual test were consistent with those used during previous testing. The inputs used in the annual test were updated for current market conditions and forecasts. | |||||||||||||||||||||||||
Foreign Currency | ' | ||||||||||||||||||||||||
Foreign Currency | |||||||||||||||||||||||||
The functional currency for most of our foreign operations is the local currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the U.S. dollar at current exchange rates are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates in effect during the period. Certain other foreign operations, including our operations in Norway, use the U.S. dollar as the functional currency. Accordingly, financial statements of these foreign subsidiaries are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets and related elements of expense. Revenue and expense elements are remeasured at rates that approximate the rates in effect on the transaction dates. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income. Net foreign currency transaction losses were $24 million, $18 million and $10 million for the years ending December 31, 2013, 2012 and 2011, respectively, and are included in other income (expense) in the accompanying statement of operations. | |||||||||||||||||||||||||
Historically, the Venezuelan government has devalued the country’s currency. During the first quarter of 2013, the Venezuelan government again officially devalued the Venezuelan bolivar against the U.S. dollar. As a result, the Company incurred approximately $12 million in devaluation charges in the first quarter of 2013. The Company’s net investment in Venezuela was $39 million at December 31, 2013. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
The Company’s products and services are sold based upon purchase orders or contracts with the customer that include fixed or determinable prices and that do not generally include right of return or other similar provisions or other significant post delivery obligations. Except for certain construction contracts and drill pipe sales described below, the Company records revenue at the time its manufacturing process is complete, the customer has been provided with all proper inspection and other required documentation, title and risk of loss has passed to the customer, collectability is reasonably assured and the product has been delivered. Customer advances or deposits are deferred and recognized as revenue when the Company has completed all of its performance obligations related to the sale. The Company also recognizes revenue as services are performed. The amounts billed for shipping and handling cost are included in revenue and related costs are included in cost of sales. | |||||||||||||||||||||||||
Revenue Recognition under Long-term Construction Contracts | |||||||||||||||||||||||||
The Company uses the percentage-of-completion method to account for certain long-term construction contracts in the Rig Systems and Completion & Production Solutions segments. These long-term construction contracts include the following characteristics: | |||||||||||||||||||||||||
• | the contracts include custom designs for customer specific applications; | ||||||||||||||||||||||||
• | the structural design is unique and requires significant engineering efforts; and | ||||||||||||||||||||||||
• | construction projects often have progress payments. | ||||||||||||||||||||||||
This method requires the Company to make estimates regarding the total costs of the project, progress against the project schedule and the estimated completion date, all of which impact the amount of revenue and gross margin the Company recognizes in each reporting period. The Company prepares detailed cost estimates at the beginning of each project. Significant projects and their related costs and profit margins are updated and reviewed at least quarterly by senior management. Factors that may affect future project costs and margins include shipyard access, weather, production efficiencies, availability and costs of labor, materials and subcomponents and other factors. These factors can impact the accuracy of the Company’s estimates and materially impact the Company’s current and future reported earnings. | |||||||||||||||||||||||||
The asset, “Costs in excess of billings,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs,” represents billings in excess of revenues recognized. | |||||||||||||||||||||||||
Drill Pipe Sales | ' | ||||||||||||||||||||||||
Drill Pipe Sales | |||||||||||||||||||||||||
For drill pipe sales, if requested in writing by the customer, delivery may be satisfied through delivery to the Company’s customer storage location or to a third-party storage facility. For sales transactions where title and risk of loss have transferred to the customer but the supporting documentation does not meet the criteria for revenue recognition prior to the products being in the physical possession of the customer, the recognition of the revenues and related inventory costs from these transactions are deferred until the customer takes physical possession. | |||||||||||||||||||||||||
Service and Product Warranties | ' | ||||||||||||||||||||||||
Service and Product Warranties | |||||||||||||||||||||||||
The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with ASC Topic 450 “Contingencies” (“ASC Topic 450”). Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. The Company monitors the actual cost of performing these discretionary services and adjusts the accrual based on the most current information available. | |||||||||||||||||||||||||
The changes in the carrying amount of service and product warranties are as follows (in millions): | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 211 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 51 | ||||||||||||||||||||||||
Amounts incurred | (76 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 8 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 194 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 101 | ||||||||||||||||||||||||
Amounts incurred | (73 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 6 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 228 | |||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. | |||||||||||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||
We grant credit to our customers, which operate primarily in the oil and gas industry. Concentrations of credit risk are limited because we have a large number of geographically diverse customers, thus spreading trade credit risk. We control credit risk through credit evaluations, credit limits and monitoring procedures. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral, but may require letters of credit for certain international sales. Credit losses are provided for in the financial statements. Allowances for doubtful accounts are determined based on a continuous process of assessing the Company’s portfolio on an individual customer basis taking into account current market conditions and trends. This process consists of a thorough review of historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. Based on a review of these factors, the Company will establish or adjust allowances for specific customers. Accounts receivable are net of allowances for doubtful accounts of approximately $132 million and $120 million at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by ASC Topic 718 “Compensation – Stock Compensation” (“ASC Topic 718”). Under this guidance the fair value of stock option grants and restricted stock is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. | |||||||||||||||||||||||||
The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans. | |||||||||||||||||||||||||
Total compensation cost that has been charged against income for all share-based compensation arrangements was $86 million, $74 million and $68 million for 2013, 2012 and 2011, respectively. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $26 million, $22 million and $15 million for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Environmental Liabilities | ' | ||||||||||||||||||||||||
Environmental Liabilities | |||||||||||||||||||||||||
When environmental assessments or remediations are probable and the costs can be reasonably estimated, remediation liabilities are recorded on an undiscounted basis and are adjusted as further information develops or circumstances change. | |||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates include but are not limited to, estimated losses on accounts receivable, estimated costs and related margins of projects accounted for under percentage-of-completion, estimated realizable value on excess and obsolete inventory, contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Contingencies | ' | ||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||
The Company accrues for costs relating to litigation claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and reasonably estimable. In circumstances where the most likely outcome of a contingency can be reasonably estimated, we accrue a liability for that amount. Where the most likely outcome cannot be estimated, a range of potential losses is established and if no one amount in that range is more likely than others, the low end of the range is accrued. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous judgments with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. | |||||||||||||||||||||||||
Net Income Attributable to Company Per Share | ' | ||||||||||||||||||||||||
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): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||
Income from continuing operations | $ | 2,181 | $ | 2,375 | $ | 1,900 | |||||||||||||||||||
Income from discontinued operations | $ | 147 | $ | 108 | $ | 85 | |||||||||||||||||||
Net income attributable to Company | $ | 2,327 | $ | 2,491 | $ | 1,994 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Basic—weighted average common shares outstanding | 426 | 425 | 422 | ||||||||||||||||||||||
Dilutive effect of employee stock options and other unvested stock awards | 2 | 2 | 2 | ||||||||||||||||||||||
Diluted outstanding shares | 428 | 427 | 424 | ||||||||||||||||||||||
Per share data: | |||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.11 | $ | 5.61 | $ | 4.52 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.21 | |||||||||||||||||||
Net income attributable to Company | $ | 5.46 | $ | 5.86 | $ | 4.73 | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.09 | $ | 5.58 | $ | 4.5 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.2 | |||||||||||||||||||
Net income attributable to Company | $ | 5.44 | $ | 5.83 | $ | 4.7 | |||||||||||||||||||
Cash dividends per share | $ | 0.91 | $ | 0.49 | $ | 0.45 | |||||||||||||||||||
ASC Topic 260, “Earnings Per Share” (“ASC Topic 260”) requires companies with unvested participating securities 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 Company allocated to these participating securities was immaterial for the years ended December 31, 2013, 2012 and 2011 and therefore not excluded from net income attributable to Company per share calculation. | |||||||||||||||||||||||||
The Company had stock options outstanding that were anti-dilutive totaling 7 million, 5 million, and 3 million at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Recently Issued Accounting Standards | ' | ||||||||||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” (ASU No. 2013-02), which is an update for Accounting Standards Codification Topic No. 220 “Comprehensive Income”. The update improves the reporting of reclassifications out of accumulated other comprehensive income. The guidance was effective for the Company’s interim and annual reporting periods beginning January 1, 2013, and applied prospectively. There was no significant impact to the Company’s Consolidated Financial Statements from the adopted provisions of ASU No. 2013-02. | |||||||||||||||||||||||||
In March 2013, the FASB issued Accounting Standards Update No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force).” (ASU No. 2013-05), which amends Accounting Standards Codification Topic No. 830, “Foreign Currency Matters,” and Accounting Standards Codification Topic No. 810, “Consolidation,” to address diversity in practice related to the release of cumulative translation adjustments (“CTA”) into earnings upon the occurrence of certain derecognition events. ASU No. 2013-05 precludes the release of CTA for derecognition events that occur within a foreign entity, unless such events represent a complete or substantially complete liquidation of the foreign entity; however, derecognition events related to investments in a foreign entity result in the release of all CTA related to the derecognized foreign entity, even when a noncontrolling financial interest is retained. ASU No. 2013-05 also amends Accounting Standards Codification Topic No. 805, “Business Combinations,” for transactions that result in a company obtaining control of a business in a step acquisition by increasing an investment in a foreign entity from one accounted for under the equity method to one accounted for as a consolidated investment. ASU No. 2013-05 is effective for fiscal years beginning after December 15, 2013, and applied prospectively. Early adoption is permitted as of the beginning of the entity’s fiscal year. The Company is currently assessing the impact ASU No. 2013-05 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement. | |||||||||||||||||||||||||
Derivatives and Hedging | ' | ||||||||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency exchange rate risk. Forward contracts against various foreign currencies are entered into 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). Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge). In addition, the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). | |||||||||||||||||||||||||
At December 31, 2013, the Company has determined that the fair value of its derivative financial instruments representing assets of $59 million and liabilities of $40 million (primarily currency related derivatives) 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. At December 31, 2013, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $19 million. | |||||||||||||||||||||||||
At December 31, 2013, the Company’s financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when the Company’s financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||||||||||
Cash Flow Hedging Strategy | |||||||||||||||||||||||||
To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign currencies, the decrease in present value of future foreign currency revenues and expenses is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. | |||||||||||||||||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of Other Comprehensive Income 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 remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), or hedge components excluded from the assessment of effectiveness, is recognized in the Consolidated Statements of Income during the current period. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Goodwill is Identified by Segment | ' | ||||||||||||||||||||||||
Goodwill is identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Systems | Aftermarket | Technologies | & Production | Operations | |||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 943 | $ | 556 | $ | 3,683 | $ | 917 | $ | 52 | $ | 6,151 | |||||||||||||
Goodwill acquired during period | 145 | 89 | 80 | 395 | 291 | 1,000 | |||||||||||||||||||
Currency translation adjustments and other | 9 | 4 | 6 | 2 | — | 21 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 1,097 | $ | 649 | $ | 3,769 | $ | 1,314 | $ | 343 | $ | 7,172 | |||||||||||||
Goodwill acquired during the period | 179 | 256 | 665 | 803 | — | 1,903 | |||||||||||||||||||
Currency translation adjustments and other | 3 | 1 | (9 | ) | (11 | ) | (10 | ) | (26 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 1,279 | $ | 906 | $ | 4,425 | $ | 2,106 | $ | 333 | $ | 9,049 | |||||||||||||
Identified Intangible Assets Identified by Segment | ' | ||||||||||||||||||||||||
The net book values of identified intangible assets are identified by segment as follows (in millions): | |||||||||||||||||||||||||
Rig Systems | Rig | Wellbore | Completion | Discontinued | Total | ||||||||||||||||||||
Aftermarket | Technologies | & | Operations | ||||||||||||||||||||||
Production | |||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 56 | $ | 92 | $ | 3,134 | $ | 771 | $ | 20 | $ | 4,073 | |||||||||||||
Additions to intangible assets | 18 | — | 8 | 897 | 58 | 981 | |||||||||||||||||||
Amortization | (14 | ) | (3 | ) | (203 | ) | (81 | ) | (4 | ) | (305 | ) | |||||||||||||
Currency translation adjustments and other | 2 | — | 3 | (11 | ) | — | (6 | ) | |||||||||||||||||
Balance at December 31, 2012 | $ | 62 | $ | 89 | $ | 2,942 | $ | 1,576 | $ | 74 | $ | 4,743 | |||||||||||||
Additions to intangible assets | 190 | 59 | 286 | 161 | — | 696 | |||||||||||||||||||
Amortization | (21 | ) | (6 | ) | (217 | ) | (113 | ) | (6 | ) | (363 | ) | |||||||||||||
Currency translation adjustments and other | 1 | — | (12 | ) | (10 | ) | — | (21 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 232 | $ | 142 | $ | 2,999 | $ | 1,614 | $ | 68 | $ | 5,055 | |||||||||||||
Identified Intangible Assets by Major Classification | ' | ||||||||||||||||||||||||
Identified intangible assets by major classification consist of the following (in millions): | |||||||||||||||||||||||||
Gross | Accumulated | Net Book | |||||||||||||||||||||||
Amortization | Value | ||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Customer relationships | $ | 3,522 | $ | (907 | ) | $ | 2,615 | ||||||||||||||||||
Trademarks | 877 | (152 | ) | 725 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,087 | (327 | ) | 760 | |||||||||||||||||||||
Total identified intangibles | $ | 6,129 | $ | (1,386 | ) | $ | 4,743 | ||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Customer relationships | $ | 4,093 | $ | (1,147 | ) | $ | 2,946 | ||||||||||||||||||
Trademarks | 893 | (195 | ) | 698 | |||||||||||||||||||||
Indefinite-lived trade names | 643 | — | 643 | ||||||||||||||||||||||
Other | 1,175 | (407 | ) | 768 | |||||||||||||||||||||
Total identified intangibles | $ | 6,804 | $ | (1,749 | ) | $ | 5,055 | ||||||||||||||||||
Changes in Carrying Amount of Service and Product Warranties | ' | ||||||||||||||||||||||||
The changes in the carrying amount of service and product warranties are as follows (in millions): | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 211 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 51 | ||||||||||||||||||||||||
Amounts incurred | (76 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 8 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 194 | |||||||||||||||||||||||
Net provisions for warranties issued during the year | 101 | ||||||||||||||||||||||||
Amounts incurred | (73 | ) | |||||||||||||||||||||||
Currency translation adjustments and other | 6 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 228 | |||||||||||||||||||||||
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): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||
Income from continuing operations | $ | 2,180 | $ | 2,383 | $ | 1,909 | |||||||||||||||||||
Income from discontinued operations | $ | 147 | $ | 108 | $ | 85 | |||||||||||||||||||
Net income attributable to Company | $ | 2,327 | $ | 2,491 | $ | 1,994 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Basic—weighted average common shares outstanding | 426 | 425 | 422 | ||||||||||||||||||||||
Dilutive effect of employee stock options and other unvested stock awards | 2 | 2 | 2 | ||||||||||||||||||||||
Diluted outstanding shares | 428 | 427 | 424 | ||||||||||||||||||||||
Per share data: | |||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.11 | $ | 5.61 | $ | 4.52 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.21 | |||||||||||||||||||
Net income attributable to Company | $ | 5.46 | $ | 5.86 | $ | 4.73 | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations | $ | 5.09 | $ | 5.58 | $ | 4.5 | |||||||||||||||||||
Income from discontinued operations | $ | 0.35 | $ | 0.25 | $ | 0.2 | |||||||||||||||||||
Net income attributable to Company | $ | 5.44 | $ | 5.83 | $ | 4.7 | |||||||||||||||||||
Cash dividends per share | $ | 0.91 | $ | 0.49 | $ | 0.45 | |||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Outstanding Foreign Currency Forward Contracts | ' | ||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and expenses (in millions): | |||||||||||||||||||||||||||||
Currency Denomination | |||||||||||||||||||||||||||||
Foreign Currency | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Norwegian Krone | NOK | 10,503 | NOK | 6,281 | |||||||||||||||||||||||||
Euro | € | 406 | € | 389 | |||||||||||||||||||||||||
U.S. Dollar | $ | 357 | $ | 357 | |||||||||||||||||||||||||
Danish Krone | DKK | 278 | DKK | 134 | |||||||||||||||||||||||||
British Pound Sterling | £ | 23 | £ | 6 | |||||||||||||||||||||||||
Singapore Dollar | SGD | 17 | SGD | 14 | |||||||||||||||||||||||||
Canadian Dollar | CAD | 16 | CAD | — | |||||||||||||||||||||||||
The Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts (in millions): | |||||||||||||||||||||||||||||
Currency Denomination | |||||||||||||||||||||||||||||
Foreign Currency | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Norwegian Krone | NOK | 3,257 | NOK | 1,684 | |||||||||||||||||||||||||
Russian Ruble | RUB | 2,149 | RUB | 1,467 | |||||||||||||||||||||||||
U.S. Dollar | $ | 715 | $ | 967 | |||||||||||||||||||||||||
Euro | € | 310 | € | 225 | |||||||||||||||||||||||||
Danish Krone | DKK | 177 | DKK | 177 | |||||||||||||||||||||||||
British Pound Sterling | £ | 14 | £ | 9 | |||||||||||||||||||||||||
Swedish Krone | SEK | 4 | SEK | 5 | |||||||||||||||||||||||||
Singapore Dollar | SGD | 3 | SGD | 24 | |||||||||||||||||||||||||
Canadian Dollar | CAD | 3 | CAD | 2 | |||||||||||||||||||||||||
Brazilian Real | BRL | — | BRL | 135 | |||||||||||||||||||||||||
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 | December 31, | Balance Sheet | December 31, | ||||||||||||||||||||||||||
Location | 2013 | 2012 | Location | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC Topic 815 | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid and other current assets | $ | 35 | $ | 57 | Accrued liabilities | $ | 18 | $ | 5 | |||||||||||||||||||
Foreign exchange contracts | Other Assets | 5 | 24 | Other Liabilities | 9 | 1 | |||||||||||||||||||||||
Total derivatives designated as hedging instruments under ASC Topic 815 | $ | 40 | $ | 81 | $ | 27 | $ | 6 | |||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC Topic 815 | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid and other current assets | $ | 19 | $ | 24 | Accrued liabilities | $ | 13 | $ | 13 | |||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC Topic 815 | $ | 19 | $ | 24 | $ | 13 | $ | 13 | |||||||||||||||||||||
Total derivatives | $ | 59 | $ | 105 | $ | 40 | $ | 19 | |||||||||||||||||||||
Effect of Derivative Instruments on Consolidated Statements of Income | ' | ||||||||||||||||||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income | |||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||
Derivatives Designated as | Amount of Gain (Loss) | Location of Gain (Loss) | Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) | ||||||||||||||||||||||||
Hedging Instruments under | Recognized in OCI on | Reclassified from | Reclassified from | (Loss) Recognized in | Recognized in Income on | ||||||||||||||||||||||||
ASC Topic 815 | Derivatives (Effective | Accumulated OCI into | Accumulated OCI into | Income on | Derivatives (Ineffective | ||||||||||||||||||||||||
Portion) (a) | Income (Effective | Income (Effective | Derivatives (Ineffective | Portion and Amount | |||||||||||||||||||||||||
Portion) | Portion) | Portion and Amount | Excluded from | ||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) (b) | ||||||||||||||||||||||||||||
Effectiveness Testing) | |||||||||||||||||||||||||||||
Years Ended | Years Ended | Years Ended | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Revenue | 16 | (6 | ) | ||||||||||||||||||||||||||
Foreign exchange contracts | (42 | ) | 105 | Cost of revenue | (6 | ) | (26 | ) | Other income (expense), net | 12 | 8 | ||||||||||||||||||
Total | (42 | ) | 105 | 10 | (32 | ) | 12 | 8 | |||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||||
Hedging Instruments under | Recognized in Income | Recognized in Income on | |||||||||||||||||||||||||||
ASC Topic 815 | on Derivatives | Derivatives | |||||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | 18 | 19 | ||||||||||||||||||||||||||
Total | 18 | 19 | |||||||||||||||||||||||||||
(a) | The Company expects that $(16) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow. | ||||||||||||||||||||||||||||
(b) | The amount of gain (loss) recognized in income represents nil related to the ineffective portion of the hedging relationships for the each of the years ended December 31, 2013 and 2012, and $12 million and $8 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2013 and 2012, respectively. |
Acquisitions_and_Investments_T
Acquisitions and Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||||||
The table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
Current assets, net of cash acquired | $ | 428 | |||||||||||
Property, plant and equipment | 250 | ||||||||||||
Intangible assets | 894 | ||||||||||||
Goodwill | 1,590 | ||||||||||||
Other assets | 49 | ||||||||||||
Total assets acquired | 3,211 | ||||||||||||
Current liabilities | 186 | ||||||||||||
Deferred taxes | 524 | ||||||||||||
Other liabilities | 123 | ||||||||||||
Total liabilities | 833 | ||||||||||||
Cash consideration, net of cash acquired | $ | 2,378 | |||||||||||
Estimated Fair Values of Assets Acquired and Liabilities | ' | ||||||||||||
The following table displays the total purchase price allocation for the 2012 acquisitions and summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
Total | |||||||||||||
Current assets, net of cash acquired | $ | 1,441 | |||||||||||
Property, plant and equipment | 248 | ||||||||||||
Intangible assets | 981 | ||||||||||||
Goodwill | 1,000 | ||||||||||||
Other assets | 2 | ||||||||||||
Total assets acquired | 3,672 | ||||||||||||
Current liabilities | 585 | ||||||||||||
Long-term debt | 1 | ||||||||||||
Other liabilities | 206 | ||||||||||||
Total liabilities | 792 | ||||||||||||
Cash consideration, net of cash acquired | $ | 2,880 | |||||||||||
Fair Values of Assets Acquired and Liabilities | ' | ||||||||||||
The following table displays the total purchase price allocation for the 2011 acquisitions and summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions): | |||||||||||||
All Other | |||||||||||||
Ameron | Acquisitions | Total | |||||||||||
Current assets, net of cash acquired | $ | 245 | $ | 106 | $ | 351 | |||||||
Property, plant and equipment | 402 | 41 | 443 | ||||||||||
Intangible assets | 142 | 131 | 273 | ||||||||||
Goodwill | 199 | 178 | 377 | ||||||||||
Other assets | 59 | 14 | 73 | ||||||||||
Total assets acquired | 1,047 | 470 | 1,517 | ||||||||||
Current liabilities | 154 | 80 | 234 | ||||||||||
Long-term debt | 16 | — | 16 | ||||||||||
Other liabilities | 173 | 56 | 229 | ||||||||||
Total liabilities | 343 | 136 | 479 | ||||||||||
Cash consideration, net of cash acquired | $ | 704 | $ | 334 | $ | 1,038 | |||||||
Summary of Acquisitions | ' | ||||||||||||
A summary of the acquisitions follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of assets acquired, net of cash acquired | $ | 3,329 | $ | 3,672 | $ | 1,517 | |||||||
Cash paid, net of cash acquired | (2,397 | ) | (2,880 | ) | (1,038 | ) | |||||||
Liabilities assumed, debt issued and noncontrolling interest | $ | 932 | $ | 792 | $ | 479 | |||||||
Excess purchase price over fair value of net assets acquired | $ | 1,903 | $ | 1,000 | $ | 377 | |||||||
Inventories_net_Tables
Inventories, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials and supplies | $ | 1,175 | $ | 1,268 | |||||
Work in process | 798 | 905 | |||||||
Finished goods and purchased products | 3,630 | 3,718 | |||||||
Total | $ | 5,603 | $ | 5,891 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment consist of (in millions): | |||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2013 | 2012 | |||||||||||
Land and buildings | 5-35 Years | $ | 1,494 | $ | 1,348 | ||||||||
Operating equipment | 3-15 Years | 2,960 | 2,463 | ||||||||||
Rental equipment | 3-12 Years | 758 | 712 | ||||||||||
5,212 | 4,523 | ||||||||||||
Less: Accumulated Depreciation | (1,804 | ) | (1,578 | ) | |||||||||
$ | 3,408 | $ | 2,945 | ||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Customer prepayments and billings | $ | 673 | $ | 699 | |||||
Accrued vendor costs | 531 | 444 | |||||||
Compensation | 516 | 511 | |||||||
Warranty | 228 | 194 | |||||||
Taxes (non income) | 188 | 150 | |||||||
Insurance | 131 | 108 | |||||||
Accrued commissions | 97 | 77 | |||||||
Fair value of derivatives | 31 | 18 | |||||||
Interest | 11 | 14 | |||||||
Other | 357 | 356 | |||||||
Total | $ | 2,763 | $ | 2,571 | |||||
Costs_and_Estimated_Earnings_o1
Costs and Estimated Earnings on Uncompleted Contracts (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Costs and Estimated Earnings on Uncompleted Contracts | ' | ||||||||
Costs and estimated earnings on uncompleted contracts consist of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Costs incurred on uncompleted contracts | $ | 7,608 | $ | 5,731 | |||||
Estimated earnings | 3,553 | 3,160 | |||||||
11,161 | 8,891 | ||||||||
Less: Billings to date | 11,393 | 8,855 | |||||||
$ | (232 | ) | $ | 36 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 1,539 | $ | 1,225 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,771 | ) | (1,189 | ) | |||||
$ | (232 | ) | $ | 36 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt consists of (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 | 151 | 151 | |||||||
Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 | 500 | 500 | |||||||
Senior Notes, interest at 2.6% payable semiannually, principal due on December 1, 2022 | 1,396 | 1,395 | |||||||
Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 | 1,096 | 1,096 | |||||||
Other | 7 | 7 | |||||||
Total debt | 3,150 | 3,149 | |||||||
Less current portion | 1 | 1 | |||||||
Long-term debt | $ | 3,149 | $ | 3,148 | |||||
Principal Payments of Debt | ' | ||||||||
Principal payments of debt for years subsequent to 2013 are as follows (in millions): | |||||||||
2014 | $ | 1 | |||||||
2015 | 153 | ||||||||
2016 | — | ||||||||
2017 | 500 | ||||||||
2018 | — | ||||||||
Thereafter | 2,496 | ||||||||
$ | 3,150 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Change in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension Plans | ' | ||||||||||||||||
The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2013 and December 31, 2012, is as follows (in millions): | |||||||||||||||||
Pension benefits | Postretirement benefits | ||||||||||||||||
At year end | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Benefit obligation at beginning of year | $ | 655 | $ | 556 | $ | 30 | $ | 35 | |||||||||
Service cost | 7 | 6 | 1 | — | |||||||||||||
Interest cost | 31 | 27 | 2 | 1 | |||||||||||||
Actuarial loss (gain) | (10 | ) | 76 | (12 | ) | (2 | ) | ||||||||||
Benefits paid | (38 | ) | (26 | ) | (4 | ) | (4 | ) | |||||||||
Participants contributions | — | 1 | — | — | |||||||||||||
Exchange rate loss (gain) | 7 | 12 | — | — | |||||||||||||
Acquisitions | 194 | 11 | 28 | — | |||||||||||||
Curtailments | — | (8 | ) | — | — | ||||||||||||
Benefit obligation at end of year | $ | 846 | $ | 655 | $ | 45 | $ | 30 | |||||||||
Fair value of plan assets at beginning of year | $ | 517 | $ | 419 | $ | — | $ | — | |||||||||
Actual return | 72 | 49 | — | — | |||||||||||||
Benefits paid | (38 | ) | (26 | ) | (4 | ) | (4 | ) | |||||||||
Company contributions | 28 | 53 | 4 | 4 | |||||||||||||
Participants contributions | — | 1 | — | — | |||||||||||||
Exchange rate gain (loss) | 4 | 12 | — | — | |||||||||||||
Acquisitions | 123 | 9 | — | — | |||||||||||||
Fair value of plan assets at end of year | $ | 706 | $ | 517 | $ | — | $ | — | |||||||||
Funded status | $ | (140 | ) | $ | (138 | ) | $ | (45 | ) | $ | (30 | ) | |||||
Accumulated benefit obligation at end of year | $ | 811 | $ | 635 | |||||||||||||
Assumption Rates Used for Benefit Obligations | ' | ||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate: | |||||||||||||||||
United States plan | 4.65% | 3.78% | |||||||||||||||
International plans | 3.50% - 4.40% | 3.30% - 4.40% | |||||||||||||||
Salary increase: | |||||||||||||||||
United States plan | N/A | N/A | |||||||||||||||
International plans | 2.00% - 4.40% | 2.00% - 3.87% | |||||||||||||||
Assumption Rates Used for Net Periodic Benefit Costs | ' | ||||||||||||||||
The assumption rates used for net periodic benefit costs are as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate: | |||||||||||||||||
United States plan | 3.80% | 4.58% | 4.95% | ||||||||||||||
International plans | 3.46% - 4.40% | 4.50% - 5.60% | 5.25% - 5.65% | ||||||||||||||
Salary increase: | |||||||||||||||||
United States plan | N/A | N/A | N/A | ||||||||||||||
International plans | 2.00% - 3.53% | 2.00% - 4.00% | 2.00% - 4.33% | ||||||||||||||
Expected return on assets: | |||||||||||||||||
United States plan | 6.30% | 6.33% | 5.50% - 6.50% | ||||||||||||||
International plans | 3.50% - 5.82% | 4.50% - 6.51% | 4.50% - 7.06% | ||||||||||||||
Plan's Assets Carried at Fair Value | ' | ||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets carried at fair value (in millions): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
December 31, 2012: | |||||||||||||||||
Equity securities | $ | 204 | $ | — | $ | 204 | $ | — | |||||||||
Bonds | 139 | — | 139 | — | |||||||||||||
Other (insurance contracts) | 174 | — | 74 | 100 | |||||||||||||
Total Fair Value Measurements | $ | 517 | $ | — | $ | 417 | $ | 100 | |||||||||
December 31, 2013: | |||||||||||||||||
Equity securities | $ | 296 | $ | — | $ | 296 | $ | — | |||||||||
Bonds | 172 | — | 172 | — | |||||||||||||
Other (insurance contracts) | 238 | — | 131 | 107 | |||||||||||||
Total Fair Value Measurements | $ | 706 | $ | — | $ | 599 | $ | 107 | |||||||||
Summary of Changes in Fair Value of Plan's Level Three Assets | ' | ||||||||||||||||
The following table sets forth a summary of changes in the fair value of the Plan’s Level 3 assets (in millions): | |||||||||||||||||
Level 3 | |||||||||||||||||
Plan | |||||||||||||||||
Assets | |||||||||||||||||
Balance at December 31, 2011 | $ | 77 | |||||||||||||||
Actual return on plan assets still held at reporting date | 10 | ||||||||||||||||
Purchases, sales and settlements | 8 | ||||||||||||||||
Currency translation adjustments | 5 | ||||||||||||||||
Balance at December 31, 2012 | $ | 100 | |||||||||||||||
Actual return on plan assets still held at reporting date | 5 | ||||||||||||||||
Purchases, sales and settlements | 5 | ||||||||||||||||
Currency translation adjustments | (3 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 107 | |||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative | Defined | ||||||||||||||||||||||||||||||||||||||||||||||||
Currency | Financial | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||
Translation | Instruments, | Plans, | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | Net of Tax | Net of Tax | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 133 | $ | 6 | $ | (48 | ) | $ | 91 | ||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | (65 | ) | (28 | ) | 20 | (73 | ) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (35 | ) | (6 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 68 | $ | (57 | ) | $ | (34 | ) | $ | (23 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | 64 | 77 | (29 | ) | 112 | ||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 22 | (4 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 132 | $ | 42 | $ | (67 | ) | $ | 107 | ||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) before reclassifications | (90 | ) | (29 | ) | 48 | (71 | ) | ||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (25 | ) | (8 | ) | (7 | ) | (40 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 17 | $ | 5 | $ | (26 | ) | $ | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Components of Amounts Reclassified from Accumulated Other Comprehensive Income Loss | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Currency | Derivative | Defined | Currency | Derivative | Defined | Currency | Derivative | Defined | |||||||||||||||||||||||||||||||||||||||||
Translation | Financial | Benefit | Translation | Financial | Benefit | Translation | Financial | Benefit | |||||||||||||||||||||||||||||||||||||||||
Adjustments | Instruments | Plans | Total | Adjustments | Instruments | Plans | Total | Adjustments | Instruments | Plans | Total | ||||||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | (16 | ) | $ | — | $ | (16 | ) | $ | — | $ | 6 | $ | — | $ | 6 | $ | — | $ | (11 | ) | $ | — | $ | (11 | ) | |||||||||||||||||||||
Cost of revenue | — | 6 | — | 6 | — | 26 | — | 26 | — | (38 | ) | — | (38 | ) | |||||||||||||||||||||||||||||||||||
Selling, general, and administrative | — | — | (8 | ) | (8 | ) | — | — | (6 | ) | (6 | ) | — | — | (7 | ) | (7 | ) | |||||||||||||||||||||||||||||||
Other income (expense), net | (25 | ) | — | — | (25 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Tax effect | — | 2 | 1 | 3 | — | (10 | ) | 2 | (8 | ) | — | 14 | 1 | 15 | |||||||||||||||||||||||||||||||||||
$ | (25 | ) | $ | (8 | ) | $ | (7 | ) | $ | (40 | ) | $ | — | $ | 22 | $ | (4 | ) | $ | 18 | $ | — | $ | (35 | ) | $ | (6 | ) | $ | (41 | ) | ||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Commitments Under Noncancellable Operating Leases with Initial or Remaining Terms of One Year or More | ' | ||||
Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more at December 31, 2013, are payable as follows (in millions): | |||||
2014 | $ | 218 | |||
2015 | 169 | ||||
2016 | 116 | ||||
2017 | 87 | ||||
2018 | 71 | ||||
Thereafter | 415 | ||||
Total future lease commitments | $ | 1,076 | |||
Common_Stock_Tables
Common Stock (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Stock Options | ' | ||||||||||||||||||||||||
The following summarizes options activity: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Exercise | of | Exercise | of | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||||
Shares under option at beginning of year | 9,473,482 | $ | 58.69 | 10,481,750 | $ | 47.2 | 11,039,544 | $ | 38.01 | ||||||||||||||||
Granted | 2,832,587 | 69.37 | 2,239,088 | 84.58 | 2,277,946 | 79.68 | |||||||||||||||||||
Cancelled | (303,417 | ) | 72.43 | (228,137 | ) | 60.28 | (241,174 | ) | 40.2 | ||||||||||||||||
Exercised | (1,366,459 | ) | 77.44 | (3,019,219 | ) | 82.26 | (2,594,566 | ) | 36.84 | ||||||||||||||||
Shares under option at end of year | 10,636,193 | $ | 63.29 | 9,473,482 | $ | 58.69 | 10,481,750 | $ | 47.2 | ||||||||||||||||
Exercisable at end of year | 5,831,091 | $ | 53.46 | 4,823,331 | $ | 43.99 | 5,073,965 | $ | 38.47 | ||||||||||||||||
Summary of Stock Option Outstanding Information | ' | ||||||||||||||||||||||||
The following summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Weighted-Avg | Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||||||
Range of Exercise Price | Contractual | Shares | Exercise | Shares | Exercise | ||||||||||||||||||||
$9.14—$45.00 | 4.36 | 3,201,686 | $ | 34.43 | 3,201,686 | $ | 34.43 | ||||||||||||||||||
$45.01—$70.00 | 8.17 | 3,361,420 | 67.84 | 622,464 | 61.32 | ||||||||||||||||||||
$70.01—$84.58 | 7.63 | 4,073,087 | 82.21 | 2,006,941 | 81.39 | ||||||||||||||||||||
Total | 6.82 | 10,636,193 | $ | 63.29 | 5,831,091 | $ | 53.46 | ||||||||||||||||||
Assumption Used in Determination of Fair Value of Share Based Payment Awards | ' | ||||||||||||||||||||||||
The use of the Black Scholes model requires the use of extensive actual employee exercise activity data and the use of a number of complex assumptions including expected volatility, risk-free interest rate, expected dividends and expected term. | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Valuation Assumptions: | |||||||||||||||||||||||||
Expected volatility | 50.1 | % | 51.7 | % | 53.2 | % | |||||||||||||||||||
Risk-free interest rate | 0.9 | % | 0.9 | % | 2.1 | % | |||||||||||||||||||
Expected dividends | $ | 0.75 | $ | 0.57 | $ | 0.44 | |||||||||||||||||||
Expected term (in years) | 3.4 | 3.2 | 3.1 | ||||||||||||||||||||||
Summary of Information and Changes in Stock Options with Regard to Stock Option Plans | ' | ||||||||||||||||||||||||
The following summary presents information regarding outstanding options at December 31, 2013 and changes during 2013 with regard to options under all stock option plans: | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Weighted- | Remaining | Average | |||||||||||||||||||||||
Average | Contractual | ||||||||||||||||||||||||
Shares | Exercise | Term | Aggregate | ||||||||||||||||||||||
Price | (years) | Intrinsic Value | |||||||||||||||||||||||
Outstanding at December 31, 2012 | 9,473,482 | $ | 58.69 | 6.86 | $ | 150,667,018 | |||||||||||||||||||
Granted | 2,832,587 | $ | 69.37 | ||||||||||||||||||||||
Exercised | (303,417 | ) | $ | 72.43 | |||||||||||||||||||||
Cancelled | (1,366,459 | ) | $ | 77.44 | |||||||||||||||||||||
Outstanding at December 31, 2013 | 10,636,193 | $ | 63.29 | 6.82 | $ | 183,849,267 | |||||||||||||||||||
Vested or expected to vest | 10,466,014 | $ | 63.29 | 6.82 | $ | 180,907,679 | |||||||||||||||||||
Exercisable at December 31, 2013 | 5,831,091 | $ | 53.46 | 5.37 | $ | 155,892,094 | |||||||||||||||||||
Summary of Information Regarding Outstanding Restricted Shares | ' | ||||||||||||||||||||||||
The following summary presents information regarding outstanding restricted shares: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Grant Date | of | Grant Date | of | Grant Date | ||||||||||||||||||||
Units | Fair Value | Units | Fair Value | Units | Fair Value | ||||||||||||||||||||
Nonvested at beginning of year | 1,336,666 | $ | 67.56 | 1,606,047 | $ | 44.21 | 1,765,837 | $ | 42.15 | ||||||||||||||||
Granted | 758,176 | 69.07 | 482,428 | 83.79 | 374,425 | 79.53 | |||||||||||||||||||
Vested | (340,218 | ) | 69.29 | (406,844 | ) | 83.34 | (496,642 | ) | 64.22 | ||||||||||||||||
Cancelled | (239,534 | ) | 40.97 | (344,965 | ) | 30.39 | (37,573 | ) | 44.02 | ||||||||||||||||
Nonvested at end of year | 1,515,090 | $ | 73.73 | 1,336,666 | $ | 67.56 | 1,606,047 | $ | 44.21 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Domestic and Foreign Components of Income Before Income Taxes | ' | ||||||||||||
The domestic and foreign components of income before income taxes were as follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 1,362 | $ | 1,697 | $ | 1,193 | |||||||
Foreign | 1,762 | 1,643 | 1,601 | ||||||||||
$ | 3,124 | $ | 3,340 | $ | 2,794 | ||||||||
Components of Provision for Income Taxes | ' | ||||||||||||
The components of the provision for income taxes consisted of (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 632 | $ | 654 | $ | 450 | |||||||
State | 55 | 44 | 34 | ||||||||||
Foreign | 592 | 357 | 751 | ||||||||||
Total current income tax provision | 1,279 | 1,055 | 1,235 | ||||||||||
Deferred: | |||||||||||||
Federal | (157 | ) | (147 | ) | (23 | ) | |||||||
State | (12 | ) | (1 | ) | (3 | ) | |||||||
Foreign | (167 | ) | 58 | (315 | ) | ||||||||
Total deferred income tax provision | (336 | ) | (90 | ) | (341 | ) | |||||||
Total income tax provision | $ | 943 | $ | 965 | $ | 894 | |||||||
Difference Between Effective Tax Rate | ' | ||||||||||||
The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at U.S. statutory rate | $ | 1,093 | $ | 1,169 | $ | 978 | |||||||
Foreign income tax rate differential | (216 | ) | (149 | ) | (149 | ) | |||||||
State income tax, net of federal benefit | 27 | 29 | 20 | ||||||||||
Nondeductible expenses | 26 | 29 | 41 | ||||||||||
Tax benefit of manufacturing deduction | (33 | ) | (29 | ) | (37 | ) | |||||||
Foreign dividends, net of foreign tax credits | 32 | (116 | ) | 11 | |||||||||
Change in deferred tax valuation allowance | 40 | 80 | (18 | ) | |||||||||
Other | (26 | ) | (48 | ) | 48 | ||||||||
Total income tax provision | $ | 943 | $ | 965 | $ | 894 | |||||||
Significant Components of Defered Tax Assets and Liability | ' | ||||||||||||
Significant components of our deferred tax assets and liabilities were as follows (in millions): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowances and operating liabilities | $ | 439 | $ | 368 | $ | 331 | |||||||
Net operating loss carryforwards | 51 | 25 | 14 | ||||||||||
Postretirement benefits | 49 | 54 | 14 | ||||||||||
Foreign tax credit carryforwards | 300 | 259 | 106 | ||||||||||
Other | 39 | 149 | 151 | ||||||||||
878 | 855 | 616 | |||||||||||
Valuation allowance for deferred tax assets | (133 | ) | (93 | ) | (13 | ) | |||||||
Total deferred tax assets | 745 | 762 | 603 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Tax over book depreciation | 306 | 268 | 204 | ||||||||||
Intangible assets | 1,757 | 1,448 | 1,398 | ||||||||||
Deferred income | 285 | 314 | 226 | ||||||||||
Accrued U.S. tax on unremitted earnings | 92 | 92 | 70 | ||||||||||
Other | 164 | 208 | 168 | ||||||||||
Total deferred tax liabilities | 2,604 | 2,330 | 2,066 | ||||||||||
Net deferred tax liability | $ | 1,859 | $ | 1,568 | $ | 1,463 | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Unrecognized tax benefit at beginning of year | $ | 128 | $ | 131 | $ | 118 | |||||||
Additions based on tax positions related to the current year | — | 2 | 9 | ||||||||||
Additions for tax positions of prior years | — | — | 13 | ||||||||||
Reductions for lapse of applicable statutes of limitations | (1 | ) | (5 | ) | (9 | ) | |||||||
Unrecognized tax benefit at end of year | $ | 127 | $ | 128 | $ | 131 | |||||||
Business_Segments_and_Geograph1
Business Segments and Geographic Areas (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Revenues by Country Based on Sales Destination of Use of Products or Services | ' | ||||||||||||||||||||||||||||
The following table presents consolidated revenues by country based on sales destination of the use of the products or services (in millions): | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
United States | $ | 5,140 | $ | 6,040 | $ | 4,532 | |||||||||||||||||||||||
South Korea | 3,219 | 3,121 | 2,257 | ||||||||||||||||||||||||||
Singapore | 1,850 | 1,118 | 721 | ||||||||||||||||||||||||||
Norway | 1,102 | 736 | 689 | ||||||||||||||||||||||||||
China | 1,007 | 533 | 430 | ||||||||||||||||||||||||||
Brazil | 811 | 503 | 397 | ||||||||||||||||||||||||||
United Kingdom | 705 | 523 | 465 | ||||||||||||||||||||||||||
Canada | 625 | 728 | 608 | ||||||||||||||||||||||||||
Other Countries | 4,762 | 3,892 | 3,376 | ||||||||||||||||||||||||||
Total | $ | 19,221 | $ | 17,194 | $ | 13,475 | |||||||||||||||||||||||
Long-Lived Assets by Country Based on the Location | ' | ||||||||||||||||||||||||||||
The following table presents long-lived assets by country based on the location (in millions): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
United States | $ | 1,830 | $ | 1,606 | |||||||||||||||||||||||||
Brazil | 270 | 162 | |||||||||||||||||||||||||||
United Kingdom | 200 | 173 | |||||||||||||||||||||||||||
Denmark | 166 | 174 | |||||||||||||||||||||||||||
Canada | 123 | 131 | |||||||||||||||||||||||||||
South Korea | 115 | 112 | |||||||||||||||||||||||||||
Mexico | 101 | 87 | |||||||||||||||||||||||||||
Singapore | 94 | 93 | |||||||||||||||||||||||||||
Other Countries | 509 | 407 | |||||||||||||||||||||||||||
Total | $ | 3,408 | $ | 2,945 | |||||||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||||||||||
Business Segments: | |||||||||||||||||||||||||||||
Rig | Rig | Wellbore | Completion & | Eliminations(1) | Discontinued | Total | |||||||||||||||||||||||
Systems | Aftermarket | Technologies | Production | Operations | |||||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||
Revenues | $ | 8,450 | $ | 2,692 | $ | 5,211 | $ | 4,309 | $ | (1,441 | ) | $ | — | $ | 19,221 | ||||||||||||||
Operating profit | 1,594 | 729 | 915 | 613 | (652 | ) | — | 3,199 | |||||||||||||||||||||
Capital expenditures | 61 | 24 | 226 | 212 | 91 | — | 614 | ||||||||||||||||||||||
Depreciation and amortization | 82 | 26 | 420 | 210 | — | — | 738 | ||||||||||||||||||||||
Goodwill | 1,279 | 906 | 4,425 | 2,106 | — | 333 | 9,049 | ||||||||||||||||||||||
Total assets | 7,654 | 2,475 | 11,862 | 7,287 | 3,351 | 2,183 | 34,812 | ||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||||||
Revenues | $ | 7,077 | $ | 2,138 | $ | 5,184 | $ | 3,994 | $ | (1,199 | ) | $ | — | $ | 17,194 | ||||||||||||||
Operating profit | 1,685 | 594 | 983 | 684 | (557 | ) | — | 3,389 | |||||||||||||||||||||
Capital expenditures | 81 | 13 | 247 | 169 | 59 | — | 569 | ||||||||||||||||||||||
Depreciation and amortization | 64 | 18 | 389 | 145 | — | — | 616 | ||||||||||||||||||||||
Goodwill | 1,097 | 649 | 3,769 | 1,314 | — | 343 | 7,172 | ||||||||||||||||||||||
Total assets | 6,563 | 1,930 | 11,032 | 6,192 | 3,394 | 2,373 | 31,484 | ||||||||||||||||||||||
December 31, 2011: | |||||||||||||||||||||||||||||
Revenues | $ | 5,686 | $ | 1,876 | $ | 4,455 | $ | 2,483 | $ | (1,025 | ) | $ | — | $ | 13,475 | ||||||||||||||
Operating profit | 1,562 | 528 | 726 | 456 | (463 | ) | — | 2,809 | |||||||||||||||||||||
Capital expenditures | 70 | 10 | 245 | 103 | 51 | — | 479 | ||||||||||||||||||||||
Depreciation and amortization | 61 | 14 | 381 | 93 | — | — | 549 | ||||||||||||||||||||||
Goodwill | 943 | 556 | 3,683 | 917 | — | 52 | 6,151 | ||||||||||||||||||||||
Total assets | 4,743 | 1,569 | 10,799 | 4,020 | 3,555 | 829 | 25,515 | ||||||||||||||||||||||
-1 | 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 four reporting segments that are eliminated in consolidation. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summarized Quarterly Results | ' | ||||||||||||||||
Summarized quarterly results, were as follows (in millions, except per share data): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 4,376 | $ | 4,680 | $ | 4,863 | $ | 5,302 | |||||||||
Gross profit | 1,167 | 1,173 | 1,360 | 1,404 | |||||||||||||
Income from continuing operations | 461 | 494 | 598 | 627 | |||||||||||||
Income from discontinued operations | 41 | 37 | 38 | 31 | |||||||||||||
Net income attributable to Company | 502 | 531 | 636 | 658 | |||||||||||||
Per share data: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations | 1.08 | 1.16 | 1.4 | 1.47 | |||||||||||||
Income from discontinued operations | 0.1 | 0.09 | 0.09 | 0.07 | |||||||||||||
Net income attributable to Company | 1.18 | 1.25 | 1.49 | 1.54 | |||||||||||||
Diluted: | |||||||||||||||||
Income from continuing operations | 1.07 | 1.15 | 1.4 | 1.47 | |||||||||||||
Income from discontinued operations | 0.1 | 0.09 | 0.09 | 0.07 | |||||||||||||
Net income attributable to Company | 1.17 | 1.24 | 1.49 | 1.53 | |||||||||||||
Cash dividends per share | 0.13 | 0.26 | 0.26 | 0.26 | |||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Revenue | $ | 3,968 | $ | 4,206 | $ | 4,307 | $ | 4,713 | |||||||||
Gross profit | 1,214 | 1,228 | 1,247 | 1,354 | |||||||||||||
Income from continuing operations | 583 | 579 | 584 | 637 | |||||||||||||
Income from discontinued operations | 23 | 26 | 28 | 31 | |||||||||||||
Net income attributable to Company | 606 | 605 | 612 | 668 | |||||||||||||
Per share data: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations | 1.37 | 1.37 | 1.38 | 1.5 | |||||||||||||
Income from discontinued operations | 0.06 | 0.05 | 0.06 | 0.07 | |||||||||||||
Net income attributable to Company | 1.43 | 1.42 | 1.44 | 1.57 | |||||||||||||
Diluted: | |||||||||||||||||
Income from continuing operations | 1.36 | 1.35 | 1.36 | 1.49 | |||||||||||||
Income from discontinued operations | 0.06 | 0.06 | 0.06 | 0.07 | |||||||||||||
Net income attributable to Company | 1.42 | 1.42 | 1.43 | 1.56 | |||||||||||||
Cash dividends per share | 0.12 | 0.12 | 0.12 | 0.13 |
Spinoff_of_distribution_busine1
Spin-off of distribution business (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Schedule of Assets and Liabilities Preceding Spin-off | ' | ||||||||||||
The following table presents the carrying value of assets and liabilities of NOW (in millions): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 101 | $ | 138 | |||||||||
Receivables, net | 661 | 692 | |||||||||||
Inventories, net | 850 | 1,015 | |||||||||||
Deferred income taxes | 21 | 18 | |||||||||||
Prepaid and other current assets | 29 | 19 | |||||||||||
Total current assets of discontinued operations | 1,662 | 1,882 | |||||||||||
Property, plant and equipment, net | 102 | 61 | |||||||||||
Deferred income taxes | 15 | 11 | |||||||||||
Goodwill | 333 | 343 | |||||||||||
Intangibles, net | 68 | 74 | |||||||||||
Other assets | 3 | 2 | |||||||||||
Total assets of discontinued operations | $ | 2,183 | $ | 2,373 | |||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 264 | $ | 272 | |||||||||
Accrued liabilities | 99 | 113 | |||||||||||
Accrued income taxes | — | 6 | |||||||||||
Total current liabilities of discontinued operations | 363 | 391 | |||||||||||
Deferred income taxes | 16 | 9 | |||||||||||
Other liabilities | 2 | 2 | |||||||||||
Total liabilities of discontinued operations | $ | 381 | $ | 402 | |||||||||
Schedule of Selected Financial Information Reported as Discontinued Operations | ' | ||||||||||||
The following table presents selected financial information regarding the results of operations of our distribution business, which is reported as discontinued operations (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue from discontinued operations | $ | 4,296 | $ | 3,414 | $ | 1,641 | |||||||
Income from discontinued operations before income taxes | 222 | 165 | 128 | ||||||||||
Income tax expense | 75 | 57 | 43 | ||||||||||
Income from discontinued operations | $ | 147 | $ | 108 | $ | 85 | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Allowances for excess and obsolete inventories | ' | $396 | $338 | ' |
Depreciation expense related to property, plant and equipment | ' | 381 | 315 | 275 |
Impairment of long-lived assets | ' | 0 | 0 | 0 |
Goodwill | ' | 9,049 | 7,172 | 6,151 |
Indefinite-lived intangible assets | ' | 5,055 | 4,743 | ' |
Estimated useful lives of intangible assets, minimum | ' | '2 years | ' | ' |
Estimated useful lives of intangible assets, maximum | ' | '30 years | ' | ' |
Amortization expense | ' | 360 | ' | ' |
Number of years as first period of amortization | ' | '5 years | ' | ' |
Net foreign currency transaction gains (losses) | ' | 24 | 18 | 10 |
Devaluation charges | 12 | ' | ' | ' |
Net investment in Venezuela | ' | 39 | ' | ' |
Net allowances for doubtful accounts | ' | 132 | 120 | ' |
Compensation cost charged against income for share-based compensation arrangements | ' | 86 | 74 | 68 |
Income tax benefit recognized for share-based compensation arrangements | ' | 26 | 22 | 15 |
Anti-dilutive stock options outstanding | ' | 7 | 5 | 3 |
Indefinite-lived trade names [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Indefinite-lived intangible assets | ' | $643 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Maximum Derivative Financial Instrument's Term (months) | ' | '2 months | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Maximum Derivative Financial Instrument's Term (months) | ' | '24 months | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Goodwill is Identified by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | $7,172 | $6,151 | ' |
Goodwill acquired during period | 1,903 | 1,000 | 377 |
Currency translation adjustments and other | -26 | 21 | ' |
Goodwill, Ending Balance | 9,049 | 7,172 | 6,151 |
Discontinued Operations [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | 343 | 52 | ' |
Goodwill acquired during period | ' | 291 | ' |
Currency translation adjustments and other | -10 | ' | ' |
Goodwill, Ending Balance | 333 | 343 | ' |
Rig Systems [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | 1,097 | 943 | ' |
Goodwill acquired during period | 179 | 145 | ' |
Currency translation adjustments and other | 3 | 9 | ' |
Goodwill, Ending Balance | 1,279 | 1,097 | ' |
Rig Aftermarket [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | 649 | 556 | ' |
Goodwill acquired during period | 256 | 89 | ' |
Currency translation adjustments and other | 1 | 4 | ' |
Goodwill, Ending Balance | 906 | 649 | ' |
Wellbore Technologies [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | 3,769 | 3,683 | ' |
Goodwill acquired during period | 665 | 80 | ' |
Currency translation adjustments and other | -9 | 6 | ' |
Goodwill, Ending Balance | 4,425 | 3,769 | ' |
Completion & Production Solutions [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | 1,314 | 917 | ' |
Goodwill acquired during period | 803 | 395 | ' |
Currency translation adjustments and other | -11 | 2 | ' |
Goodwill, Ending Balance | $2,106 | $1,314 | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Identified Intangible Assets Identified by Segment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | $4,743 | $4,073 |
Additions to intangible assets | 696 | 981 |
Amortization | -363 | -305 |
Currency translation adjustments and other | -21 | -6 |
Ending Balance | 5,055 | 4,743 |
Discontinued Operations [Member] | ' | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | 74 | 20 |
Additions to intangible assets | ' | 58 |
Amortization | -6 | -4 |
Currency translation adjustments and other | ' | ' |
Ending Balance | 68 | 74 |
Rig Systems [Member] | ' | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | 62 | 56 |
Additions to intangible assets | 190 | 18 |
Amortization | -21 | -14 |
Currency translation adjustments and other | 1 | 2 |
Ending Balance | 232 | 62 |
Rig Aftermarket [Member] | ' | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | 89 | 92 |
Additions to intangible assets | 59 | ' |
Amortization | -6 | -3 |
Currency translation adjustments and other | ' | ' |
Ending Balance | 142 | 89 |
Wellbore Technologies [Member] | ' | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | 2,942 | 3,134 |
Additions to intangible assets | 286 | 8 |
Amortization | -217 | -203 |
Currency translation adjustments and other | -12 | 3 |
Ending Balance | 2,999 | 2,942 |
Completion & Production Solutions [Member] | ' | ' |
Intangible Asset Excluding Goodwill [Line Items] | ' | ' |
Beginning Balance | 1,576 | 771 |
Additions to intangible assets | 161 | 897 |
Amortization | -113 | -81 |
Currency translation adjustments and other | -10 | -11 |
Ending Balance | $1,614 | $1,576 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Identified Intangible Assets by Major Classification (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' | ' |
Gross | $6,804 | $6,129 | ' |
Accumulated Amortization | -1,749 | -1,386 | ' |
Net Book Value | 5,055 | 4,743 | 4,073 |
Indefinite-lived trade names [Member] | ' | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' | ' |
Gross | 643 | 643 | ' |
Accumulated Amortization | ' | ' | ' |
Net Book Value | 643 | 643 | ' |
Customer relationships [Member] | ' | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' | ' |
Gross | 4,093 | 3,522 | ' |
Accumulated Amortization | -1,147 | -907 | ' |
Net Book Value | 2,946 | 2,615 | ' |
Trademarks [Member] | ' | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' | ' |
Gross | 893 | 877 | ' |
Accumulated Amortization | -195 | -152 | ' |
Net Book Value | 698 | 725 | ' |
Other [Member] | ' | ' | ' |
Intangible Assets Net Excluding Goodwill [Line Items] | ' | ' | ' |
Gross | 1,175 | 1,087 | ' |
Accumulated Amortization | -407 | -327 | ' |
Net Book Value | $768 | $760 | ' |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Changes in Carrying Amount of Service and Product Warranties (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Beginning Balance | $194 | $211 |
Net provisions for warranties issued during the year | 101 | 51 |
Amounts incurred | -73 | -76 |
Currency translation adjustments and other | 6 | 8 |
Ending Balance | $228 | $194 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $627 | $598 | $494 | $461 | $637 | $584 | $579 | $583 | $2,180 | $2,383 | $1,909 |
Income from discontinued operations | 31 | 38 | 37 | 41 | 31 | 28 | 26 | 23 | 147 | 108 | 85 |
Net income attributable to Company | $658 | $636 | $531 | $502 | $668 | $612 | $605 | $606 | $2,327 | $2,491 | $1,994 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic-weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 426 | 425 | 422 |
Dilutive effect of employee stock options and other unvested stock awards | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 2 |
Diluted outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | 428 | 427 | 424 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $1.47 | $1.40 | $1.16 | $1.08 | $1.50 | $1.38 | $1.37 | $1.37 | $5.11 | $5.61 | $4.52 |
Income from discontinued operations | $0.07 | $0.09 | $0.09 | $0.10 | $0.07 | $0.06 | $0.05 | $0.06 | $0.35 | $0.25 | $0.21 |
Net income attributable to Company | $1.54 | $1.49 | $1.25 | $1.18 | $1.57 | $1.44 | $1.42 | $1.43 | $5.46 | $5.86 | $4.73 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $1.47 | $1.40 | $1.15 | $1.07 | $1.49 | $1.36 | $1.35 | $1.36 | $5.09 | $5.58 | $4.50 |
Income from discontinued operations | $0.07 | $0.09 | $0.09 | $0.10 | $0.07 | $0.06 | $0.06 | $0.06 | $0.35 | $0.25 | $0.20 |
Net income attributable to Company | $1.53 | $1.49 | $1.24 | $1.17 | $1.56 | $1.43 | $1.42 | $1.42 | $5.44 | $5.83 | $4.70 |
Cash dividends per share | $0.26 | $0.26 | $0.26 | $0.13 | $0.13 | $0.12 | $0.12 | $0.12 | $0.91 | $0.49 | $0.45 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | $59 | $105 |
Derivative Liabilities | 40 | 19 |
Foreign exchange contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of the Company's foreign currency forward contracts | 19 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 59 | ' |
Derivative Liabilities | $40 | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) (Forward Contracts [Member]) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | CAD | DKK | EUR (€) | GBP (£) | NOK | RUB | SEK | SGD | USD ($) | BRL | CAD | DKK | EUR (€) | GBP (£) | NOK | RUB | SEK | SGD |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency, Cash flow hedging | $357 | 16 | 278 | € 406 | £ 23 | 10,503 | ' | ' | 17 | $357 | ' | ' | 134 | € 389 | £ 6 | 6,281 | ' | ' | 14 |
Foreign currency, Non-designated hedging | $715 | 3 | 177 | € 310 | £ 14 | 3,257 | 2,149 | 4 | 3 | $967 | 135 | 2 | 177 | € 225 | £ 9 | 1,684 | 1,467 | 5 | 24 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | $59 | $105 |
Derivative Liabilities | 40 | 19 |
Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 40 | 81 |
Derivative Liabilities | 27 | 6 |
Not Designated As Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 19 | 24 |
Derivative Liabilities | 13 | 13 |
Foreign exchange contracts [Member] | Not Designated As Hedging Instrument [Member] | Accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 13 | 13 |
Foreign exchange contracts [Member] | Prepaid and other current assets [Member] | Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 35 | 57 |
Foreign exchange contracts [Member] | Prepaid and other current assets [Member] | Not Designated As Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 19 | 24 |
Foreign exchange contracts [Member] | Other Assets [Member] | Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 5 | 24 |
Foreign exchange contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 9 | 1 |
Foreign exchange contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | $18 | $5 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $12 | $8 |
Not Designated As Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative | 18 | 19 |
Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -42 | 105 |
Foreign exchange contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 10 | -32 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 12 | 8 |
Foreign exchange contracts [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -42 | 105 |
Foreign exchange contracts [Member] | Other income (expense), net [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 12 | 8 |
Foreign exchange contracts [Member] | Other income (expense), net [Member] | Not Designated As Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative | 18 | 19 |
Foreign exchange contracts [Member] | Revenue [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 16 | -6 |
Foreign exchange contracts [Member] | Cost of revenue [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ($6) | ($26) |
Derivative_Financial_Instrumen6
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), reclassified | $8 | ($22) | $35 |
Amount of gain (loss) recognized in income on derivative (amount excluded from hedge effectiveness) | 12 | 8 | ' |
Amount of gain (loss) recognized in income on derivative (ineffective portion) | ' | ' | ' |
Scenario, Forecast [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), reclassified | ($16) | ' | ' |
Acquisitions_and_Investments_A
Acquisitions and Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Aggregate purchase price of acquisitions | $2,397 | $1,767 | $1,008 |
Intangible assets | ' | ' | 273 |
Weighted average life | '5 years | ' | ' |
Goodwill [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | ' | 1,000 | ' |
Other Investments [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Aggregate purchase price of acquisitions | 19 | ' | ' |
All Other Acquisitions [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Share holder received in cash per share | $60 | ' | ' |
Aggregate purchase price of acquisitions | 2,378 | 2,880 | 1,038 |
Acquisitions completed | 5 | 17 | 9 |
Intangible assets | 894 | 981 | 273 |
Weighted average life | '19 years | '18 years | '16 years |
Customer relationships [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 635 | 473 | 119 |
Weighted average life | '18 years | '20 years | '14 years |
Patents [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 170 | ' | ' |
Weighted average life | '20 years | ' | ' |
Trademarks [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | 86 | 159 | 39 |
Weighted average life | '20 years | '16 years | '35 years |
Other Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets | $3 | $348 | $115 |
Weighted average life | '1 year | '17 years | '12 years |
Acquisitions_and_Investments_E
Acquisitions and Investments - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Acquisition [Line Items] | ' | ' | ' |
Current assets, net of cash acquired | ' | ' | $351 |
Property, plant and equipment | ' | ' | 443 |
Intangible assets | ' | ' | 273 |
Goodwill | 1,903 | 1,000 | 377 |
Other assets | ' | ' | 73 |
Total assets acquired | 3,329 | 3,672 | 1,517 |
Current liabilities | ' | ' | 234 |
Other liabilities | ' | ' | 229 |
Total liabilities | 932 | 792 | 479 |
Cash consideration, net of cash acquired | ' | ' | 1,038 |
Long-term debt | ' | ' | 16 |
All Other Acquisitions [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Current assets, net of cash acquired | 428 | 1,441 | 106 |
Property, plant and equipment | 250 | 248 | 41 |
Intangible assets | 894 | 981 | 131 |
Goodwill | 1,590 | 1,000 | 178 |
Other assets | 49 | 2 | 14 |
Total assets acquired | 3,211 | 3,672 | 470 |
Current liabilities | 186 | 585 | 80 |
Deferred taxes | 524 | ' | ' |
Other liabilities | 123 | 206 | 56 |
Total liabilities | 833 | 792 | 136 |
Cash consideration, net of cash acquired | 2,378 | 2,880 | 334 |
Long-term debt | ' | $1 | ' |
Acquisitions_and_Investments_F
Acquisitions and Investments - Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Acquisition [Line Items] | ' | ' | ' |
Current assets, net of cash acquired | ' | ' | $351 |
Property, plant and equipment | ' | ' | 443 |
Intangible assets | ' | ' | 273 |
Goodwill | 1,903 | 1,000 | 377 |
Other assets | ' | ' | 73 |
Total assets acquired | 3,329 | 3,672 | 1,517 |
Current liabilities | ' | ' | 234 |
Long-term debt | ' | ' | 16 |
Other liabilities | ' | ' | 229 |
Total liabilities | 932 | 792 | 479 |
Cash consideration, net of cash acquired | ' | ' | 1,038 |
Ameron [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Current assets, net of cash acquired | ' | ' | 245 |
Property, plant and equipment | ' | ' | 402 |
Intangible assets | ' | ' | 142 |
Goodwill | ' | ' | 199 |
Other assets | ' | ' | 59 |
Total assets acquired | ' | ' | 1,047 |
Current liabilities | ' | ' | 154 |
Long-term debt | ' | ' | 16 |
Other liabilities | ' | ' | 173 |
Total liabilities | ' | ' | 343 |
Cash consideration, net of cash acquired | ' | ' | 704 |
All Other Acquisitions [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Current assets, net of cash acquired | 428 | 1,441 | 106 |
Property, plant and equipment | 250 | 248 | 41 |
Intangible assets | 894 | 981 | 131 |
Goodwill | 1,590 | 1,000 | 178 |
Other assets | 49 | 2 | 14 |
Total assets acquired | 3,211 | 3,672 | 470 |
Current liabilities | 186 | 585 | 80 |
Long-term debt | ' | 1 | ' |
Other liabilities | 123 | 206 | 56 |
Total liabilities | 833 | 792 | 136 |
Cash consideration, net of cash acquired | $2,378 | $2,880 | $334 |
Acquisitions_and_Investments_S
Acquisitions and Investments - Summary of Acquisitions (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' | ' |
Fair value of assets acquired, net of cash acquired | $3,329 | $3,672 | $1,517 |
Cash paid, net of cash acquired | -2,397 | -1,767 | -1,008 |
Liabilities assumed, debt issued and noncontrolling interest | 932 | 792 | 479 |
Excess purchase price over fair value of net assets acquired | $1,903 | $1,000 | $377 |
Inventories_net_Inventories_De
Inventories, net - Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and supplies | $1,175 | $1,268 |
Work in process | 798 | 905 |
Finished goods and purchased products | 3,630 | 3,718 |
Total | $5,603 | $5,891 |
Property_Plant_and_Equipment_P
Property, Plant and Equipment - Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment Gross | $5,212 | $4,523 |
Less: Accumulated Depreciation | -1,804 | -1,578 |
Property, plant and equipment, net | 3,408 | 2,945 |
Land and building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment Gross | 1,494 | 1,348 |
Estimated Useful Lives | '5-35 Years | ' |
Operating equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment Gross | 2,960 | 2,463 |
Estimated Useful Lives | '3-15 Years | ' |
Rental equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment Gross | $758 | $712 |
Estimated Useful Lives | '3-12 Years | ' |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Payables And Accruals [Abstract] | ' | ' | ' |
Customer prepayments and billings | $673 | $699 | ' |
Accrued vendor costs | 531 | 444 | ' |
Compensation | 516 | 511 | ' |
Warranty | 228 | 194 | 211 |
Taxes (non income) | 188 | 150 | ' |
Insurance | 131 | 108 | ' |
Accrued commissions | 97 | 77 | ' |
Fair value of derivatives | 31 | 18 | ' |
Interest | 11 | 14 | ' |
Other | 357 | 356 | ' |
Total | $2,763 | $2,571 | ' |
Costs_and_Estimated_Earnings_o2
Costs and Estimated Earnings on Uncompleted Contracts - Costs and Estimated Earnings on Uncompleted Contracts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Contractors [Abstract] | ' | ' |
Costs incurred on uncompleted contracts | $7,608 | $5,731 |
Estimated earnings | 3,553 | 3,160 |
Costs and estimated earnings on uncompleted contracts, Gross | 11,161 | 8,891 |
Less: Billings to date | 11,393 | 8,855 |
Total net estimate billing on uncompleted contracts | -232 | 36 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,539 | 1,225 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -1,771 | -1,189 |
Total net estimate billing on uncompleted contracts | ($232) | $36 |
Debt_Debt_Detail
Debt - Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Other | $7 | $7 |
Total debt | 3,150 | 3,149 |
Less current portion | 1 | 1 |
Long-term debt | 3,149 | 3,148 |
Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 151 | 151 |
Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 500 | 500 |
Senior Notes, interest at 2.6% payable semiannually, principal due on December 1, 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 1,396 | 1,395 |
Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | $1,096 | $1,096 |
Debt_Debt_Parenthetical_Detail
Debt - Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 6.13% | 6.13% |
Senior note due date | 15-Aug-15 | 15-Aug-15 |
Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 1.35% | 1.35% |
Senior note due date | 1-Dec-17 | 1-Dec-17 |
Senior Notes, interest at 2.6% payable semiannually, principal due on December 1, 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 2.60% | 2.60% |
Senior note due date | 1-Dec-22 | 1-Dec-22 |
Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 3.95% | 3.95% |
Senior note due date | 1-Dec-42 | 1-Dec-42 |
Debt_Principal_Payments_of_Deb
Debt - Principal Payments of Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $1 | ' |
2015 | 153 | ' |
2016 | ' | ' |
2017 | 500 | ' |
2018 | ' | ' |
Thereafter | 2,496 | ' |
Total debt | $3,150 | $3,149 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Borrowings against credit facility | $947,000,000 | ' |
Funds available under revolving credit facility | 2,553,000,000 | ' |
Variable rate | 0.88% | ' |
Interest rate under multi currency facility | 'LIBOR, NIBOR or EURIBOR plus 0.875% | ' |
Variable rate basis | 'LIBOR, NIBOR or EURIBOR plus | ' |
Outstanding letters of credit under various bilateral committed letter of credit facilities | 3,056,000,000 | ' |
Fair Value of Unsecured Senior Note | 2,896,000,000 | 3,190,000,000 |
Carrying Value of Unsecured Senior Notes | 3,150,000,000 | 3,149,000,000 |
Unsecured Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying Value of Unsecured Senior Notes | 3,143,000,000 | 3,142,000,000 |
Five-year Unsecured Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unsecured revolving credit facility | 3,500,000,000 | ' |
Borrowings under Commercial Paper | $0 | ' |
Unsecured Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility, Period | '5 years | ' |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility, Period | '5 years | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee | |||
Compensation Related Costs Disclosure [Line Items] | ' | ' | ' |
Expenses for defined-contribution plans | $96 | $82 | $54 |
Number of U.S retirees and spouses participate in defined benefit health care plans | 1,353 | ' | ' |
Net periodic benefit cost | 10 | 10 | 14 |
Defined benefit plan, expected future benefit payments in year five | 47 | ' | ' |
Expected years of defined benefit plans | '5 years | ' | ' |
Expected future benefit amounts to pay, total | $479 | ' | ' |
Robbins and Myers [Member] | ' | ' | ' |
Compensation Related Costs Disclosure [Line Items] | ' | ' | ' |
Number of defined benefit pension plans acquired | 4 | ' | ' |
Number of U.S. employees participate in defined benefit health care plans | 230 | ' | ' |
Number of retirees and dependents covered in defined benefit health care plans | 400 | ' | ' |
Robbins and Myers [Member] | Pension benefits [Member] | ' | ' | ' |
Compensation Related Costs Disclosure [Line Items] | ' | ' | ' |
Number of defined benefit pension plans acquired | 2 | ' | ' |
Robbins and Myers [Member] | Contributory Pension Benefits [Member] | ' | ' | ' |
Compensation Related Costs Disclosure [Line Items] | ' | ' | ' |
Number of defined benefit pension plans acquired | 1 | ' | ' |
United States [Member] | ' | ' | ' |
Compensation Related Costs Disclosure [Line Items] | ' | ' | ' |
Number of U.S. employees participate in defined benefit health care plans | 232 | ' | ' |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension Plans (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at end of year | $706 | $517 |
Pension benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Benefit obligation at beginning of year | 655 | 556 |
Service cost | 7 | 6 |
Interest cost | 31 | 27 |
Actuarial loss (gain) | -10 | 76 |
Benefits paid | -38 | -26 |
Participants contributions | ' | 1 |
Exchange rate loss (gain) | 7 | 12 |
Acquisitions | 194 | 11 |
Curtailments | ' | -8 |
Benefit obligation at end of year | 846 | 655 |
Fair value of plan assets at beginning of year | 517 | 419 |
Actual return | 72 | 49 |
Benefits paid | -38 | -26 |
Company contributions | 28 | 53 |
Participants contributions | ' | 1 |
Exchange rate gain (loss) | 4 | 12 |
Acquisitions | 123 | 9 |
Fair value of plan assets at end of year | 706 | 517 |
Funded status | -140 | -138 |
Accumulated benefit obligation at end of year | 811 | 635 |
Postretirement benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Benefit obligation at beginning of year | 30 | 35 |
Service cost | 1 | ' |
Interest cost | 2 | 1 |
Actuarial loss (gain) | -12 | -2 |
Benefits paid | -4 | -4 |
Participants contributions | ' | ' |
Exchange rate loss (gain) | ' | ' |
Acquisitions | 28 | ' |
Curtailments | ' | ' |
Benefit obligation at end of year | 45 | 30 |
Fair value of plan assets at beginning of year | ' | ' |
Actual return | ' | ' |
Benefits paid | -4 | -4 |
Company contributions | 4 | 4 |
Participants contributions | ' | ' |
Exchange rate gain (loss) | ' | ' |
Acquisitions | ' | ' |
Fair value of plan assets at end of year | ' | ' |
Funded status | ($45) | ($30) |
Employee_Benefit_Plans_Assumpt
Employee Benefit Plans - Assumption Rates Used for Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
United States plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate: | 4.65% | 3.78% |
International plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate minimum: | 3.50% | 3.30% |
Discount rate maximum: | 4.40% | 4.40% |
Salary increase minimum: | 2.00% | 2.00% |
Salary increase maximum: | 4.40% | 3.87% |
Employee_Benefit_Plans_Assumpt1
Employee Benefit Plans - Assumption Rates Used for Net Periodic Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
United States plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate: | 3.80% | 4.58% | 4.95% |
Expected return on assets: | 6.30% | 6.33% | ' |
Expected return on assets, minimum: | ' | ' | 5.50% |
Expected return on assets, maximum: | ' | ' | 6.50% |
International plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate minimum: | 3.46% | 4.50% | 5.25% |
Discount rate maximum: | 4.40% | 5.60% | 5.65% |
Salary increase minimum: | 2.00% | 2.00% | 2.00% |
Salary increase maximum: | 3.53% | 4.00% | 4.33% |
Expected return on assets, minimum: | 3.50% | 4.50% | 4.50% |
Expected return on assets, maximum: | 5.82% | 6.51% | 7.06% |
Employee_Benefit_Plans_Plans_A
Employee Benefit Plans - Plan's Assets Carried at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | $706 | $517 | ' |
Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 296 | 204 | ' |
Bonds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 172 | 139 | ' |
Other Contract [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 238 | 174 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Bonds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Other Contract [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 599 | 417 | ' |
Fair Value, Inputs, Level 2 [Member] | Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 296 | 204 | ' |
Fair Value, Inputs, Level 2 [Member] | Bonds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 172 | 139 | ' |
Fair Value, Inputs, Level 2 [Member] | Other Contract [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 131 | 74 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | 107 | 100 | 77 |
Fair Value, Inputs, Level 3 [Member] | Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Bonds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Other Contract [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total Fair Value Measurements | $107 | $100 | ' |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Changes in Fair Value of Plan's Level Three Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at end of year | $706 | $517 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 100 | 77 |
Actual return on plan assets still held at reporting date | 5 | 10 |
Purchases, sales and settlements | 5 | 8 |
Currency translation adjustments | -3 | 5 |
Fair value of plan assets at end of year | $107 | $100 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), Beginning balance | $107 | ($23) | $91 |
Accumulated other comprehensive income (loss) before reclassifications | -71 | 112 | -73 |
Amounts reclassified from accumulated other comprehensive income (loss) | -40 | 18 | -41 |
Accumulated other comprehensive income (loss), Ending balance | -4 | 107 | -23 |
Currency Translation Adjustments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), Beginning balance | 132 | 68 | 133 |
Accumulated other comprehensive income (loss) before reclassifications | -90 | 64 | -65 |
Amounts reclassified from accumulated other comprehensive income (loss) | -25 | ' | ' |
Accumulated other comprehensive income (loss), Ending balance | 17 | 132 | 68 |
Derivative Financial Instruments, Net of Tax [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), Beginning balance | 42 | -57 | 6 |
Accumulated other comprehensive income (loss) before reclassifications | -29 | 77 | -28 |
Amounts reclassified from accumulated other comprehensive income (loss) | -8 | 22 | -35 |
Accumulated other comprehensive income (loss), Ending balance | 5 | 42 | -57 |
Defined Benefit Plans, Net of Tax [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), Beginning balance | -67 | -34 | -48 |
Accumulated other comprehensive income (loss) before reclassifications | 48 | -29 | 20 |
Amounts reclassified from accumulated other comprehensive income (loss) | -7 | -4 | -6 |
Accumulated other comprehensive income (loss), Ending balance | ($26) | ($67) | ($34) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Components of Amounts Reclassified from Accumulated Other Comprehensive Income Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | ($25) | ' | ' |
Derivative Financial Instruments | -8 | 22 | -35 |
Defined Benefit Plans | -7 | -4 | -6 |
Total | -40 | 18 | -41 |
Revenue [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | ' | ' | ' |
Derivative Financial Instruments | -16 | 6 | -11 |
Defined Benefit Plans | ' | ' | ' |
Total | -16 | 6 | -11 |
Cost of revenue [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | ' | ' | ' |
Derivative Financial Instruments | 6 | 26 | -38 |
Defined Benefit Plans | ' | ' | ' |
Total | 6 | 26 | -38 |
Selling, general, and administrative [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' |
Defined Benefit Plans | -8 | -6 | -7 |
Total | -8 | -6 | -7 |
Other income (expense), net [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | -25 | ' | ' |
Derivative Financial Instruments | ' | ' | ' |
Defined Benefit Plans | ' | ' | ' |
Total | -25 | ' | ' |
Tax effect [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Currency Translation Adjustments | ' | ' | ' |
Derivative Financial Instruments | 2 | -10 | 14 |
Defined Benefit Plans | 1 | 2 | 1 |
Total | $3 | ($8) | $15 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net increase to other comprehensive income or loss upon the translation | ($115) | $64 | ($65) |
Currency translation gains reclassified from accumulated other comprehensive income (loss) | 25 | ' | ' |
Changes in derivative financial instruments, net of tax | 37 | -99 | 63 |
Changes in derivative financial instruments, tax | $18 | $39 | $25 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 |
Wellbore Technologies [Member] | ||||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' |
Gain from legal settlement included in revenue | ' | ' | ' | $102 |
Rental expense related to operating leases | $336 | $281 | $234 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Commitments Under Noncancellable Operating Leases with Initial or Remaining Terms of One Year or More (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $218 |
2015 | 169 |
2016 | 116 |
2017 | 87 |
2018 | 71 |
Thereafter | 415 |
Total future lease commitments | $1,076 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of common stock, authorized | 1,000,000,000 | 1,000,000,000 | ' |
Number of preferred stock, authorized | 10,000,000 | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' |
Preferred stock, par value | $0.01 | ' | ' |
Preferred stock, shares issued | 0 | ' | ' |
Preferred stock, shares outstanding | 0 | ' | ' |
Aggregated cash dividends paid | $389 | $209 | $191 |
Earlier authorized shares under stock based compensation | 39,500,000 | ' | ' |
Duration of performance-based restricted stock awards, vested | 'Stock option plan generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant | ' | ' |
Remaining shares available for future grants under the Plan | 14,500,000 | ' | ' |
Stock option, Minimum Range | $9.14 | ' | ' |
Stock option, Maximum Range | $84.58 | ' | ' |
Weighted-average fair value of options granted | $24.11 | $30.01 | $29.52 |
Total intrinsic value of options exercised | 64 | 120 | ' |
Total unrecognized compensation cost related to nonvested stock options | 74 | ' | ' |
Weighted-average period recognition of unrecognized compensation cost related to nonvested RSA's | '2 years | ' | ' |
Total fair value of stock options vested | 64 | 55 | 54 |
Cash received from option exercises | 58 | 113 | 96 |
Tax benefit realized for the tax deductions from option exercises | 39 | 42 | 43 |
Restricted stock granted | 758,176 | 482,428 | 374,425 |
Restricted stock granted fair value | $69.07 | $83.79 | $79.53 |
Number of shares available except for special grant | 16,352 | ' | ' |
Total stock-based compensation compensation arrangements under the Plan | 86 | 74 | 68 |
Total number of restricted stock awards and restricted stock units granted | 340,218 | 406,844 | 496,642 |
Restricted Stock and Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | 540,194 | ' | ' |
Restricted stock granted fair value | $69.33 | ' | ' |
TSR Award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Performance based restricted stock awards granted in percent | 50.00% | ' | ' |
ROC Award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Performance based restricted stock awards granted in percent | 50.00% | ' | ' |
Performance Based Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation compensation arrangements under the Plan | 8 | ' | ' |
Restricted Stock Unit [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | 16,702 | ' | ' |
Restricted stock granted fair value | $69.17 | ' | ' |
Restricted Stock Unit [Member] | Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Duration of performance-based restricted stock awards, vested | 'Restricted stock and restricted stock units were granted February 15, 2013 and vest on the third anniversary of the date of grant, except for a special grant of 16,352 restricted stock units which vest on the second anniversary of the date of grant (subject to the satisfaction of a performance condition). On May 22, 2013, the 16,702 restricted stock awards, with a fair value of $69.17 per share, were granted to the non-employee members of the board of directors. These restricted stock awards vest in equal thirds over three years on the anniversary of the grant date. | ' | ' |
Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Duration of performance-based restricted stock awards, vested | 'Restricted stock awards vest in equal thirds over three years on the anniversary of the grant date | ' | ' |
Total unrecognized compensation cost related to nonvested stock options | $54 | ' | ' |
Weighted-average period recognition of unrecognized compensation cost related to nonvested RSA's | '2 years | ' | ' |
Restricted stock granted fair value | $69.07 | $83.79 | $79.53 |
Performance based restricted stock awards vested, number of years | '3 years | ' | ' |
Total number of restricted stock awards and restricted stock units granted | 340,218 | 406,844 | 496,642 |
Minimum [Member] | Performance-base restricted stock [Member] | Senior Management Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | 0 | ' | ' |
Maximum [Member] | Performance-base restricted stock [Member] | Senior Management Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | 368,860 | ' | ' |
Common_Stock_Summary_of_Stock_
Common Stock - Summary of Stock Options (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of Shares under Stock Option, Beginning of the Year | 9,473,482 | 10,481,750 | 11,039,544 |
Number of Shares Granted | 2,832,587 | 2,239,088 | 2,277,946 |
Number of Shares Cancelled | -303,417 | -228,137 | -241,174 |
Number of Shares Exercised | -1,366,459 | -3,019,219 | -2,594,566 |
Number of shares under stock option, End of the year | 10,636,193 | 9,473,482 | 10,481,750 |
Number of stock options vested and expected to be vest, exercisable | 5,831,091 | 4,823,331 | 5,073,965 |
Weighted Average Exercise Price, Beginning of year | $58.69 | $47.20 | $38.01 |
Weighted Average Exercise Price, Stock Options Granted | $69.37 | $84.58 | $79.68 |
Weighted Average Exercise Price, Stock Options Canceled | $72.43 | $60.28 | $40.20 |
Weighted Average Exercise Price, Stock Options Exercised | $77.44 | $82.26 | $36.84 |
Weighted Average Exercise Price, End of the year | $63.29 | $58.69 | $47.20 |
Weighted Average Exercise Price, Stock Options Exercisable | $53.46 | $43.99 | $38.47 |
Common_Stock_Summary_of_Stock_1
Common Stock - Summary of Stock Option Outstanding Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Weighted-Avg Remaining Contractual | '6 years 9 months 26 days |
Stock Options Outstanding, Shares | 10,636,193 |
Stock Options Outstanding, Weighted Price | $63.29 |
Stock Options Exercisable, Shares | 5,831,091 |
Stock Options Exercisable, Weighted Exercise | $53.46 |
Stock option, Minimum Range | $9.14 |
Stock option, Maximum Range | $84.58 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Weighted-Avg Remaining Contractual | '4 years 4 months 10 days |
Stock Options Outstanding, Shares | 3,201,686 |
Stock Options Outstanding, Weighted Price | $34.43 |
Stock Options Exercisable, Shares | 3,201,686 |
Stock Options Exercisable, Weighted Exercise | $34.43 |
Stock option, Minimum Range | $9.14 |
Stock option, Maximum Range | $45 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Weighted-Avg Remaining Contractual | '8 years 2 months 1 day |
Stock Options Outstanding, Shares | 3,361,420 |
Stock Options Outstanding, Weighted Price | $67.84 |
Stock Options Exercisable, Shares | 622,464 |
Stock Options Exercisable, Weighted Exercise | $61.32 |
Stock option, Minimum Range | $45.01 |
Stock option, Maximum Range | $70 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Weighted-Avg Remaining Contractual | '7 years 7 months 17 days |
Stock Options Outstanding, Shares | 4,073,087 |
Stock Options Outstanding, Weighted Price | $82.21 |
Stock Options Exercisable, Shares | 2,006,941 |
Stock Options Exercisable, Weighted Exercise | $81.39 |
Stock option, Minimum Range | $70.01 |
Stock option, Maximum Range | $84.58 |
Common_Stock_Assumption_Used_i
Common Stock - Assumption Used in Determination of Fair Value of Share Based Payment Awards (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Expected volatility | 50.10% | 51.70% | 53.20% |
Risk-free interest rate | 0.90% | 0.90% | 2.10% |
Expected dividends | $0.75 | $0.57 | $0.44 |
Expected term (in years) | '3 years 4 months 24 days | '3 years 2 months 12 days | '3 years 1 month 6 days |
Common_Stock_Summary_of_Inform
Common Stock - Summary of Information and Changes in Stock Options with Regard to Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of Shares under Stock Option, Beginning of the Year | 9,473,482 | 10,481,750 | 11,039,544 |
Number of Shares Granted | 2,832,587 | 2,239,088 | 2,277,946 |
Number of Shares Exercised | -1,366,459 | -3,019,219 | -2,594,566 |
Number of Shares Cancelled | -303,417 | -228,137 | -241,174 |
Number of shares under stock option, End of the year | 10,636,193 | 9,473,482 | 10,481,750 |
Number of stock options, Vested or expected to vest | 10,466,014 | ' | ' |
Number of stock options, Exercisable | 5,831,091 | 4,823,331 | 5,073,965 |
Weighted Average Exercise Price, Beginning of year | $58.69 | $47.20 | $38.01 |
Weighted Average Exercise Price, Stock Options Granted | $69.37 | $84.58 | $79.68 |
Weighted Average Exercise Price, Stock Options Exercised | $72.43 | $60.28 | $40.20 |
Weighted Average Exercise Price, Stock Options Cancelled | $77.44 | $82.26 | $36.84 |
Weighted Average Exercise Price, End of the year | $63.29 | $58.69 | $47.20 |
Weighted Average Exercise Price, Stock options vested or expected to vest | $63.29 | ' | ' |
Weighted Average Exercise Price, Stock options, Exercisable | $53.46 | $43.99 | $38.47 |
Weighted Remaining Contractual Term, Outstanding | '6 years 9 months 26 days | '6 years 10 months 10 days | ' |
Weighted Remaining Contractual Term, Vested | '6 years 9 months 26 days | ' | ' |
Weighted Remaining Contractual Term, Exercisable | '5 years 4 months 13 days | ' | ' |
Stock Options Average Aggregate Intrinsic Value, Beginning | $150,667,018 | ' | ' |
Stock Options Average Aggregate Intrinsic Value, Ending | 183,849,267 | 150,667,018 | ' |
Stock Options Average Aggregate Intrinsic Value, Vested or expected to Vest | 180,907,679 | ' | ' |
Stock Options Average Aggregate Intrinsic Value, Exercisable | $155,892,094 | ' | ' |
Common_Stock_Summary_of_Inform1
Common Stock - Summary of Information Regarding Outstanding Restricted Shares (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Restricted Shares Outstanding, Beginning balance | 1,336,666 | 1,606,047 | 1,765,837 |
Restricted Stock Granted, Shares | 758,176 | 482,428 | 374,425 |
Restricted Stock Vested, Shares | -340,218 | -406,844 | -496,642 |
Restricted Stock Canceled, Shares | -239,534 | -344,965 | -37,573 |
Restricted Shares Outstanding, Ending balance | 1,515,090 | 1,336,666 | 1,606,047 |
Weighted-Average Grant Date Fair Value of Restricted Stock, Beginning Balance | $67.56 | $44.21 | $42.15 |
Restricted Stock Granted, Weighted-Average Grant Date Fair Value | $69.07 | $83.79 | $79.53 |
Restricted Stock Vested, Weighted-Average Grant Date Fair Value | $69.29 | $83.34 | $64.22 |
Restricted Stock Canceled, Weighted-Average Grant Date Fair Value | $40.97 | $30.39 | $44.02 |
Weighted-Average Grant Date Fair Value of Restricted Stock, Ending Balance | $73.73 | $67.56 | $44.21 |
Income_Taxes_Domestic_and_Fore
Income Taxes - Domestic and Foreign Components of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before income taxes, Domestic | $1,362 | $1,697 | $1,193 |
Income before income taxes, Foreign | 1,762 | 1,643 | 1,601 |
Income before income taxes | $3,124 | $3,340 | $2,794 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $632 | $654 | $450 |
State | 55 | 44 | 34 |
Foreign | 592 | 357 | 751 |
Total current income tax provision | 1,279 | 1,055 | 1,235 |
Deferred: | ' | ' | ' |
Federal | -157 | -147 | -23 |
State | -12 | -1 | -3 |
Foreign | -167 | 58 | -315 |
Total deferred income tax provision | -336 | -90 | -341 |
Total income tax provision | $943 | $965 | $894 |
Income_Taxes_Difference_Betwee
Income Taxes - Difference Between Effective Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income tax at U.S. statutory rate | $1,093 | $1,169 | $978 |
Foreign income tax rate differential | -216 | -149 | -149 |
State income tax, net of federal benefit | 27 | 29 | 20 |
Nondeductible expenses | 26 | 29 | 41 |
Tax benefit of manufacturing deduction | -33 | -29 | -37 |
Foreign dividends, net of foreign tax credits | 32 | -116 | 11 |
Change in deferred tax valuation allowance | 40 | 80 | -18 |
Other | -26 | -48 | 48 |
Total income tax provision | $943 | $965 | $894 |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets and Liability (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Allowances and operating liabilities | $439 | $368 | $331 |
Net operating loss carryforwards | 51 | 25 | 14 |
Postretirement benefits | 49 | 54 | 14 |
Foreign tax credit carryforwards | 300 | 259 | 106 |
Other | 39 | 149 | 151 |
Deferred tax assets gross | 878 | 855 | 616 |
Valuation allowance for deferred tax assets | -133 | -93 | -13 |
Total deferred tax assets | 745 | 762 | 603 |
Deferred tax liabilities: | ' | ' | ' |
Tax over book depreciation | 306 | 268 | 204 |
Intangible assets | 1,757 | 1,448 | 1,398 |
Deferred income | 285 | 314 | 226 |
Accrued U.S. tax on unremitted earnings | 92 | 92 | 70 |
Other | 164 | 208 | 168 |
Total deferred tax liabilities | 2,604 | 2,330 | 2,066 |
Net deferred tax liability | $1,859 | $1,568 | $1,463 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefit | $127 | $128 | $131 | $118 |
Unrecognized tax benefits decreases resulting from settlements with taxing authorities and from lapse of applicable statute of limitations | 1 | ' | ' | ' |
Decrease of income tax expense in the current year | 1 | ' | ' | ' |
Unrecognized Tax Benefits Period Increase Decrease Recorded as Reduction in income tax expense | 127 | ' | ' | ' |
Decrease in balance of unrecognized tax benefits associated with reduction in tax | ' | 2 | 9 | ' |
Unrecognized tax benefits that would reduce income tax | 0.4 | ' | ' | ' |
Accrued income tax interest and penalties related to unrecognized tax benefit | 8 | ' | ' | ' |
Operating loss carry forward potential benefit | 51 | 25 | 14 | ' |
Foreign tax credit | 300 | ' | ' | ' |
Excess foreign tax credit, valuation allowance | 101 | ' | ' | ' |
Net deferred tax liabilities | 1,859 | 1,568 | 1,463 | ' |
Undistributed earnings of foreign subsidiaries | 6,045 | 4,620 | ' | ' |
Carry forward expiration year 2018 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 73 | ' | ' | ' |
Carry forward expiration year 2020 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 71 | ' | ' | ' |
Carry forward expiration year 2022 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 142 | ' | ' | ' |
Carry forward expiration year 2023 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 14 | ' | ' | ' |
Foreign Country [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Decrease in balance of unrecognized tax benefits associated with reduction in tax | 54 | ' | ' | ' |
Net operating loss carry forward | 170 | ' | ' | ' |
Income tax interest and penalties related to unrecognized tax benefit | 44 | ' | ' | ' |
Operating loss carry forward potential benefit | 22 | ' | ' | ' |
Operating loss carry forward valuation allowance | 22 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2014 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 1 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2015 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 9 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2016 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 7 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2017 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 4 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2018 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 14 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2020 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 12 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2021 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 21 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2022 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 20 | ' | ' | ' |
Foreign Country [Member] | Carry forward expiration year 2023 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 1 | ' | ' | ' |
Foreign Country [Member] | Operating Loss Carry Forward indefinitely [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 81 | ' | ' | ' |
Domestic Country [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 20 | ' | ' | ' |
Income tax interest and penalties related to unrecognized tax benefit | 7 | ' | ' | ' |
Operating loss carry forward potential benefit | 7 | ' | ' | ' |
Operating loss carry forward valuation allowance | 7 | ' | ' | ' |
Domestic Country [Member] | Carry Forward Expiration Year 2025 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 4 | ' | ' | ' |
Domestic Country [Member] | Carry Forward Expiration Year 2026 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 13 | ' | ' | ' |
Domestic Country [Member] | Carry Forward Expiration Year 2027 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 1 | ' | ' | ' |
Domestic Country [Member] | Carry Forward Expiration Year 2029 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 1 | ' | ' | ' |
Domestic Country [Member] | Carry Forward Expiration Year 2030 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carry forward | 1 | ' | ' | ' |
Robbins and Myers [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net deferred tax liabilities | $371 | ' | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefit at beginning of year | $128 | $131 | $118 |
Additions based on tax positions related to the current year | ' | 2 | 9 |
Additions for tax positions of prior years | ' | ' | 13 |
Reductions for lapse of applicable statutes of limitations | -1 | -5 | -9 |
Unrecognized tax benefit at end of year | $127 | $128 | $131 |
Business_Segments_and_Geograph2
Business Segments and Geographic Areas - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | |
Revenue [Member] | Revenue [Member] | Revenue [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Segment | Business | Rig Systems [Member] | Rig Aftermarket [Member] | Wellbore Technologies [Member] | Completion & Production Solutions [Member] | ||||
Business | Business | Business | Business | Business | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Number of business units | ' | ' | ' | ' | 15 | 2 | 1 | 6 | 6 |
Revenue from shipyard customer | 11.00% | 11.00% | 13.00% | ' | ' | ' | ' | ' | ' |
Business_Segments_and_Geograph3
Business Segments and Geographic Areas - Revenues by Country Based on Sales Destination of Use of Products or Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $5,302 | $4,863 | $4,680 | $4,376 | $4,713 | $4,307 | $4,206 | $3,968 | $19,221 | $17,194 | $13,475 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,140 | 6,040 | 4,532 |
South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,219 | 3,121 | 2,257 |
Singapore [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,850 | 1,118 | 721 |
Norway [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,102 | 736 | 689 |
China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,007 | 533 | 430 |
Brazil [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 811 | 503 | 397 |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 705 | 523 | 465 |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 625 | 728 | 608 |
Other Countries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $4,762 | $3,892 | $3,376 |
Business_Segments_and_Geograph4
Business Segments and Geographic Areas - Long-Lived Assets by Country Based on the Location (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | $3,408 | $2,945 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 1,830 | 1,606 |
Brazil [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 270 | 162 |
United Kingdom [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 200 | 173 |
Denmark [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 166 | 174 |
Canada [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 123 | 131 |
South Korea [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 115 | 112 |
Mexico [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 101 | 87 |
Singapore [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 94 | 93 |
Other Countries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | $509 | $407 |
Business_Segments_and_Geograph5
Business Segments and Geographic Areas - Business Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $5,302 | $4,863 | $4,680 | $4,376 | $4,713 | $4,307 | $4,206 | $3,968 | $19,221 | $17,194 | $13,475 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 3,199 | 3,389 | 2,809 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 614 | 569 | 479 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 738 | 616 | 549 |
Goodwill | 9,049 | ' | ' | ' | 7,172 | ' | ' | ' | 9,049 | 7,172 | 6,151 |
Total assets | 34,812 | ' | ' | ' | 31,484 | ' | ' | ' | 34,812 | 31,484 | 25,515 |
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 333 | ' | ' | ' | 343 | ' | ' | ' | 333 | 343 | 52 |
Total assets | 2,183 | ' | ' | ' | 2,373 | ' | ' | ' | 2,183 | 2,373 | 829 |
Rig Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 1,279 | ' | ' | ' | 1,097 | ' | ' | ' | 1,279 | 1,097 | 943 |
Rig Aftermarket [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 906 | ' | ' | ' | 649 | ' | ' | ' | 906 | 649 | 556 |
Wellbore Technologies [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 4,425 | ' | ' | ' | 3,769 | ' | ' | ' | 4,425 | 3,769 | 3,683 |
Completion & Production Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 2,106 | ' | ' | ' | 1,314 | ' | ' | ' | 2,106 | 1,314 | 917 |
Operating Segments [Member] | Rig Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 8,450 | 7,077 | 5,686 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,594 | 1,685 | 1,562 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 81 | 70 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 82 | 64 | 61 |
Goodwill | 1,279 | ' | ' | ' | 1,097 | ' | ' | ' | 1,279 | 1,097 | 943 |
Total assets | 7,654 | ' | ' | ' | 6,563 | ' | ' | ' | 7,654 | 6,563 | 4,743 |
Operating Segments [Member] | Rig Aftermarket [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,692 | 2,138 | 1,876 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 729 | 594 | 528 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 13 | 10 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 26 | 18 | 14 |
Goodwill | 906 | ' | ' | ' | 649 | ' | ' | ' | 906 | 649 | 556 |
Total assets | 2,475 | ' | ' | ' | 1,930 | ' | ' | ' | 2,475 | 1,930 | 1,569 |
Operating Segments [Member] | Wellbore Technologies [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,211 | 5,184 | 4,455 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 915 | 983 | 726 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 226 | 247 | 245 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 420 | 389 | 381 |
Goodwill | 4,425 | ' | ' | ' | 3,769 | ' | ' | ' | 4,425 | 3,769 | 3,683 |
Total assets | 11,862 | ' | ' | ' | 11,032 | ' | ' | ' | 11,862 | 11,032 | 10,799 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,309 | 3,994 | 2,483 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 613 | 684 | 456 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 212 | 169 | 103 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 210 | 145 | 93 |
Goodwill | 2,106 | ' | ' | ' | 1,314 | ' | ' | ' | 2,106 | 1,314 | 917 |
Total assets | 7,287 | ' | ' | ' | 6,192 | ' | ' | ' | 7,287 | 6,192 | 4,020 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | -1,441 | -1,199 | -1,025 |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | -652 | -557 | -463 |
Corporate, Non-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 59 | 51 |
Total assets | $3,351 | ' | ' | ' | $3,394 | ' | ' | ' | $3,351 | $3,394 | $3,555 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) - Summarized Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $5,302 | $4,863 | $4,680 | $4,376 | $4,713 | $4,307 | $4,206 | $3,968 | $19,221 | $17,194 | $13,475 |
Gross profit | 1,404 | 1,360 | 1,173 | 1,167 | 1,354 | 1,247 | 1,228 | 1,214 | 5,104 | 5,043 | 4,296 |
Income from continuing operations | 627 | 598 | 494 | 461 | 637 | 584 | 579 | 583 | 2,180 | 2,383 | 1,909 |
Income from discontinued operations | 31 | 38 | 37 | 41 | 31 | 28 | 26 | 23 | 147 | 108 | 85 |
Net income attributable to Company | $658 | $636 | $531 | $502 | $668 | $612 | $605 | $606 | $2,327 | $2,491 | $1,994 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $1.47 | $1.40 | $1.16 | $1.08 | $1.50 | $1.38 | $1.37 | $1.37 | $5.11 | $5.61 | $4.52 |
Income from discontinued operations | $0.07 | $0.09 | $0.09 | $0.10 | $0.07 | $0.06 | $0.05 | $0.06 | $0.35 | $0.25 | $0.21 |
Net income attributable to Company | $1.54 | $1.49 | $1.25 | $1.18 | $1.57 | $1.44 | $1.42 | $1.43 | $5.46 | $5.86 | $4.73 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $1.47 | $1.40 | $1.15 | $1.07 | $1.49 | $1.36 | $1.35 | $1.36 | $5.09 | $5.58 | $4.50 |
Income from discontinued operations | $0.07 | $0.09 | $0.09 | $0.10 | $0.07 | $0.06 | $0.06 | $0.06 | $0.35 | $0.25 | $0.20 |
Net income attributable to Company | $1.53 | $1.49 | $1.24 | $1.17 | $1.56 | $1.43 | $1.42 | $1.42 | $5.44 | $5.83 | $4.70 |
Cash dividends per share | $0.26 | $0.26 | $0.26 | $0.13 | $0.13 | $0.12 | $0.12 | $0.12 | $0.91 | $0.49 | $0.45 |
Spinoff_of_distribution_busine2
Spin-off of distribution business - Additional Information (Detail) (Now Inc [Member], USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 22-May-14 |
Subsequent Event [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Ratio of common stock sharing | ' | ' | ' | 4 |
Sales prior to the spin-off | $499 | $450 | $382 | ' |
Purchases prior to the spin-off | $149 | $117 | $76 | ' |
Spinoff_of_distribution_busine3
Spin-off of distribution business - Schedule of Assets and Liabilities Preceding Spin-off (Detail) (Now Inc [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Now Inc [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | $101 | $138 |
Receivables, net | 661 | 692 |
Inventories, net | 850 | 1,015 |
Deferred income taxes | 21 | 18 |
Prepaid and other current assets | 29 | 19 |
Total current assets of discontinued operations | 1,662 | 1,882 |
Property, plant and equipment, net | 102 | 61 |
Deferred income taxes | 15 | 11 |
Goodwill | 333 | 343 |
Intangibles, net | 68 | 74 |
Other assets | 3 | 2 |
Total assets of discontinued operations | 2,183 | 2,373 |
Current liabilities: | ' | ' |
Accounts payable | 264 | 272 |
Accrued liabilities | 99 | 113 |
Accrued income taxes | ' | 6 |
Total current liabilities of discontinued operations | 363 | 391 |
Deferred income taxes | 16 | 9 |
Other liabilities | 2 | 2 |
Total liabilities of discontinued operations | $381 | $402 |
Spinoff_of_distribution_busine4
Spin-off of distribution business - Schedule of Selected Financial Information Reported as Discontinued Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reorganizations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $4,296 | $3,414 | $1,641 |
Income from discontinued operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 222 | 165 | 128 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 75 | 57 | 43 |
Income from discontinued operations | $31 | $38 | $37 | $41 | $31 | $28 | $26 | $23 | $147 | $108 | $85 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance beginning of year | $120 | $107 | $107 |
Additions (Deductions) charged to costs and expenses | 32 | 6 | 9 |
Charge off's and other | -20 | 7 | -9 |
Balance end of year | 132 | 120 | 107 |
Allowance for excess and obsolete inventories [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance beginning of year | 338 | 281 | 270 |
Additions (Deductions) charged to costs and expenses | 89 | 99 | 70 |
Charge off's and other | -31 | -42 | -59 |
Balance end of year | 396 | 338 | 281 |
Valuation allowance for deferred tax assets [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance beginning of year | 93 | 13 | 9 |
Additions (Deductions) charged to costs and expenses | 40 | 80 | 4 |
Balance end of year | 133 | 93 | 13 |
Warranty reserve [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance beginning of year | 194 | 211 | 215 |
Additions (Deductions) charged to costs and expenses | 101 | 51 | 40 |
Charge off's and other | -67 | -68 | -44 |
Balance end of year | $228 | $194 | $211 |