Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NOV | |
Entity Registrant Name | NATIONAL OILWELL VARCO INC | |
Entity Central Index Key | 1,021,860 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 377,683,622 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,510 | $ 2,080 |
Receivables, net | 1,808 | 2,926 |
Inventories, net | 4,161 | 4,678 |
Costs in excess of billings | 765 | 1,250 |
Prepaid and other current assets | 467 | 491 |
Total current assets | 8,711 | 11,425 |
Property, plant and equipment, net | 3,261 | 3,124 |
Deferred income taxes | 135 | 130 |
Goodwill | 6,015 | 6,980 |
Intangibles, net | 3,626 | 3,849 |
Investment in unconsolidated affiliates | 311 | 327 |
Other assets | 135 | 135 |
Total assets | 22,194 | 25,970 |
Current liabilities: | ||
Accounts payable | 396 | 623 |
Accrued liabilities | 1,628 | 2,284 |
Billings in excess of costs | 550 | 785 |
Current portion of long-term debt and short-term borrowings | 6 | 2 |
Accrued income taxes | 35 | 264 |
Total current liabilities | 2,615 | 3,958 |
Long-term debt | 3,210 | 3,907 |
Deferred income taxes | 1,155 | 1,362 |
Other liabilities | 326 | 283 |
Total liabilities | 7,306 | 9,510 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 377,674,480 and 375,764,794 shares issued and outstanding at September 30, 2016 and December 31, 2015 | 4 | 4 |
Additional paid-in capital | 8,079 | 8,005 |
Accumulated other comprehensive loss | (1,283) | (1,553) |
Retained earnings | 8,018 | 9,927 |
Total Company stockholders' equity | 14,818 | 16,383 |
Noncontrolling interests | 70 | 77 |
Total stockholders' equity | 14,888 | 16,460 |
Total liabilities and stockholders' equity | $ 22,194 | $ 25,970 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 377,674,480 | 375,764,794 |
Common stock, shares outstanding | 377,674,480 | 375,764,794 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,646 | $ 3,306 | $ 5,559 | $ 12,035 |
Cost of revenue | 1,567 | 2,634 | 5,201 | 9,360 |
Gross profit | 79 | 672 | 358 | 2,675 |
Selling, general and administrative | 293 | 383 | 1,031 | 1,378 |
Goodwill and intangible asset impairment | 972 | 55 | 972 | 55 |
Operating profit (loss) | (1,186) | 234 | (1,645) | 1,242 |
Interest and financial costs | (25) | (24) | (80) | (76) |
Interest income | 3 | 2 | 11 | 9 |
Equity income (loss) in unconsolidated affiliates | (6) | (19) | 16 | |
Other income (expense), net | (30) | (20) | (85) | (106) |
Income (loss) before income taxes | (1,244) | 192 | (1,818) | 1,085 |
Provision for income taxes | 120 | 36 | (119) | 330 |
Net income (loss) | (1,364) | 156 | (1,699) | 755 |
Net income (loss) attributable to noncontrolling interests | (2) | 1 | (1) | 1 |
Net income (loss) attributable to Company | $ (1,362) | $ 155 | $ (1,698) | $ 754 |
Net income (loss) attributable to Company per share: | ||||
Basic | $ (3.62) | $ 0.41 | $ (4.53) | $ 1.92 |
Diluted | (3.62) | 0.41 | (4.53) | 1.92 |
Cash dividends per share | $ 0.05 | $ 0.46 | $ 0.56 | $ 1.38 |
Weighted average shares outstanding: | ||||
Basic | 376 | 380 | 375 | 392 |
Diluted | 376 | 381 | 375 | 393 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,364) | $ 156 | $ (1,699) | $ 755 |
Currency translation adjustments | (18) | (339) | 79 | (650) |
Changes in derivative financial instruments, net of tax | 60 | (19) | 191 | 7 |
Comprehensive income (loss) | (1,322) | (202) | (1,429) | 112 |
Comprehensive income (loss) attributable to noncontrolling interest | (2) | 1 | (1) | 1 |
Comprehensive income (loss) attributable to Company | $ (1,320) | $ (203) | $ (1,428) | $ 111 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,699) | $ 755 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 529 | 564 |
Deferred income taxes | (216) | (122) |
Equity (income) loss in unconsolidated affiliates | 19 | (16) |
Dividend from unconsolidated affiliate | 6 | 34 |
Goodwill and intangible asset impairment | 972 | 55 |
Other, net | 281 | 236 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables | 1,089 | 1,045 |
Inventories | 430 | (6) |
Costs in excess of billings | 485 | 209 |
Prepaid and other current assets | 31 | 73 |
Accounts payable | (230) | (460) |
Accrued liabilities | (664) | (716) |
Billings in excess of costs | (235) | (595) |
Income taxes payable | (229) | (318) |
Other assets/liabilities, net | 238 | (20) |
Net cash provided by operating activities | 807 | 718 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (221) | (332) |
Business acquisitions, net of cash acquired | (60) | (70) |
Other | 4 | 24 |
Net cash used in investing activities | (277) | (378) |
Cash flows from financing activities: | ||
Borrowings against lines of credit and other debt | 3,972 | 9,184 |
Payments against lines of credit and other debt | (4,869) | (8,369) |
Cash dividends paid | (211) | (537) |
Share repurchases | (2,221) | |
Proceeds from stock options exercised | 2 | 6 |
Other | (10) | (2) |
Net cash used in financing activities | (1,116) | (1,939) |
Effect of exchange rates on cash | 16 | (91) |
Decrease in cash and cash equivalents | (570) | (1,690) |
Cash and cash equivalents, beginning of period | 2,080 | 3,536 |
Cash and cash equivalents, end of period | 1,510 | 1,846 |
Cash payments during the period for: | ||
Interest | 56 | 57 |
Income taxes | $ 173 | $ 760 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (“NOV” or the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with our 2015 Annual Report on Form 10-K. In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature, unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. Certain reclassifications have been made to the prior year financial statements in order for them to conform with the 2016 presentation. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. Fair Value of Financial Instruments The carrying amounts of 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. See Note 7 for the fair value of long-term debt and Note 10 for the fair value of derivative financial instruments. |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories, net Inventories consist of (in millions): September 30, December 31, Raw materials and supplies $ 1,045 $ 1,069 Work in process 698 632 Finished goods and purchased products 2,418 2,977 Total $ 4,161 $ 4,678 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 3. Accrued Liabilities Accrued liabilities consist of (in millions): September 30, December 31, Customer prepayments and billings $ 306 $ 426 Vendor costs 280 449 Compensation 195 241 Warranty 190 244 Taxes (non-income) 148 175 Insurance 94 113 Commissions 57 73 Fair value of derivative financial instruments 43 261 Interest 29 8 Other 286 294 Total $ 1,628 $ 2,284 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 Accounting Standards Codification (“ASC”) Topic 450 “Contingencies”. 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 changes in the carrying amount of service and product warranties are as follows (in millions): Balance at December 31, 2015 $ 244 Net provisions for warranties issued during the year 39 Amounts incurred (94 ) Currency translation adjustments and other 1 Balance at September 30, 2016 $ 190 |
Costs and Estimated Earnings on
Costs and Estimated Earnings on Uncompleted Contracts | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Costs and Estimated Earnings on Uncompleted Contracts | 4. Costs and Estimated Earnings on Uncompleted Contracts Costs and estimated earnings on uncompleted contracts consist of (in millions): September 30, December 31, Costs incurred on uncompleted contracts $ 8,133 $ 9,082 Estimated earnings 3,862 4,080 11,995 13,162 Less: Billings to date 11,780 12,697 $ 215 $ 465 Costs and estimated earnings in excess of billings on uncompleted contracts $ 765 $ 1,250 Billings in excess of costs and estimated earnings on uncompleted contracts (550 ) (785 ) $ 215 $ 465 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 5. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows (in millions): Currency Derivative Defined Total Balance at December 31, 2015 $ (1,279 ) $ (205 ) $ (69 ) $ (1,553 ) Accumulated other comprehensive income (loss) before reclassifications 79 71 — 150 Amounts reclassified from accumulated other comprehensive income (loss) — 120 — 120 Balance at September 30, 2016 $ (1,200 ) $ (14 ) $ (69 ) $ (1,283 ) The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended September 30, 2016 2015 Currency Derivative Defined Total Currency Derivative Defined Total Revenue $ — $ — $ — $ — $ — $ (10 ) $ — $ (10 ) Cost of revenue — 48 — 48 — 82 — 82 Tax effect — (12 ) — (12 ) — (21 ) — (21 ) $ — $ 36 $ — $ 36 $ — $ 51 $ — $ 51 Nine Months Ended September 30, 2016 2015 Currency Derivative Defined Total Currency Derivative Defined Total Revenue $ — $ (3 ) $ — $ (3 ) $ — $ (11 ) $ — $ (11 ) Cost of revenue — 170 — 170 — 234 — 234 Tax effect — (47 ) — (47 ) — (65 ) — (65 ) $ — $ 120 $ — $ 120 $ — $ 158 $ — $ 158 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 three months ended September 30, 2016, a majority of these local currencies weakened against the U.S. dollar resulting in net other comprehensive loss of $18 million, upon the translation from local currencies to the U.S. dollar. For the nine months ended September 30, 2016, a majority of these local currencies strengthened against the U.S. dollar resulting in net other comprehensive income of $79 million, upon the translation from local currencies to the U.S. dollar. For the three and nine months ended September 30, 2015, a majority of these local currencies weakened against the U.S. dollar resulting in net other comprehensive loss of $339 million and $650 million, respectively, upon the translation from local currencies to the U.S. dollar. The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income or loss, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in other comprehensive income or 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 or 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 income of $60 million (net of tax of $20 million) and $191 million (net of tax of $72 million) for the three and nine months ended September 30, 2016, respectively. The accumulated effect was other comprehensive loss of $19 million (net of tax of $5 million) and income of $7 million (net of tax of $8 million) for the three and nine months ended September 30, 2015, respectively. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | 6. Business Segments Operating results by segment are as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue: Rig Systems $ 470 $ 1,496 $ 1,960 $ 5,949 Rig Aftermarket 322 570 1,077 1,946 Wellbore Technologies 526 834 1,668 2,961 Completion & Production Solutions 543 798 1,639 2,619 Eliminations (215 ) (392 ) (785 ) (1,440 ) Total revenue $ 1,646 $ 3,306 $ 5,559 $ 12,035 Operating profit (loss): Rig Systems $ (962 ) $ 278 $ (888 ) $ 1,176 Rig Aftermarket 72 157 203 514 Wellbore Technologies (94 ) (2 ) (331 ) 141 Completion & Production Solutions (61 ) 10 (132 ) 183 Eliminations and corporate costs (141 ) (209 ) (497 ) (772 ) Total operating profit (loss) $ (1,186 ) $ 234 $ (1,645 ) $ 1,242 Operating profit (loss)%: Rig Systems (204.7 %) 18.6 % (45.3 %) 19.8 % Rig Aftermarket 22.4 % 27.5 % 18.8 % 26.4 % Wellbore Technologies (17.9 %) (0.2 %) (19.8 %) 4.8 % Completion & Production Solutions (11.2 %) 1.3 % (8.1 %) 7.0 % Total operating profit (loss) % (72.1 %) 7.1 % (29.6 %) 10.3 % 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. Included in operating profit (loss) are other items primarily related to goodwill and intangible asset impairments; costs associated with Voluntary Early Retirement Plans (“VERP”) established by the Company during the first quarters of 2016 and 2015; and certain costs related to severance and facility closures. As of September 30, 2016, the Company had approximately $72 million accrued for the VERP postretirement medical benefits. Other items by segment are as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Other items: Rig Systems $ 994 $ 22 $ 1,069 $ 65 Rig Aftermarket 3 1 16 11 Wellbore Technologies 24 29 112 83 Completion & Production Solutions 51 60 123 92 Eliminations and corporate costs 6 — 16 — Total other items $ 1,078 $ 112 $ 1,336 $ 251 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Debt consists of (in millions): September 30, December 31, 2016 2015 $500 million in Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 $ 499 $ 498 $1.4 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 1,390 1,389 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,087 1,087 Commercial paper — 890 Other 240 45 Total debt 3,216 3,909 Less current portion 6 2 Long-term debt $ 3,210 $ 3,907 On January 1, 2016, the Company adopted Accounting Standards Update No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. We have applied the change retrospectively for prior period balances of unamortized debt issuance costs, resulting in a $21 million reduction in other assets and long-term debt on our consolidated balance sheet as of December 31, 2015. The table above now presents our debt liability net of the related debt discount and debt issuance costs. The Company has a $4.5 billion, five-year credit facility which expires September 28, 2018. The Company also has a commercial paper program under which borrowings are classified as long-term since the program is supported by the $4.5 billion, five-year credit facility. At September 30, 2016, there were no commercial paper borrowings, and there were no outstanding letters of credit issued under the credit facility, resulting in $4,500 million of funds available under this credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 1.125% subject to a ratings-based grid, or the U.S. prime rate. The credit facility contains a financial covenant regarding maximum debt-to-capitalization ratio of 60%. As of September 30, 2016, the Company was in compliance with a debt-to-capitalization ratio of 17.8%. The Company had $1,227 million of outstanding letters of credit at September 30, 2016 that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At September 30, 2016 and December 31, 2015, the fair value of the Company’s unsecured Senior Notes approximated $2,725 million and $2,551 million, respectively. At September 30, 2016 and December 31, 2015, the carrying value of the Company’s unsecured Senior Notes approximated $2,976 million and $2,974 million, respectively. The carrying value of the Company’s variable rate borrowings approximates fair value. |
Tax
Tax | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Tax | 8. Tax The effective tax rate for the three and nine months ended September 30, 2016 was (9.6)% and 6.5%, respectively, compared to 18.8% and 30.4% for the same periods in 2015. Impairment of goodwill not deductible for tax purposes, lower tax rates on losses incurred in foreign jurisdictions, and an increase in valuation allowance on deferred taxes, which, when applied to losses generated during the nine-month period resulted in a lower effective tax rate than the U.S. statutory rate. Included in the increase in valuation allowance is $213 million recorded against excess foreign tax credits that are not expected to be realized before expiration. The lower effective tax rate was partially offset by benefits from foreign dividends net of foreign tax credits. The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Federal income tax at U.S. federal statutory rate $ (436 ) $ 67 $ (637 ) $ 380 Foreign income tax rate differential 38 (30 ) 14 (117 ) Nondeductible expenses 2 — 23 17 Foreign dividends, net of foreign tax credits (28 ) (1 ) (47 ) 14 Tax impact of foreign exchange 9 (4 ) 2 (22 ) Change in valuation allowance 238 — 259 — Goodwill impairment 273 — 273 — Tax rate change on temporary differences (2 ) 1 (5 ) (2 ) Change in tax reserves 39 (2 ) 19 67 Other (13 ) 5 (20 ) (7 ) Provision for income taxes $ 120 $ 36 $ (119 ) $ 330 The balance of unrecognized tax benefits at September 30, 2016 was $66 million. The Company does not anticipate its total unrecognized tax benefits at September 30, 2016 to significantly change due to the settlement of audits or the expiration of statutes of limitation within 12 months of this reporting date. For the three and nine months ended September 30, 2016, the Company is utilizing the discrete-period method to compute its interim tax provision due to significant variations in the relationship between income tax expense and pre-tax accounting income or loss; consequently, the actual effective rate for the interim period is being reported. The discrete-period method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. For the three and nine months ended September 30, 2015, the Company utilized the estimated annual effective tax rate method in computing its interim tax provisions. The relationship between pre-tax accounting income and income tax for these periods allowed the Company to estimate the annual effective tax rate to be applied to year-to-date income in those periods. On January 1, 2016, the Company adopted Accounting Standard Update No. 2015-17, “Balance Sheet Classification of Deferred Taxes” on a retrospective basis. Rather than classify deferred tax assets and liabilities as current and non-current, this update requires that deferred tax assets and liabilities be classified as non-current in the Consolidated Balance Sheet. Adoption of this standard resulted in a reclassification of our current deferred tax assets and liabilities to non-current deferred tax assets and liabilities in our Consolidated Balance Sheet. Prior periods have been retrospectively adjusted. At December 31, 2015, $376 million of current deferred tax assets have been reclassified to non-current deferred tax liabilities, $358 million of non-current deferred tax assets have been reclassified to non-current deferred tax liabilities, and $291 million of current deferred tax liabilities have been reclassified to non-current deferred tax liabilities. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation The Company has a stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”). The Plan provides for the granting of stock options, performance-based share awards, restricted stock, phantom shares, stock payments and stock appreciation rights (“SARs”). The number of shares authorized under the Plan was increased during the second quarter of 2016 to 69.4 million. The Plan is now subject to a fungible ratio concept, such that the issuance of stock options and SARs reduces the number of available shares under the Plan on a 1-for-1 basis, and the issuance of other awards reduces the number of available shares under the Plan on a 3-for-1 basis. At September 30, 2016, 31,772,300 shares remain available for future grants under the Plan, all of which are available for grants of stock options, performance-based share awards, restricted stock awards, phantom shares, stock payments and SARs. On February 24, 2016, the Company granted 3,672,411 stock options with a fair value of $6.44 per share and an exercise price of $28.24 per share; 1,732,095 shares of restricted stock and restricted stock units with a fair value of $28.24 per share; performance share awards to senior management employees with potential payouts varying from zero to 341,780 shares; and 4,618,400 SARs with an exercise price of $28.24 and a fair value of $6.44 per SAR. The stock options vest over a three-year period from the grant date while the restricted stock and restricted stock units vest on the third anniversary of the date of grant. The performance share awards can be earned based on performance against established goals over a three-year performance period. The performance share awards are based entirely on a TSR (total shareholder return) goal. Performance against the TSR goal is determined by comparing the performance of the Company’s TSR with the TSR performance of the members of the OSX index for the three-year performance period. The SARs are cash-settled awards and vest over a three-year period from the grant date. Upon exercise of the SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. On May 18, 2016, the Company granted 44,520 restricted stock awards with a fair value of $31.45 per share. The awards were granted to non-employee members of the board of directors and vest on the first anniversary of the grant date. Total stock-based compensation for all stock-based compensation arrangements under the Plan was $28 million and $78 million for the three and nine months ended September 30, 2016, respectively, and $21 million and $83 million for the three and nine months ended September 30, 2015, respectively. Included in stock-based compensation for the nine months ended September 30, 2016 and 2015 is $5 million and $18 million, respectively, related to the Voluntary Early Retirement Plan established by the Company in the first quarter of each year. The total income tax benefit recognized in the Consolidated Statements of Income (Loss) for all stock-based compensation arrangements under the Plan was $5 million and $17 million for the three and nine months ended September 30, 2016, respectively, and $7 million and $20 million for the three and nine months ended September 30 2015, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. Derivative Financial Instruments ASC Topic 815, “Derivatives and Hedging” requires a company to recognize all of its 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 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). 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). 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 2 and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. The Company may also use interest rate contracts to mitigate its exposure to changes in interest rates on anticipated long-term debt issuances. At September 30, 2016, the Company has determined that the fair value of its derivative financial instruments representing assets of $51 million and liabilities of $43 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 September 30, 2016, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $8 million. At September 30, 2016, the Company did not have any interest rate swaps and its 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 or weakens against the foreign currencies, the change in present value of future foreign currency revenues and expenses is offset by changes in the fair value of the forward contracts designated as hedges. 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 (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The 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. For the three and nine months ended September 30, 2016, the Company recognized losses of $2 million and $19 million, respectively, as a result of the discontinuance of certain cash flow hedges when it became probable that the original forecasted transactions would not occur by the end of the originally specified time period. At September 30, 2016, there were $17 million in pre-tax losses recorded in accumulated other comprehensive income (loss). Significant changes in forecasted operating levels or delays in large capital construction projects, whereby certain hedged transactions associated with these projects are no longer probable of occurring by the end of the originally specified time period, could result in additional losses due to the de-designation of existing hedge contracts. 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 September 30, December 31, Norwegian Krone NOK 6,433 NOK 9,655 Euro EUR 186 EUR 78 U.S. Dollar USD 155 USD 321 Danish Krone DKK 37 DKK 57 Singapore Dollar SGD 8 SGD 14 British Pound Sterling GBP 1 GBP 4 Canadian Dollar CAD — CAD 2 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 September 30, December 31, Russian Ruble RUB 1,956 RUB 2,164 Norwegian Krone NOK 1,311 NOK 2,265 U.S. Dollar USD 536 USD 515 Euro EUR 273 EUR 371 Danish Krone DKK 108 DKK 153 British Pound Sterling GBP 15 GBP 11 Canadian Dollar CAD 11 CAD 7 Singapore Dollar SGD 1 SGD 5 The Company has the following gross fair values of its derivative instruments and their balance sheet classifications: Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location September 30, December 31, Balance Sheet Location September 30, December 31, Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 28 $ 5 Accrued liabilities $ 27 $ 212 Foreign exchange contracts Other Assets — — Other liabilities — 25 Total derivatives designated as hedging instruments under ASC Topic 815 $ 28 $ 5 $ 27 $ 237 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 23 $ 21 Accrued liabilities $ 16 $ 49 Foreign exchange contracts Other Assets — — Other Liabilities — — Total derivatives not designated as hedging instruments under ASC Topic 815 $ 23 $ 21 $ 16 $ 49 Total derivatives $ 51 $ 26 $ 43 $ 286 The Effect of Derivative Instruments on the Consolidated Statements of Income ($ in millions) Derivatives in ASC Topic 815 Amount of Gain (Loss) Derivative (Effective Portion) (a) Location of Gain (Loss) (Effective Portion) Amount of Gain (Loss) Accumulated OCI into Income (Effective Portion) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Nine Months Ended Nine Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Revenue 3 11 Cost of revenue (19) (27) Foreign exchange contracts 96 (196 ) Cost of revenue (151 ) (207 ) Other income (expense), net 3 1 Total 96 (196) (148) (196) (16) (26) Derivatives Not Designated as Hedging Instruments under ASC Topic 815 Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Nine Months Ended 2016 2015 Foreign exchange contracts Other income (expense), net — (84) Total — (84) (a) The Company expects that $20 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 $(19) million and $(27) million related to the ineffective portion of the hedging relationships for each of the nine months ended September 30, 2016 and 2015, respectively, and $3 million and $1 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2016 and 2015, respectively. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Company Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Company Per Share | 11. Net Income (Loss) Attributable to Company Per Share The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Company $ (1,362 ) $ 155 $ (1,698 ) $ 754 Denominator: Basic—weighted average common shares outstanding 376 380 375 392 Dilutive effect of employee stock options and other — 1 — 1 Diluted outstanding shares 376 381 375 393 Net income (loss) attributable to Company per share: Basic $ (3.62 ) $ 0.41 $ (4.53 ) $ 1.92 Diluted $ (3.62 ) $ 0.41 $ (4.53 ) $ 1.92 Cash dividends per share $ 0.05 $ 0.46 $ 0.56 $ 1.38 ASC Topic 260, “Earnings Per Share” 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 three and nine months ended September 30, 2016 and therefore not excluded from net income attributable to Company per share calculation. The Company had stock options outstanding that were anti-dilutive totaling 14 million for each of the three and nine months ended September 30, 2016, and 15 million and 14 million shares for each of the three and nine months ended September 30, 2015, respectively. |
Cash Dividends
Cash Dividends | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Cash Dividends | 12. Cash Dividends On August 18, 2016, the Company’s Board of Directors approved a cash dividend of $0.05 per share. The cash dividend was paid on September 30, 2016, to each stockholder of record on September 16, 2016. Cash dividends were $19 million and $211 million for the three and nine months ended September 30, 2016, and $174 million and $537 million for the three and nine months ended September 30, 2015, 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. |
Goodwill Impairment
Goodwill Impairment | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment | 13. Goodwill Impairment The steep worldwide oil and gas industry downturn that started in 2014 stabilized somewhat during the third quarter of 2016, though at very low levels of activity. Operators have improved their cost structures and achieved operational efficiencies, reducing the industry’s marginal cost of supply, primarily in the North American land market. While some improvements in offshore operations have been made, many deepwater projects will not be able to achieve an economically competitive cost structure under the current commodity pricing outlook. As a result, the market shift from offshore drilling to land drilling in North America intensified. Announced cancellations of major offshore projects during the quarter, releases of contracted offshore rigs, the number of idle offshore rigs and the number of current newbuilds still to be completed and enter the market all indicate a large over-supply of offshore equipment that will take years to absorb, even as offshore drilling activity recovers. During the third quarter, these factors indicated a more prolonged downturn associated with newbuild offshore drilling rigs, and we reduced our forecast accordingly, which indicated a goodwill impairment in the Rig Offshore reporting unit was possible. Generally Accepted Accounting Principles require the company test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that those assets might be impaired. The first step of the impairment analysis is to compare the reporting unit’s carrying value to the respective fair value. Fair value of the reporting unit is determined in accordance with ASC Topic 820 “Fair Value Measurements and Disclosures” using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on internal management estimates, forecasts and judgments, using discounted cash flow. The discounted cash flow is based on management’s forecast of operating performance for the reporting unit. The two main assumptions used in measuring goodwill impairment, which bear the risk of change and could impact the Company’s goodwill impairment analysis, include the cash flow from operations from each reporting unit and its weighted average cost of capital. The starting point for each of the reporting unit’s cash flow from operations is the detailed annual plan or updated forecast. Cash flows beyond the updated forecasted operating plans were estimated using a terminal value calculation, which incorporated historical and forecasted financial cyclical trends for each reporting unit and considered long-term earnings growth rates. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate. During times of volatility, significant judgment must be applied to determine whether credit changes are a short-term or long-term trend. Based on the Company’s step one impairment analysis, as of July 1, 2016 the Rig Offshore reporting unit had a calculated fair value below its carrying value, and required a step two analysis, which compares the implied fair value of goodwill of a reporting unit to the carrying value of goodwill for the reporting unit. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of that reporting unit as a whole. Consistent with the step one analysis, fair value of the assets and liabilities was determined in accordance with ASC Topic 820. Based on the step two analysis performed for the Rig Offshore reporting unit, the Company recorded a $972 million write-down of goodwill during the third quarter. As a result of the goodwill impairment and a reduction in working capital, total assets for Rig Systems were $3.7 billion at September 30, 2016. Also, to achieve higher efficiencies and reduce costs, the Company combined the operations of the Rig Offshore and Rig Land reporting units during the third quarter of 2016. Generally accepted accounting principles require the Company to test the value of goodwill assets for impairment before and after combining reporting units. As a result we also tested Rig Land before the combination as well as the combined reporting unit, Rig Systems, as of July 1, 2016 for goodwill impairment, in accordance with accounting guidance ASC Topic No. 350, “Intangibles – Goodwill and Other”. Based on the Company’s step one impairment analysis, the calculated fair value of the Rig Land reporting unit was substantially in excess of its carrying value. Additionally, the goodwill impairment analysis performed subsequent to the combination of the two reporting units into the Rig Systems reporting unit, concluded that the calculated fair value of the Rig Systems reporting unit was substantially in excess of its carrying value. We also considered whether impairment indicators existed that would suggest the goodwill of our other reporting units was more likely than not impaired and concluded there were none. While the outlook for offshore new-builds has declined sharply, higher activity levels in land drilling will benefit our other businesses. At September 30, 2016, the Company has approximately $6 billion of goodwill, which is identified by segment as follows (in millions): Rig Systems Rig Wellbore Completion & Total Gross value before accumulated impairment $ 1,232 $ 877 $ 4,359 $ 1,997 $ 8,465 Accumulated impairment — — (1,485 ) — (1,485 ) Balance at December 31, 2015 $ 1,232 $ 877 $ 2,874 $ 1,997 $ 6,980 Goodwill acquired and adjusted during period 1 — (7 ) — (6 ) Impairment (972 ) — — — (972 ) Currency translation adjustments and other — — 4 9 13 Balance at September 30, 2016 $ 261 $ 877 $ 2,871 $ 2,006 $ 6,015 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies In 2008, we received U.S. federal grand jury subpoenas and subsequent inquiries from U.S. governmental agencies requesting records related to our compliance with U.S. export trade laws and regulations. We have cooperated fully with agents from the U.S. Department of Justice, the Department of Commerce Bureau of Industry and Security, the United States Department of Treasury, Office of Foreign Assets Control, 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 addition, we are involved in various other claims, internal investigations, regulatory agency audits and pending or threatened legal actions involving a variety of matters. As of September 30, 2016, 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 cases referred to above, will not materially affect our financial position, cash flow or results of operations. As it relates to the 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. Further, in some instances, direct or indirect consumers of our products and services, entities providing financing for purchases of our products and services or members of the supply chain for our products and services may become involved in governmental investigations, internal investigations, political or other enforcement matters. In such circumstances, such investigations may adversely impact the ability of consumers of our products, entities providing financial support to such consumers or entities in the supply chain to timely perform their business plans or to timely perform under agreements with us. For example, the on-going, publicly disclosed investigations in Brazil have adversely impacted our shipyard customers, their customers, entities providing financing for our shipyard customers and/or entities in the supply chain. The investigations in Brazil have led to, and are expected to continue to lead to, delays in deliveries to our shipyard customers in Brazil, along with temporary suspension of performance under our supply contracts, and have resulted in cancellations and could result in further attempted cancellation or other breaches of our contracts by our shipyard customers. In other jurisdictions, our shipyard customers’ customers in some instances have, and may in the future, sought suspension, delay or cancellation of the contracts or payment due between our shipyard customers and their customers. To the extent our shipyard customers and their customers become engaged in disputes or litigation related to any such suspensions, delays or cancellations, we may also become involved, either directly or indirectly, in such disputes or litigation, as we enforce the terms of our contracts with our shipyard customers. Further, customers in other markets may seek delay or suspension of deliveries, extending delivery into future periods, or may attempt cancellations. While we manage deliveries and collection of payment to achieve milestone payments that mitigate our financial risk, such delays, suspensions, attempted cancellations, breaches of contract or other similar circumstances, could adversely affect our operating results, collections of accounts receivable and financial condition and could reduce our backlog. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 15. Recently Issued Accounting Standards In August 2016, the FASB issued Accounting Standard Update No. 2016-15 “Classification of Certain Cash Receipts and Cash Payments” (ASU 2016-15). This update amends Accounting Standard Codification Topic No. 230 “Statement of Cash Flows” and provides guidance and clarification on presentation of certain cash flow issues. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2016-15 on its consolidated financial position and results of operations. In March 2016, the FASB issued Accounting Standard Update No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). This update requires that entities record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. ASU No. 2016-09 is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The Company will adopt ASU No. 2016-09 on January 1, 2017. In February 2016, the FASB issued Accounting Standard Update No. 2016-02 “Leases” (ASU No. 2016-02), which supersedes the lease requirements in Accounting Standard Codification Topic No. 840 “Leases” and most industry-specific guidance. This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2016-02 on its consolidated financial position and results of operations. In November 2015, the FASB issued Accounting Standard Update No. 2015-17 “Balance Sheet Classification of Deferred Taxes” (ASU 2015-17). This update requires companies to classify all deferred tax assets and liabilities as non-current on its consolidated financial position. The Company has early adopted ASU 2015-17 on a retrospective basis, resulting in a reclassification of current deferred tax assets and liabilities to non-current deferred tax assets and liabilities. The ASU adoption is effective January 1, 2016, and prior periods have been retrospectively adjusted. See Note 8 for further information on the presentation of deferred taxes. In April 2015, the FASB issued Accounting Standard Update No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03) to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, as opposed to historical presentation as an asset on the balance sheet. ASU No. 2015-03 is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company adopted this update on January 1, 2016, and has applied the change retrospectively to prior periods for unamortized debt issuance costs. See Note 7 for further information on the presentation of debt issuance costs. In August 2014, the FASB issued Accounting Standard Update No. 2014-15 “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU No. 2014-15), which amends FASB Accounting Standards Codification 205 “Presentation of Financial Statements.” This update requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently assessing the impact of the adoption of ASU No. 2014-15 on its consolidated financial position and results of operations. In May 2014, the FASB issued Accounting Standard Update No. 2014-09 “Revenue from Contracts with Customers” (ASU No. 2014-09), which supersedes the revenue recognition requirements in Accounting Standard Codification Topic No. 605 “Revenue Recognition” and most industry-specific guidance. This update requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2014-09 on its consolidated financial position and results of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of 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. See Note 7 for the fair value of long-term debt and Note 10 for the fair value of derivative financial instruments. |
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 Accounting Standards Codification (“ASC”) Topic 450 “Contingencies”. 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 changes in the carrying amount of service and product warranties are as follows (in millions): Balance at December 31, 2015 $ 244 Net provisions for warranties issued during the year 39 Amounts incurred (94 ) Currency translation adjustments and other 1 Balance at September 30, 2016 $ 190 |
Derivatives and Hedging | ASC Topic 815, “Derivatives and Hedging” requires a company to recognize all of its 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 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). 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). 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 2 and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. The Company may also use interest rate contracts to mitigate its exposure to changes in interest rates on anticipated long-term debt issuances. At September 30, 2016, the Company has determined that the fair value of its derivative financial instruments representing assets of $51 million and liabilities of $43 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 September 30, 2016, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $8 million. At September 30, 2016, the Company did not have any interest rate swaps and its 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 or weakens against the foreign currencies, the change in present value of future foreign currency revenues and expenses is offset by changes in the fair value of the forward contracts designated as hedges. 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 (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The 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. For the three and nine months ended September 30, 2016, the Company recognized losses of $2 million and $19 million, respectively, as a result of the discontinuance of certain cash flow hedges when it became probable that the original forecasted transactions would not occur by the end of the originally specified time period. At September 30, 2016, there were $17 million in pre-tax losses recorded in accumulated other comprehensive income (loss). Significant changes in forecasted operating levels or delays in large capital construction projects, whereby certain hedged transactions associated with these projects are no longer probable of occurring by the end of the originally specified time period, could result in additional losses due to the de-designation of existing hedge contracts. |
Net Income Attributable to Company Per Share | ASC Topic 260, “Earnings Per Share” 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 three and nine months ended September 30, 2016 and therefore not excluded from net income attributable to Company per share calculation. |
Recently Issued Accounting Standards | In August 2016, the FASB issued Accounting Standard Update No. 2016-15 “Classification of Certain Cash Receipts and Cash Payments” (ASU 2016-15). This update amends Accounting Standard Codification Topic No. 230 “Statement of Cash Flows” and provides guidance and clarification on presentation of certain cash flow issues. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2016-15 on its consolidated financial position and results of operations. In March 2016, the FASB issued Accounting Standard Update No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). This update requires that entities record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. ASU No. 2016-09 is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The Company will adopt ASU No. 2016-09 on January 1, 2017. In February 2016, the FASB issued Accounting Standard Update No. 2016-02 “Leases” (ASU No. 2016-02), which supersedes the lease requirements in Accounting Standard Codification Topic No. 840 “Leases” and most industry-specific guidance. This update increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2016-02 on its consolidated financial position and results of operations. In November 2015, the FASB issued Accounting Standard Update No. 2015-17 “Balance Sheet Classification of Deferred Taxes” (ASU 2015-17). This update requires companies to classify all deferred tax assets and liabilities as non-current on its consolidated financial position. The Company has early adopted ASU 2015-17 on a retrospective basis, resulting in a reclassification of current deferred tax assets and liabilities to non-current deferred tax assets and liabilities. The ASU adoption is effective January 1, 2016, and prior periods have been retrospectively adjusted. See Note 8 for further information on the presentation of deferred taxes. In April 2015, the FASB issued Accounting Standard Update No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03) to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, as opposed to historical presentation as an asset on the balance sheet. ASU No. 2015-03 is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company adopted this update on January 1, 2016, and has applied the change retrospectively to prior periods for unamortized debt issuance costs. See Note 7 for further information on the presentation of debt issuance costs. In August 2014, the FASB issued Accounting Standard Update No. 2014-15 “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU No. 2014-15), which amends FASB Accounting Standards Codification 205 “Presentation of Financial Statements.” This update requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently assessing the impact of the adoption of ASU No. 2014-15 on its consolidated financial position and results of operations. In May 2014, the FASB issued Accounting Standard Update No. 2014-09 “Revenue from Contracts with Customers” (ASU No. 2014-09), which supersedes the revenue recognition requirements in Accounting Standard Codification Topic No. 605 “Revenue Recognition” and most industry-specific guidance. This update requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of ASU No. 2014-09 on its consolidated financial position and results of operations. |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): September 30, December 31, Raw materials and supplies $ 1,045 $ 1,069 Work in process 698 632 Finished goods and purchased products 2,418 2,977 Total $ 4,161 $ 4,678 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): September 30, December 31, Customer prepayments and billings $ 306 $ 426 Vendor costs 280 449 Compensation 195 241 Warranty 190 244 Taxes (non-income) 148 175 Insurance 94 113 Commissions 57 73 Fair value of derivative financial instruments 43 261 Interest 29 8 Other 286 294 Total $ 1,628 $ 2,284 |
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, 2015 $ 244 Net provisions for warranties issued during the year 39 Amounts incurred (94 ) Currency translation adjustments and other 1 Balance at September 30, 2016 $ 190 |
Costs and Estimated Earnings 25
Costs and Estimated Earnings on Uncompleted Contracts (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Costs and Estimated Earnings on Uncompleted Contracts | Costs and estimated earnings on uncompleted contracts consist of (in millions): September 30, December 31, Costs incurred on uncompleted contracts $ 8,133 $ 9,082 Estimated earnings 3,862 4,080 11,995 13,162 Less: Billings to date 11,780 12,697 $ 215 $ 465 Costs and estimated earnings in excess of billings on uncompleted contracts $ 765 $ 1,250 Billings in excess of costs and estimated earnings on uncompleted contracts (550 ) (785 ) $ 215 $ 465 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in millions): Currency Derivative Defined Total Balance at December 31, 2015 $ (1,279 ) $ (205 ) $ (69 ) $ (1,553 ) Accumulated other comprehensive income (loss) before reclassifications 79 71 — 150 Amounts reclassified from accumulated other comprehensive income (loss) — 120 — 120 Balance at September 30, 2016 $ (1,200 ) $ (14 ) $ (69 ) $ (1,283 ) |
Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended September 30, 2016 2015 Currency Derivative Defined Total Currency Derivative Defined Total Revenue $ — $ — $ — $ — $ — $ (10 ) $ — $ (10 ) Cost of revenue — 48 — 48 — 82 — 82 Tax effect — (12 ) — (12 ) — (21 ) — (21 ) $ — $ 36 $ — $ 36 $ — $ 51 $ — $ 51 Nine Months Ended September 30, 2016 2015 Currency Derivative Defined Total Currency Derivative Defined Total Revenue $ — $ (3 ) $ — $ (3 ) $ — $ (11 ) $ — $ (11 ) Cost of revenue — 170 — 170 — 234 — 234 Tax effect — (47 ) — (47 ) — (65 ) — (65 ) $ — $ 120 $ — $ 120 $ — $ 158 $ — $ 158 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Operating results by segment are as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue: Rig Systems $ 470 $ 1,496 $ 1,960 $ 5,949 Rig Aftermarket 322 570 1,077 1,946 Wellbore Technologies 526 834 1,668 2,961 Completion & Production Solutions 543 798 1,639 2,619 Eliminations (215 ) (392 ) (785 ) (1,440 ) Total revenue $ 1,646 $ 3,306 $ 5,559 $ 12,035 Operating profit (loss): Rig Systems $ (962 ) $ 278 $ (888 ) $ 1,176 Rig Aftermarket 72 157 203 514 Wellbore Technologies (94 ) (2 ) (331 ) 141 Completion & Production Solutions (61 ) 10 (132 ) 183 Eliminations and corporate costs (141 ) (209 ) (497 ) (772 ) Total operating profit (loss) $ (1,186 ) $ 234 $ (1,645 ) $ 1,242 Operating profit (loss)%: Rig Systems (204.7 %) 18.6 % (45.3 %) 19.8 % Rig Aftermarket 22.4 % 27.5 % 18.8 % 26.4 % Wellbore Technologies (17.9 %) (0.2 %) (19.8 %) 4.8 % Completion & Production Solutions (11.2 %) 1.3 % (8.1 %) 7.0 % Total operating profit (loss) % (72.1 %) 7.1 % (29.6 %) 10.3 % |
Other Items by Segment | Other items by segment are as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Other items: Rig Systems $ 994 $ 22 $ 1,069 $ 65 Rig Aftermarket 3 1 16 11 Wellbore Technologies 24 29 112 83 Completion & Production Solutions 51 60 123 92 Eliminations and corporate costs 6 — 16 — Total other items $ 1,078 $ 112 $ 1,336 $ 251 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): September 30, December 31, 2016 2015 $500 million in Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017 $ 499 $ 498 $1.4 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 1,390 1,389 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,087 1,087 Commercial paper — 890 Other 240 45 Total debt 3,216 3,909 Less current portion 6 2 Long-term debt $ 3,210 $ 3,907 |
Tax (Tables)
Tax (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
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 of 35% was as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Federal income tax at U.S. federal statutory rate $ (436 ) $ 67 $ (637 ) $ 380 Foreign income tax rate differential 38 (30 ) 14 (117 ) Nondeductible expenses 2 — 23 17 Foreign dividends, net of foreign tax credits (28 ) (1 ) (47 ) 14 Tax impact of foreign exchange 9 (4 ) 2 (22 ) Change in valuation allowance 238 — 259 — Goodwill impairment 273 — 273 — Tax rate change on temporary differences (2 ) 1 (5 ) (2 ) Change in tax reserves 39 (2 ) 19 67 Other (13 ) 5 (20 ) (7 ) Provision for income taxes $ 120 $ 36 $ (119 ) $ 330 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | 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 September 30, December 31, Norwegian Krone NOK 6,433 NOK 9,655 Euro EUR 186 EUR 78 U.S. Dollar USD 155 USD 321 Danish Krone DKK 37 DKK 57 Singapore Dollar SGD 8 SGD 14 British Pound Sterling GBP 1 GBP 4 Canadian Dollar CAD — CAD 2 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 September 30, December 31, Russian Ruble RUB 1,956 RUB 2,164 Norwegian Krone NOK 1,311 NOK 2,265 U.S. Dollar USD 536 USD 515 Euro EUR 273 EUR 371 Danish Krone DKK 108 DKK 153 British Pound Sterling GBP 15 GBP 11 Canadian Dollar CAD 11 CAD 7 Singapore Dollar SGD 1 SGD 5 |
Derivative Instruments and their Balance Sheet Classifications | The Company has the following gross fair values of its derivative instruments and their balance sheet classifications: Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location September 30, December 31, Balance Sheet Location September 30, December 31, Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 28 $ 5 Accrued liabilities $ 27 $ 212 Foreign exchange contracts Other Assets — — Other liabilities — 25 Total derivatives designated as hedging instruments under ASC Topic 815 $ 28 $ 5 $ 27 $ 237 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 23 $ 21 Accrued liabilities $ 16 $ 49 Foreign exchange contracts Other Assets — — Other Liabilities — — Total derivatives not designated as hedging instruments under ASC Topic 815 $ 23 $ 21 $ 16 $ 49 Total derivatives $ 51 $ 26 $ 43 $ 286 |
Effect of Derivative Instruments on Consolidated Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements of Income ($ in millions) Derivatives in ASC Topic 815 Amount of Gain (Loss) Derivative (Effective Portion) (a) Location of Gain (Loss) (Effective Portion) Amount of Gain (Loss) Accumulated OCI into Income (Effective Portion) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Nine Months Ended Nine Months Ended Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Revenue 3 11 Cost of revenue (19) (27) Foreign exchange contracts 96 (196 ) Cost of revenue (151 ) (207 ) Other income (expense), net 3 1 Total 96 (196) (148) (196) (16) (26) Derivatives Not Designated as Hedging Instruments under ASC Topic 815 Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Nine Months Ended 2016 2015 Foreign exchange contracts Other income (expense), net — (84) Total — (84) (a) The Company expects that $20 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 $(19) million and $(27) million related to the ineffective portion of the hedging relationships for each of the nine months ended September 30, 2016 and 2015, respectively, and $3 million and $1 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2016 and 2015, respectively. |
Net Income (Loss) Attributabl31
Net Income (Loss) Attributable to Company Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Weighted Average Basic and Diluted Shares Outstanding | The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income (loss) attributable to Company $ (1,362 ) $ 155 $ (1,698 ) $ 754 Denominator: Basic—weighted average common shares outstanding 376 380 375 392 Dilutive effect of employee stock options and other — 1 — 1 Diluted outstanding shares 376 381 375 393 Net income (loss) attributable to Company per share: Basic $ (3.62 ) $ 0.41 $ (4.53 ) $ 1.92 Diluted $ (3.62 ) $ 0.41 $ (4.53 ) $ 1.92 Cash dividends per share $ 0.05 $ 0.46 $ 0.56 $ 1.38 |
Goodwill Impairment (Tables)
Goodwill Impairment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Identified by Segment | At September 30, 2016, the Company has approximately $6 billion of goodwill, which is identified by segment as follows (in millions): Rig Systems Rig Wellbore Completion & Total Gross value before accumulated impairment $ 1,232 $ 877 $ 4,359 $ 1,997 $ 8,465 Accumulated impairment — — (1,485 ) — (1,485 ) Balance at December 31, 2015 $ 1,232 $ 877 $ 2,874 $ 1,997 $ 6,980 Goodwill acquired and adjusted during period 1 — (7 ) — (6 ) Impairment (972 ) — — — (972 ) Currency translation adjustments and other — — 4 9 13 Balance at September 30, 2016 $ 261 $ 877 $ 2,871 $ 2,006 $ 6,015 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Maturity period of investments description | Three months or less |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,045 | $ 1,069 |
Work in process | 698 | 632 |
Finished goods and purchased products | 2,418 | 2,977 |
Total | $ 4,161 | $ 4,678 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Customer prepayments and billings | $ 306 | $ 426 |
Vendor costs | 280 | 449 |
Compensation | 195 | 241 |
Warranty | 190 | 244 |
Taxes (non-income) | 148 | 175 |
Insurance | 94 | 113 |
Commissions | 57 | 73 |
Fair value of derivative financial instruments | 43 | 261 |
Interest | 29 | 8 |
Other | 286 | 294 |
Total | $ 1,628 | $ 2,284 |
Accrued Liabilities - Changes i
Accrued Liabilities - Changes in Carrying Amount of Service and Product Warranties (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Product Warranties Disclosures [Abstract] | |
Beginning Balance | $ 244 |
Net provisions for warranties issued during the year | 39 |
Amounts incurred | (94) |
Currency translation adjustments and other | 1 |
Ending Balance | $ 190 |
Costs and Estimated Earnings 37
Costs and Estimated Earnings on Uncompleted Contracts - Costs and Estimated Earnings on Uncompleted Contracts (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 8,133 | $ 9,082 |
Estimated earnings | 3,862 | 4,080 |
Costs and estimated earnings on uncompleted contracts, Gross | 11,995 | 13,162 |
Less: Billings to date | 11,780 | 12,697 |
Total net estimate billing on uncompleted contracts | 215 | 465 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 765 | 1,250 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (550) | (785) |
Total net estimate billing on uncompleted contracts | $ 215 | $ 465 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | $ (1,553) |
Accumulated other comprehensive income (loss) before reclassifications | 150 |
Amounts reclassified from accumulated other comprehensive income (loss) | 120 |
Accumulated other comprehensive income (loss), Ending balance | (1,283) |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (1,279) |
Accumulated other comprehensive income (loss) before reclassifications | 79 |
Accumulated other comprehensive income (loss), Ending balance | (1,200) |
Derivative Financial Instruments, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (205) |
Accumulated other comprehensive income (loss) before reclassifications | 71 |
Amounts reclassified from accumulated other comprehensive income (loss) | 120 |
Accumulated other comprehensive income (loss), Ending balance | (14) |
Defined Benefit Plans, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (69) |
Accumulated other comprehensive income (loss), Ending balance | $ (69) |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) - Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Currency Translation Adjustments | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instruments | 36 | 51 | 120 | 158 |
Defined Benefit Plans | 0 | 0 | 0 | 0 |
Total | 36 | 51 | 120 | 158 |
Tax Effect [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Currency Translation Adjustments | 0 | 0 | 0 | 0 |
Derivative Financial Instruments | (12) | (21) | (47) | (65) |
Defined Benefit Plans | 0 | 0 | 0 | 0 |
Total | (12) | (21) | (47) | (65) |
Revenue [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Currency Translation Adjustments | 0 | 0 | 0 | 0 |
Derivative Financial Instruments | (10) | (3) | (11) | |
Defined Benefit Plans | 0 | 0 | 0 | 0 |
Total | (10) | (3) | (11) | |
Cost of Revenue [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Currency Translation Adjustments | 0 | 0 | 0 | 0 |
Derivative Financial Instruments | 48 | 82 | 170 | 234 |
Defined Benefit Plans | 0 | 0 | 0 | 0 |
Total | $ 48 | $ 82 | $ 170 | $ 234 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net increase to other comprehensive income or loss upon the translation | $ (18) | $ (339) | $ 79 | $ (650) |
Changes in derivative financial instruments, net of tax | 60 | (19) | 191 | 7 |
Changes in derivative financial instruments, tax | $ 20 | $ (5) | $ 72 | $ 8 |
Business Segments - Business Se
Business Segments - Business Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,646 | $ 3,306 | $ 5,559 | $ 12,035 |
Total operating profit (loss) | $ (1,186) | $ 234 | $ (1,645) | $ 1,242 |
Percentage as of operating profit (loss) to revenue | (72.10%) | 7.10% | (29.60%) | 10.30% |
Operating Segments [Member] | Rig Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 470 | $ 1,496 | $ 1,960 | $ 5,949 |
Total operating profit (loss) | $ (962) | $ 278 | $ (888) | $ 1,176 |
Percentage as of operating profit (loss) to revenue | (204.70%) | 18.60% | (45.30%) | 19.80% |
Operating Segments [Member] | Rig Aftermarket [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 322 | $ 570 | $ 1,077 | $ 1,946 |
Total operating profit (loss) | $ 72 | $ 157 | $ 203 | $ 514 |
Percentage as of operating profit (loss) to revenue | 22.40% | 27.50% | 18.80% | 26.40% |
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 526 | $ 834 | $ 1,668 | $ 2,961 |
Total operating profit (loss) | $ (94) | $ (2) | $ (331) | $ 141 |
Percentage as of operating profit (loss) to revenue | (17.90%) | (0.20%) | (19.80%) | 4.80% |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 543 | $ 798 | $ 1,639 | $ 2,619 |
Total operating profit (loss) | $ (61) | $ 10 | $ (132) | $ 183 |
Percentage as of operating profit (loss) to revenue | (11.20%) | 1.30% | (8.10%) | 7.00% |
Eliminations and Corporate Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ (215) | $ (392) | $ (785) | $ (1,440) |
Total operating profit (loss) | $ (141) | $ (209) | $ (497) | $ (772) |
Business Segments - Additional
Business Segments - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 4 |
Voluntary Early Retirement Plan [Member] | |
Segment Reporting Information [Line Items] | |
Accrued postretirement medical benefits | $ | $ 72 |
Business Segments - Other Items
Business Segments - Other Items by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total other items | $ 1,078 | $ 112 | $ 1,336 | $ 251 |
Operating Segments [Member] | Rig Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total other items | 994 | 22 | 1,069 | 65 |
Operating Segments [Member] | Rig Aftermarket [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total other items | 3 | 1 | 16 | 11 |
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total other items | 24 | 29 | 112 | 83 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total other items | 51 | $ 60 | 123 | $ 92 |
Eliminations and Corporate Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total other items | $ 6 | $ 16 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Other | $ 240 | $ 45 |
Total debt | 3,216 | 3,909 |
Less current portion | 6 | 2 |
Long-term debt | 3,210 | 3,907 |
Total debt | 3,216 | 3,909 |
Five-year Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Commercial paper | 890 | |
Senior Notes, Interest at 1.35% Payable Semiannually, Principal Due on December 1, 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 499 | 498 |
Senior Notes, Interest at 2.6% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,390 | 1,389 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,087 | $ 1,087 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2015 | Sep. 30, 2016 | |
Senior Notes, Interest at 1.35% Payable Semiannually, Principal Due on December 1, 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 500,000,000 | $ 500,000,000 |
Senior notes interest rate | 1.35% | 1.35% |
Senior note due date | Dec. 1, 2017 | Dec. 1, 2017 |
Senior Notes, Interest at 2.6% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 1,400,000,000 | $ 1,400,000,000 |
Senior notes interest rate | 2.60% | 2.60% |
Senior note due date | Dec. 1, 2022 | Dec. 1, 2022 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 1,100,000,000 | $ 1,100,000,000 |
Senior notes interest rate | 3.95% | 3.95% |
Senior note due date | Dec. 1, 2042 | Dec. 1, 2042 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Letter of credit issued under credit facility | $ 0 | |
Funds available under revolving credit facility | $ 4,500,000,000 | |
Interest rate under multi currency facility | LIBOR, NIBOR or EURIBOR plus 1.125% | |
Capitalization ratio, Maximum | 60.00% | |
Capitalization ratio, Actual | 17.80% | |
Outstanding letters of credit under various bilateral committed letter of credit facilities | $ 1,227,000,000 | |
Fair value of Unsecured Senior Notes | 2,725,000,000 | $ 2,551,000,000 |
Carrying value of Unsecured Senior Notes | $ 3,216,000,000 | 3,909,000,000 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Effect on balance sheet due to adoption of new accounting standard | (21,000,000) | |
Commercial Paper Program [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.125% | |
Variable rate basis | LIBOR, NIBOR or EURIBOR plus | |
Five-year Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 4,500,000,000 | |
Borrowings under commercial paper | $ 0 | |
Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, Period | 5 years | |
Unsecured Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value of Unsecured Senior Notes | $ 2,976,000,000 | $ 2,974,000,000 |
Tax - Additional Information (D
Tax - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||||
Effective tax rate | (9.60%) | 18.80% | 6.50% | 30.40% | |
Increase in valuation allowance | $ 213 | ||||
U.S. federal statutory rate | 35.00% | ||||
Unrecognized tax benefit | $ 66 | $ 66 | |||
Non-current deferred tax assets reclassified to non-current deferred tax liabilities | $ 135 | $ 135 | $ 130 | ||
Accounting Standards Update 2015-17 [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Current deferred tax assets reclassified to non-current deferred tax liabilities | 376 | ||||
Non-current deferred tax assets reclassified to non-current deferred tax liabilities | 358 | ||||
Current deferred tax liabilities reclassified to non-current deferred tax liabilities | $ 291 |
Tax - Difference Between Effect
Tax - Difference Between Effective Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Federal income tax at U.S. federal statutory rate | $ (436) | $ 67 | $ (637) | $ 380 |
Foreign income tax rate differential | 38 | (30) | 14 | (117) |
Nondeductible expenses | 2 | 23 | 17 | |
Foreign dividends, net of foreign tax credits | (28) | (1) | (47) | 14 |
Tax impact of foreign exchange | 9 | (4) | 2 | (22) |
Change in valuation allowance | 238 | 259 | ||
Goodwill impairment | 273 | 273 | ||
Tax rate change on temporary differences | (2) | 1 | (5) | (2) |
Change in tax reserves | 39 | (2) | 19 | 67 |
Other | (13) | 5 | (20) | (7) |
Provision for income taxes | $ 120 | $ 36 | $ (119) | $ 330 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | May 18, 2016$ / sharesshares | Feb. 24, 2016$ / sharesshares | Sep. 30, 2016USD ($)shares | Jun. 30, 2016shares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Earlier authorized shares under stock based compensation | 69,400,000 | ||||||
Remaining shares available for future grants under the Plan | 31,772,300 | 31,772,300 | |||||
Stock-based compensation expense | $ | $ 28 | $ 21 | $ 78 | $ 83 | |||
Income tax benefit recognized | $ | $ 5 | $ 7 | $ 17 | 20 | |||
Restricted Stock Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 44,520 | ||||||
Restricted stock granted fair value | $ / shares | $ 31.45 | ||||||
Period of option vested over grant date | The stock options vest over a three-year period from the grant date while the restricted stock and restricted stock units vest on the third anniversary of the date of grant. | ||||||
Restricted Stock and Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 1,732,095 | ||||||
Restricted stock granted fair value | $ / shares | $ 28.24 | ||||||
Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock appreciation rights, vesting period | 3 years | ||||||
Period of option vested over grant date | The SARs are cash-settled awards and vest over a three-year period from the grant date. | ||||||
Stock Options and Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fungible shares issuance ratio | 1 | ||||||
Other Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fungible shares issuance ratio | 3 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option granted | 3,672,411 | ||||||
Stock option granted fair value | $ / shares | $ 6.44 | ||||||
Stock Options [Member] | Restricted Stock Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option granted, exercise price | $ / shares | $ 28.24 | ||||||
Performance-base restricted stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance share awards, performance period | 3 years | ||||||
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option granted | 4,618,400 | ||||||
Stock option granted fair value | $ / shares | $ 6.44 | ||||||
Stock option granted, exercise price | $ / shares | $ 28.24 | ||||||
Performance-base restricted stock [Member] | Minimum [Member] | Senior Management Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 0 | ||||||
Performance-base restricted stock [Member] | Maximum [Member] | Senior Management Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted | 341,780 | ||||||
Voluntary Early Retirement Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | $ 5 | $ 18 |
Derivative Financial Instrume50
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Minimum derivative financial instrument's term (months) | 2 months | ||
Maximum derivative financial instrument's term (months) | 24 months | ||
Derivative Assets | $ 51 | $ 51 | $ 26 |
Derivative Liabilities | 43 | 43 | $ 286 |
Fair value of the Company's foreign currency forward contracts | 8 | 8 | |
Loss recognized on discontinuation of cash flow hedges | 2 | 19 | |
Pre-tax losses recorded in accumulated other comprehensive income (loss) | 17 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 51 | 51 | |
Derivative Liabilities | $ 43 | $ 43 |
Derivative Financial Instrume51
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) - Forward Contracts [Member] € in Millions, £ in Millions, SGD in Millions, RUB in Millions, NOK in Millions, DKK in Millions, CAD in Millions, $ in Millions | Sep. 30, 2016USD ($) | Sep. 30, 2016DKK | Sep. 30, 2016EUR (€) | Sep. 30, 2016GBP (£) | Sep. 30, 2016NOK | Sep. 30, 2016SGD | Sep. 30, 2016RUB | Sep. 30, 2016CAD | Dec. 31, 2015USD ($) | Dec. 31, 2015DKK | Dec. 31, 2015EUR (€) | Dec. 31, 2015GBP (£) | Dec. 31, 2015NOK | Dec. 31, 2015SGD | Dec. 31, 2015RUB | Dec. 31, 2015CAD |
Derivative [Line Items] | ||||||||||||||||
Foreign currency, Cash flow hedging | $ 155 | DKK 37 | € 186 | £ 1 | NOK 6,433 | SGD 8 | $ 321 | DKK 57 | € 78 | £ 4 | NOK 9,655 | SGD 14 | CAD 2 | |||
Foreign currency, Non-designated hedging | $ 536 | DKK 108 | € 273 | £ 15 | NOK 1,311 | SGD 1 | RUB 1,956 | CAD 11 | $ 515 | DKK 153 | € 371 | £ 11 | NOK 2,265 | SGD 5 | RUB 2,164 | CAD 7 |
Derivative Financial Instrume52
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 51 | $ 26 |
Derivative Liabilities | 43 | 286 |
Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 28 | 5 |
Derivative Liabilities | 27 | 237 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 23 | 21 |
Derivative Liabilities | 16 | 49 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 28 | 5 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 27 | 212 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 23 | 21 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 16 | 49 |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 25 |
Derivative Financial Instrume53
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Loss) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 3 | $ 1 |
Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | (84) | |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 96 | (196) |
Foreign Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (148) | (196) |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (16) | (26) |
Foreign Exchange Contracts [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 96 | (196) |
Foreign Exchange Contracts [Member] | Other Income (Expense), Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3 | 1 |
Foreign Exchange Contracts [Member] | Other Income (Expense), Net [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | (84) | |
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) | (151) | (207) |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (19) | (27) |
Foreign Exchange Contracts [Member] | Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 3 | $ 11 |
Derivative Financial Instrume54
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Accumulated other comprehensive income (loss), reclassified | $ (36) | $ (51) | $ (120) | $ (158) | |
Amount of gain (loss) recognized in income on derivative (ineffective portion) | (19) | (27) | |||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 3 | $ 1 | |||
Scenario, Forecast [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Accumulated other comprehensive income (loss), reclassified | $ 20 |
Net Income Attributable to Comp
Net Income Attributable to Company Per Share - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income (loss) attributable to Company | $ (1,362) | $ 155 | $ (1,698) | $ 754 |
Denominator: | ||||
Basic-weighted average common shares outstanding | 376 | 380 | 375 | 392 |
Dilutive effect of employee stock options and other unvested stock awards | 1 | 1 | ||
Diluted outstanding shares | 376 | 381 | 375 | 393 |
Basic | $ (3.62) | $ 0.41 | $ (4.53) | $ 1.92 |
Diluted | (3.62) | 0.41 | (4.53) | 1.92 |
Cash dividends per share | $ 0.05 | $ 0.46 | $ 0.56 | $ 1.38 |
Net Income Attributable to Co56
Net Income Attributable to Company Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options outstanding | 14 | 15 | 14 | 14 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Aug. 18, 2016 | |
Dividends [Abstract] | |||||
Dividends payable, amount per share | $ 0.05 | ||||
Cash dividends paid | $ 19 | $ 174 | $ 211 | $ 537 |
Goodwill Impairment - Additiona
Goodwill Impairment - Additional Information (Detail) $ in Millions | Jul. 01, 2016Reporting_Unit | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Indefinite-lived Intangible Assets [Line Items] | ||||
Number of reporting units has impairment loss | Reporting_Unit | 2 | |||
Impairment of goodwill | $ 972 | |||
Total assets | $ 22,194 | 22,194 | $ 25,970 | |
Goodwill | 6,015 | 6,015 | 6,980 | |
Rig Offshore [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of goodwill | 972 | |||
Rig Systems [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of goodwill | 972 | |||
Total assets | 3,700 | 3,700 | ||
Goodwill | $ 261 | $ 261 | $ 1,232 |
Goodwill Impairment - Goodwill
Goodwill Impairment - Goodwill Identified by Segment (Detail) - USD ($) $ in Millions | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill [Line Items] | |
Gross value before accumulated impairment | $ 8,465 |
Accumulated impairment | (1,485) |
Goodwill, Beginning Balance | 6,980 |
Goodwill acquired and adjusted during period | (6) |
Impairment | (972) |
Currency translation adjustments and other | 13 |
Goodwill, Ending Balance | 6,015 |
Rig Systems [Member] | |
Goodwill [Line Items] | |
Gross value before accumulated impairment | 1,232 |
Goodwill, Beginning Balance | 1,232 |
Goodwill acquired and adjusted during period | 1 |
Impairment | (972) |
Goodwill, Ending Balance | 261 |
Rig Aftermarket [Member] | |
Goodwill [Line Items] | |
Gross value before accumulated impairment | 877 |
Goodwill, Beginning Balance | 877 |
Goodwill, Ending Balance | 877 |
Wellbore Technologies [Member] | |
Goodwill [Line Items] | |
Gross value before accumulated impairment | 4,359 |
Accumulated impairment | (1,485) |
Goodwill, Beginning Balance | 2,874 |
Goodwill acquired and adjusted during period | (7) |
Currency translation adjustments and other | 4 |
Goodwill, Ending Balance | 2,871 |
Completion & Production Solutions [Member] | |
Goodwill [Line Items] | |
Gross value before accumulated impairment | 1,997 |
Goodwill, Beginning Balance | 1,997 |
Currency translation adjustments and other | 9 |
Goodwill, Ending Balance | $ 2,006 |