Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 383,366,548 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,293 | $ 1,437 |
Receivables, net | 2,005 | 2,015 |
Inventories, net | 3,177 | 3,003 |
Contract assets | 483 | 495 |
Prepaid and other current assets | 263 | 267 |
Total current assets | 7,221 | 7,217 |
Property, plant and equipment, net | 2,813 | 3,002 |
Deferred income taxes | 13 | 13 |
Goodwill | 6,339 | 6,227 |
Intangibles, net | 3,072 | 3,301 |
Investment in unconsolidated affiliates | 304 | 309 |
Other assets | 131 | 137 |
Total assets | 19,893 | 20,206 |
Current liabilities: | ||
Accounts payable | 675 | 510 |
Accrued liabilities | 1,023 | 1,238 |
Contract liabilities | 570 | 519 |
Current portion of long-term debt and short-term borrowings | 8 | 6 |
Accrued income taxes | 81 | |
Total current liabilities | 2,276 | 2,354 |
Long-term debt | 2,706 | 2,706 |
Deferred income taxes | 672 | 677 |
Other liabilities | 263 | 309 |
Total liabilities | 5,917 | 6,046 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 383,345,734 and 380,104,970 shares issued and outstanding at September 30, 2018 and December 31, 2017 | 4 | 4 |
Additional paid-in capital | 8,361 | 8,234 |
Accumulated other comprehensive loss | (1,328) | (1,110) |
Retained earnings | 6,869 | 6,966 |
Total Company stockholders' equity | 13,906 | 14,094 |
Noncontrolling interests | 70 | 66 |
Total stockholders’ equity | 13,976 | 14,160 |
Total liabilities and stockholders’ equity | $ 19,893 | $ 20,206 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 383,345,734 | 380,104,970 |
Common stock, shares outstanding | 383,345,734 | 380,104,970 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,154 | $ 1,835 | $ 6,055 | $ 5,335 |
Cost of revenue | 1,761 | 1,550 | 5,020 | 4,610 |
Gross profit | 393 | 285 | 1,035 | 725 |
Selling, general and administrative | 320 | 292 | 911 | 891 |
Operating profit (loss) | 73 | (7) | 124 | (166) |
Interest and financial costs | (24) | (26) | (71) | (77) |
Interest income | 6 | 11 | 18 | 19 |
Equity loss in unconsolidated affiliates | (2) | (2) | (1) | (4) |
Other income (expense), net | (20) | (16) | (70) | (36) |
Income (loss) before income taxes | 33 | (40) | 0 | (264) |
Provision (benefit) for income taxes | 29 | (13) | 37 | (43) |
Net income (loss) | 4 | (27) | (37) | (221) |
Net income (loss) attributable to noncontrolling interests | 3 | (1) | 6 | 2 |
Net income (loss) attributable to Company | $ 1 | $ (26) | $ (43) | $ (223) |
Net income (loss) attributable to Company per share: | ||||
Basic | $ 0 | $ (0.07) | $ (0.11) | $ (0.59) |
Diluted | 0 | (0.07) | (0.11) | (0.59) |
Cash dividends per share | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Weighted average shares outstanding: | ||||
Basic | 379 | 377 | 378 | 377 |
Diluted | 383 | 377 | 378 | 377 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 4 | $ (27) | $ (37) | $ (221) |
Currency translation adjustments | (32) | 124 | (219) | 290 |
Changes in derivative financial instruments, net of tax | 2 | 25 | 1 | 53 |
Comprehensive income (loss) | (26) | 122 | (255) | 122 |
Comprehensive income (loss) attributable to noncontrolling interest | 3 | (1) | 6 | 2 |
Comprehensive income (loss) attributable to Company | $ (29) | $ 123 | $ (261) | $ 120 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (37) | $ (221) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 519 | 523 |
Deferred income taxes | 15 | 16 |
Equity loss in unconsolidated affiliates | 1 | 4 |
Other, net | 129 | 141 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables | 37 | 13 |
Inventories | (193) | 103 |
Contract assets | 12 | 147 |
Prepaid and other current assets | 3 | 95 |
Accounts payable | 152 | 36 |
Accrued liabilities | (239) | (50) |
Contract liabilities | 50 | (152) |
Income taxes payable | (81) | (72) |
Other assets/liabilities, net | (68) | (72) |
Net cash provided by operating activities | 300 | 511 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (173) | (127) |
Business acquisitions, net of cash acquired | (280) | (85) |
Other | 61 | 28 |
Net cash used in investing activities | (392) | (184) |
Cash flows from financing activities: | ||
Payments against lines of credit and other debt | (6) | (4) |
Cash dividends paid | (57) | (57) |
Activity under stock incentive plans | 51 | 11 |
Other | (2) | |
Net cash used in financing activities | (12) | (52) |
Effect of exchange rates on cash | (40) | 39 |
Increase (decrease) in cash and cash equivalents | (144) | 314 |
Cash and cash equivalents, beginning of period | 1,437 | 1,408 |
Cash and cash equivalents, end of period | 1,293 | 1,722 |
Cash payments during the period for: | ||
Interest | 48 | 51 |
Income taxes | $ 61 | $ 130 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. 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 the Company’s 2017 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 current presentation. The results of operations for the three and nine months ended September 30, 2018 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, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories consist of (in millions): September 30, December 31, 2018 2017 Raw materials and supplies $ 627 $ 656 Work in process 600 513 Finished goods and purchased products 1,950 1,834 Total $ 3,177 $ 3,003 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 3. Accrued liabilities consist of (in millions): September 30, December 31, 2018 2017 Compensation $ 281 $ 345 Vendor costs 128 150 Warranty 114 135 Taxes (non-income) 103 152 Insurance 61 74 Commissions 38 58 Interest 27 7 Fair value of derivatives 13 8 Other 258 309 Total $ 1,023 $ 1,238 Warranties The Company provides warranties on certain of its products and services. The Company accrues warranty liability based upon specific claims and a review of historical 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 warranty provision are as follows (in millions): Balance at December 31, 2017 $ 135 Net provisions for warranties issued during the year 27 Amounts incurred (48 ) Balance at September 30, 2018 $ 114 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. The components of accumulated other comprehensive income (loss) are as follows (in millions): Derivative Defined Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2017 $ (1,104 ) $ 7 $ (13 ) $ (1,110 ) Accumulated other comprehensive income (loss) before reclassifications (225 ) 3 — (222 ) Amounts reclassified from accumulated other comprehensive income (loss) 6 (2 ) — 4 Balance at September 30, 2018 $ (1,323 ) $ 8 $ (13 ) $ (1,328 ) The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended September 30, 2018 2017 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ 1 $ — $ 1 $ — $ (2 ) $ — $ (2 ) Cost of revenue — 2 — 2 — 4 — 4 Other income (expense), net 6 — — 6 — — — — Tax effect — (1 ) — (1 ) — (1 ) — (1 ) $ 6 $ 2 $ — $ 8 $ — $ 1 $ — $ 1 Nine Months Ended September 30, 2018 2017 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ — $ — $ — $ — $ (6 ) $ — $ (6 ) Cost of revenue — (3 ) — (3 ) — 8 — 8 Other income (expense), net 6 — — 6 — — — — Tax effect — 1 — 1 — 1 — 1 $ 6 $ (2 ) $ — $ 4 $ — $ 3 $ — $ 3 The Company’s reporting currency is the U.S. dollar. For a majority of the Company’s international entities in which there is a substantial investment, the local currency is 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 and nine months ended September 30, 2018, a majority of these local currencies weakened against the U.S. dollar resulting in net other comprehensive losses of $32 million and $219 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 they 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 of 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 period. The accumulated effect was other comprehensive income of $2 million (net of tax of $0) and $1 million (net of tax of $0) for the three and nine months ended September 30, 2018, respectively. The accumulated effect was other comprehensive income of $25 million (net of tax of $8 million) and $53 million (net of tax of $15 million) for the three and nine months ended September 30, 2017, respectively. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | 5. Business Segments Operating results by segment are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenue: Wellbore Technologies $ 847 $ 693 $ 2,351 $ 1,862 Completion & Production Solutions 735 682 2,143 1,982 Rig Technologies 637 510 1,771 1,638 Eliminations (65 ) (50 ) (210 ) (147 ) Total revenue $ 2,154 $ 1,835 $ 6,055 $ 5,335 Operating profit (loss): Wellbore Technologies $ 40 — $ 90 $ (81 ) Completion & Production Solutions 46 44 102 79 Rig Technologies 58 18 138 37 Eliminations and corporate costs (71 ) (69 ) (206 ) (201 ) Total operating profit (loss) $ 73 $ (7 ) $ 124 $ (166 ) Operating profit (loss)%: Wellbore Technologies 4.7 % 0.0 % 3.8 % (4.4 %) Completion & Production Solutions 6.3 % 6.5 % 4.8 % 4.0 % Rig Technologies 9.1 % 3.5 % 7.8 % 2.3 % Total operating profit (loss)% 3.4 % (0.4 %) 2.0 % (3.1 %) Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations include intercompany transactions conducted between the three reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment. Included in operating profit (loss) are other items primarily related to costs associated with severance, facility closures, and credits for the reversals of certain accruals. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 6. Revenue Recognition The Company’s products and services are sold based upon purchase orders or other contracts with customers that include fixed or determinable prices and do not generally include right of return or other significant post-delivery obligations. The majority of our revenue streams record revenue at a point in time when a performance obligation has been satisfied by transferring control of promised goods or services to the customer. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Payment terms and conditions vary by contract type. The Company’s contracts are structured to align milestone billings with progress and revenue recognition, so generally do not include a financing component. The Company elects to treat shipping and handling costs as costs to fulfill a performance obligation instead of as a separate performance obligation. We recognize the cost for shipping and handling when incurred, generally when control over the products has transferred to the customer, as an expense in cost of sales. Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately, versus together, may require significant judgment. We consider the degree of customization, integration and interdependency of the related products and services when assessing distinctness. Judgment is also required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. To determine the SSP, the Company uses the price at which the products and services would be sold separately to the customer. We also review past sales transactions to confirm that invoice prices for each distinct performance obligation reasonably approximate SSP and that there are no significant deviations. A discount, when provided, is also allocated based on the relative SSP of the various products and services. We may provide other credits or incentives, which are accounted for as variable consideration when determining the transaction price. These credits or incentives are estimated at contract inception and recognized only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. The estimates are updated each reporting period as additional information becomes available. For revenue that is not recognized at a point in time, the Company follows accounting guidance for revenue recognized over time, as follows: Revenue Recognition under Long-term Construction Contracts The Company uses the over-time method to account for certain long-term construction contracts in the Completion & Production Solutions and Rig Technologies segments. These long-term construction contracts include the following characteristics: • the contracts include custom designs for customer-specific applications; • the structural design is unique and requires significant engineering efforts; and • the Company has an enforceable right to payment for performance completed to date, including a reasonable profit. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost (input) measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. These costs include labor, materials, subcontractors’ costs, and other direct costs. If estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. Our long-term construction contracts generally include a significant service of integrating a complex set of tasks and components into a single project or capability, so are accounted for as one performance obligation. Estimating total revenue and cost at completion of long-term construction contracts is complex, subject to many variables and requires significant judgment. It is common for our long-term contracts to contain late delivery fees, work performance guarantees, and other provisions that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount we expect to receive. We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur, or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of our anticipated performance and historical, current and forecasted information that is reasonably available to us. Net revenue recognized from performance obligations satisfied in previous periods was $56 million for the nine months ended September 30, 2018 primarily due to change orders. Service and Repair Work For service contracts, we generally use the output method to measure progress due to the manner in which the customer receives and derives value from the services provided. For repair contracts, we generally use the cost-to-cost measure of progress because it best depicts the transfer of assets to the customer. Remaining Performance Obligations Remaining performance obligations represents the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with an original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,147 million. The Company expects to recognize approximately $408 million in revenue for the remaining performance obligations in 2018 and $1,739 million in 2019 and thereafter. Costs to Obtain and Fulfill a Contract We recognize an asset for the incremental costs of obtaining a contract, such as sales commissions, with a customer when we expect the benefit of those costs to be longer than one year. Costs to fulfill a contract, such as set-up and mobilization costs, are also capitalized when we expect to recover those costs. These contract costs are deferred and amortized over the period of contract performance. Total capitalized costs to obtain and fulfill a contract and the related amortization were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets. We apply the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. Disaggregation of Revenue The following tables disaggregate our revenue by destinations, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In the tables below, North America includes only the U.S. and Canada. (in millions): Three Months Ended September 30, 2018 2017 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total Technologies Solutions Technologies Eliminations Total North America $ 469 $ 343 $ 189 $ — $ 1,001 $ 377 $ 282 $ 139 $ — $ 798 International 362 372 419 — 1,153 305 384 348 — 1,037 Eliminations 16 20 29 (65 ) — 11 16 23 (50 ) — $ 847 $ 735 $ 637 $ (65 ) $ 2,154 $ 693 $ 682 $ 510 $ (50 ) $ 1,835 Land $ 707 $ 521 $ 206 $ — $ 1,434 $ 553 $ 468 $ 174 $ — $ 1,195 Offshore 124 194 402 — 720 129 198 313 — 640 Eliminations 16 20 29 (65 ) — 11 16 23 (50 ) — $ 847 $ 735 $ 637 $ (65 ) $ 2,154 $ 693 $ 682 $ 510 $ (50 ) $ 1,835 Nine Months Ended September 30, 2018 2017 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total Technologies Solutions Technologies Eliminations Total North America $ 1,333 $ 977 $ 467 $ — $ 2,777 $ 1,024 $ 780 $ 399 $ — $ 2,203 International 970 1,104 1,204 — 3,278 802 1,162 1,168 — 3,132 Eliminations 48 62 100 (210 ) — 36 40 71 (147 ) — $ 2,351 $ 2,143 $ 1,771 $ (210 ) $ 6,055 $ 1,862 $ 1,982 $ 1,638 $ (147 ) $ 5,335 Land $ 1,950 $ 1,476 $ 586 $ — $ 4,012 $ 1,479 $ 1,281 $ 508 $ — $ 3,268 Offshore 353 605 1,085 — 2,043 347 661 1,059 — 2,067 Eliminations 48 62 100 (210 ) — 36 40 71 (147 ) — $ 2,351 $ 2,143 $ 1,771 $ (210 ) $ 6,055 $ 1,862 $ 1,982 $ 1,638 $ (147 ) $ 5,335 Contract Assets and Liabilities Contract assets include unbilled amounts resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. There were no impairment losses recorded on contract assets for the periods ending September 30, 2018 or 2017. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue. For the balance at December 31, 2017, we reclassified $240 million of advance payments and deferred revenue from accrued liabilities to contract liabilities to conform with the 2018 presentation. The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Balance at December 31, 2017 $ 495 Additions and Milestone Billings (606 ) Revenue Recognized 637 Currency translation adjustments and other (43 ) Balance at September 30, 2018 $ 483 Contract Liabilities Balance at December 31, 2017 $ 519 Additions 856 Revenue Recognized (676 ) Currency translation adjustments and other (129 ) Balance at September 30, 2018 $ 570 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt consists of (in millions): September 30, December 31, 2018 2017 $1.4 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 $ 1,394 $ 1,392 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,088 1,088 Other 232 232 Total debt 2,714 2,712 Less current portion 8 6 Long-term debt $ 2,706 $ 2,706 The Company has a $3.0 billion, five-year unsecured revolving credit facility, which expires on June 27, 2022. The Company has the right to increase the aggregate commitments under this agreement to an aggregate amount of up to $4.0 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon LIBOR, NIBOR or CDOR 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, 2018, the Company was in compliance with a debt-to-capitalization ratio of 16.3%. The Company has a commercial paper program under which borrowings are classified as long-term since the program is supported by the $3.0 billion, five-year credit facility. At September 30, 2018, there were no commercial paper borrowings, and there were no outstanding letters of credit issued under the credit facility, resulting in $3.0 billion of funds available under this credit facility. The Company had $471 million of outstanding letters of credit at September 30, 2018, primarily in the U.S. and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. At September 30, 2018 and December 31, 2017, the fair value of the Company’s unsecured Senior Notes approximated $2,287 million and $2,346 million, respectively. The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At September 30, 2018 and December 31, 2017, the carrying value of the Company’s unsecured Senior Notes approximated $2,482 million and $2,480 million, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018. At September 30, 2018 and December 31, 2017, we had not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we made reasonable estimates of the effects and recorded provisional amounts. We will continue to make and refine our calculations as additional analysis is completed. We have not recorded any significant changes in 2018. We recognized an income tax benefit of $242 million in the year ended December 31, 2017 associated with the revaluation of our net deferred tax liability. Our provisional estimate of the one-time transition tax resulted in no additional tax expense. Our provisional estimate on Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and IRC Section 163(j) interest limitation do not impact our effective tax rate for the three and nine months ended September 30, 2018. The accounting for the tax effects of the Act will be finalized in the fourth quarter of 2018 as permitted by the U.S. Securities and Exchange Commission’s SAB No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. The provision (benefit) for income taxes for the three and nine months ended September 30, 2018 were $29 million and $37 million, respectively, compared to ($13 million) and ($43 million) for the same periods in 2017. The Company established valuation allowances on deferred tax assets for losses and tax credits generated in each period which resulted in a corresponding tax charge. The change in tax provision (benefit) from 2017 to 2018 was also impacted by the decrease in the U.S. federal corporate tax rate from 35% in 2017 to 21% in 2018. The balance of unrecognized tax benefits at September 30, 2018 was $92 million. The settlement of a foreign jurisdiction audit resulted in a decrease in uncertain tax positions during the year. For the three and nine months ended September 30, 2018, the Company utilized 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. For the three and nine months ended September 30, 2017, the Company estimated and recorded tax based on a full year effective tax rate. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. 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 is 69.4 million. The Plan is 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, 2018, 10,253,618 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 28, 2018, the Company granted 1,610,599 stock options with a fair value of $10.01 per share and an exercise price of $35.09 per share; 2,391,933 shares of restricted stock and restricted stock units with a fair value of $35.09 per share; performance share awards to senior management employees with potential payouts varying from zero to 449,532 shares; and 14,228 SARs. The stock options vest over a three-year period from the grant date. The restricted stock and restricted stock units vest in three equal annual installments commencing on the first anniversary of the grant date. 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 (Oil Service Sector) index for the three-year performance period. The Company’s other stock-based compensation plan, known as the National Oilwell Varco, Inc. 2018 Long-Term Incentive Plan (the “2018 Plan”), was approved by shareholders on May 11, 2018. The 2018 Plan provides for the granting of stock options, restricted stock, restricted stock units, performance awards, phantom shares, stock appreciation rights, stock payments and substitute awards. The number of shares authorized under the 2018 Plan is 17.8 million. The 2018 Plan is also subject to a fungible ratio concept, such that the issuance of stock options and SARs reduces the number of available shares under the 2015 Plan on a 1-for-1 basis, and the issuance of other awards reduces the number of available shares under the 2018 Plan on a 2.5-for-1 basis. At September 30, 2018, 17,709,906 shares remain available for future grants under the 2018 Plan. On May 11, 2018, the Company granted 35,432 restricted stock awards under the 2018 Plan with a fair value of $40.65 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 and the 2018 Plan was $30 million and $88 million for the three and nine months ended September 30, 2018, respectively, and $33 million and $85 million for the three and nine months ended September 30, 2017, respectively. The total income tax benefit recognized in the Consolidated Statements of Income (Loss) for all stock-based compensation arrangements under the Plan and the 2018 Plan was $6 million and $12 million for the three and nine months ended September 30, 2018, respectively, and $9 million and $18 million for the three and nine months ended September 30, 2017, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. The Company uses derivative instruments to manage 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 non-functional-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 exposure to changes in interest rates on anticipated long-term debt issuances. At September 30, 2018, the Company has determined that the fair value of its derivative financial instruments representing assets of $18 million and liabilities of $16 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, 2018, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $2 million. At September 30, 2018, the Company did not have any interest rate contracts 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. The Company does 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 non-functional 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 (Loss) during the current period. For the nine months ended September 30, 2018, the Company recognized a gain of $2 million 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, 2018, there were $10 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 losses or gains due to the de-designation of existing hedge contracts. The Company had the following outstanding foreign currency forward contracts to hedge non-functional currency cash flows from forecasted revenues and expenses (in millions): Currency Denomination September 30, December 31, Foreign Currency 2018 2017 Norwegian Krone NOK 3,875 NOK 4,013 Japanese Yen JPY 326 JPY 982 U.S. Dollar USD 111 USD 163 Euro EUR 82 EUR 120 Danish Krone DKK 19 DKK 30 British Pound Sterling GBP 9 GBP 11 Canadian Dollar CAD 1 CAD — Non-designated Hedging Strategy The Company enters into foreign currency forward contracts to hedge certain non-functional 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 non-functional 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., non-functional currency monetary accounts) is recognized in the Consolidated Statements of Income (Loss). The Company had the following outstanding foreign currency forward contracts that hedge the fair value of non-functional currency monetary accounts (in millions): Currency Denomination September 30, December 31, Foreign Currency 2018 2017 Norwegian Krone NOK 1,708 NOK 1,734 Russian Ruble RUB 1,329 RUB 2,699 U.S. Dollar USD 539 USD 463 Mexican Peso MXN 285 MXN — South African Rand ZAR 176 ZAR 150 Euro EUR 122 EUR 99 Danish Krone DKK 15 DKK 15 British Pound Sterling GBP 8 GBP 3 Canadian Dollar CAD 1 CAD — 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 September 30, December 31, Balance Sheet September 30, December 31, Location 2018 2017 Location 2018 2017 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 8 $ 13 Accrued liabilities $ 5 $ 3 Foreign exchange contracts Other Assets 3 8 Other liabilities 2 2 Total derivatives designated as hedging instruments under ASC Topic 815 $ 11 $ 21 $ 7 $ 5 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 4 $ 10 Accrued liabilities $ 8 $ 5 Foreign exchange contracts Other Assets 3 2 Other Liabilities 1 1 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 7 $ 12 $ 9 $ 6 Total derivatives $ 18 $ 33 $ 16 $ 11 The Effect of Derivative Instruments on the Consolidated Statements of Income ($ in millions) Location of Gain (Loss) Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Recognized in Income on Derivatives in Amount of Gain (Loss) Reclassified from Reclassified from Derivative (Ineffective Derivative (Ineffective ASC Topic 815 Recognized in Accumulated Accumulated OCI Portion and Amount Portion and Amount Cash Flow Hedging OCI on Derivative OCI into Income into Income Excluded from Excluded from Relationships (Effective Portion) (a) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) (b) Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 Revenue — 6 Cost of revenue 1 10 Foreign exchange contracts 4 67 Cost of revenue 2 (18 ) Other income(expense), net (5 ) 4 Total 4 67 2 (12 ) (4 ) 14 Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Hedging Instruments under Recognized in Income Recognized in Income on ASC Topic 815 on Derivative Derivative Nine Months Ended September 30, 2018 2017 Foreign exchange contracts Other income (expense), net (11 ) 65 Total (11 ) 65 (a) The Company expects that $8 million of the accumulated other comprehensive income (loss) will be reclassified into earnings within the next twelve months with an offset by losses from the underlying transactions resulting in no impact to earnings or cash flow. (b) The amount of gain (loss) recognized in income includes $1 million and $10 million related to the ineffective portion of the hedging relationships for the nine months ended September 30, 2018 and 2017, respectively, and $(5) million and $4 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2018 and 2017, respectively. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Company Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Company Per Share | 11. 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, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Company $ 1 $ (26 ) $ (43 ) $ (223 ) Denominator: Basic—weighted average common shares outstanding 379 377 378 377 Dilutive effect of employee stock options and other unvested stock awards 4 — — — Diluted outstanding shares 383 377 378 377 Net income (loss) attributable to Company per share: Basic $ 0.00 $ (0.07 ) $ (0.11 ) $ (0.59 ) Diluted $ 0.00 $ (0.07 ) $ (0.11 ) $ (0.59 ) Cash dividends per share $ 0.05 $ 0.05 $ 0.15 $ 0.15 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 (loss) attributable to Company allocated to these participating securities was immaterial for the three and nine months ended September 30, 2018 and 2017 and therefore not excluded from net income attributable to Company per share calculation. The Company had stock options outstanding that were anti-dilutive totaling 11 million shares and 17 million shares for each of the three and nine months ended September 30, 2018, and 17 million shares and 13 million shares for each of the three and nine months ended September 30, 2017, respectively. |
Cash Dividends
Cash Dividends | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Cash Dividends | 12. On August 16, 2018, the Company’s Board of Directors approved a cash dividend of $0.05 per share. The cash dividend was paid on September 28, 2018, to each stockholder of record on September 14, 2018. Cash dividends were $19 million and $57 million for the three and nine months ended September 30, 2018, respectively, and $19 million and $57 million for the three and nine months ended September 30, 2017. The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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. Our business is also subject to trade regulations that may restrict or prohibit trade with certain countries, companies and/or individuals, for example, trade sanctions applicable, to Russia, Syria and Iran. 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 may not result in additional, presently unquantifiable, costs or liabilities to us. We are also subject to increasing local content and localization requirements in various jurisdictions, as well as increasing trade tariffs, retaliatory tariffs and other trade controversies, all of which could result in material negative impacts to our business. The Company is involved, from time to time, in internal and regulatory investigations, regulatory agency audits and pending or threatened legal actions, arbitration and litigation involving a variety of matters. In many instances, the Company maintains insurance that covers claims arising from risks associated with the business activities of the Company, including claims for injuries to third parties and third parties’ property, e.g., premises liability, product liability and other such claims. The Company carries substantial insurance to cover such risks above a self-insured retention. The Company believes, and the Company’s experience has been that such insurance has been sufficient to cover such risks. See Item 1A. Risk Factors. If, however, such insurance was inapplicable or insufficient to cover such losses, there could be material negative impacts to our business. The Company is also a party to claims, threatened and actual litigation, governmental regulatory proceedings and private arbitration arising from ordinary day to day business activities, in which parties assert claims against the Company for a broad spectrum of potential liabilities, including: individual employment law claims, collective actions under federal employment laws, intellectual property claims, e.g., alleged patent infringement, and/or misappropriation of trade secrets, premises liability claims, personal injuries arising from allegedly defective products, alleged breach of warranty, improper payments under anti-corruption and anti-bribery laws and other commercial claims seeking recovery for alleged actual or exemplary damages. In currently pending litigation and arbitrations, adverse parties have asserted damages in material amounts for which they seek recovery from the Company. Due to the inherent risks and uncertainty of litigation, an unexpected adverse result may occur from time to time. For many such contingent claims, the Company’s insurance coverage is inapplicable or an exclusion to coverage may apply. In such instances, settlement or other resolution of such contingent claims could have a material financial or reputational impact on the Company. As of September 30, 2018, the Company recorded reserves in an amount believed to be sufficient for contingent liabilities representing all contingencies believed to be probable to cover such liabilities. The Company has also assessed the potential for additional losses above the amounts accrued as well as potential losses for matters that are not probable but are reasonably possible. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for and except for the specific cases referred to above, will not materially affect our financial position, cash flow or results of operations. 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. 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 have become involved in governmental investigations, internal investigations, political or other enforcement matters. In such circumstances, such investigations may adversely impact the ability of consumers of our products, entities providing financial support to such consumers or entities in the supply chain to timely perform their business plans or to timely perform under agreements with us. We may also become involved in these investigations, at substantial cost to the Company. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 14. Recently Adopted Accounting Standards In March 2017, the FASB issued Accounting Standard Update No. 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (ASU 2017-07). This update requires that an employer report the service cost component in the same line item as other compensation costs and separately from other components of net benefit cost. ASU 2017-07 is effective for fiscal periods beginning after December 15, 2017, and for interim periods within those fiscal years. The Company adopted this update on January 1, 2018 with no material impact. 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 adopted this update on January 1, 2018 with no material impact. In May 2014, the FASB issued Accounting Standard Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU proscribes a five-step model for determining when and how revenue is recognized. Under the model, an entity will recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for fiscal periods beginning after December 15, 2017. The Company adopted this update on January 1, 2018, using the modified retrospective approach, in which an immaterial cumulative effect adjustment was made to retained earnings. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the nine months ended September 30, 2018. See Note 6 for additional details of the Company’s revenue recognition policies. Recently Issued Accounting Standards In August 2017, the FASB issued Accounting Standard Update No. 2017-12 “Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities” (ASU 2017-12). This update improves the financial reporting of hedging relationships and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for fiscal periods beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of ASU 2017-12. The Company is currently assessing the impact of the adoption of ASU No. 2017-12 on its consolidated financial position and results of operations. In March 2016, the FASB issued ASC Topic 842, “Leases” (ASC Topic 842), which supersedes the lease requirements in ASC 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. ASC Topic 842 is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The Company’s internal team, assisted by a top-tier accounting and consulting firm, has implemented and is testing new software, processes, procedures and controls to correctly account for leases under the new requirements. We currently estimate implementing ASC Topic 842 in the first quarter of 2019 will gross-up the Company’s balance sheet with additional assets and liabilities in the range of approximately $500 to $750 million. Implementing the new standard will not affect the Company’s compliance with the debt-to-capitalization covenant of our $3 billion revolving credit facility (see Note 7) because that agreement grandfathers the prior treatment of operating leases for purposes of the calculation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [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. |
Warranties | Warranties The Company provides warranties on certain of its products and services. The Company accrues warranty liability based upon specific claims and a review of historical 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. |
Net Income (Loss) 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 (loss) attributable to Company allocated to these participating securities was immaterial for the three and nine months ended September 30, 2018 and 2017 and therefore not excluded from net income attributable to Company per share calculation. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In March 2017, the FASB issued Accounting Standard Update No. 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (ASU 2017-07). This update requires that an employer report the service cost component in the same line item as other compensation costs and separately from other components of net benefit cost. ASU 2017-07 is effective for fiscal periods beginning after December 15, 2017, and for interim periods within those fiscal years. The Company adopted this update on January 1, 2018 with no material impact. 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 adopted this update on January 1, 2018 with no material impact. In May 2014, the FASB issued Accounting Standard Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU proscribes a five-step model for determining when and how revenue is recognized. Under the model, an entity will recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for fiscal periods beginning after December 15, 2017. The Company adopted this update on January 1, 2018, using the modified retrospective approach, in which an immaterial cumulative effect adjustment was made to retained earnings. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the nine months ended September 30, 2018. See Note 6 for additional details of the Company’s revenue recognition policies. Recently Issued Accounting Standards In August 2017, the FASB issued Accounting Standard Update No. 2017-12 “Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities” (ASU 2017-12). This update improves the financial reporting of hedging relationships and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for fiscal periods beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of ASU 2017-12. The Company is currently assessing the impact of the adoption of ASU No. 2017-12 on its consolidated financial position and results of operations. In March 2016, the FASB issued ASC Topic 842, “Leases” (ASC Topic 842), which supersedes the lease requirements in ASC 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. ASC Topic 842 is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The Company’s internal team, assisted by a top-tier accounting and consulting firm, has implemented and is testing new software, processes, procedures and controls to correctly account for leases under the new requirements. We currently estimate implementing ASC Topic 842 in the first quarter of 2019 will gross-up the Company’s balance sheet with additional assets and liabilities in the range of approximately $500 to $750 million. Implementing the new standard will not affect the Company’s compliance with the debt-to-capitalization covenant of our $3 billion revolving credit facility (see Note 7) because that agreement grandfathers the prior treatment of operating leases for purposes of the calculation. |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): September 30, December 31, 2018 2017 Raw materials and supplies $ 627 $ 656 Work in process 600 513 Finished goods and purchased products 1,950 1,834 Total $ 3,177 $ 3,003 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): September 30, December 31, 2018 2017 Compensation $ 281 $ 345 Vendor costs 128 150 Warranty 114 135 Taxes (non-income) 103 152 Insurance 61 74 Commissions 38 58 Interest 27 7 Fair value of derivatives 13 8 Other 258 309 Total $ 1,023 $ 1,238 |
Changes in Warranty Provision | The changes in the warranty provision are as follows (in millions): Balance at December 31, 2017 $ 135 Net provisions for warranties issued during the year 27 Amounts incurred (48 ) Balance at September 30, 2018 $ 114 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in millions): Derivative Defined Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2017 $ (1,104 ) $ 7 $ (13 ) $ (1,110 ) Accumulated other comprehensive income (loss) before reclassifications (225 ) 3 — (222 ) Amounts reclassified from accumulated other comprehensive income (loss) 6 (2 ) — 4 Balance at September 30, 2018 $ (1,323 ) $ 8 $ (13 ) $ (1,328 ) |
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, 2018 2017 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ 1 $ — $ 1 $ — $ (2 ) $ — $ (2 ) Cost of revenue — 2 — 2 — 4 — 4 Other income (expense), net 6 — — 6 — — — — Tax effect — (1 ) — (1 ) — (1 ) — (1 ) $ 6 $ 2 $ — $ 8 $ — $ 1 $ — $ 1 Nine Months Ended September 30, 2018 2017 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ — $ — $ — $ — $ (6 ) $ — $ (6 ) Cost of revenue — (3 ) — (3 ) — 8 — 8 Other income (expense), net 6 — — 6 — — — — Tax effect — 1 — 1 — 1 — 1 $ 6 $ (2 ) $ — $ 4 $ — $ 3 $ — $ 3 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Operating results by segment are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenue: Wellbore Technologies $ 847 $ 693 $ 2,351 $ 1,862 Completion & Production Solutions 735 682 2,143 1,982 Rig Technologies 637 510 1,771 1,638 Eliminations (65 ) (50 ) (210 ) (147 ) Total revenue $ 2,154 $ 1,835 $ 6,055 $ 5,335 Operating profit (loss): Wellbore Technologies $ 40 — $ 90 $ (81 ) Completion & Production Solutions 46 44 102 79 Rig Technologies 58 18 138 37 Eliminations and corporate costs (71 ) (69 ) (206 ) (201 ) Total operating profit (loss) $ 73 $ (7 ) $ 124 $ (166 ) Operating profit (loss)%: Wellbore Technologies 4.7 % 0.0 % 3.8 % (4.4 %) Completion & Production Solutions 6.3 % 6.5 % 4.8 % 4.0 % Rig Technologies 9.1 % 3.5 % 7.8 % 2.3 % Total operating profit (loss)% 3.4 % (0.4 %) 2.0 % (3.1 %) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregate Revenue by Destinations | The following tables disaggregate our revenue by destinations, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In the tables below, North America includes only the U.S. and Canada. (in millions): Three Months Ended September 30, 2018 2017 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total Technologies Solutions Technologies Eliminations Total North America $ 469 $ 343 $ 189 $ — $ 1,001 $ 377 $ 282 $ 139 $ — $ 798 International 362 372 419 — 1,153 305 384 348 — 1,037 Eliminations 16 20 29 (65 ) — 11 16 23 (50 ) — $ 847 $ 735 $ 637 $ (65 ) $ 2,154 $ 693 $ 682 $ 510 $ (50 ) $ 1,835 Land $ 707 $ 521 $ 206 $ — $ 1,434 $ 553 $ 468 $ 174 $ — $ 1,195 Offshore 124 194 402 — 720 129 198 313 — 640 Eliminations 16 20 29 (65 ) — 11 16 23 (50 ) — $ 847 $ 735 $ 637 $ (65 ) $ 2,154 $ 693 $ 682 $ 510 $ (50 ) $ 1,835 Nine Months Ended September 30, 2018 2017 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total Technologies Solutions Technologies Eliminations Total North America $ 1,333 $ 977 $ 467 $ — $ 2,777 $ 1,024 $ 780 $ 399 $ — $ 2,203 International 970 1,104 1,204 — 3,278 802 1,162 1,168 — 3,132 Eliminations 48 62 100 (210 ) — 36 40 71 (147 ) — $ 2,351 $ 2,143 $ 1,771 $ (210 ) $ 6,055 $ 1,862 $ 1,982 $ 1,638 $ (147 ) $ 5,335 Land $ 1,950 $ 1,476 $ 586 $ — $ 4,012 $ 1,479 $ 1,281 $ 508 $ — $ 3,268 Offshore 353 605 1,085 — 2,043 347 661 1,059 — 2,067 Eliminations 48 62 100 (210 ) — 36 40 71 (147 ) — $ 2,351 $ 2,143 $ 1,771 $ (210 ) $ 6,055 $ 1,862 $ 1,982 $ 1,638 $ (147 ) $ 5,335 |
Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities | The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Balance at December 31, 2017 $ 495 Additions and Milestone Billings (606 ) Revenue Recognized 637 Currency translation adjustments and other (43 ) Balance at September 30, 2018 $ 483 Contract Liabilities Balance at December 31, 2017 $ 519 Additions 856 Revenue Recognized (676 ) Currency translation adjustments and other (129 ) Balance at September 30, 2018 $ 570 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): September 30, December 31, 2018 2017 $1.4 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 $ 1,394 $ 1,392 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,088 1,088 Other 232 232 Total debt 2,714 2,712 Less current portion 8 6 Long-term debt $ 2,706 $ 2,706 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | The Company had the following outstanding foreign currency forward contracts to hedge non-functional currency cash flows from forecasted revenues and expenses (in millions): Currency Denomination September 30, December 31, Foreign Currency 2018 2017 Norwegian Krone NOK 3,875 NOK 4,013 Japanese Yen JPY 326 JPY 982 U.S. Dollar USD 111 USD 163 Euro EUR 82 EUR 120 Danish Krone DKK 19 DKK 30 British Pound Sterling GBP 9 GBP 11 Canadian Dollar CAD 1 CAD — The Company had the following outstanding foreign currency forward contracts that hedge the fair value of non-functional currency monetary accounts (in millions): Currency Denomination September 30, December 31, Foreign Currency 2018 2017 Norwegian Krone NOK 1,708 NOK 1,734 Russian Ruble RUB 1,329 RUB 2,699 U.S. Dollar USD 539 USD 463 Mexican Peso MXN 285 MXN — South African Rand ZAR 176 ZAR 150 Euro EUR 122 EUR 99 Danish Krone DKK 15 DKK 15 British Pound Sterling GBP 8 GBP 3 Canadian Dollar CAD 1 CAD — |
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 September 30, December 31, Balance Sheet September 30, December 31, Location 2018 2017 Location 2018 2017 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 8 $ 13 Accrued liabilities $ 5 $ 3 Foreign exchange contracts Other Assets 3 8 Other liabilities 2 2 Total derivatives designated as hedging instruments under ASC Topic 815 $ 11 $ 21 $ 7 $ 5 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 4 $ 10 Accrued liabilities $ 8 $ 5 Foreign exchange contracts Other Assets 3 2 Other Liabilities 1 1 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 7 $ 12 $ 9 $ 6 Total derivatives $ 18 $ 33 $ 16 $ 11 |
Effect of Derivative Instruments on Consolidated Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements of Income ($ in millions) Location of Gain (Loss) Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Recognized in Income on Derivatives in Amount of Gain (Loss) Reclassified from Reclassified from Derivative (Ineffective Derivative (Ineffective ASC Topic 815 Recognized in Accumulated Accumulated OCI Portion and Amount Portion and Amount Cash Flow Hedging OCI on Derivative OCI into Income into Income Excluded from Excluded from Relationships (Effective Portion) (a) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) (b) Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 Revenue — 6 Cost of revenue 1 10 Foreign exchange contracts 4 67 Cost of revenue 2 (18 ) Other income(expense), net (5 ) 4 Total 4 67 2 (12 ) (4 ) 14 Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Hedging Instruments under Recognized in Income Recognized in Income on ASC Topic 815 on Derivative Derivative Nine Months Ended September 30, 2018 2017 Foreign exchange contracts Other income (expense), net (11 ) 65 Total (11 ) 65 (a) The Company expects that $8 million of the accumulated other comprehensive income (loss) will be reclassified into earnings within the next twelve months with an offset by losses from the underlying transactions resulting in no impact to earnings or cash flow. (b) The amount of gain (loss) recognized in income includes $1 million and $10 million related to the ineffective portion of the hedging relationships for the nine months ended September 30, 2018 and 2017, respectively, and $(5) million and $4 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2018 and 2017, respectively. |
Net Income (Loss) Attributabl_2
Net Income (Loss) Attributable to Company Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Company $ 1 $ (26 ) $ (43 ) $ (223 ) Denominator: Basic—weighted average common shares outstanding 379 377 378 377 Dilutive effect of employee stock options and other unvested stock awards 4 — — — Diluted outstanding shares 383 377 378 377 Net income (loss) attributable to Company per share: Basic $ 0.00 $ (0.07 ) $ (0.11 ) $ (0.59 ) Diluted $ 0.00 $ (0.07 ) $ (0.11 ) $ (0.59 ) Cash dividends per share $ 0.05 $ 0.05 $ 0.15 $ 0.15 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Maturity period of investments description | Three months or less |
Inventories, net - Inventories
Inventories, net - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 627 | $ 656 |
Work in process | 600 | 513 |
Finished goods and purchased products | 1,950 | 1,834 |
Total | $ 3,177 | $ 3,003 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Compensation | $ 281 | $ 345 |
Vendor costs | 128 | 150 |
Warranty | 114 | 135 |
Taxes (non-income) | 103 | 152 |
Insurance | 61 | 74 |
Commissions | 38 | 58 |
Interest | 27 | 7 |
Fair value of derivatives | 13 | 8 |
Other | 258 | 309 |
Total | $ 1,023 | $ 1,238 |
Accrued Liabilities - Changes i
Accrued Liabilities - Changes in Warranty Provision (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Product Warranties Disclosures [Abstract] | |
Beginning Balance | $ 135 |
Net provisions for warranties issued during the year | 27 |
Amounts incurred | (48) |
Ending Balance | $ 114 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | $ 14,160 |
Accumulated other comprehensive income (loss), Ending balance | 13,976 |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (1,104) |
Accumulated other comprehensive income (loss) before reclassifications | (225) |
Amounts reclassified from accumulated other comprehensive income (loss) | 6 |
Accumulated other comprehensive income (loss), Ending balance | (1,323) |
Derivative Financial Instruments, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | 7 |
Accumulated other comprehensive income (loss) before reclassifications | 3 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) |
Accumulated other comprehensive income (loss), Ending balance | 8 |
Defined Benefit Plans, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (13) |
Accumulated other comprehensive income (loss), Ending balance | (13) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (1,110) |
Accumulated other comprehensive income (loss) before reclassifications | (222) |
Amounts reclassified from accumulated other comprehensive income (loss) | 4 |
Accumulated other comprehensive income (loss), Ending balance | $ (1,328) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 2,154 | $ 1,835 | $ 6,055 | $ 5,335 |
Cost of revenue | (1,761) | (1,550) | (5,020) | (4,610) |
Other income (expense), net | (20) | (16) | (70) | (36) |
Tax effect | (29) | 13 | (37) | 43 |
Net income (loss) | 1 | (26) | (43) | (223) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 1 | (2) | (6) | |
Cost of revenue | 2 | 4 | (3) | 8 |
Other income (expense), net | 6 | 6 | ||
Tax effect | (1) | (1) | 1 | 1 |
Net income (loss) | 8 | 1 | 4 | 3 |
Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other income (expense), net | 6 | 6 | ||
Net income (loss) | 6 | 6 | ||
Derivative Financial Instruments, Net of Tax [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | 1 | (2) | (6) | |
Cost of revenue | 2 | 4 | (3) | 8 |
Tax effect | (1) | (1) | 1 | 1 |
Net income (loss) | $ 2 | $ 1 | $ (2) | $ 3 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net increase to other comprehensive income or loss upon the translation | $ (32) | $ 124 | $ (219) | $ 290 |
Other income (expense), net | (20) | (16) | (70) | (36) |
Changes in derivative financial instruments, net of tax | 2 | 25 | 1 | 53 |
Changes in derivative financial instruments, tax | 0 | $ 8 | 0 | $ 15 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense), net | 6 | 6 | ||
Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense), net | $ 6 | $ 6 |
Business Segments - Business Se
Business Segments - Business Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,154 | $ 1,835 | $ 6,055 | $ 5,335 |
Total operating profit (loss) | $ 73 | $ (7) | $ 124 | $ (166) |
Percentage as of operating profit (loss) to revenue | 3.40% | (0.40%) | 2.00% | (3.10%) |
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 847 | $ 693 | $ 2,351 | $ 1,862 |
Total operating profit (loss) | $ 40 | $ 90 | $ (81) | |
Percentage as of operating profit (loss) to revenue | 4.70% | 0.00% | 3.80% | (4.40%) |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 735 | $ 682 | $ 2,143 | $ 1,982 |
Total operating profit (loss) | $ 46 | $ 44 | $ 102 | $ 79 |
Percentage as of operating profit (loss) to revenue | 6.30% | 6.50% | 4.80% | 4.00% |
Operating Segments [Member] | Rig Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 637 | $ 510 | $ 1,771 | $ 1,638 |
Total operating profit (loss) | $ 58 | $ 18 | $ 138 | $ 37 |
Percentage as of operating profit (loss) to revenue | 9.10% | 3.50% | 7.80% | 2.30% |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ (65) | $ (50) | $ (210) | $ (147) |
Total operating profit (loss) | $ (71) | $ (69) | $ (206) | $ (201) |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Practical Expedient, Financing Component [true false] | true | |
Net revenue recognized from performance obligations | $ 56,000,000 | |
Remaining performance obligations | 2,147,000,000 | |
Impairment losses on contract assets | 0 | $ 0 |
Advance payments and deferred revenue | $ 240,000,000 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Detail 1) $ in Millions | Sep. 30, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,147 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 408 |
Remaining performance obligations, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,739 |
Remaining performance obligations, period |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregate Revenue by Destinations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | $ 2,154 | $ 1,835 | $ 6,055 | $ 5,335 |
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 847 | 693 | 2,351 | 1,862 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 735 | 682 | 2,143 | 1,982 |
Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 637 | 510 | 1,771 | 1,638 |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (65) | (50) | (210) | (147) |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 16 | 11 | 48 | 36 |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 20 | 16 | 62 | 40 |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 29 | 23 | 100 | 71 |
Continental [Member] | Intersubsegment Eliminations [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (65) | (50) | (210) | (147) |
Continental [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 1,001 | 798 | 2,777 | 2,203 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 469 | 377 | 1,333 | 1,024 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 343 | 282 | 977 | 780 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 189 | 139 | 467 | 399 |
Continental [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 1,153 | 1,037 | 3,278 | 3,132 |
Continental [Member] | International [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 362 | 305 | 970 | 802 |
Continental [Member] | International [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 372 | 384 | 1,104 | 1,162 |
Continental [Member] | International [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 419 | 348 | 1,204 | 1,168 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 16 | 11 | 48 | 36 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 20 | 16 | 62 | 40 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 29 | 23 | 100 | 71 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (65) | (50) | (210) | (147) |
Land and Offshore [Member] | Land Destination [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 1,434 | 1,195 | 4,012 | 3,268 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 707 | 553 | 1,950 | 1,479 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 521 | 468 | 1,476 | 1,281 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 206 | 174 | 586 | 508 |
Land and Offshore [Member] | Offshore Destination [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 720 | 640 | 2,043 | 2,067 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 124 | 129 | 353 | 347 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 194 | 198 | 605 | 661 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | $ 402 | $ 313 | $ 1,085 | $ 1,059 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
Balance at December 31, 2017 | $ 495 |
Additions and Milestone Billings | (606) |
Revenue Recognized | 637 |
Currency translation adjustments and other | (43) |
Balance at September 30, 2018 | 483 |
Balance at December 31, 2017 | 519 |
Additions | 856 |
Revenue Recognized | (676) |
Currency translation adjustments and other | (129) |
Balance at September 30, 2018 | $ 570 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 2,482 | $ 2,480 |
Other | 232 | 232 |
Current and Non-current debt | ||
Total debt | 2,714 | 2,712 |
Less current portion | 8 | 6 |
Long-term debt | 2,706 | 2,706 |
Senior Notes, Interest at 2.60% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,394 | 1,392 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,088 | $ 1,088 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Senior Notes, Interest at 2.60% 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 | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Interest rate under multi currency facility | LIBOR, NIBOR or CDOR plus 1.125% | |
Capitalization ratio, Maximum | 60.00% | |
Capitalization ratio, Actual | 16.30% | |
Funds available under revolving credit facility | $ 3,000,000,000 | |
Outstanding letters of credit under various bilateral letter of credit facilities | 471,000,000 | |
Carrying value of Unsecured Senior Notes | 2,482,000,000 | $ 2,480,000,000 |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of Unsecured Senior Notes | $ 2,287,000,000 | $ 2,346,000,000 |
Canadian Dollar Offered Rate (CDOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.125% | |
Five Year Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 3,000,000,000 | |
Credit facility, maturity date | Jun. 27, 2022 | |
Credit facility, extendable borrowing capacity | $ 4,000,000,000 | |
Variable rate basis | LIBOR, NIBOR or CDOR plus | |
Unsecured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, Period | 5 years | |
Five Year Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, borrowing capacity | $ 3,000,000,000 | |
Credit facility, Period | 5 years | |
Borrowings under commercial paper | $ 0 | |
Outstanding letters of credit issued | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory income tax rate | 21.00% | 35.00% | |||
Income tax benefit related to revaluation of net deferred tax liability | $ 242,000,000 | ||||
Additional tax expense related to provisional estimate of one-time transition tax | $ 0 | ||||
Provision (benefit) for income taxes | $ 29,000,000 | $ (13,000,000) | 37,000,000 | $ (43,000,000) | |
Unrecognized tax benefit | $ 92,000,000 | $ 92,000,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | May 11, 2018$ / sharesshares | Feb. 28, 2018Installment$ / sharesshares | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized shares under stock based compensation | 69,400,000 | 69,400,000 | ||||
Remaining shares available for future grants under the Plan | 10,253,618 | 10,253,618 | ||||
Stock option granted | 1,610,599 | |||||
Stock options granted fair value | $ / shares | $ 10.01 | |||||
Stock options exercise price | $ / shares | $ 35.09 | |||||
Stock-based compensation expense | $ | $ 30 | $ 33 | $ 88 | $ 85 | ||
Income tax benefit recognized | $ | $ 6 | 9 | $ 12 | 18 | ||
2018 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized shares under stock based compensation | 17,800,000 | |||||
Remaining shares available for future grants under the Plan | 17,709,906 | 17,709,906 | ||||
Stock-based compensation expense | $ | $ 30 | 33 | $ 88 | 85 | ||
Income tax benefit recognized | $ | $ 6 | $ 9 | $ 12 | $ 18 | ||
Stock Options and Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fungible shares issuance ratio | 1 | |||||
Stock Options and Stock Appreciation Rights (SARs) [Member] | 2018 Plan [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 | |||||
Other Awards [Member] | 2018 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fungible shares issuance ratio | 2.5 | |||||
Restricted Stock and Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 2,391,933 | |||||
Restricted stock granted fair value | $ / shares | $ 35.09 | |||||
Number of equal annual vesting installments | Installment | 3 | |||||
Period of option vested over grant date | The restricted stock and restricted stock units vest in three equal annual installments commencing on the first anniversary of the grant date. | |||||
Performance-base restricted stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Description of performance goal | The performance share awards can be earned based on performance against established goals over a three-year performance period. | |||||
Performance period | 3 years | |||||
Performance-base restricted stock [Member] | Minimum [Member] | Senior Management Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 0 | |||||
Performance-base restricted stock [Member] | Maximum [Member] | Senior Management Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 449,532 | |||||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 14,228 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
TSR Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Description of performance goal | 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 (Oil Service Sector) index for the three-year performance period. | |||||
Restricted Stock Awards [Member] | 2018 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 35,432 | |||||
Restricted stock granted fair value | $ / shares | $ 40.65 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
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 | $ 18 | $ 33 |
Derivative Liabilities | 16 | $ 11 |
Fair value of the Company's foreign currency forward contracts | 2 | |
Gains (losses) recognized on discontinuation of cash flow hedges | 2 | |
Pre-tax losses recorded in accumulated other comprehensive income (loss) | 10 | |
Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 18 | |
Derivative Liabilities | $ 16 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) - Forward Contracts [Member] ₽ in Millions, € in Millions, ¥ in Millions, £ in Millions, kr in Millions, kr in Millions, R in Millions, $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2018USD ($) | Sep. 30, 2018NOK (kr) | Sep. 30, 2018JPY (¥) | Sep. 30, 2018EUR (€) | Sep. 30, 2018DKK (kr) | Sep. 30, 2018GBP (£) | Sep. 30, 2018CAD ($) | Sep. 30, 2018RUB (₽) | Sep. 30, 2018MXN ($) | Sep. 30, 2018ZAR (R) | Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017EUR (€) | Dec. 31, 2017DKK (kr) | Dec. 31, 2017GBP (£) | Dec. 31, 2017RUB (₽) | Dec. 31, 2017ZAR (R) |
Derivative [Line Items] | ||||||||||||||||||
Foreign currency, Cash flow hedging | $ 111 | kr 3,875 | ¥ 326 | € 82 | kr 19 | £ 9 | $ 1 | $ 163 | kr 4,013 | ¥ 982 | € 120 | kr 30 | £ 11 | |||||
Foreign currency, Non-designated hedging | $ 539 | kr 1,708 | € 122 | kr 15 | £ 8 | $ 1 | ₽ 1,329 | $ 285 | R 176 | $ 463 | kr 1,734 | € 99 | kr 15 | £ 3 | ₽ 2,699 | R 150 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 18 | $ 33 |
Derivative Liabilities | 16 | 11 |
Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 11 | 21 |
Derivative Liabilities | 7 | 5 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7 | 12 |
Derivative Liabilities | 9 | 6 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 5 | 3 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 8 | 5 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 8 | 13 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4 | 10 |
Foreign Exchange Contracts [Member] | Other Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3 | 8 |
Foreign Exchange Contracts [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3 | 2 |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2 | 2 |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 1 | $ 1 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (5) | $ 4 |
Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | (11) | 65 |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 4 | 67 |
Foreign Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2 | (12) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (4) | 14 |
Foreign Exchange Contracts [Member] | Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 6 | |
Foreign Exchange Contracts [Member] | Cost of Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2 | (18) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 10 |
Foreign Exchange Contracts [Member] | Other Income (Expense), Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (5) | 4 |
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 Derivative | (11) | 65 |
Foreign Exchange Contracts [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 4 | $ 67 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivative (ineffective portion) | $ 1 | $ 10 | |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (5) | $ 4 | |
Scenario, Forecast [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), reclassified | $ 8 |
Net Income (Loss) Attributabl_3
Net Income (Loss) Attributable to Company Per Share - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to Company | $ 1 | $ (26) | $ (43) | $ (223) |
Denominator: | ||||
Basic—weighted average common shares outstanding | 379 | 377 | 378 | 377 |
Dilutive effect of employee stock options and other unvested stock awards | 4 | |||
Diluted outstanding shares | 383 | 377 | 378 | 377 |
Basic | $ 0 | $ (0.07) | $ (0.11) | $ (0.59) |
Diluted | 0 | (0.07) | (0.11) | (0.59) |
Cash dividends per share | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Net Income (Loss) Attributabl_4
Net Income (Loss) Attributable to Company Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options outstanding | 11 | 17 | 17 | 13 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Aug. 16, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Dividends [Abstract] | |||||
Dividends payable, amount per share | $ 0.05 | ||||
Dividends payable, declared date | Aug. 16, 2018 | ||||
Dividends payable, paid date | Sep. 28, 2018 | ||||
Dividends payable, record date | Sep. 14, 2018 | ||||
Cash dividends paid | $ 19 | $ 19 | $ 57 | $ 57 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Five Year Unsecured Revolving Credit Facility [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Credit facility, borrowing capacity | $ 3,000,000,000 | |
Scenario, Forecast [Member] | Five Year Unsecured Revolving Credit Facility [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Credit facility, borrowing capacity | $ 3,000,000,000 | |
Scenario, Forecast [Member] | Minimum [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Lease assets | 500,000,000 | |
Lease liabilities | 500,000,000 | |
Scenario, Forecast [Member] | Maximum [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Lease assets | 750,000,000 | |
Lease liabilities | $ 750,000,000 |