Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NOV | ||
Entity Registrant Name | NOV INC. | ||
Entity Central Index Key | 0001021860 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 392,665,321 | ||
Entity Public Float | $ 4.7 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 1-12317 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 76-0475815 | ||
Entity Address, Address Line One | 7909 Parkwood Circle Drive | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77036-6565 | ||
City Area Code | 713 | ||
Local Phone Number | 346-7500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the Proxy Statement in connection with the 2022 Annual Meeting of Stockholders are incorporated in Part III of this report. | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Houston, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,591 | $ 1,692 |
Receivables, net | 1,321 | 1,274 |
Inventories, net | 1,331 | 1,408 |
Contract assets | 461 | 611 |
Prepaid and other current assets | 198 | 224 |
Total current assets | 4,902 | 5,209 |
Property, plant and equipment, net | 1,823 | 1,927 |
Lease right-of-use assets, operating | 361 | 371 |
Lease right-of-use assets, financing | 176 | 195 |
Goodwill | 1,527 | 1,493 |
Intangibles, net | 503 | 527 |
Investment in unconsolidated affiliates | 50 | 51 |
Other assets | 208 | 156 |
Total assets | 9,550 | 9,929 |
Current liabilities: | ||
Accounts payable | 612 | 489 |
Accrued liabilities | 778 | 863 |
Contract liabilities | 392 | 354 |
Current portion of lease liabilities | 99 | 110 |
Current portion of long-term debt | 5 | |
Accrued income taxes | 24 | 51 |
Total current liabilities | 1,910 | 1,867 |
Long-term debt | 1,708 | 1,834 |
Lease liabilities | 576 | 612 |
Deferred income taxes | 66 | 78 |
Other liabilities | 226 | 259 |
Total liabilities | 4,486 | 4,650 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 392,673,077 and 388,255,374 shares issued and outstanding at December 31, 2021 and December 31, 2020 | 4 | 4 |
Additional paid-in capital | 8,685 | 8,591 |
Accumulated other comprehensive loss | (1,546) | (1,509) |
Retained earnings | (2,146) | (1,876) |
Total Company stockholders' equity | 4,997 | 5,210 |
Noncontrolling interests | 67 | 69 |
Total stockholders’ equity | 5,064 | 5,279 |
Total liabilities and stockholders’ equity | $ 9,550 | $ 9,929 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 392,673,077 | 388,255,374 |
Common stock, shares outstanding | 392,673,077 | 388,255,374 |
Consolidated Statements of Loss
Consolidated Statements of Loss - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | |||
Revenue | $ 5,524 | $ 6,090 | $ 8,479 |
Cost of revenue | |||
Cost of revenue | 4,750 | 5,656 | 7,634 |
Gross profit | 774 | 434 | 845 |
Selling, general and administrative | 908 | 968 | 1,303 |
Goodwill and indefinite-lived intangible asset impairment | 1,378 | 3,612 | |
Long-lived asset impairment | 513 | 2,209 | |
Operating loss | (134) | (2,425) | (6,279) |
Interest and financial costs | (77) | (84) | (100) |
Interest income | 9 | 7 | 20 |
Equity loss in unconsolidated affiliates | (5) | (260) | (13) |
Other income (expense), net | (23) | (17) | (90) |
Loss before income taxes | (230) | (2,779) | (6,462) |
Provision (benefit) for income taxes | 15 | (242) | (369) |
Net loss | (245) | (2,537) | (6,093) |
Net income attributable to noncontrolling interests | 5 | 5 | 2 |
Net loss attributable to Company | $ (250) | $ (2,542) | $ (6,095) |
Net loss attributable to Company per share: | |||
Basic | $ (0.65) | $ (6.62) | $ (15.96) |
Diluted | (0.65) | (6.62) | (15.96) |
Cash dividends per share | $ 0.05 | $ 0.05 | $ 0.20 |
Weighted average shares outstanding: | |||
Basic | 386 | 384 | 382 |
Diluted | 386 | 384 | 382 |
Sales [Member] | |||
Revenue | |||
Revenue | $ 3,769 | $ 4,409 | $ 5,862 |
Cost of revenue | |||
Cost of revenue | 3,369 | 4,313 | 5,696 |
Service [Member] | |||
Revenue | |||
Revenue | 1,114 | 1,091 | 1,517 |
Cost of revenue | |||
Cost of revenue | 951 | 929 | 1,188 |
Rental [Member] | |||
Revenue | |||
Revenue | 641 | 590 | 1,100 |
Cost of revenue | |||
Cost of revenue | $ 430 | $ 414 | $ 750 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (245) | $ (2,537) | $ (6,093) |
Other comprehensive income (loss): | |||
Currency translation adjustments | (34) | (78) | (7) |
Derivative financial instruments, net of tax | (12) | 23 | 10 |
Change in defined benefit plans, net of tax | 9 | (31) | 11 |
Comprehensive loss | (282) | (2,623) | (6,079) |
Net income attributable to noncontrolling interests | 5 | 5 | 2 |
Comprehensive loss attributable to Company | $ (287) | $ (2,628) | $ (6,081) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (245) | $ (2,537) | $ (6,093) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 306 | 352 | 533 |
Deferred income taxes | 11 | (65) | (426) |
Stock-based compensation | 78 | 105 | 130 |
Loss on extinguishment of debt | 7 | 8 | 26 |
Equity loss in unconsolidated affiliates | 5 | 260 | 13 |
Goodwill and indefinite-lived intangible asset impairment | 1,378 | 3,612 | |
Long-lived asset impairment | 513 | 2,209 | |
Provision for inventory losses | 73 | 367 | 659 |
Other, net | 16 | 16 | 16 |
Change in operating assets and liabilities, net of acquisitions: | |||
Receivables | (52) | 574 | 275 |
Inventories | 17 | 429 | 104 |
Contract assets | 150 | 30 | (70) |
Prepaid and other current assets | 28 | 22 | (45) |
Accounts payable | 118 | (226) | (19) |
Accrued liabilities | (97) | (110) | (194) |
Contract liabilities | 27 | (74) | (34) |
Income taxes payable | (28) | 9 | (25) |
Other assets/liabilities, net | (123) | (125) | 43 |
Net cash provided by operating activities | 291 | 926 | 714 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (201) | (226) | (233) |
Business acquisitions, net of cash acquired | (52) | (14) | (180) |
Other, net | 57 | 96 | 98 |
Net cash used in investing activities | (196) | (144) | (315) |
Cash flows from financing activities: | |||
Borrowings against lines of credit and other debt | 60 | 36 | 511 |
Payments against lines of credit and other debt | (183) | (217) | (1,000) |
Financing leases | (26) | (31) | (32) |
Cash dividends paid | (20) | (19) | (77) |
Debt issuance and extinguishment costs | (7) | (8) | (36) |
Other | (13) | (20) | (13) |
Net cash used in financing activities | (189) | (259) | (647) |
Effect of exchange rates on cash | (7) | (2) | (8) |
Increase (decrease) in cash and cash equivalents | (101) | 521 | (256) |
Cash and cash equivalents, beginning of period | 1,692 | 1,171 | 1,427 |
Cash and cash equivalents, end of period | 1,591 | 1,692 | 1,171 |
Cash payments during the period for: | |||
Interest | 76 | 83 | 85 |
Income taxes | $ (78) | $ (9) | $ 144 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Revision of Prior Period Accounting Standards Update Adjustment [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Loss) [Member] | Retained Earnings (Loss) [Member]Revision of Prior Period Accounting Standards Update Adjustment [Member] | Total Company Stockholders' Equity [Member] | Total Company Stockholders' Equity [Member]Revision of Prior Period Accounting Standards Update Adjustment [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2018 | $ 13,889 | $ 4 | $ 8,390 | $ (1,437) | $ 6,862 | $ 13,819 | $ 70 | |||
Begining Balance, shares at Dec. 31, 2018 | 383 | |||||||||
Net loss | (6,093) | (6,095) | (6,095) | 2 | ||||||
Other comprehensive income (loss) | 14 | 14 | 14 | |||||||
Cash dividends, per common share | $ (77) | $ (77) | $ (77) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Stock-based compensation | $ 137 | 137 | $ 137 | |||||||
Stock-based compensation, shares | 3 | |||||||||
Withholding taxes | (20) | (20) | (20) | |||||||
Other | (4) | (4) | ||||||||
Ending Balance at Dec. 31, 2019 | 7,846 | $ (5) | $ 4 | 8,507 | (1,423) | $ 690 | $ (5) | 7,778 | $ (5) | 68 |
Ending Balance, shares at Dec. 31, 2019 | 386 | |||||||||
Net loss | (2,537) | (2,542) | (2,542) | 5 | ||||||
Other comprehensive income (loss) | (86) | (86) | (86) | |||||||
Cash dividends, per common share | $ (19) | $ (19) | $ (19) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Stock-based compensation | $ 104 | 104 | $ 104 | |||||||
Stock-based compensation, shares | 2 | |||||||||
Withholding taxes | (20) | (20) | (20) | |||||||
Other | (4) | (4) | ||||||||
Ending Balance at Dec. 31, 2020 | 5,279 | $ 4 | 8,591 | (1,509) | $ (1,876) | 5,210 | 69 | |||
Ending Balance, shares at Dec. 31, 2020 | 388 | |||||||||
Net loss | (245) | (250) | (250) | 5 | ||||||
Other comprehensive income (loss) | (37) | (37) | (37) | |||||||
Cash dividends, per common share | $ (20) | $ (20) | $ (20) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Stock-based compensation | $ 78 | 78 | $ 78 | |||||||
Stock-based compensation, shares | 3 | |||||||||
Stock issued in acquisition | 29 | 29 | 29 | |||||||
Stock issued in acquisition, shares | 2 | |||||||||
Withholding taxes | (13) | (13) | (13) | |||||||
Other | (7) | (7) | ||||||||
Ending Balance at Dec. 31, 2021 | $ 5,064 | $ 4 | $ 8,685 | $ (1,546) | $ (2,146) | $ 4,997 | $ 67 | |||
Ending Balance, shares at Dec. 31, 2021 | 393 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retained Earnings (Loss) [Member] | |||
Cash dividends, per common share | $ 0.05 | $ 0.05 | $ 0.20 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Nature of Business We design, construct, manufacture and sell comprehensive systems, components, and products used in oil and gas drilling and production and certain industrial and renewable energy sectors. We also provide technology and oilfield services and supplies, distribute products and provide supply chain integration services to the upstream oil and gas industry. Our revenues and operating results are directly related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies, drilling contractors and oilfield service companies, which in turn are affected by current and anticipated prices of oil and gas. Oil and gas prices have been, and are likely to continue to be, volatile. Basis of Consolidation The accompanying Consolidated Financial Statements include the accounts of NOV Inc. and its consolidated subsidiaries. Certain reclassifications have been made to the prior year financial statements for them to conform with the 2021 presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. Derivative Financial Instruments The Company records all derivative financial instruments at their fair value in its Consolidated Balance Sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments that the Company holds are designated as cash flow hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months Inventories Inventories are stated at the lower of cost or estimated net realizable value using the first-in, first-out or average cost methods. Inventories consist of raw materials and supplies, work-in-process and finished goods and purchased products. The Company reviews historical usage of inventory on-hand, assumptions about future demand and market conditions, and estimates about potential alternative uses, which are limited, to estimate net realizable value. The Company evaluates inventory using the best information available at the time to inform our assumptions and estimates about future demand and resulting sales volumes, and records reserves as necessary. W e recorded charges for additions to inventory reserves of $73 million, $367 million, and $659 million for the years ended December 31, 2021, 2020, and 2019, respectively, consisting primarily of obsolete and surplus inventories. At December 31, 2021 and 2020, inventory reserves totaled $444 million and $577 million, or 25.0% and 29.0% of gross inventory, respectively Property, Plant and Equipment Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $264 million, $302 million, and $355 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 5 to the consolidated financial statements. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying value of assets used in operations that are not recoverable is reduced to fair value if lower than carrying value. In determining the fair market value of the assets, we consider market trends and recent transactions involving sales of similar assets, or when not available, discounted cash flow analysis. Impairments of plant, property and equipment were $262 million and $252 million for the years ended December 31, 2020 and 2019, respectively. Acquisitions and Investments Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is preliminarily allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. Subsequent changes to preliminary amounts are made prospectively. The Company paid cash of $52 million, $14 million, and $180 million for acquisitions for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company paid $29 million in stock (consisting of 2 million shares) for acquisitions in 2021. These acquisitions did not have a material effect on the Company’s operating results, cash flows or financial position. Foreign Currency The functional currency for most of our foreign operations is the local currency. However, c ertain foreign operations, including our operations in Norway, use the U.S. dollar as the functional currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the U.S. dollar at current exchange rates are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates in effect during the period. Accordingly, financial statements of these foreign subsidiaries are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets and related elements of expense. Revenue and expense elements are remeasured at rates that approximate the rates in effect on the transaction dates. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income. Net foreign currency transaction losses were $16 million, $2 million, and $36 million for the years ending December 31, 2021, 2020 and 2019, respectively, and are included in other income (expense) in the accompanying statement of loss. Revenue Recognition The majority of the Company’s 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 a customer. Products are sold or rented and services are provided based upon a fixed or determinable price and do not generally include right of return or other significant post-delivery obligations. 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. We have elected to apply the practical expedient that does not require an adjustment for a financing component if, at contract inception, the period between when we transfer the promised goods or service to the customer and when the customer pays for the goods or service is one year or less. Shipping and handling costs are recognized when incurred and are treated as costs to fulfill the original performance obligation instead of as a separate performance obligation. Revenue is generated from contracts that may include multiple performance obligations. The Company considers the degree of customization, integration and interdependency of the related products and services when assessing distinct performance obligations within one contract. Stand-alone selling price (“SSP”) for each distinct performance obligation is generally determined using the price at which the products and services would be sold separately to the customer. Discounts, when provided, are allocated based on the relative SSP of the various products and services. 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 Revenue is recognized over-time for certain long-term construction contracts in the Completion & Production Solutions and Rig Technologies segments. These contracts include custom designs for customer-specific applications that are unique and require significant engineering efforts. Revenue is recognized as work progresses on each contract. Right to payment is enforceable 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, progress towards completion of each contract 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. Any expected losses on a project are recorded in full in the period in which the loss becomes probable. These long-term construction contracts generally include integrating a complex set of tasks and components into a single project or capability so they 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 judgement. 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 $38 million and $41 million for the years ended December 31, 2021 and 2020, respectively, primarily due to change orders. Service and Repair Work For service and repair contracts, revenue is recognized over time. We generally use the output method to measure progress on service contracts 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 represent 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 December 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,224 million. The Company expects to recognize approximately $1,316 million in revenue for the remaining performance obligations in 2022 and $2,908 million in 2023 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. Service and Product Warranties The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. The Company monitors the actual cost of performing these discretionary services and adjusts the accrual based on the most current information available. The changes in the carrying amount of service and product warranties are as follows (in millions): Balance at December 31, 2019 $ 90 Net provisions for warranties issued during the year 22 Amounts incurred (26 ) Currency translation adjustments 1 Balance at December 31, 2020 $ 87 Net provisions for warranties issued during the year 15 Amounts incurred (24 ) Currency translation adjustments (5 ) Balance at December 31, 2021 $ 73 Income Taxes The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. Concentration of Credit Risk We grant credit to our customers, which operate primarily in the oil and gas industry. Concentrations of credit risk are limited because we have many geographically diverse customers, thus spreading trade credit risk. We control credit risk through credit evaluations, credit limits and monitoring procedures. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral but may require letters of credit for certain international sales. Credit losses are provided for in the financial statements. Allowances for doubtful accounts are determined based on a continuous process of assessing the Company’s portfolio on an individual customer basis considering current market conditions and trends. This process consists of a review of historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. Based on a review of these factors, the Company will establish or adjust allowances for specific customers. Accounts receivable are net of allowances for doubtful accounts of approximately $88 million and $100 million at December 31, 2021 and 2020, respectively. Stock-Based Compensation Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method. The fair value of stock option grants and restricted stock is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans. Environmental Liabilities When environmental assessments or remediations are probable and the costs can be reasonably estimated, remediation liabilities are recorded on an undiscounted basis and are adjusted as further information develops or circumstances change. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates include but are not limited to, estimated losses on accounts receivable, estimated costs and related margins of projects accounted for over time, estimated realizable value on excess and obsolete inventory, contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of Reporting Units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ from those estimates. Contingencies The Company accrues for costs relating to litigation claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and reasonably estimable. In circumstances where the most likely outcome of a contingency can be reasonably estimated, we accrue a liability for that amount. Where the most likely outcome cannot be estimated, a range of potential losses is established and if no one amount in that range is more likely than others, the low end of the range is accrued. Such estimates may be based on advice from third parties or on management’s judgement, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous judgements with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. Net Loss Attributable to Company Per Share The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Years Ended December 31, 2021 2020 2019 Numerator: Net loss attributable to Company $ (250 ) $ (2,542 ) $ (6,095 ) Denominator: Basic—weighted average common shares outstanding 386 384 382 Dilutive effect of employee stock options and other unvested stock awards — — — Diluted outstanding shares 386 384 382 Basic loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Diluted loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Cash dividends per share $ 0.05 $ 0.05 $ 0.20 Net loss attributable to Company allocated to participating securities was immaterial for the years ended December 31, 2021, 2020 and 2019 and therefore not excluded from net loss attributable to Company per share calculation. The Company had stock options outstanding that were anti-dilutive totaling 21 million, 26 million, and 20 million at December 31, 2021, 2020 and 2019, respectively. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of accounting for income taxes. The Company adopted ASU 2019-12 for the first quarter of 2021 with no material impact on the C ompany’s financial position, results of operations and cash flows. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2021-01 and ASU 2020-04, “Reference Rate Reform (Topic 848).” This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management is currently assessing the impact of adopting ASU 2020-04 on the Company’s financial position, results of operations and cash flows . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 3. Derivative Financial Instruments The Company uses derivative financial instruments to manage its foreign currency exchange rate risk. Forward currency contracts are executed to manage the foreign currency exchange rate risk on forecasted revenues and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). The Company also executes forward currency contracts to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). At December 31, 2021, the Company has determined the fair value of its derivative financial instruments representing assets of $18 million and liabilities of $8 million (currency related derivatives) using level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange and interest rates at each financial reporting date. At December 31, 2021, the net fair value of the Company’s foreign currency forward contracts totaled a net asset of $10 million. Forward currency contracts consist of (in millions): Currency Denomination Currency December 31, 2021 December 31, 2020 South Korean Won KRW 17,600 KRW 17,600 Norwegian Krone NOK 2,430 NOK 3,817 Russian Ruble RUB 1,128 RUB 1,118 Mexican Peso MXN 637 MXN 402 Japanese Yen JPY 476 JPY 340 U.S. Dollar USD 415 USD 367 South African Rand ZAR 124 ZAR 124 Euro EUR 106 EUR 116 Singapore Dollar SGD 36 SGD 31 British Pound Sterling GBP 14 GBP 18 Danish Krone DKK 7 DKK 875 Brazilian Real BRL — BRL 768 Canadian Dollar CAD — CAD 1 Cash Flow Hedging Strategy To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company maintains a cash flow hedging program. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is recorded in accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The Company includes time value in hedge relationships. The Company expects accumulated other comprehensive loss of $8 million will be reclassified into earnings within the next twelve months. Non-designated Hedging Strategy The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The gain or loss on the derivative instrument is recognized in earnings in other income (expense), together with the changes in the hedged nonfunctional monetary accounts. The amount of gain (loss) recognized in other income (expense), net was ($9) million, ($3) million and ($12) million for the years ended 2021, 2020 and 2019, respectively. The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Fair Values of Derivative Instruments (In millions) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet December 31, Balance Sheet December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 11 $ 17 Accrued liabilities $ 2 $ 11 Foreign exchange contracts Other Assets — 12 Other Liabilities — - Total derivatives designated as hedging instruments under ASC Topic 815 $ 11 $ 29 $ 2 $ 11 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 7 $ 17 Accrued liabilities $ 6 $ 4 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 7 $ 17 $ 6 $ 4 Total derivatives $ 18 $ 46 $ 8 $ 15 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 4. Inventories, net Inventories consist of (in millions): December 31, 2021 2020 Raw materials and supplies $ 350 $ 373 Work in process 218 189 Finished goods and purchased products 1,207 1,423 1,775 1,985 Less: Inventory reserve (444 ) (577 ) Total $ 1,331 $ 1,408 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, net | 5. Property, Plant and Equipment, net Property, plant and equipment consist of (in millions): Estimated December 31, Useful Lives 2021 2020 Land $ 174 $ 175 Buildings and improvements 5-35 Years 1,309 1,343 Operating equipment 2-20 Years 2,678 2,660 Rental equipment 2-15 Years 794 799 4,955 4,977 Less: Accumulated Depreciation (3,132 ) (3,050 ) $ 1,823 $ 1,927 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill and Other Indefinite-Lived Intangible Assets The Company has approximately $1.5 billion of goodwill and $503 million of identified intangible assets at December 31, 2021. Goodwill is identified by segment as follows (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Total Balance at December 31, 2019 843 1,054 910 2,807 Goodwill acquired during period 4 — — 4 Impairment (517 ) (580 ) (198 ) (1,295 ) Currency translation adjustments and other (22 ) (1 ) — (23 ) Balance at December 31, 2020 $ 308 $ 473 $ 712 $ 1,493 Goodwill acquired during period 34 — — 34 Balance at December 31, 2021 (1) $ 342 $ 473 $ 712 $ 1,527 (1) Accumulated goodwill impairment was $7,261 million as I dentified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical drawings acquired in acquisitions, and are being amortized in a manner consistent with the underlying cash flows over the estimated useful lives of 2-40 years. Amortization expense of identified intangibles is expected to be approximately $40 million, $33 million, $28 million, $25 million, and $23 million for the next five years. The net book values of identified intangible assets are identified by segment as follows (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Total Balance at December 31, 2019 $ 326 $ 275 $ 251 $ 852 Additions to intangible assets 20 — — 20 Impairment (78 ) (214 ) — (292 ) Amortization (12 ) (9 ) (28 ) (49 ) Currency translation adjustments (3 ) (5 ) 4 (4 ) Balance at December 31, 2020 $ 253 $ 47 $ 227 $ 527 Additions to intangible assets 22 — — 22 Amortization (10 ) (5 ) (28 ) (43 ) Currency translation adjustments (1 ) — (2 ) (3 ) Balance at December 31, 2021 $ 264 $ 42 $ 197 $ 503 Identified intangible assets by major classification consist of the following (in millions): Gross Accumulated Amortization Net Book Value December 31, 2020: Customer relationships $ 475 $ (300 ) $ 175 Trademarks 175 (116 ) 59 Patents 115 (53 ) 62 Indefinite-lived trade names 196 — 196 Other 94 (59 ) 35 Total identified intangibles $ 1,055 $ (528 ) $ 527 December 31, 2021: Customer relationships $ 471 $ (323 ) $ 148 Trademarks 174 (122 ) 52 Patents 145 (59 ) 86 Indefinite-lived trade names 196 — 196 Other 82 (61 ) 21 Total identified intangibles $ 1,068 $ (565 ) $ 503 Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. The impairment analysis compares the reporting unit’s carrying value to the respective fair value. Fair value of the reporting unit is determined using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on internal management estimates, forecasts and judgments, using discounted cash flow. The discounted cash flow is based on management’s forecast of operating performance for the reporting unit. The two main assumptions used in measuring goodwill impairment, which bear the risk of change and could impact the Company’s goodwill impairment analysis, include the cash flow from operations from each reporting unit and its weighted average cost of capital. The starting point for each of the reporting unit’s cash flow from operations is the detailed annual plan or updated forecast. Cash flows beyond the updated forecasted operating plans were estimated using a terminal value calculation, which incorporated historical and forecasted financial cyclical trends for each reporting unit and considered long-term earnings growth rates. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate. During times of volatility, significant judgment must be applied to determine whether credit changes are a short-term or long-term trend. Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. During the fourth quarter of 2021, the Company performed its annual impairment test, as described in ASC Topic 350, as of October 1, 2021. Based on the Company’s annual impairment test, the calculated fair values for all of the Company’s reporting units with remaining goodwill were substantially in excess of the respective reporting unit’s carrying value with the exception of Rig Equipment and XL Systems. The remaining goodwill for Rig Equipment and XL Systems is $661 million and $64 million, respectively. If market conditions were to fall or their cost of capital to increase, Rig Equipment and XL Systems would likely incur impairment charges, up to the full value of their goodwill. During the first quarter of 2020 and second quarter of 2019, negative market indicators constituted a triggering event and the results of the Company’s test for impairment resulted in the Company recording $1,295 million and $3,509 million in impairment charges to goodwill in 2020 and 2019, respectively. Additionally, $83 million and $103 million in charges to indefinite-lived intangible assets were recorded in 2020 and 2019 for these triggering events identified. The goodwill and indefinite-lived intangible impairment was a triggering event that indicated that the Company’s long-lived tangible assets and finite-lived intangible assets were also impaired. Impairment testing determined that certain long-lived assets associated with most of the Company’s asset groups were not recoverable. The estimated fair value of these asset groups was below the carrying value and as a result, during the first quarter of 2020, the Company recorded impairment charges of $209 million to customer relationships, patents, trademarks, tradenames, and other finite- lived intangible assets, $262 million to property, plant and equipment, and $42 million for right-of-use assets. Additionally, the Company recorded a $224 million impairment on its equity investment in unconsolidated affiliates. No impairment of goodwill or indefinite-lived intangible assets was recorded in 2021. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of (in millions): December 31, 2021 2020 Vendor costs $ 124 $ 118 Compensation 209 196 Taxes (non-income) 119 158 Warranty 73 87 Insurance 45 48 Fair value of derivatives 8 15 Commissions 17 19 Interest 6 7 Other 177 215 Total $ 778 $ 863 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 8. Leases The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company intends to exercise a lease option at inception due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews new agreements to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates. The Company recorded right-of-use asset impairment charges of $0 , $ 42 million, and $ 56 million for the years ended December 31, 2021, 2020 and 2019, respectively. Components of leases are as follows (in millions): December 31, 2021 2020 Current portion of lease liabilities: Operating $ 76 $ 82 Financing 23 28 Total $ 99 $ 110 December 31, 2021 2020 Long-term portion of lease liability: Operating $ 357 $ 376 Financing 219 236 Total $ 576 $ 612 Components of lease expense were as follows (in millions): Years Ended December 31, 2021 December 31, 2020 Lease cost Finance lease cost Amortization of right-of-use assets $ 26 $ 31 Interest on lease liabilities 10 11 Operating lease cost 83 96 Short-term lease cost 74 64 Sub-lease income (9 ) (10 ) Total $ 184 $ 192 Supplemental information related to the Company’s leases is as follows (in millions): Years Ended December 31, 2021 December 31, 2020 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - finance leases $ 10 $ 11 Operating cash flows - operating leases 83 96 Financing cash flows - finance leases 26 31 Right-of-use assets obtained in exchange for new: Operating lease liabilities 37 47 Finance lease liabilities $ 9 $ 16 Weighted average remaining lease term at December 31, 2021: Operating leases 11 years 11 years Finance leases 18 years 18 years Weighted average discount rate at December 31, 2021: Operating leases 4.74 % 4.93 % Finance leases 3.86 % 3.92 % Future minimum lease commitments for leases with initial or remaining terms of one year or more at December 31, 2021, are payable as follows (in millions): Operating Finance 2022 $ 91 $ 32 2023 76 25 2024 65 21 2025 54 19 2026 43 17 Thereafter 219 214 Total lease payments 548 328 Less: Interest (115 ) (86 ) Present value of lease liabilities $ 433 $ 242 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Debt consists of (in millions): December 31, 2021 2020 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,090 1,089 $0.5 billion in Senior Notes, interest at 3.60% payable semiannually, principal due on December 1, 2029 494 493 $0.2 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 — 182 Other debt 129 70 Total Debt 1,713 1,834 Less current portion 5 — Long-term debt $ 1,708 $ 1,834 Principal payments of debt for years subsequent to 2021 are as follows (in millions): 2022 5 2023 26 2024 10 2025 21 2026 11 Thereafter 1,640 $ 1,713 On April 8, 2021, the Company extended the maturity date of its revolving credit facility one additional year to October 30, 2025. The facility has a borrowing capacity of $2.0 billion through October 30, 2024, and a borrowing capacity of $1.7 billion from October 31, 2024, to October 30, 2025. The Company has the right to increase the commitments under this agreement to an aggregate amount of up to $3.0 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon 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 December 31, 2021, the Company was in compliance with a debt-to-capitalization ratio of 27.8% and had no outstanding letters of credit issued under the facility, resulting in $2.0 billion of available funds. Additionally, the Company’s joint venture with Aramco has a $150 million bank line of credit for the construction of a facility in Saudi Arabia. Interest under the bank line of credit is based upon LIBOR plus 1.40%. The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75 %. As of December 31, 202 1 , the Company was in compliance. The line of credit repayment schedule begins in December 2022 with final payment no later than December 2032 . As of December 31, 2021, the Company had $ 102 million in borrowings related to this line of credit. The first payment in December 2022 will be approximately $ 5 million. The Company can repay the entire outstanding facility balance without penalty at its sole discretion. Other debt at December 31, 202 1 included $ 27 million of funding provided by minority interest partners of NOV consolidated joint ventures. On April 9, 2021, the Company repaid the entire outstanding balance of $182 million of its 2.60% unsecured Senior Notes due December 1, 2022 using available cash balances. Upon redemption, the Company paid $191 million, which included a redemption premium of $6.8 million as well as accrued and unpaid interest of $1.7 million. As a result of the redemption, the Company recorded a loss on extinguishment of debt of $7.1 million, which included the redemption premium of $6.8 million and non-cash charges of $0.3 million to write-off of unamortized discount and debt issuance costs. The Company had $444 million of outstanding letters of credit at December 31, 2021, 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 December 31, 2021 and 2020, the fair value of the Company’s unsecured Senior Notes approximated $1,610 million and $1,833 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 December 31, 2021 and 2020, the carrying value of the Company’s unsecured Senior Notes approximated $1,584 million and $1,764 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans We have benefit plans covering substantially all of our employees. Defined-contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service, a percentage of current earnings and matching of employee contributions. We also have defined contribution plans in Norway and the United Kingdom. For the years ended December 31, 2021, 2020 and 2019, expenses for defined-contribution plans were $34 million, $51 million, and $70 million, respectively, and all funding is current. In 2021, NOV announced and filed for the defined benefit plan in the United States to be settled. As part of that process, the benefit accrual for the 20 employees represented by a collective bargaining agreement was ended as of November 30, 2021. The plan settlement is expected to be completed in late 2022 or early 2023. In addition, approximately 1,100 U.S. retirees and spouses participate in plans that provide post-retirement healthcare and/or life insurance benefits. Active employees are not eligible for these post-retirement benefits, except for one location represented by a collective bargaining agreement. Net periodic benefit income (cost) for our defined benefit plans aggregated $3 million, $3 million, and $2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2021 and 2020, is as follows (in millions): Pension benefits Postretirement benefits At year end 2021 2020 2021 2020 Benefit obligation at beginning of year $ 641 $ 600 $ 43 $ 53 Service cost 1 1 — — Interest cost 11 14 1 — Actuarial loss (gain) (5 ) 54 4 5 Benefits paid (29 ) (29 ) (14 ) (17 ) Participants contributions — — — 2 Exchange rate loss (gain) (12 ) 17 — — Special events — — — — Plan amendments — — — — Settlements (13 ) (16 ) — — Benefit obligation at end of year $ 594 $ 641 $ 34 $ 43 Fair value of plan assets at beginning of year $ 584 $ 568 $ — $ — Actual return 32 43 — — Benefits paid (29 ) (29 ) (15 ) (17 ) Company contributions 4 5 15 15 Participants contributions — — — 2 Exchange rate gain (loss) (7 ) 13 — — Settlements (13 ) (16 ) — — Fair value of plan assets at end of year $ 571 $ 584 $ — $ — Funded status $ (23 ) $ (57 ) $ (34 ) $ (43 ) Accumulated benefit obligation at end of year $ 592 $ 637 Liabilities associated with the funded status of the defined benefit pension plans are included in the balances of accrued liabilities and other liabilities in the Consolidated Balance Sheet. Defined Benefit Pension Plans Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows: Years Ended December 31, 2021 2020 Discount rate: United States plan 1.80% - 2.20% 1.20% - 2.40% International plans 1.00% - 1.90% 0.70% - 1.80% Salary increase: United States plan N/A N/A International plans 2.50% - 3.40% 1.75% - 2.90% The assumption rates used for net periodic benefit costs are as follows: Years Ended December 31, 2021 2020 2019 Discount rate: United States plan 1.20% - 2.40% 2.50% - 3.20% 3.90% - 4.20% International plans 0.70% - 1.80% 0.00% - 2.30% 1.80% - 2.90% Salary increase: United States plan N/A N/A N/A International plans 1.75% - 2.90% 1.80% - 3.10% 1.80% - 3.40% Expected return on assets: United States plan 3.90% 4.80% 5.70% International plans 0.80% - 3.40% 0.00% - 4.50% 1.90% - 4.30% In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio. The majority of our plans have projected benefit obligations in excess of plan assets. The Company expects to pay future benefit amounts on its defined benefit plans of approximately $42 million for each of the next five years and aggregate payments of $343 million. Plan Assets The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets. Our pension investment strategy worldwide prohibits a direct investment in our own stock. The following table sets forth by level, within the fair value hierarchy, the plan’s assets carried at fair value (in millions): Fair Value Measurements Total Level 1 Level 2 Level 3 December 31, 2020: Equity securities $ 108 $ — $ 108 $ — Bonds 253 — 253 — Other (insurance contracts) 221 — 155 66 Total Fair Value Measurements $ 582 $ — $ 516 $ 66 December 31, 2021: Equity securities $ 8 $ — $ 8 $ — Bonds 372 — 372 — Other (insurance contracts) 191 — 132 59 Total Fair Value Measurements $ 571 $ — $ 512 $ 59 Level 3 inputs are unobservable (i.e., supported by little or no market activity). Level 3 inputs include management’s own judgement about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The following table sets forth a summary of changes in the fair value of the plan’s Level 3 assets (in millions): Level 3 Plan Assets Balance at December 31, 2019 $ 63 Actual return on plan assets still held at reporting date - Purchases, sales and settlements (3 ) Currency translation adjustments 6 Balance at December 31, 2020 $ 66 Actual return on plan assets still held at reporting date (2 ) Purchases, sales and settlements (1 ) Currency translation adjustments (4 ) Balance at December 31, 2021 $ 59 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 11. Accumulated Other Comprehensive 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, 2018 $ (1,396 ) $ (14 ) $ (27 ) $ (1,437 ) Accumulated other comprehensive income (loss) before reclassifications (7 ) (2 ) 12 3 Amounts reclassified from accumulated other comprehensive income (loss) — 12 (1 ) 11 Balance at December 31, 2019 $ (1,403 ) $ (4 ) $ (16 ) $ (1,423 ) Accumulated other comprehensive income (loss) before reclassifications (78 ) 4 (30 ) (104 ) Amounts reclassified from accumulated other comprehensive income (loss) — 19 (1 ) 18 Balance at December 31, 2020 $ (1,481 ) $ 19 $ (47 ) $ (1,509 ) Accumulated other comprehensive income (loss) before reclassifications (34 ) (5 ) 10 (29 ) Amounts reclassified from accumulated other comprehensive income (loss) — (7 ) (1 ) (8 ) Balance at December 31, 2021 $ (1,515 ) $ 7 $ (38 ) $ (1,546 ) The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Years Ended December 31, 2021 2020 2019 Derivative Defined Derivative Defined Derivative Defined Financial Benefit Financial Benefit Financial Benefit Instruments Plans Total Instruments Plans Total Instruments Plans Total Revenue $ (1 ) $ — $ (1 ) $ 17 $ — 17 $ 1 $ — $ 1 Cost of revenue (8 ) — (8 ) 6 — 6 14 — 14 Selling, general, and administrative — (1 ) (1 ) — (1 ) (1 ) — (1 ) (1 ) Tax effect 2 — 2 (4 ) — (4 ) (3 ) — (3 ) $ (7 ) $ (1 ) $ (8 ) $ 19 $ (1 ) $ 18 $ 12 $ (1 ) $ 11 The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income or (loss). The Company recorded other comprehensive income (loss) of ($34) million, ($78) million and ($7) million for the years ended December 31, 2021, 2020 and 2019, respectively. The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions are realized. The movement in other comprehensive income (loss) from period to period will be the result of the combination of changes in fair value of open derivatives and the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period. The accumulated effect was other comprehensive income (loss) of ($12) million (net of $2 million tax), $23 million (net of $5 million tax) and $10 million (net of $4 million tax) for the years ended December 31, 2021, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Our business is governed by laws and regulations, including those directed to the oilfield service industry, promulgated by U.S. federal and state governments and regulatory agencies, as well as international governmental authorities in the many countries in which we conduct business. In the United States these governmental authorities include: the U.S. Department of Labor, the Occupational Safety and Health Administration, the Environmental Protection Agency, the Bureau of Land Management, the Department of Treasury, Office of Foreign Asset Controls, state and international environmental agencies and many others. We are unaware of any material unreserved liabilities in connection with our compliance with such laws. New laws, regulations and enforcement policies may result in additional, presently unquantifiable, or unknown, costs or liabilities. The Company is involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters. The Company maintains insurance that covers many of the claims arising from risks associated with the business activities of the Company, including claims for 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 enough to cover any such material risks. The Company is also a party to claims, threatened and actual litigation, private arbitration, internal investigations of potential regulatory and compliance matters which arise from legacy businesses that the Company has acquired over many years and from the Company’s current ordinary day-to-day business activities. These regulatory matters and disputes involve private parties and/or government authorities, which assert claims against the Company for a broad spectrum of potential claims including: employment law claims, collective actions or class action claims under employment laws, intellectual property claims, (such as alleged patent infringement, and/or misappropriation of trade secrets by the company), premises liability claims, environmental claims, product liability claims, warranty claims, personal injury claims arising from exposure to or use of allegedly defective products, alleged regulatory violations, alleged violations of anti-corruption and anti-bribery laws and other commercial and/or regulatory claims seeking recovery for alleged actual or exemplary damages or fines and penalties. Such claims involve various theories of liability which include: negligence, strict liability, product liability, and other theories of liability. For some of these 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 claims, individually or collectively, could have a material financial or reputational impact on the Company. As of December 3 1 , 202 1 , the Company recorded reserves in an amount believed to be sufficient, given the range of potential outcomes, for contingent liabilities representing all contingencies believed to be probable. These reserves include all costs expected for reclamation of a closed barite mine and product liability claims, as well as other circumstances involving material claims. The Company has 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 litigation process as well as the outcome of regulatory oversight is inherently uncertain, and our best judgement concerning the probable outcome of litigation or regulatory enforcement matters may prove to be incorrect in some instances. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, will not materially affect our financial position, cash flow or results of operations. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s experience. Because of uncertainty and risk inherent to litigation and arbitration, actual liabilities incurred may exceed our estimated liabilities and reserves, which could have a material financial or reputational impact on the Company. In many instances, the Company’s products and services embody or incorporate trade secrets or patented inventions. From time to time, we are engaged in disputes concerning protection of the Company’s trade secrets and confidential information, patents, and other intellectual property rights. Such disputes frequently involve complex, factual, technical and/or legal issues which result in high costs to adjudicate our rights and for which it may be difficult to predict the ultimate outcome. Because of the importance of the Company’s intellectual property to the Company’s performance, an adverse result in such disputes could result in the loss of revenue from royalties or a decline in sales of products protected by patents, which could materially and adversely impact our financial performance. 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 become subject to new government or regulatory restrictions or involved in governmental investigations, internal investigations, political or other enforcement matters. In such circumstances, such regulations, investigations, or other proceedings 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, from time to time, become involved in these investigations, at substantial cost to the Company. We also are subject to trade regulations, supply chain regulations, and other regulatory compliance in which the laws and regulations of different jurisdictions conflict or these regulations may conflict with contractual terms. In such circumstances, our compliance with U.S. laws and regulations may subject us to risk of fines, penalties or contractual liability in other jurisdictions. Our efforts to actively manage such risks may not always be successful which could lead to negative impacts on revenue or earnings. The Company is exposed to customs and trade regulation risk in the countries in which we do business or to which we transport goods. Such trade regulations can be complex and conflicting, as different countries use trade regulation to promote conflicting policy objectives. Compliance with these laws and regulations present challenges which could result in future liabilities (for example, when laws conflict between countries). The Company may face increased tariffs and trade costs, loss of revenue, loss of customers, increased costs, the need for renegotiation of agreements, and other business disruptions. In addition, trade regulations, export controls, and other laws may adversely impact our ability to do business in certain countries, e.g.: Iran, Syria, Russia, China and Venezuela. Most recently, Russian actions concerning a potential incursion into, or war with, Ukraine have led to threats of increased sanctions by the United States and European Union. The likelihood, and precise scope, of such sanctions remains undetermined. The imposition of sanctions and the potentially broader impact of a war between Russia and Ukraine could have a material adverse effect on our financial performance. Uncertainty arising from the COVID-19 pandemic continues to adversely impact many jurisdictions and disrupt normal economic activities. The Company’s ability to manufacture equipment and perform services could also be impaired and the Company could be exposed to liabilities resulting from interruption or delay in its ability to perform due to limited manpower, travel restrictions, difficulty obtaining visas, adverse health consequences to employees, supply chain disruption, inflationary pressures, and materials shortages. The Company continues to see operational delays due to supply chain disruption and closure or limitations imposed on our facilities and work force, from “shelter in place” regulation in different jurisdictions around the world. We also face sometimes conflicting regulatory and legal prescriptions concerning vaccine mandates and prohibitions of vaccine mandates. We may face loss of workers, labor shortages, litigation, fines and/or other adverse consequences resulting from vaccine mandates and enforcement of other COVID-19 regulations. Disputes may arise regarding application of force majeure contract provisions and allocation of responsibility among customers, the Company, and suppliers, resulting in material added cost and/or litigation. Our customers may attempt to cancel or delay projects, cancel contracts, or may invoke force majeure clauses. Our customers may also seek to delay or may default on their payments to us. As a result, the Company may be exposed to additional costs, liabilities and risks which could materially, adversely impact our financial performance and results. These potential operational and service delays resulting from the COVID-19 pandemic could result in contractual or other legal claims from our customers. At this time, it is not possible to quantify all these risks, but the combination of these factors could have a material impact on our financial results. Due to market conditions and ongoing concerns about the energy transition, demand for our products and services may decline. Legal restrictions on exploration and production may impede our customer’s ability to do business in certain jurisdictions. The political environment may adversely impact demand for hydrocarbons in different jurisdictions or world-wide. The demand for energy may be constrained with adverse consequences for our customers and for the company. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Common Stock | 13. Common Stock NOV has authorized 1 billion shares of $0.01 par value common stock. The Company also has authorized 10 million shares of $0.01 par value preferred stock, none of which is issued or outstanding. Cash dividends aggregated $20 million and $19 million for the years ended December 31, 2021 and 2020, respectively. The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors. Total compensation cost that has been charged against income for all share-based compensation arrangements was $78 million, $105 million and $130 million for 2021, 2020 and 2019, respectively. The total income tax benefit recognized before consideration of valuation allowance in the consolidated statements of income for all share-based compensation arrangements was $2 million, $3 million and $14 million for 2021, 2020 and 2019, respectively. The Company’s 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 42.7 million. The 2018 Plan is also subject to a fungible ratio concept, such that the issuance of stock options and stock appreciation rights reduces the number of available shares under the 2018 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 December 31, 2021, approximately 13.5 million shares were available for future grants The Company also has outstanding awards under its other stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”), however the Company is no longer granting new awards under 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 Stock Options Options granted under our stock-based compensation plans generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant. The purchase price of options granted may not be less than the closing market price of NOV common stock on the date of grant. Stock option information summarized below includes amounts for the 2018 Plan and the Plan and stock plans of acquired companies. Options outstanding at December 31, 20 2 1 under the stock option plans have exercise prices between $ 15.00 and $ 77.99 per share, and expire at various dates from February 2 2 , 20 2 2 to February 2 3 , 20 3 1 . The following summarizes options activity: Years Ended December 31, 2021 2020 2019 Number Average Number Average Number Average of Exercise of Exercise of Exercise Shares Price Shares Price Shares Price Shares under option at beginning of year 21,005,502 $ 45.70 21,310,099 $ 47.68 21,009,508 $ 48.88 Granted 1,669,511 15.00 1,650,262 20.23 1,493,576 28.72 Forfeited (1,398,052 ) 63.65 (1,954,859 ) 45.75 (944,917 ) 50.57 Exercised — — — — (248,068 ) 29.70 Shares under option at end of year 21,276,961 $ 42.09 21,005,502 $ 45.70 21,310,099 $ 47.68 Exercisable at end of year 18,039,330 $ 46.27 17,893,434 $ 49.25 17,796,607 $ 50.49 The following summarizes information about stock options outstanding at December 31, 2021: Weighted-Avg Options Outstanding Options Exercisable Remaining Weighted-Avg Weighted-Avg Range of Exercise Price Contractual Life Shares Exercise Price Shares Exercise Price $15.00 - $55.00 5.26 17,108,202 $ 35.39 13,870,571 $ 39.26 $55.01 - $70.00 1.72 3,135,924 66.85 3,135,924 66.85 $70.01 - $77.99 0.17 1,032,835 77.92 1,032,835 77.92 Total 4.49 21,276,961 $ 42.09 18,039,330 $ 46.27 The weighted-average fair value of options granted during 2021, 2020 and 2019, was approximately $5.75, $5.83 and $9.06 per share, respectively, as determined using the Black-Scholes option-pricing model. The total intrinsic value of options exercised during 2021 and 2020 was $0 The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise activity. The use of the Black Scholes model requires the use of actual employee exercise activity data and the use of a number of complex assumptions including expected volatility, risk-free interest rate, expected dividends and expected term. Years Ended December 31, Valuation Assumptions: 2021 2020 2019 Expected volatility 43.4 % 35.0 % 35.9 % Risk-free interest rate 0.6 % 1.2 % 2.5 % Expected dividend yield 0.0 % 1.0 % 0.7 % Expected term (in years) 5.1 4.8 4.5 The Company used the actual volatility for traded options for the past 10 years prior to option date as the expected volatility assumption required in the Black Scholes model. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock options. The dividend yield assumption is based on the history and expectation of dividend payouts. The estimated expected term is based on actual employee exercise activity for the past ten years. Forfeitures are accounted for as they occur. The following summary presents information regarding outstanding options at December 31, 2021 and changes during 2021 with regard to options under all stock option plans: Weighted- Average Weighted Average Remaining Contractual Aggregate Shares Exercise Price Term (years) Intrinsic Value Outstanding at December 31, 2020 21,005,502 $ 45.70 4.89 $ — Granted 1,669,511 $ 15.00 Forfeited (1,398,052 ) $ 63.65 Exercised — $ — Outstanding at December 31, 2021 21,276,961 $ 42.09 4.49 $ — Exercisable at December 31, 2021 18,039,330 $ 46.27 3.79 $ — At December 31, 2021, total unrecognized compensation cost related to nonvested stock options was $11 million. This cost is expected to be recognized over a weighted-average period of three years. The total fair value of stock options vested in 2021, 2020 and 2019 was approximately $12 million, $18 million and $32 million, respectively. Cash received from option exercises for 2021 and 2020 was zero. Cash received from option exercises in 2019 was $7 million. The actual tax benefit (expense) realized for the tax deductions from option exercises was zero in 2021 and 2020. The actual tax benefit (expense) realized for the tax deductions from option exercises in 2019 was $(2) million. Stock Appreciation Rights On December 20, 2017, the Company made a tender offer to exchange SARs issued to certain employees on February 24, 2016 (“2016 SARs”) for cash, amended SARs, and new stock options. The transaction was structured to provide the employees an equal long-term incentive compensation value, while alleviating volatility in the Company’s earnings caused by required mark-to-market accounting on outstanding SARS. Of the outstanding 2016 SARs, 94.75% were exchanged resulting in a total cash payment of $14 million and granting of 3,613,707 new stock options on the exchange date with an exercise price of $34.32 and a fair value of $8.47, with vesting matched to the exchanged 2016 SARs. The following summary presents information regarding outstanding SARs: Year Ended December 31, 2021 2020 Number Average Number Average of Exercise of Exercise Shares Price Shares Price Shares under SARs at beginning of year 1,234,565 $ 28.40 1,330,257 $ 28.45 Granted — — 7,912 20.23 Forfeited (40,631 ) 28.32 (103,604 ) 28.38 Exercised — — — — Shares under SARs at end of year 1,193,934 $ 28.40 1,234,565 $ 28.40 Exercisable at end of year 1,186,296 $ 28.44 1,219,555 $ 28.44 The Company recognized no expense in 2021, 2020, or 2019. There was no liability for cash-settled SARs at December 31, 2021. Restricted Shares The Company issues restricted stock awards and restricted stock units to officers and key employees in addition to stock options. On February 22, 2021, the Company granted 2,977,290 shares of restricted stock and restricted stock units with a fair value of $15.00 per share; and performance share awards to senior management employees with potential payouts varying from zero to 1,434,000 shares. The restricted stock and restricted stock units vest in three equal annual installments commencing on the first anniversary of the date of grant. The performance share awards can be earned based on performance against established goals over a three-year performance period. The 2019, 2020 and 2021 performance share awards are divided into two independent parts that are subject to two separate performance metrics: 85% with a TSR (total shareholder return) goal and 15% with an internal NVA (“National Oilwell Varco Value Added”) (return on capital metric) goal. Performance against the TSR goal is determined by comparing the performance of the Company’s TSR with the TSR performance of the members of the OSX index for the three-year performance period. The TSR portion of the performance share awards is subject to a vesting cap equal to 100% of Target Level if the Company’s absolute TSR is negative, regardless of relative TSR results. Conversely, if the Company’s absolute TSR is greater than 15% annualized over the three-year performance period the payout amount shall not be less than 50% of Target Level, regardless of relative TSR results. The NVA goal is based on the Company’s improvement in NVA from the beginning of the performance period until the end of the performance period. NVA shall be calculated as an amount equal to the Company’s (a) gross cash earnings less (b) average gross operating assets times an amount equal to a required return on assets. On May 19, 2021, the Company granted 78,552 restricted stock awards with a fair value of $16.50 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. The following summary presents information regarding outstanding restricted shares: Years Ended December 31, 2021 2020 2019 Weighted- Weighted- Weighted- Number Average Number Average Number Average of Grant Date of Grant Date of Grant Date Units Fair Value Units Fair Value Units Fair Value Nonvested at beginning of year 6,073,963 $ 31.85 6,274,308 $ 33.10 5,914,860 $ 34.41 Granted 3,772,842 $ 15.03 3,166,402 $ 19.98 3,335,315 $ 28.52 Vested (2,672,507 ) $ 15.38 (3,229,624 ) $ 20.09 (2,901,945 ) $ 25.67 Forfeited (237,724 ) $ 63.65 (137,123 ) $ 45.75 (73,922 ) $ 50.57 Nonvested at end of year 6,936,574 $ 21.32 6,073,963 $ 31.85 6,274,308 $ 33.10 At December 31, 2021, there was approximately $70 million of unrecognized compensation cost related to nonvested restricted stock awards and restricted stock units, which is expected to be recognized over a weighted-average period of two years. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 1 4 . Revenue 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): Year Ended December 31, 2021 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 904 $ 789 $ 275 $ — $ 1,968 International 991 1,131 1,434 — 3,556 Eliminations 64 43 30 (137 ) — $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Land $ 1,423 $ 1,250 $ 390 $ — $ 3,063 Offshore 472 670 1,319 — 2,461 Eliminations 64 43 30 (137 ) — $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Year Ended December 31, 2020 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 824 $ 751 $ 227 $ — $ 1,802 International 988 1,639 1,661 — 4,288 Eliminations 55 43 31 (129 ) — $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Land $ 1,308 $ 1,426 $ 473 $ — $ 3,207 Offshore 504 964 1,415 — 2,883 Eliminations 55 43 31 (129 ) — $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Year Ended December 31, 2019 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 1,710 $ 1,122 $ 529 $ — $ 3,361 International 1,441 1,590 2,087 — 5,118 Eliminations 63 59 66 (188 ) — $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 Land $ 2,531 $ 1,808 $ 758 $ — $ 5,097 Offshore 620 904 1,858 — 3,382 Eliminations 63 59 66 (188 ) — $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 The Company did not have any customers with revenues greater than 10% Contract Assets and Liabilities Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. There were no impairment losses recorded on contract assets for the years ending December 31, 2021, 2020 and 2019. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue. The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Contract Liabilities Balance at December 31, 2020 $ 611 $ 354 Provision, net 1 — Billings (866 ) 933 Revenue recognized 806 (818 ) Currency translation adjustments and other (91 ) (77 ) Balance at December 31, 2021 $ 461 $ 392 Allowance for Credit Losses The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and forecasts relevant to assessing risk associated with the collectability of receivables and contract assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of December 31, 2021, and December 31, 2020, the allowance for credit losses totaled $ 89 million and $ 102 million, respectively . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The domestic and foreign components of income (loss) before income taxes were as follows (in millions): Years Ended December 31, 2021 2020 2019 Domestic $ (257 ) $ (2,169 ) $ (4,501 ) Foreign 27 (610 ) (1,961 ) $ (230 ) $ (2,779 ) $ (6,462 ) The components of the provision for income taxes consisted of (in millions): Years Ended December 31, 2021 2020 2019 Current: Federal $ 4 $ (279 ) $ (7 ) State (1 ) (4 ) 4 Foreign 23 106 60 Total current income tax provision 26 (177 ) 57 Deferred: Federal (1 ) 7 (344 ) State — — (18 ) Foreign (10 ) (72 ) (64 ) Total deferred income tax provision (11 ) (65 ) (426 ) Total income tax provision $ 15 $ (242 ) $ (369 ) The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions): Years Ended December 31, 2021 2020 2019 Federal income tax at U.S. statutory rate $ (48 ) $ (584 ) $ (1,357 ) Foreign income tax rate differential (9 ) (30 ) (40 ) Goodwill impairment — 271 666 Reduction of FTC carryforwards — 184 — Tax Benefit from CARES Act — (83 ) — Change in deferred tax valuation allowance 31 (83 ) 218 Nondeductible expenses 17 44 61 Foreign dividends, net of foreign tax credits 54 28 163 Change in uncertain tax positions 13 20 (60 ) State income taxes - net of federal benefit (1 ) (4 ) (16 ) Income tax credits (11 ) — — Other (31 ) (5 ) (4 ) Total income tax provision $ 15 $ (242 ) $ (369 ) The effective tax rate for the year ended December 31, 2021 was (6.5%), compared to 8.7% for 2020. For the year-ended 2021, the effective tax rate was negatively impacted by current year losses in certain jurisdictions with no tax benefit, partially offset by favorable adjustments related to utilization of losses and tax credits for prior year tax returns. For the year ended December 31, 2020 the effective tax rate was negatively impacted by the impairment of nondeductible goodwill and the establishment of additional valuation allowances for current year losses and other tax attributes, partially offset by the release of valuation allowance as a result of (a) the carryback of $591 million of U.S. net operating losses from 2019 to 2014 as a result of the CARES Act and (b) the filing of an amended U.S. tax return to deduct foreign tax credits and carryback the resulting $287 million U.S. net operating loss from 2016 to 2014. Significant components of our deferred tax assets and liabilities were as follows (in millions): December 31, 2021 2020 Deferred tax assets: Allowances and operating liabilities $ 297 $ 318 Net operating loss carryforwards 446 387 Stock Compensation 56 61 Tax credit carryforwards 398 411 Other 135 122 Valuation allowance (1,127 ) (1,093 ) Total deferred tax assets 205 206 Deferred tax liabilities: Tax over book depreciation 56 60 Capital leases 76 80 Intangible assets 52 49 Deferred income 51 47 Accrued tax on unremitted earnings 33 33 Other 3 15 Total deferred tax liabilities 271 284 Net deferred tax liability $ 66 $ 78 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Unrecognized tax benefit at beginning of year $ 57 $ 38 $ 98 Gross increase for tax positions in prior years 8 25 10 Gross decrease for tax positions in prior years (1 ) (2 ) (60 ) Cash Settlements (1 ) (1 ) (3 ) Lapse of statute of limitations (3 ) (3 ) (7 ) Unrecognized tax benefit at end of year $ 60 $ 57 $ 38 The balance of unrecognized tax benefits at December 31, 2021, 2020 and 2019 was $60 million, $57 million and $38 million, respectively. Accruals related to prior year domestic and foreign jurisdiction issues resulted in uncertain tax position increases of $8 million in 2021. Resolutions of domestic and foreign jurisdiction audits resulted in a $1 million and $4 million decrease in uncertain tax provisions for the years ended December 31, 2021 and 2020, respectively. Substantially all of the unrecognized tax benefits, if ultimately realized, would be recorded as a benefit to the effective tax rate. The Company does not anticipate any material change within the next twelve months due to settlements and conclusions of tax examinations. To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements consistent with the Company’s policy. For the years ended December 31, 2021, 2020 and 2019, we recorded income tax expense of $8 million, $2 million and nil, respectively, for interest and penalty related to unrecognized tax benefits. As of December 31, 202 1 and 20 20 , the Company had accrued $ 20 million and $ million, respectively, of interest and penalty relating to unrecognized tax benefits. The Company is subject to taxation in the United States as well as various states and foreign jurisdictions. The Company has significant operations in the United States, Norway, Saudi Arabia, Brazil, Canada, the United Kingdom, the Netherlands and Denmark. Tax years that remain subject to examination by major tax jurisdictions vary by legal entity, but are generally open in the U.S. for tax years ending after 2013 and outside the U.S. for tax years ending after 2016. Net operating loss carryforwards by jurisdiction and expiration as of December 31, 2021 were as follows (in millions): Federal State Foreign Total 2021 - 2025 Expiration $ 19 $ 4 $ 244 $ 267 2026 - 2040 Expiration 31 383 381 795 Unlimited Expiration 505 — 646 1,151 Total Net Operating Loss (NOL) $ 555 $ 387 $ 1,271 $ 2,213 Tax Effected NOL $ 117 $ 25 $ 304 $ 446 The Company has $387 million of excess foreign tax credits in the United States as of December 31, 2021, of which $128 million, $144 million, $96 million, $12 million, and $7 million will expire in 2022, 2027, 2028, 2030, and 2031 respectively. As of December 31, 2021, the Company has remaining tax-deductible goodwill of $93 million, resulting from acquisitions. The amortization of this goodwill is deductible over various periods ranging up to 10 years. |
Business Segments and Geographi
Business Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Areas | 16. Business Segments. and Geographic Areas The Company’s operations are organized into three operating segments: Wellbore Technologies, Completion & Production Solutions and Rig Technologies. Wellbore Technologies The Company’s Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance, including: solids control and waste management equipment and services; portable power generation; drill pipe; wired pipe; drilling optimization and automation services; tubular inspection, repair and coating services; instrumentation; measuring and monitoring; downhole and fishing tools; steerable technologies; and drill bits. Wellbore Technologies focuses on oil and gas companies and supports drilling contractors, oilfield service companies, and oilfield equipment rental companies. Demand for the segment’s products and services depends on the level of oilfield drilling activity by oil and gas companies, drilling contractors, and oilfield service companies. Completion & Production Solutions The Company’s Completion & Production Solutions segment integrates technologies for well completions and oil and gas production. The segment designs, manufactures, and services equipment and technologies needed for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; well intervention, including coiled tubing units, coiled tubing, and wireline units and tools; well construction, including premium connections and liner hangers; onshore production, including composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and, offshore production, including floating production systems and subsea production technologies. The segment also manufactures industrial pumps and mixers. Completion & Production Solutions supports service companies and oil and gas companies. Demand for the segment’s products depends on the level of oilfield completions and workover activity by oilfield service companies and drilling contractors, and capital spending plans by oil and gas companies and oilfield service companies. The segment also designs and manufactures equipment for industrial markets. This includes specialized, technology-driven progressive cavity pumps and mixers for a wide breadth of industrial end markets with high failure costs, p remium pole products to support connectivity, lighting, and power for municipal and residential applications including 5G, smart-city infrastructure, roads and highways, and energy-grid modernization. Demand for these products is driven by general industrial activity and infrastructure spend. Rig Technologies The Company’s Rig Technologies segment manufactures and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore as well as other marine-based markets, including offshore wind vessels. The segment designs, manufactures and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality. Equipment and technologies the segment provides to customers include: substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems, including drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; major equipment components for offshore wind construction vessels; and pipelay and construction systems. The segment also provides spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training through an extensive network of aftermarket service and repair facilities strategically located in major areas of drilling operations around the world. Rig Technologies supports land and offshore drillers. Demand for the segment’s products depends on drilling contractors’ and oil and gas companies’ capital spending plans, specifically capital expenditures on rig construction and refurbishment; and secondarily on the overall level of oilfield drilling activity, which drives demand for spare parts, service, and repair for the segment’s large installed base of equipment. The segment also designs and builds equipment for wind turbine installation companies, where demand is dependent on global investment into offshore wind energy developments. Geographic Areas: The following table presents consolidated revenues by country based on sales destination of the products or services (in millions): Years Ended December 31, 2021 2020 2019 United States $ 1,760 $ 1,634 $ 3,112 Norway 365 464 512 Saudi Arabia 316 343 436 Brazil 316 224 269 China 222 288 285 Canada 207 168 247 United Kingdom 204 222 333 Singapore 143 242 473 United Arab Emirates 130 221 224 South Korea 32 33 69 Other Countries 1,829 2,251 2,519 Total $ 5,524 $ 6,090 $ 8,479 The following table presents plant, property and equipment by country based on the location (in millions): December 31, 2021 2020 United States $ 898 $ 1,011 Saudi Arabia 231 176 Brazil 87 92 United Kingdom 84 86 Denmark 72 76 Canada 59 73 United Arab Emirates 65 68 South Korea 60 51 Mexico 28 30 Singapore 14 15 Russia 10 13 Other Countries 215 236 Total $ 1,823 $ 1,927 Business Segments: The following table presents selected financial data by business segment (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Eliminations and corporate (1) Total December 31, 2021 Revenue $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Operating profit (loss) (2) 74 (65 ) 43 (186 ) (134 ) Capital expenditures 77 46 74 4 201 Depreciation and amortization 158 62 71 15 306 Goodwill 342 473 712 — 1,527 Total assets 2,670 2,465 2,621 1,794 9,550 December 31, 2020 Revenue $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Operating profit (loss) (2) (858 ) (977 ) (362 ) (228 ) (2,425 ) Capital expenditures 87 48 80 11 226 Depreciation and amortization 187 75 77 13 352 Goodwill 308 473 712 - 1,493 Total assets 2,665 2,472 2,923 1,869 9,929 December 31, 2019 Revenue $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 Operating profit (loss) (2) (3,551 ) (1,934 ) (524 ) (270 ) (6,279 ) Capital expenditures 123 64 31 15 233 Depreciation and amortization 284 150 87 12 533 Goodwill 843 1,054 910 — 2,807 Total assets 4,078 3,826 3,758 1,487 13,149 (1) Sales from one segment to another generally and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets. (2) Segment operating loss for 2021 includes charges, net of related credits, for: inventory write-downs (Wellbore Technologies $(2) million; Completion & Production Solutions $(12) million; and, Rig Technologies $1 million); and severance and other restructuring costs (Wellbore Technologies $32 million; Completion & Production Solutions $12 million; and, Rig Technologies $19 million). Segment operating loss for 2020 includes charges, net of related credits, for: goodwill, other intangible asset and other long lived asset impairments (Wellbore Technologies $665 million; Completion & Production Solutions $1,010 million; and, Rig Technologies $198 million); inventory write-downs (Wellbore Technologies $50 million; Completion & Production Solutions $101 million; and, Rig Technologies $175 million); and severance and other restructuring costs (Wellbore Technologies $134 million; Completion & Production Solutions $21 million; and, Rig Technologies $29 million). |
Schedule II Nov Inc. Valuation
Schedule II Nov Inc. Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Nov Inc. Valuation and Qualifying Accounts | SCHEDULE II NOV INC. VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2021, 2020 and 2019 (in millions) Balance beginning of year Additions (Deductions) charged to costs and expenses Charge off's and other Balance end of year Allowance for doubtful accounts: 2021 $ 100 $ 5 $ (17 ) $ 88 2020 132 7 (39 ) 100 2019 161 21 (50 ) 132 Reserve for excess and obsolete inventories: 2021 $ 577 $ 73 $ (206 ) $ 444 2020 843 367 (633 ) 577 2019 644 659 (460 ) 843 Valuation allowance for deferred tax assets: 2021 $ 1,093 $ 31 $ 3 $ 1,127 2020 1,175 (83 ) 1 1,093 2019 955 218 2 1,175 Environmental accruals 2021 $ 90 $ 12 $ (24 ) $ 78 2020 104 13 (27 ) 90 2019 66 57 (19 ) 104 Warranty reserve: 2021 $ 87 $ 15 $ (29 ) $ 73 2020 90 22 (25 ) 87 2019 105 41 (56 ) 90 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records all derivative financial instruments at their fair value in its Consolidated Balance Sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments that the Company holds are designated as cash flow hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months |
Inventories | Inventories Inventories are stated at the lower of cost or estimated net realizable value using the first-in, first-out or average cost methods. Inventories consist of raw materials and supplies, work-in-process and finished goods and purchased products. The Company reviews historical usage of inventory on-hand, assumptions about future demand and market conditions, and estimates about potential alternative uses, which are limited, to estimate net realizable value. The Company evaluates inventory using the best information available at the time to inform our assumptions and estimates about future demand and resulting sales volumes, and records reserves as necessary. W e recorded charges for additions to inventory reserves of $73 million, $367 million, and $659 million for the years ended December 31, 2021, 2020, and 2019, respectively, consisting primarily of obsolete and surplus inventories. At December 31, 2021 and 2020, inventory reserves totaled $444 million and $577 million, or 25.0% and 29.0% of gross inventory, respectively |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $264 million, $302 million, and $355 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 5 to the consolidated financial statements. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying value of assets used in operations that are not recoverable is reduced to fair value if lower than carrying value. In determining the fair market value of the assets, we consider market trends and recent transactions involving sales of similar assets, or when not available, discounted cash flow analysis. Impairments of plant, property and equipment were $262 million and $252 million for the years ended December 31, 2020 and 2019, respectively. |
Acquisitions and Investments | Acquisitions and Investments Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is preliminarily allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. Subsequent changes to preliminary amounts are made prospectively. The Company paid cash of $52 million, $14 million, and $180 million for acquisitions for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company paid $29 million in stock (consisting of 2 million shares) for acquisitions in 2021. These acquisitions did not have a material effect on the Company’s operating results, cash flows or financial position. |
Foreign Currency | Foreign Currency The functional currency for most of our foreign operations is the local currency. However, c ertain foreign operations, including our operations in Norway, use the U.S. dollar as the functional currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the U.S. dollar at current exchange rates are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates in effect during the period. Accordingly, financial statements of these foreign subsidiaries are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets and related elements of expense. Revenue and expense elements are remeasured at rates that approximate the rates in effect on the transaction dates. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income. Net foreign currency transaction losses were $16 million, $2 million, and $36 million for the years ending December 31, 2021, 2020 and 2019, respectively, and are included in other income (expense) in the accompanying statement of loss. |
Revenue Recognition, Service and Repair Work, and Costs to Obtain and Fulfill a Contract | Revenue Recognition The majority of the Company’s 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 a customer. Products are sold or rented and services are provided based upon a fixed or determinable price and do not generally include right of return or other significant post-delivery obligations. 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. We have elected to apply the practical expedient that does not require an adjustment for a financing component if, at contract inception, the period between when we transfer the promised goods or service to the customer and when the customer pays for the goods or service is one year or less. Shipping and handling costs are recognized when incurred and are treated as costs to fulfill the original performance obligation instead of as a separate performance obligation. Revenue is generated from contracts that may include multiple performance obligations. The Company considers the degree of customization, integration and interdependency of the related products and services when assessing distinct performance obligations within one contract. Stand-alone selling price (“SSP”) for each distinct performance obligation is generally determined using the price at which the products and services would be sold separately to the customer. Discounts, when provided, are allocated based on the relative SSP of the various products and services. 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 Revenue is recognized over-time for certain long-term construction contracts in the Completion & Production Solutions and Rig Technologies segments. These contracts include custom designs for customer-specific applications that are unique and require significant engineering efforts. Revenue is recognized as work progresses on each contract. Right to payment is enforceable 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, progress towards completion of each contract 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. Any expected losses on a project are recorded in full in the period in which the loss becomes probable. These long-term construction contracts generally include integrating a complex set of tasks and components into a single project or capability so they 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 judgement. 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 $38 million and $41 million for the years ended December 31, 2021 and 2020, respectively, primarily due to change orders. Service and Repair Work 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. |
Remaining Performance Obligations | Remaining Performance Obligations Remaining performance obligations represent 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. |
Service and Product Warranties | Service and Product Warranties The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. The Company monitors the actual cost of performing these discretionary services and adjusts the accrual based on the most current information available. The changes in the carrying amount of service and product warranties are as follows (in millions): Balance at December 31, 2019 $ 90 Net provisions for warranties issued during the year 22 Amounts incurred (26 ) Currency translation adjustments 1 Balance at December 31, 2020 $ 87 Net provisions for warranties issued during the year 15 Amounts incurred (24 ) Currency translation adjustments (5 ) Balance at December 31, 2021 $ 73 |
Income Taxes | Income Taxes The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. |
Concentration of Credit Risk | Concentration of Credit Risk We grant credit to our customers, which operate primarily in the oil and gas industry. Concentrations of credit risk are limited because we have many geographically diverse customers, thus spreading trade credit risk. We control credit risk through credit evaluations, credit limits and monitoring procedures. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral but may require letters of credit for certain international sales. Credit losses are provided for in the financial statements. Allowances for doubtful accounts are determined based on a continuous process of assessing the Company’s portfolio on an individual customer basis considering current market conditions and trends. This process consists of a review of historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. Based on a review of these factors, the Company will establish or adjust allowances for specific customers. Accounts receivable are net of allowances for doubtful accounts of approximately $88 million and $100 million at December 31, 2021 and 2020, respectively. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method. The fair value of stock option grants and restricted stock is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans. |
Environmental Liabilities | Environmental Liabilities When environmental assessments or remediations are probable and the costs can be reasonably estimated, remediation liabilities are recorded on an undiscounted basis and are adjusted as further information develops or circumstances change. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates include but are not limited to, estimated losses on accounts receivable, estimated costs and related margins of projects accounted for over time, estimated realizable value on excess and obsolete inventory, contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of Reporting Units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ from those estimates. |
Contingencies | Contingencies The Company accrues for costs relating to litigation claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and reasonably estimable. In circumstances where the most likely outcome of a contingency can be reasonably estimated, we accrue a liability for that amount. Where the most likely outcome cannot be estimated, a range of potential losses is established and if no one amount in that range is more likely than others, the low end of the range is accrued. Such estimates may be based on advice from third parties or on management’s judgement, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous judgements with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. |
Net Loss Attributable to Company Per Share | Net Loss Attributable to Company Per Share The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Years Ended December 31, 2021 2020 2019 Numerator: Net loss attributable to Company $ (250 ) $ (2,542 ) $ (6,095 ) Denominator: Basic—weighted average common shares outstanding 386 384 382 Dilutive effect of employee stock options and other unvested stock awards — — — Diluted outstanding shares 386 384 382 Basic loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Diluted loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Cash dividends per share $ 0.05 $ 0.05 $ 0.20 Net loss attributable to Company allocated to participating securities was immaterial for the years ended December 31, 2021, 2020 and 2019 and therefore not excluded from net loss attributable to Company per share calculation. The Company had stock options outstanding that were anti-dilutive totaling 21 million, 26 million, and 20 million at December 31, 2021, 2020 and 2019, respectively. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of accounting for income taxes. The Company adopted ASU 2019-12 for the first quarter of 2021 with no material impact on the C ompany’s financial position, results of operations and cash flows. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2021-01 and ASU 2020-04, “Reference Rate Reform (Topic 848).” This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management is currently assessing the impact of adopting ASU 2020-04 on the Company’s financial position, results of operations and cash flows . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Changes in Carrying Amount of Service and Product Warranties | The changes in the carrying amount of service and product warranties are as follows (in millions): Balance at December 31, 2019 $ 90 Net provisions for warranties issued during the year 22 Amounts incurred (26 ) Currency translation adjustments 1 Balance at December 31, 2020 $ 87 Net provisions for warranties issued during the year 15 Amounts incurred (24 ) Currency translation adjustments (5 ) Balance at December 31, 2021 $ 73 |
Computation of Weighted Average Basic and Diluted Shares Outstanding | The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Years Ended December 31, 2021 2020 2019 Numerator: Net loss attributable to Company $ (250 ) $ (2,542 ) $ (6,095 ) Denominator: Basic—weighted average common shares outstanding 386 384 382 Dilutive effect of employee stock options and other unvested stock awards — — — Diluted outstanding shares 386 384 382 Basic loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Diluted loss attributable to Company per share $ (0.65 ) $ (6.62 ) $ (15.96 ) Cash dividends per share $ 0.05 $ 0.05 $ 0.20 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | Forward currency contracts consist of (in millions): Currency Denomination Currency December 31, 2021 December 31, 2020 South Korean Won KRW 17,600 KRW 17,600 Norwegian Krone NOK 2,430 NOK 3,817 Russian Ruble RUB 1,128 RUB 1,118 Mexican Peso MXN 637 MXN 402 Japanese Yen JPY 476 JPY 340 U.S. Dollar USD 415 USD 367 South African Rand ZAR 124 ZAR 124 Euro EUR 106 EUR 116 Singapore Dollar SGD 36 SGD 31 British Pound Sterling GBP 14 GBP 18 Danish Krone DKK 7 DKK 875 Brazilian Real BRL — BRL 768 Canadian Dollar CAD — CAD 1 |
Derivative Instruments and their Balance Sheet Classifications | The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Fair Values of Derivative Instruments (In millions) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet December 31, Balance Sheet December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 11 $ 17 Accrued liabilities $ 2 $ 11 Foreign exchange contracts Other Assets — 12 Other Liabilities — - Total derivatives designated as hedging instruments under ASC Topic 815 $ 11 $ 29 $ 2 $ 11 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 7 $ 17 Accrued liabilities $ 6 $ 4 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 7 $ 17 $ 6 $ 4 Total derivatives $ 18 $ 46 $ 8 $ 15 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): December 31, 2021 2020 Raw materials and supplies $ 350 $ 373 Work in process 218 189 Finished goods and purchased products 1,207 1,423 1,775 1,985 Less: Inventory reserve (444 ) (577 ) Total $ 1,331 $ 1,408 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of (in millions): Estimated December 31, Useful Lives 2021 2020 Land $ 174 $ 175 Buildings and improvements 5-35 Years 1,309 1,343 Operating equipment 2-20 Years 2,678 2,660 Rental equipment 2-15 Years 794 799 4,955 4,977 Less: Accumulated Depreciation (3,132 ) (3,050 ) $ 1,823 $ 1,927 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Identified, by Segment | Goodwill is identified by segment as follows (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Total Balance at December 31, 2019 843 1,054 910 2,807 Goodwill acquired during period 4 — — 4 Impairment (517 ) (580 ) (198 ) (1,295 ) Currency translation adjustments and other (22 ) (1 ) — (23 ) Balance at December 31, 2020 $ 308 $ 473 $ 712 $ 1,493 Goodwill acquired during period 34 — — 34 Balance at December 31, 2021 (1) $ 342 $ 473 $ 712 $ 1,527 (1) Accumulated goodwill impairment was $7,261 million as |
Identified Intangible Assets, by Segment | The net book values of identified intangible assets are identified by segment as follows (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Total Balance at December 31, 2019 $ 326 $ 275 $ 251 $ 852 Additions to intangible assets 20 — — 20 Impairment (78 ) (214 ) — (292 ) Amortization (12 ) (9 ) (28 ) (49 ) Currency translation adjustments (3 ) (5 ) 4 (4 ) Balance at December 31, 2020 $ 253 $ 47 $ 227 $ 527 Additions to intangible assets 22 — — 22 Amortization (10 ) (5 ) (28 ) (43 ) Currency translation adjustments (1 ) — (2 ) (3 ) Balance at December 31, 2021 $ 264 $ 42 $ 197 $ 503 |
Identified Intangible Assets, by Major Classification | Identified intangible assets by major classification consist of the following (in millions): Gross Accumulated Amortization Net Book Value December 31, 2020: Customer relationships $ 475 $ (300 ) $ 175 Trademarks 175 (116 ) 59 Patents 115 (53 ) 62 Indefinite-lived trade names 196 — 196 Other 94 (59 ) 35 Total identified intangibles $ 1,055 $ (528 ) $ 527 December 31, 2021: Customer relationships $ 471 $ (323 ) $ 148 Trademarks 174 (122 ) 52 Patents 145 (59 ) 86 Indefinite-lived trade names 196 — 196 Other 82 (61 ) 21 Total identified intangibles $ 1,068 $ (565 ) $ 503 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): December 31, 2021 2020 Vendor costs $ 124 $ 118 Compensation 209 196 Taxes (non-income) 119 158 Warranty 73 87 Insurance 45 48 Fair value of derivatives 8 15 Commissions 17 19 Interest 6 7 Other 177 215 Total $ 778 $ 863 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Leases | Components of leases are as follows (in millions): December 31, 2021 2020 Current portion of lease liabilities: Operating $ 76 $ 82 Financing 23 28 Total $ 99 $ 110 December 31, 2021 2020 Long-term portion of lease liability: Operating $ 357 $ 376 Financing 219 236 Total $ 576 $ 612 |
Components of Lease Expense | Components of lease expense were as follows (in millions): Years Ended December 31, 2021 December 31, 2020 Lease cost Finance lease cost Amortization of right-of-use assets $ 26 $ 31 Interest on lease liabilities 10 11 Operating lease cost 83 96 Short-term lease cost 74 64 Sub-lease income (9 ) (10 ) Total $ 184 $ 192 |
Schedule of Supplemental information Related to Leases | Supplemental information related to the Company’s leases is as follows (in millions): Years Ended December 31, 2021 December 31, 2020 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - finance leases $ 10 $ 11 Operating cash flows - operating leases 83 96 Financing cash flows - finance leases 26 31 Right-of-use assets obtained in exchange for new: Operating lease liabilities 37 47 Finance lease liabilities $ 9 $ 16 Weighted average remaining lease term at December 31, 2021: Operating leases 11 years 11 years Finance leases 18 years 18 years Weighted average discount rate at December 31, 2021: Operating leases 4.74 % 4.93 % Finance leases 3.86 % 3.92 % |
Future Minimum Lease Commitments for Leases with Initial or Remaining Terms of One Year or More | Future minimum lease commitments for leases with initial or remaining terms of one year or more at December 31, 2021, are payable as follows (in millions): Operating Finance 2022 $ 91 $ 32 2023 76 25 2024 65 21 2025 54 19 2026 43 17 Thereafter 219 214 Total lease payments 548 328 Less: Interest (115 ) (86 ) Present value of lease liabilities $ 433 $ 242 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): December 31, 2021 2020 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 1,090 1,089 $0.5 billion in Senior Notes, interest at 3.60% payable semiannually, principal due on December 1, 2029 494 493 $0.2 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 — 182 Other debt 129 70 Total Debt 1,713 1,834 Less current portion 5 — Long-term debt $ 1,708 $ 1,834 |
Principal Payments of Debt | Principal payments of debt for years subsequent to 2021 are as follows (in millions): 2022 5 2023 26 2024 10 2025 21 2026 11 Thereafter 1,640 $ 1,713 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Change in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension Plans | The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2021 and 2020, is as follows (in millions): Pension benefits Postretirement benefits At year end 2021 2020 2021 2020 Benefit obligation at beginning of year $ 641 $ 600 $ 43 $ 53 Service cost 1 1 — — Interest cost 11 14 1 — Actuarial loss (gain) (5 ) 54 4 5 Benefits paid (29 ) (29 ) (14 ) (17 ) Participants contributions — — — 2 Exchange rate loss (gain) (12 ) 17 — — Special events — — — — Plan amendments — — — — Settlements (13 ) (16 ) — — Benefit obligation at end of year $ 594 $ 641 $ 34 $ 43 Fair value of plan assets at beginning of year $ 584 $ 568 $ — $ — Actual return 32 43 — — Benefits paid (29 ) (29 ) (15 ) (17 ) Company contributions 4 5 15 15 Participants contributions — — — 2 Exchange rate gain (loss) (7 ) 13 — — Settlements (13 ) (16 ) — — Fair value of plan assets at end of year $ 571 $ 584 $ — $ — Funded status $ (23 ) $ (57 ) $ (34 ) $ (43 ) Accumulated benefit obligation at end of year $ 592 $ 637 |
Assumption Rates Used for Benefit Obligations | The assumption rates used for benefit obligations are as follows: Years Ended December 31, 2021 2020 Discount rate: United States plan 1.80% - 2.20% 1.20% - 2.40% International plans 1.00% - 1.90% 0.70% - 1.80% Salary increase: United States plan N/A N/A International plans 2.50% - 3.40% 1.75% - 2.90% |
Assumption Rates Used for Net Periodic Benefit Costs | The assumption rates used for net periodic benefit costs are as follows: Years Ended December 31, 2021 2020 2019 Discount rate: United States plan 1.20% - 2.40% 2.50% - 3.20% 3.90% - 4.20% International plans 0.70% - 1.80% 0.00% - 2.30% 1.80% - 2.90% Salary increase: United States plan N/A N/A N/A International plans 1.75% - 2.90% 1.80% - 3.10% 1.80% - 3.40% Expected return on assets: United States plan 3.90% 4.80% 5.70% International plans 0.80% - 3.40% 0.00% - 4.50% 1.90% - 4.30% |
Plan's Assets Carried at Fair Value | The following table sets forth by level, within the fair value hierarchy, the plan’s assets carried at fair value (in millions): Fair Value Measurements Total Level 1 Level 2 Level 3 December 31, 2020: Equity securities $ 108 $ — $ 108 $ — Bonds 253 — 253 — Other (insurance contracts) 221 — 155 66 Total Fair Value Measurements $ 582 $ — $ 516 $ 66 December 31, 2021: Equity securities $ 8 $ — $ 8 $ — Bonds 372 — 372 — Other (insurance contracts) 191 — 132 59 Total Fair Value Measurements $ 571 $ — $ 512 $ 59 |
Summary of Changes in Fair Value of Plan's Level Three Assets | The following table sets forth a summary of changes in the fair value of the plan’s Level 3 assets (in millions): Level 3 Plan Assets Balance at December 31, 2019 $ 63 Actual return on plan assets still held at reporting date - Purchases, sales and settlements (3 ) Currency translation adjustments 6 Balance at December 31, 2020 $ 66 Actual return on plan assets still held at reporting date (2 ) Purchases, sales and settlements (1 ) Currency translation adjustments (4 ) Balance at December 31, 2021 $ 59 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2018 $ (1,396 ) $ (14 ) $ (27 ) $ (1,437 ) Accumulated other comprehensive income (loss) before reclassifications (7 ) (2 ) 12 3 Amounts reclassified from accumulated other comprehensive income (loss) — 12 (1 ) 11 Balance at December 31, 2019 $ (1,403 ) $ (4 ) $ (16 ) $ (1,423 ) Accumulated other comprehensive income (loss) before reclassifications (78 ) 4 (30 ) (104 ) Amounts reclassified from accumulated other comprehensive income (loss) — 19 (1 ) 18 Balance at December 31, 2020 $ (1,481 ) $ 19 $ (47 ) $ (1,509 ) Accumulated other comprehensive income (loss) before reclassifications (34 ) (5 ) 10 (29 ) Amounts reclassified from accumulated other comprehensive income (loss) — (7 ) (1 ) (8 ) Balance at December 31, 2021 $ (1,515 ) $ 7 $ (38 ) $ (1,546 ) |
Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Years Ended December 31, 2021 2020 2019 Derivative Defined Derivative Defined Derivative Defined Financial Benefit Financial Benefit Financial Benefit Instruments Plans Total Instruments Plans Total Instruments Plans Total Revenue $ (1 ) $ — $ (1 ) $ 17 $ — 17 $ 1 $ — $ 1 Cost of revenue (8 ) — (8 ) 6 — 6 14 — 14 Selling, general, and administrative — (1 ) (1 ) — (1 ) (1 ) — (1 ) (1 ) Tax effect 2 — 2 (4 ) — (4 ) (3 ) — (3 ) $ (7 ) $ (1 ) $ (8 ) $ 19 $ (1 ) $ 18 $ 12 $ (1 ) $ 11 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Stock Options | The following summarizes options activity: Years Ended December 31, 2021 2020 2019 Number Average Number Average Number Average of Exercise of Exercise of Exercise Shares Price Shares Price Shares Price Shares under option at beginning of year 21,005,502 $ 45.70 21,310,099 $ 47.68 21,009,508 $ 48.88 Granted 1,669,511 15.00 1,650,262 20.23 1,493,576 28.72 Forfeited (1,398,052 ) 63.65 (1,954,859 ) 45.75 (944,917 ) 50.57 Exercised — — — — (248,068 ) 29.70 Shares under option at end of year 21,276,961 $ 42.09 21,005,502 $ 45.70 21,310,099 $ 47.68 Exercisable at end of year 18,039,330 $ 46.27 17,893,434 $ 49.25 17,796,607 $ 50.49 |
Summary of Stock Option Outstanding Information | The following summarizes information about stock options outstanding at December 31, 2021: Weighted-Avg Options Outstanding Options Exercisable Remaining Weighted-Avg Weighted-Avg Range of Exercise Price Contractual Life Shares Exercise Price Shares Exercise Price $15.00 - $55.00 5.26 17,108,202 $ 35.39 13,870,571 $ 39.26 $55.01 - $70.00 1.72 3,135,924 66.85 3,135,924 66.85 $70.01 - $77.99 0.17 1,032,835 77.92 1,032,835 77.92 Total 4.49 21,276,961 $ 42.09 18,039,330 $ 46.27 |
Assumption Used in Determination of Fair Value of Share Based Payment Awards | The use of the Black Scholes model requires the use of actual employee exercise activity data and the use of a number of complex assumptions including expected volatility, risk-free interest rate, expected dividends and expected term. Years Ended December 31, Valuation Assumptions: 2021 2020 2019 Expected volatility 43.4 % 35.0 % 35.9 % Risk-free interest rate 0.6 % 1.2 % 2.5 % Expected dividend yield 0.0 % 1.0 % 0.7 % Expected term (in years) 5.1 4.8 4.5 |
Summary of Information and Changes in Stock Options with Regard to Stock Option Plans | The following summary presents information regarding outstanding options at December 31, 2021 and changes during 2021 with regard to options under all stock option plans: Weighted- Average Weighted Average Remaining Contractual Aggregate Shares Exercise Price Term (years) Intrinsic Value Outstanding at December 31, 2020 21,005,502 $ 45.70 4.89 $ — Granted 1,669,511 $ 15.00 Forfeited (1,398,052 ) $ 63.65 Exercised — $ — Outstanding at December 31, 2021 21,276,961 $ 42.09 4.49 $ — Exercisable at December 31, 2021 18,039,330 $ 46.27 3.79 $ — |
Summary of Information Regarding Outstanding SARs | The following summary presents information regarding outstanding SARs: Year Ended December 31, 2021 2020 Number Average Number Average of Exercise of Exercise Shares Price Shares Price Shares under SARs at beginning of year 1,234,565 $ 28.40 1,330,257 $ 28.45 Granted — — 7,912 20.23 Forfeited (40,631 ) 28.32 (103,604 ) 28.38 Exercised — — — — Shares under SARs at end of year 1,193,934 $ 28.40 1,234,565 $ 28.40 Exercisable at end of year 1,186,296 $ 28.44 1,219,555 $ 28.44 |
Summary of Information Regarding Outstanding Restricted Shares | The following summary presents information regarding outstanding restricted shares: Years Ended December 31, 2021 2020 2019 Weighted- Weighted- Weighted- Number Average Number Average Number Average of Grant Date of Grant Date of Grant Date Units Fair Value Units Fair Value Units Fair Value Nonvested at beginning of year 6,073,963 $ 31.85 6,274,308 $ 33.10 5,914,860 $ 34.41 Granted 3,772,842 $ 15.03 3,166,402 $ 19.98 3,335,315 $ 28.52 Vested (2,672,507 ) $ 15.38 (3,229,624 ) $ 20.09 (2,901,945 ) $ 25.67 Forfeited (237,724 ) $ 63.65 (137,123 ) $ 45.75 (73,922 ) $ 50.57 Nonvested at end of year 6,936,574 $ 21.32 6,073,963 $ 31.85 6,274,308 $ 33.10 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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): Year Ended December 31, 2021 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 904 $ 789 $ 275 $ — $ 1,968 International 991 1,131 1,434 — 3,556 Eliminations 64 43 30 (137 ) — $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Land $ 1,423 $ 1,250 $ 390 $ — $ 3,063 Offshore 472 670 1,319 — 2,461 Eliminations 64 43 30 (137 ) — $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Year Ended December 31, 2020 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 824 $ 751 $ 227 $ — $ 1,802 International 988 1,639 1,661 — 4,288 Eliminations 55 43 31 (129 ) — $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Land $ 1,308 $ 1,426 $ 473 $ — $ 3,207 Offshore 504 964 1,415 — 2,883 Eliminations 55 43 31 (129 ) — $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Year Ended December 31, 2019 Completion Wellbore & Production Rig Technologies Solutions Technologies Eliminations Total North America $ 1,710 $ 1,122 $ 529 $ — $ 3,361 International 1,441 1,590 2,087 — 5,118 Eliminations 63 59 66 (188 ) — $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 Land $ 2,531 $ 1,808 $ 758 $ — $ 5,097 Offshore 620 904 1,858 — 3,382 Eliminations 63 59 66 (188 ) — $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 |
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 Contract Liabilities Balance at December 31, 2020 $ 611 $ 354 Provision, net 1 — Billings (866 ) 933 Revenue recognized 806 (818 ) Currency translation adjustments and other (91 ) (77 ) Balance at December 31, 2021 $ 461 $ 392 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income (Loss) Before Income Taxes | The domestic and foreign components of income (loss) before income taxes were as follows (in millions): Years Ended December 31, 2021 2020 2019 Domestic $ (257 ) $ (2,169 ) $ (4,501 ) Foreign 27 (610 ) (1,961 ) $ (230 ) $ (2,779 ) $ (6,462 ) |
Components of Provision for Income Taxes | The components of the provision for income taxes consisted of (in millions): Years Ended December 31, 2021 2020 2019 Current: Federal $ 4 $ (279 ) $ (7 ) State (1 ) (4 ) 4 Foreign 23 106 60 Total current income tax provision 26 (177 ) 57 Deferred: Federal (1 ) 7 (344 ) State — — (18 ) Foreign (10 ) (72 ) (64 ) Total deferred income tax provision (11 ) (65 ) (426 ) Total income tax provision $ 15 $ (242 ) $ (369 ) |
Difference Between Effective Tax Rate | The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions): Years Ended December 31, 2021 2020 2019 Federal income tax at U.S. statutory rate $ (48 ) $ (584 ) $ (1,357 ) Foreign income tax rate differential (9 ) (30 ) (40 ) Goodwill impairment — 271 666 Reduction of FTC carryforwards — 184 — Tax Benefit from CARES Act — (83 ) — Change in deferred tax valuation allowance 31 (83 ) 218 Nondeductible expenses 17 44 61 Foreign dividends, net of foreign tax credits 54 28 163 Change in uncertain tax positions 13 20 (60 ) State income taxes - net of federal benefit (1 ) (4 ) (16 ) Income tax credits (11 ) — — Other (31 ) (5 ) (4 ) Total income tax provision $ 15 $ (242 ) $ (369 ) |
Significant Components of Deferred Tax Assets and Liability | Significant components of our deferred tax assets and liabilities were as follows (in millions): December 31, 2021 2020 Deferred tax assets: Allowances and operating liabilities $ 297 $ 318 Net operating loss carryforwards 446 387 Stock Compensation 56 61 Tax credit carryforwards 398 411 Other 135 122 Valuation allowance (1,127 ) (1,093 ) Total deferred tax assets 205 206 Deferred tax liabilities: Tax over book depreciation 56 60 Capital leases 76 80 Intangible assets 52 49 Deferred income 51 47 Accrued tax on unremitted earnings 33 33 Other 3 15 Total deferred tax liabilities 271 284 Net deferred tax liability $ 66 $ 78 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Unrecognized tax benefit at beginning of year $ 57 $ 38 $ 98 Gross increase for tax positions in prior years 8 25 10 Gross decrease for tax positions in prior years (1 ) (2 ) (60 ) Cash Settlements (1 ) (1 ) (3 ) Lapse of statute of limitations (3 ) (3 ) (7 ) Unrecognized tax benefit at end of year $ 60 $ 57 $ 38 |
Summary of Net Operating Loss Carryforwards | Net operating loss carryforwards by jurisdiction and expiration as of December 31, 2021 were as follows (in millions): Federal State Foreign Total 2021 - 2025 Expiration $ 19 $ 4 $ 244 $ 267 2026 - 2040 Expiration 31 383 381 795 Unlimited Expiration 505 — 646 1,151 Total Net Operating Loss (NOL) $ 555 $ 387 $ 1,271 $ 2,213 Tax Effected NOL $ 117 $ 25 $ 304 $ 446 |
Business Segments and Geograp_2
Business Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues by Country Based on Sales Destination of Products or Services | The following table presents consolidated revenues by country based on sales destination of the products or services (in millions): Years Ended December 31, 2021 2020 2019 United States $ 1,760 $ 1,634 $ 3,112 Norway 365 464 512 Saudi Arabia 316 343 436 Brazil 316 224 269 China 222 288 285 Canada 207 168 247 United Kingdom 204 222 333 Singapore 143 242 473 United Arab Emirates 130 221 224 South Korea 32 33 69 Other Countries 1,829 2,251 2,519 Total $ 5,524 $ 6,090 $ 8,479 |
Plant, Property and Equipment by Country Based on the Location | The following table presents plant, property and equipment by country based on the location (in millions): December 31, 2021 2020 United States $ 898 $ 1,011 Saudi Arabia 231 176 Brazil 87 92 United Kingdom 84 86 Denmark 72 76 Canada 59 73 United Arab Emirates 65 68 South Korea 60 51 Mexico 28 30 Singapore 14 15 Russia 10 13 Other Countries 215 236 Total $ 1,823 $ 1,927 |
Business Segments | The following table presents selected financial data by business segment (in millions): Wellbore Technologies Completion & Production Solutions Rig Technologies Eliminations and corporate (1) Total December 31, 2021 Revenue $ 1,959 $ 1,963 $ 1,739 $ (137 ) $ 5,524 Operating profit (loss) (2) 74 (65 ) 43 (186 ) (134 ) Capital expenditures 77 46 74 4 201 Depreciation and amortization 158 62 71 15 306 Goodwill 342 473 712 — 1,527 Total assets 2,670 2,465 2,621 1,794 9,550 December 31, 2020 Revenue $ 1,867 $ 2,433 $ 1,919 $ (129 ) $ 6,090 Operating profit (loss) (2) (858 ) (977 ) (362 ) (228 ) (2,425 ) Capital expenditures 87 48 80 11 226 Depreciation and amortization 187 75 77 13 352 Goodwill 308 473 712 - 1,493 Total assets 2,665 2,472 2,923 1,869 9,929 December 31, 2019 Revenue $ 3,214 $ 2,771 $ 2,682 $ (188 ) $ 8,479 Operating profit (loss) (2) (3,551 ) (1,934 ) (524 ) (270 ) (6,279 ) Capital expenditures 123 64 31 15 233 Depreciation and amortization 284 150 87 12 533 Goodwill 843 1,054 910 — 2,807 Total assets 4,078 3,826 3,758 1,487 13,149 (1) Sales from one segment to another generally and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets. (2) Segment operating loss for 2021 includes charges, net of related credits, for: inventory write-downs (Wellbore Technologies $(2) million; Completion & Production Solutions $(12) million; and, Rig Technologies $1 million); and severance and other restructuring costs (Wellbore Technologies $32 million; Completion & Production Solutions $12 million; and, Rig Technologies $19 million). Segment operating loss for 2020 includes charges, net of related credits, for: goodwill, other intangible asset and other long lived asset impairments (Wellbore Technologies $665 million; Completion & Production Solutions $1,010 million; and, Rig Technologies $198 million); inventory write-downs (Wellbore Technologies $50 million; Completion & Production Solutions $101 million; and, Rig Technologies $175 million); and severance and other restructuring costs (Wellbore Technologies $134 million; Completion & Production Solutions $21 million; and, Rig Technologies $29 million). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
Maturity period of investments description | three months or less | ||
Additional inventory reserve charges | $ 73 | $ 367 | $ 659 |
Inventory reserves total | $ 444 | $ 577 | |
Percentage of inventory reserve | 25.00% | 29.00% | |
Depreciation expense related to property, plant and equipment | $ 264 | $ 302 | 355 |
Impairment of long-lived assets | 513 | 2,209 | |
Cash payment for acquisition | 52 | 14 | 180 |
Net foreign currency transaction gains (losses) | (16) | (2) | $ (36) |
Net revenue recognized from performance obligations satisfied in previous periods | 38 | 41 | |
Remaining performance obligations | 4,224 | ||
Net allowances for doubtful accounts | $ 88 | $ 100 | |
Anti-dilutive stock options outstanding | 21 | 26 | 20 |
ASU 2019-12 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Mar. 31, 2021 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
2021 Acquisitions [Member] | |||
Significant Accounting Policies [Line Items] | |||
Additional cash payment for acquisitions (in stock) | $ 29 | ||
Business combinations number of shares issued | 2 | ||
Property, Plant and Equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Impairment of long-lived assets | $ 262 | $ 252 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Derivative, term of contract | 2 months | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Derivative, term of contract | 24 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail 1) $ in Millions | Dec. 31, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,224 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,316 |
Remaining performance obligations, expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,908 |
Remaining performance obligations, expected to be recognized, period | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes in Carrying Amount of Service and Product Warranties (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | ||
Beginning Balance | $ 87 | $ 90 |
Net provisions for warranties issued during the year | 15 | 22 |
Amounts incurred | (24) | (26) |
Currency translation adjustments | (5) | 1 |
Ending Balance | $ 73 | $ 87 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss attributable to Company | $ (250) | $ (2,542) | $ (6,095) |
Denominator: | |||
Basic—weighted average common shares outstanding | 386 | 384 | 382 |
Dilutive effect of employee stock options and other unvested stock awards | 0 | 0 | 0 |
Diluted outstanding shares | 386 | 384 | 382 |
Basic loss attributable to Company per share | $ (0.65) | $ (6.62) | $ (15.96) |
Diluted loss attributable to Company per share | (0.65) | (6.62) | (15.96) |
Cash dividends per share | $ 0.05 | $ 0.05 | $ 0.20 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Fair value of currency related derivatives, assets | $ 18 | ||
Fair value of currency related derivatives, liabilities | 8 | ||
Fair value of foreign currency forward contracts, net asset | 10 | ||
Accumulated other comprehensive loss reclassified into earnings within the next twelve months | 8 | ||
Gain (loss) recognized in other income (expense), net | $ (9) | $ (3) | $ (12) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) ₽ in Millions, € in Millions, ₩ in Millions, ¥ in Millions, £ in Millions, kr in Millions, kr in Millions, R$ in Millions, R in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021KRW (₩) | Dec. 31, 2021NOK (kr) | Dec. 31, 2021RUB (₽) | Dec. 31, 2021MXN ($) | Dec. 31, 2021JPY (¥) | Dec. 31, 2021ZAR (R) | Dec. 31, 2021EUR (€) | Dec. 31, 2021SGD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021DKK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2020KRW (₩) | Dec. 31, 2020NOK (kr) | Dec. 31, 2020RUB (₽) | Dec. 31, 2020MXN ($) | Dec. 31, 2020JPY (¥) | Dec. 31, 2020ZAR (R) | Dec. 31, 2020EUR (€) | Dec. 31, 2020SGD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020DKK (kr) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020CAD ($) |
Derivative [Line Items] | ||||||||||||||||||||||||
Foreign currency, Cash flow hedging | $ 10 | |||||||||||||||||||||||
Forward Contracts [Member] | ||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||
Foreign currency, Cash flow hedging | $ 415 | ₩ 17,600 | kr 2,430 | ₽ 1,128 | $ 637 | ¥ 476 | R 124 | € 106 | $ 36 | £ 14 | kr 7 | $ 367 | ₩ 17,600 | kr 3,817 | ₽ 1,118 | $ 402 | ¥ 340 | R 124 | € 116 | $ 31 | £ 18 | kr 875 | R$ 768 | $ 1 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 18 | $ 46 |
Liability Derivatives | 8 | 15 |
Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 11 | 29 |
Liability Derivatives | 2 | 11 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 7 | 17 |
Liability Derivatives | 6 | 4 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 2 | 11 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 6 | 4 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 11 | 17 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 7 | 17 |
Foreign Exchange Contracts [Member] | Other Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 12 |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 350 | $ 373 |
Work in process | 218 | 189 |
Finished goods and purchased products | 1,207 | 1,423 |
Inventory, Gross | 1,775 | 1,985 |
Less: Inventory reserve | (444) | (577) |
Total | $ 1,331 | $ 1,408 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment Gross | $ 4,955 | $ 4,977 |
Less: Accumulated Depreciation | (3,132) | (3,050) |
Property, plant and equipment, net | 1,823 | 1,927 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment Gross | 174 | 175 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment Gross | $ 1,309 | 1,343 |
Estimated Useful Lives | 5-35 Years | |
Operating Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment Gross | $ 2,678 | 2,660 |
Estimated Useful Lives | 2-20 Years | |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment Gross | $ 794 | $ 799 |
Estimated Useful Lives | 2-15 Years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 1,527 | $ 1,493 | $ 2,807 | ||
Intangibles, net | 503 | 527 | |||
Impairment on equity investment | $ 224 | ||||
Impairment of Intangible Assets, Finite-lived | 209 | ||||
Impairment of property, plant and equipment | 262 | ||||
Impairment of right-of-use assets | 42 | $ 0 | 42 | 56 | |
Estimated useful lives of intangible assets, minimum | 2 years | ||||
Estimated useful lives of intangible assets, maximum | 40 years | ||||
Amortization expense, 2021 | $ 40 | ||||
Amortization expense, 2022 | 33 | ||||
Amortization expense, 2023 | 28 | ||||
Amortization expense, 2024 | 25 | ||||
Amortization expense, 2025 | 23 | ||||
Impairment charge on goodwill | 0 | $ 1,295 | $ 3,509 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 83 | $ 103 | 0 | ||
Rig Equipment [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 661 | ||||
XL Systems [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 64 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Identified, by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Beginning Balance | $ 1,493 | $ 2,807 | |
Goodwill acquired during period | 34 | 4 | |
Impairment | 0 | (1,295) | $ (3,509) |
Currency translation adjustments and other | (23) | ||
Ending Balance | 1,527 | 1,493 | 2,807 |
Wellbore Technologies [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | 308 | 843 | |
Goodwill acquired during period | 34 | 4 | |
Impairment | (517) | ||
Currency translation adjustments and other | (22) | ||
Ending Balance | 342 | 308 | 843 |
Completion & Production Solutions [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | 473 | 1,054 | |
Impairment | (580) | ||
Currency translation adjustments and other | (1) | ||
Ending Balance | 473 | 473 | 1,054 |
Rig Technologies [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | 712 | 910 | |
Impairment | (198) | ||
Ending Balance | $ 712 | $ 712 | $ 910 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Identified, by Segment (Parenthetical) (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Accumulated goodwill impairment | $ 7,261 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Identified Intangible Assets, by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Asset Excluding Goodwill [Line Items] | ||
Beginning Balance | $ 527 | $ 852 |
Additions to intangible assets | 22 | 20 |
Impairment | (292) | |
Amortization | (43) | (49) |
Currency translation adjustments | (3) | (4) |
Ending Balance | 503 | 527 |
Wellbore Technologies [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Beginning Balance | 253 | 326 |
Additions to intangible assets | 22 | 20 |
Impairment | (78) | |
Amortization | (10) | (12) |
Currency translation adjustments | (1) | (3) |
Ending Balance | 264 | 253 |
Completion & Production Solutions [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Beginning Balance | 47 | 275 |
Impairment | (214) | |
Amortization | (5) | (9) |
Currency translation adjustments | (5) | |
Ending Balance | 42 | 47 |
Rig Technologies [Member] | ||
Intangible Asset Excluding Goodwill [Line Items] | ||
Beginning Balance | 227 | 251 |
Amortization | (28) | (28) |
Currency translation adjustments | (2) | 4 |
Ending Balance | $ 197 | $ 227 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Identified Intangible Assets, by Major Classification (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | $ 1,068 | $ 1,055 | |
Accumulated Amortization | (565) | (528) | |
Net Book Value | 503 | 527 | $ 852 |
Indefinite-lived Trade Names [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | 196 | 196 | |
Net Book Value | 196 | 196 | |
Customer Relationships [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | 471 | 475 | |
Accumulated Amortization | (323) | (300) | |
Net Book Value | 148 | 175 | |
Trademarks [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | 174 | 175 | |
Accumulated Amortization | (122) | (116) | |
Net Book Value | 52 | 59 | |
Patents [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | 145 | 115 | |
Accumulated Amortization | (59) | (53) | |
Net Book Value | 86 | 62 | |
Other [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross | 82 | 94 | |
Accumulated Amortization | (61) | (59) | |
Net Book Value | $ 21 | $ 35 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | |||
Vendor costs | $ 124 | $ 118 | |
Compensation | 209 | 196 | |
Taxes (non-income) | 119 | 158 | |
Warranty | 73 | 87 | $ 90 |
Insurance | 45 | 48 | |
Fair value of derivatives | 8 | 15 | |
Commissions | 17 | 19 | |
Interest | 6 | 7 | |
Other | 177 | 215 | |
Total | $ 778 | $ 863 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||||
Impairment of right-of-use assets | $ 42 | $ 0 | $ 42 | $ 56 |
Leases - Schedule of Components
Leases - Schedule of Components of Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current portion of lease liabilities: | ||
Operating | $ 76 | $ 82 |
Financing | 23 | 28 |
Total | 99 | 110 |
Long-term portion of lease liability: | ||
Operating | 357 | 376 |
Financing | 219 | 236 |
Total | $ 576 | $ 612 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost | ||
Finance lease cost, amortization of right-of-use assets | $ 26 | $ 31 |
Finance lease cost, interest on lease liabilities | 10 | 11 |
Operating lease cost | 83 | 96 |
Short-term lease cost | 74 | 64 |
Sub-lease income | (9) | (10) |
Total | $ 184 | $ 192 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from finance leases | $ 10 | $ 11 | |
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from operating leases | 83 | 96 | |
Cash paid for amounts included in the measurement of lease liabilities, financing cash flows from finance leases | 26 | 31 | $ 32 |
Right-of-use assets obtained in exchange for new: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 37 | 47 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 9 | $ 16 | |
Weighted average remaining lease term (years), operating leases | 11 years | 11 years | |
Weighted average remaining lease term (years), finance leases | 18 years | 18 years | |
Weighted average discount rate, operating leases | 4.74% | 4.93% | |
Weighted average discount rate, finance leases | 3.86% | 3.92% |
Leases - Future Minimum Lease C
Leases - Future Minimum Lease Commitments for Leases with Initial or Remaining Terms of One Year or More (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Operating | |
Operating lease, 2022 | $ 91 |
Operating lease, 2023 | 76 |
Operating lease, 2024 | 65 |
Operating lease, 2025 | 54 |
Operating lease, 2026 | 43 |
Operating lease, Thereafter | 219 |
Total lease payments | 548 |
Less: Interest | (115) |
Present value of lease liabilities | $ 433 |
Operating Lease Liability Statement Of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Finance | |
Finance leases, 2022 | $ 32 |
Finance leases, 2023 | 25 |
Finance leases, 2024 | 21 |
Finance leases, 2025 | 19 |
Finance leases, 2026 | 17 |
Finance leases, Thereafter | 214 |
Total lease payments | 328 |
Less: Interest | (86) |
Present value of lease liabilities | $ 242 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilities |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,584 | $ 1,764 |
Other debt | 129 | 70 |
Total Debt | 1,713 | 1,834 |
Less current portion | 5 | |
Long-term debt | 1,708 | 1,834 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,090 | 1,089 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 494 | 493 |
Senior Notes, Interest at 2.60% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 182 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 500,000,000 | $ 500,000,000 |
Senior notes interest rate | 3.60% | 3.60% |
Senior note due date | Dec. 1, 2029 | Dec. 1, 2029 |
Senior Notes, Interest at 2.60% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 200,000,000 | $ 200,000,000 |
Senior notes interest rate | 2.60% | 2.60% |
Senior note due date | Dec. 1, 2022 | Dec. 1, 2022 |
Debt - Principal Payments of De
Debt - Principal Payments of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 5 | |
2023 | 26 | |
2024 | 10 | |
2025 | 21 | |
2026 | 11 | |
Thereafter | 1,640 | |
Total Debt | $ 1,713 | $ 1,834 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 09, 2021 | Apr. 08, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Funds available under revolving credit facility | $ 2,000,000,000 | ||||
Interest rate under multi currency facility | LIBOR, NIBOR or CDOR plus | ||||
Capitalization ratio, Maximum | 60.00% | ||||
Capitalization ratio, Actual | 27.80% | ||||
Other debt | $ 129,000,000 | $ 70,000,000 | |||
First payment | 5,000,000 | ||||
Redemption of unsecured note | 7,000,000 | 8,000,000 | $ 36,000,000 | ||
Loss on extinguishment of debt | (7,000,000) | (8,000,000) | $ (26,000,000) | ||
Outstanding letters of credit under various bilateral letter of credit facilities | 444,000,000 | ||||
Carrying value of Unsecured Senior Notes | 1,584,000,000 | 1,764,000,000 | |||
2.60% Unsecured Senior Notes Due December 1, 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of unsecured note outstanding balance | $ 182,000,000 | ||||
Senior notes interest rate | 2.60% | ||||
Redemption of unsecured note | $ 191,000,000 | ||||
Redemption premium | 6,800,000 | ||||
Accrued and unpaid interest | $ 1,700,000 | ||||
Loss on extinguishment of debt | (7,100,000) | ||||
Premium on debt | 6,800,000 | ||||
Write off of unamortized discount and debt issuance cost | 300,000 | ||||
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of Unsecured Senior Notes | 1,610,000,000 | $ 1,833,000,000 | |||
Noncontrolling Interests [Member] | |||||
Debt Instrument [Line Items] | |||||
Other debt | $ 27,000,000 | ||||
Canadian Dollar Offered Rate (CDOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.125% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility extended maturity date | Oct. 30, 2025 | ||||
Line of credit facility current borrowing capacity | $ 2,000,000,000 | ||||
Funds available under revolving credit facility | $ 1,700,000,000 | ||||
Credit facility, extendable borrowing capacity | $ 3,000,000,000 | ||||
Variable rate basis | LIBOR, NIBOR or CDOR plus | ||||
Outstanding letters of credit issued | $ 0 | ||||
Foreign Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.40% | ||||
Debt to equity ratio maximum | 75.00% | ||||
Borrowings | $ 102,000,000 | ||||
First payment | $ 5,000,000 | ||||
Line of credit repayment schedule beginning date | 2022-12 | ||||
Line of credit repayment schedule ending date | 2032-12 | ||||
Foreign Line of Credit [Member] | Aramco [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional line of credit facility borrowing capacity | $ 150,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Employee | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Compensation Related Costs Disclosure [Line Items] | |||
Expenses for defined-contribution plans | $ 34 | $ 51 | $ 70 |
Net periodic benefit income (cost) | 3 | $ 3 | $ 2 |
Defined benefit plan, expected future benefit payments in year five | $ 42 | ||
Expected years of defined benefit plans | 5 years | ||
Expected future benefit amounts to pay, total | $ 343 | ||
United States [Member] | |||
Compensation Related Costs Disclosure [Line Items] | |||
Number of U.S. employees participate in defined benefit health care plans | Employee | 20 | ||
Number of U.S retirees and spouses participate in defined benefit health care plans | Employee | 1,100 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 582 | |
Fair value of plan assets at end of year | 571 | $ 582 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation at beginning of year | 641 | 600 |
Service cost | 1 | 1 |
Interest cost | 11 | 14 |
Actuarial loss (gain) | (5) | 54 |
Benefits paid | (29) | (29) |
Exchange rate loss (gain) | (12) | 17 |
Settlements | (13) | (16) |
Benefit obligation at end of year | 594 | 641 |
Fair value of plan assets at beginning of year | 584 | 568 |
Actual return | 32 | 43 |
Benefits paid | (29) | (29) |
Company contributions | 4 | 5 |
Exchange rate gain (loss) | (7) | 13 |
Settlements | (13) | (16) |
Fair value of plan assets at end of year | 571 | 584 |
Funded status | (23) | (57) |
Accumulated benefit obligation at end of year | 592 | 637 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation at beginning of year | 43 | 53 |
Interest cost | 1 | |
Actuarial loss (gain) | 4 | 5 |
Benefits paid | (14) | (17) |
Participants contributions | 2 | |
Benefit obligation at end of year | 34 | 43 |
Benefits paid | (15) | (17) |
Company contributions | 15 | 15 |
Participants contributions | 2 | |
Funded status | $ (34) | $ (43) |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumption Rates Used for Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate minimum | 1.80% | 1.20% |
Discount rate maximum | 2.20% | 2.40% |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate minimum | 1.00% | 0.70% |
Discount rate maximum | 1.90% | 1.80% |
Salary increase minimum | 2.50% | 1.75% |
Salary increase maximum | 3.40% | 2.90% |
Employee Benefit Plans - Assu_2
Employee Benefit Plans - Assumption Rates Used for Net Periodic Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate minimum | 1.20% | 2.50% | 3.90% |
Discount rate maximum | 2.40% | 3.20% | 4.20% |
Expected return on assets | 3.90% | 4.80% | 5.70% |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate minimum | 0.70% | 0.00% | 1.80% |
Discount rate maximum | 1.80% | 2.30% | 2.90% |
Salary increase minimum | 1.75% | 1.80% | 1.80% |
Salary increase maximum | 2.90% | 3.10% | 3.40% |
Expected return on assets, minimum | 0.80% | 0.00% | 1.90% |
Expected return on assets, maximum | 3.40% | 4.50% | 4.30% |
Employee Benefit Plans - Plan's
Employee Benefit Plans - Plan's Assets Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | $ 571 | $ 582 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 8 | 108 | |
Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 372 | 253 | |
Other Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 191 | 221 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 512 | 516 | |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 8 | 108 | |
Fair Value, Inputs, Level 2 [Member] | Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 372 | 253 | |
Fair Value, Inputs, Level 2 [Member] | Other Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 132 | 155 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | 59 | 66 | $ 63 |
Fair Value, Inputs, Level 3 [Member] | Other Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Fair Value Measurements | $ 59 | $ 66 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Changes in Fair Value of Plan's Level Three Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 582 | |
Fair value of plan assets at end of year | 571 | $ 582 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 66 | 63 |
Actual return on plan assets still held at reporting date | (2) | |
Purchases, sales and settlements | (1) | (3) |
Currency translation adjustments | (4) | 6 |
Fair value of plan assets at end of year | $ 59 | $ 66 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 5,279 | $ 7,846 | $ 13,889 |
Ending Balance | 5,064 | 5,279 | 7,846 |
Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,481) | (1,403) | (1,396) |
Accumulated other comprehensive income (loss) before reclassifications | (34) | (78) | (7) |
Ending Balance | (1,515) | (1,481) | (1,403) |
Derivative Financial Instruments, Net of Tax [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 19 | (4) | (14) |
Accumulated other comprehensive income (loss) before reclassifications | (5) | 4 | (2) |
Amounts reclassified from accumulated other comprehensive income (loss) | (7) | 19 | 12 |
Ending Balance | 7 | 19 | (4) |
Defined Benefit Plans, Net of Tax [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (47) | (16) | (27) |
Accumulated other comprehensive income (loss) before reclassifications | 10 | (30) | 12 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1) | (1) | (1) |
Ending Balance | (38) | (47) | (16) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,509) | (1,423) | (1,437) |
Accumulated other comprehensive income (loss) before reclassifications | (29) | (104) | 3 |
Amounts reclassified from accumulated other comprehensive income (loss) | (8) | 18 | 11 |
Ending Balance | $ (1,546) | $ (1,509) | $ (1,423) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Revenue | $ 5,524 | $ 6,090 | $ 8,479 |
Selling, general, and administrative | (908) | (968) | (1,303) |
Tax effect | (15) | 242 | 369 |
Net loss attributable to Company | (250) | (2,542) | (6,095) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Revenue | (1) | 17 | 1 |
Cost of revenue | (8) | 6 | 14 |
Selling, general, and administrative | (1) | (1) | (1) |
Tax effect | 2 | (4) | (3) |
Net loss attributable to Company | (8) | 18 | 11 |
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) | 17 | 1 |
Cost of revenue | (8) | 6 | 14 |
Tax effect | 2 | (4) | (3) |
Net loss attributable to Company | (7) | 19 | 12 |
Defined Benefit Plans, Net of Tax [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Selling, general, and administrative | (1) | (1) | (1) |
Net loss attributable to Company | $ (1) | $ (1) | $ (1) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Other comprehensive income (loss) before reclassifications | $ (34) | $ (78) | $ (7) |
Changes in derivative financial instruments, net of tax | (12) | 23 | 10 |
Changes in derivative financial instruments, tax | $ 2 | $ 5 | $ 4 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) $ / shares in Units, $ in Millions | May 19, 2021$ / sharesshares | Feb. 22, 2021$ / sharesshares | Dec. 20, 2017USD ($)$ / sharesshares | Dec. 31, 2021USD ($)Installment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common stock, authorized | 1,000,000,000 | 1,000,000,000 | ||||
Number of preferred stock, authorized | 10,000,000 | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||
Preferred stock, shares issued | 0 | |||||
Preferred stock, shares outstanding | 0 | |||||
Aggregated cash dividends paid | $ | $ 20 | $ 19 | $ 77 | |||
Stock-based compensation expense | $ | 78 | 105 | 130 | |||
Income tax provision recognized | $ | $ 2 | $ 3 | $ 14 | |||
Earlier authorized shares under stock based compensation | shares | 69,400,000 | |||||
Duration of performance-based restricted stock awards, vested | Options granted under our stock-based compensation plans generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant. | |||||
Weighted average grant-date fair value of options | $ / shares | $ 5.75 | $ 5.83 | $ 9.06 | |||
Total intrinsic value of options exercised | $ | $ 0 | $ 0 | ||||
Stock option, Minimum Range | $ / shares | $ 15 | |||||
Stock option, Maximum Range | $ / shares | $ 77.99 | |||||
Total unrecognized compensation cost related to nonvested stock options | $ | $ 11 | |||||
Compensation cost not yet recognized, period for recognition | 3 years | |||||
Total fair value of stock options vested | $ | $ 12 | 18 | $ 32 | |||
Cash received from option exercises | $ | 0 | 0 | 7 | |||
Tax benefit (expense) realized for the tax deductions from option exercises | $ | $ 0 | $ 0 | $ (2) | |||
Stock options granted | 1,669,511 | 1,650,262 | 1,493,576 | |||
Weighted average exercise price per share of options | $ / shares | $ 15 | $ 20.23 | $ 28.72 | |||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock appreciation rights exchange percentage | 94.75% | |||||
Cash payment of stock appreciation rights | $ | $ 14 | |||||
Cash paid to settle SARs | $ | $ 0 | |||||
Compensation cost recognized | $ | $ 0 | $ 0 | $ 0 | |||
Shares granted | 7,912 | |||||
Restricted stock granted fair value | $ / shares | $ 20.23 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant-date fair value of options | $ / shares | $ 8.47 | |||||
Stock options granted | 3,613,707 | |||||
Weighted average exercise price per share of options | $ / shares | $ 34.32 | |||||
Restricted Stock and Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Duration of performance-based restricted stock awards, vested | The restricted stock and restricted stock units vest in three equal annual installments commencing on the first anniversary of the date of grant. | |||||
Shares granted | 2,977,290 | 3,772,842 | 3,166,402 | 3,335,315 | ||
Restricted stock granted fair value | $ / shares | $ 15 | $ 15.03 | $ 19.98 | $ 28.52 | ||
Number of equal annual vesting installments | Installment | 3 | |||||
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-base restricted stock [Member] | Senior Management Employees [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 0 | |||||
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 1,434,000 | |||||
TSR Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Description of performance goal | The 2019, 2020 and 2021 performance share awards are divided into two independent parts that are subject to two separate performance metrics: 85% with a TSR (total shareholder return) goal and 15% with an internal NVA (“National Oilwell Varco Value Added”) (return on capital metric) goal. Performance against the TSR goal is determined by comparing the performance of the Company’s TSR with the TSR performance of the members of the OSX index for the three-year performance period. The TSR portion of the performance share awards is subject to a vesting cap equal to 100% of Target Level if the Company’s absolute TSR is negative, regardless of relative TSR results. Conversely, if the Company’s absolute TSR is greater than 15% annualized over the three-year performance period the payout amount shall not be less than 50% of Target Level, regardless of relative TSR results. The NVA goal is based on the Company’s improvement in NVA from the beginning of the performance period until the end of the performance period. NVA shall be calculated as an amount equal to the Company’s (a) gross cash earnings less (b) average gross operating assets times an amount equal to a required return on assets. | |||||
Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to nonvested stock options | $ | $ 70 | |||||
Compensation cost not yet recognized, period for recognition | 2 years | |||||
TSR [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of performance shares awarded | 85.00% | |||||
NVA [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of performance shares awarded | 15.00% | |||||
2018 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized shares under stock based compensation | 42,700,000 | |||||
Remaining shares available for future grants under the Plan | 13,500,000 | |||||
2018 Plan [Member] | Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 78,552 | |||||
Restricted stock granted fair value | $ / shares | $ 16.50 |
Common Stock - Summary of Stock
Common Stock - Summary of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of shares under stock option, Beginning of the year | 21,005,502 | 21,310,099 | 21,009,508 |
Number of Shares Granted | 1,669,511 | 1,650,262 | 1,493,576 |
Number of Shares Forfeited | (1,398,052) | (1,954,859) | (944,917) |
Number of Shares Exercised | (248,068) | ||
Number of shares under stock option, End of the year | 21,276,961 | 21,005,502 | 21,310,099 |
Number of stock options vested and expected to be vest, exercisable | 18,039,330 | 17,893,434 | 17,796,607 |
Weighted Average Exercise Price, Beginning of year | $ 45.70 | $ 47.68 | $ 48.88 |
Weighted Average Exercise Price, Stock Options Granted | 15 | 20.23 | 28.72 |
Weighted Average Exercise Price, Stock Options Forfeited | 63.65 | 45.75 | 50.57 |
Weighted Average Exercise Price, Stock Options Exercised | 29.70 | ||
Weighted Average Exercise Price, End of the year | 42.09 | 45.70 | 47.68 |
Weighted Average Exercise Price, Stock Options Exercisable | $ 46.27 | $ 49.25 | $ 50.49 |
Common Stock - Summary of Sto_2
Common Stock - Summary of Stock Option Outstanding Information (Detail) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Avg Remaining Contractual Life | 4 years 5 months 26 days |
Stock Options Outstanding, Shares | shares | 21,276,961 |
Stock Options Outstanding, Weighted - Average Exercise Price | $ 42.09 |
Stock Options Exercisable, Shares | shares | 18,039,330 |
Stock Options Exercisable, Weighted - Average Exercise Price | $ 46.27 |
Stock option, Minimum Range | 15 |
Stock option, Maximum Range | $ 77.99 |
$15.00 - $55.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Avg Remaining Contractual Life | 5 years 3 months 3 days |
Stock Options Outstanding, Shares | shares | 17,108,202 |
Stock Options Outstanding, Weighted - Average Exercise Price | $ 35.39 |
Stock Options Exercisable, Shares | shares | 13,870,571 |
Stock Options Exercisable, Weighted - Average Exercise Price | $ 39.26 |
Stock option, Minimum Range | 15 |
Stock option, Maximum Range | $ 55 |
$55.01 - $70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Avg Remaining Contractual Life | 1 year 8 months 19 days |
Stock Options Outstanding, Shares | shares | 3,135,924 |
Stock Options Outstanding, Weighted - Average Exercise Price | $ 66.85 |
Stock Options Exercisable, Shares | shares | 3,135,924 |
Stock Options Exercisable, Weighted - Average Exercise Price | $ 66.85 |
Stock option, Minimum Range | 55.01 |
Stock option, Maximum Range | $ 70 |
$70.01 - $77.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Avg Remaining Contractual Life | 2 months 1 day |
Stock Options Outstanding, Shares | shares | 1,032,835 |
Stock Options Outstanding, Weighted - Average Exercise Price | $ 77.92 |
Stock Options Exercisable, Shares | shares | 1,032,835 |
Stock Options Exercisable, Weighted - Average Exercise Price | $ 77.92 |
Stock option, Minimum Range | 70.01 |
Stock option, Maximum Range | $ 77.99 |
Common Stock - Assumption Used
Common Stock - Assumption Used in Determination of Fair Value of Share Based Payment Awards (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected volatility | 43.40% | 35.00% | 35.90% |
Risk-free interest rate | 0.60% | 1.20% | 2.50% |
Expected dividend yield | 0.00% | 1.00% | 0.70% |
Expected term (in years) | 5 years 1 month 6 days | 4 years 9 months 18 days | 4 years 6 months |
Common Stock - Summary of Infor
Common Stock - Summary of Information and Changes in Stock Options with Regard to Stock Option Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of shares under stock option, Beginning of the year | 21,005,502 | 21,310,099 | 21,009,508 |
Number of Shares Granted | 1,669,511 | 1,650,262 | 1,493,576 |
Number of Shares Forfeited | (1,398,052) | (1,954,859) | (944,917) |
Number of Shares Exercised | (248,068) | ||
Number of shares under stock option, End of the year | 21,276,961 | 21,005,502 | 21,310,099 |
Number of stock options, Exercisable | 18,039,330 | 17,893,434 | 17,796,607 |
Weighted Average Exercise Price, Beginning of year | $ 45.70 | $ 47.68 | $ 48.88 |
Weighted Average Exercise Price, Stock Options Granted | 15 | 20.23 | 28.72 |
Weighted Average Exercise Price, Stock Options Forfeited | 63.65 | 45.75 | 50.57 |
Weighted Average Exercise Price, Stock Options Exercised | 29.70 | ||
Weighted Average Exercise Price, End of the year | 42.09 | 45.70 | 47.68 |
Weighted Average Exercise Price, Stock Options, Exercisable | $ 46.27 | $ 49.25 | $ 50.49 |
Weighted Average Remaining Contractual Term, Outstanding | 4 years 5 months 26 days | 4 years 10 months 20 days | |
Weighted Average Remaining Contractual Term, Exercisable | 3 years 9 months 14 days |
Common Stock - Summary of Inf_2
Common Stock - Summary of Information Regarding Outstanding SARs (Detail) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Shares Outstanding, Beginning balance | 1,234,565 | 1,330,257 |
Granted | 7,912 | |
Forfeited | (40,631) | (103,604) |
Restricted Shares Outstanding, Ending balance | 1,193,934 | 1,234,565 |
Exercisable at end of year | 1,186,296 | 1,219,555 |
Weighted-Average Grant Date Fair Value of Restricted Stock, Beginning Balance | $ 28.40 | $ 28.45 |
Granted | 20.23 | |
Forfeited | 28.32 | 28.38 |
Weighted-Average Grant Date Fair Value of Restricted Stock, Ending Balance | 28.40 | 28.40 |
Average Exercise Price, Exercisable at end of year | $ 28.44 | $ 28.44 |
Common Stock - Summary of Inf_3
Common Stock - Summary of Information Regarding Outstanding Restricted Shares (Detail) - Restricted Stock and Restricted Stock Units [Member] - $ / shares | Feb. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Shares Outstanding, Beginning balance | 6,073,963 | 6,274,308 | 5,914,860 | |
Restricted Stock Granted, Shares | 2,977,290 | 3,772,842 | 3,166,402 | 3,335,315 |
Restricted Stock Vested, Shares | (2,672,507) | (3,229,624) | (2,901,945) | |
Restricted Stock Forfeited, Shares | (237,724) | (137,123) | (73,922) | |
Restricted Shares Outstanding, Ending balance | 6,936,574 | 6,073,963 | 6,274,308 | |
Weighted-Average Grant Date Fair Value of Restricted Stock, Beginning Balance | $ 31.85 | $ 33.10 | $ 34.41 | |
Restricted Stock Granted, Weighted-Average Grant Date Fair Value | $ 15 | 15.03 | 19.98 | 28.52 |
Restricted Stock Vested, Weighted-Average Grant Date Fair Value | 15.38 | 20.09 | 25.67 | |
Restricted Stock Forfeited, Weighted-Average Grant Date Fair Value | 63.65 | 45.75 | 50.57 | |
Weighted-Average Grant Date Fair Value of Restricted Stock, Ending Balance | $ 21.32 | $ 31.85 | $ 33.10 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregate Revenue by Destinations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | $ 5,524 | $ 6,090 | $ 8,479 |
Operating Segments [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,959 | 1,867 | 3,214 |
Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,963 | 2,433 | 2,771 |
Operating Segments [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,739 | 1,919 | 2,682 |
Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | (137) | (129) | (188) |
Continental [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 64 | 55 | 63 |
Continental [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 43 | 43 | 59 |
Continental [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 30 | 31 | 66 |
Continental [Member] | Intersegment Eliminations [Member] | Intersubsegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | (137) | (129) | (188) |
Continental [Member] | North America [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,968 | 1,802 | 3,361 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 904 | 824 | 1,710 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 789 | 751 | 1,122 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 275 | 227 | 529 |
Continental [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 3,556 | 4,288 | 5,118 |
Continental [Member] | International [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 991 | 988 | 1,441 |
Continental [Member] | International [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,131 | 1,639 | 1,590 |
Continental [Member] | International [Member] | Operating Segments [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,434 | 1,661 | 2,087 |
Land and Offshore [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 64 | 55 | 63 |
Land and Offshore [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 43 | 43 | 59 |
Land and Offshore [Member] | Operating Segments [Member] | Intersubsegment Eliminations [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 30 | 31 | 66 |
Land and Offshore [Member] | Intersegment Eliminations [Member] | Intersubsegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | (137) | (129) | (188) |
Land and Offshore [Member] | Land Destination [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 3,063 | 3,207 | 5,097 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,423 | 1,308 | 2,531 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 1,250 | 1,426 | 1,808 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 390 | 473 | 758 |
Land and Offshore [Member] | Offshore Destination [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 2,461 | 2,883 | 3,382 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 472 | 504 | 620 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | 670 | 964 | 904 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregate revenue | $ 1,319 | $ 1,415 | $ 1,858 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Impairment losses on contract assets | $ 0 | $ 0 | $ 0 |
Allowance for credit losses | $ 89,000,000 | $ 102,000,000 | |
Customers [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Concentration risk, number of customers | Customer | 0 | 0 | 0 |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at December 31, 2020 | $ 611 |
Provision, net | 1 |
Billings | (866) |
Revenue recognized | 806 |
Currency translation adjustments and other | (91) |
Balance at December 31, 2021 | 461 |
Balance at December 31, 2020 | 354 |
Billings | 933 |
Revenue recognized | (818) |
Currency translation adjustments and other | (77) |
Balance at December 31, 2021 | $ 392 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, Domestic | $ (257) | $ (2,169) | $ (4,501) |
Income before income taxes, Foreign | 27 | (610) | (1,961) |
Income before income taxes | $ (230) | $ (2,779) | $ (6,462) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 4 | $ (279) | $ (7) |
State | (1) | (4) | 4 |
Foreign | 23 | 106 | 60 |
Total current income tax provision | 26 | (177) | 57 |
Deferred: | |||
Federal | (1) | 7 | (344) |
State | (18) | ||
Foreign | (10) | (72) | (64) |
Total deferred income tax provision | (11) | (65) | (426) |
Total income tax provision | $ 15 | $ (242) | $ (369) |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Effective Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at U.S. statutory rate | $ (48) | $ (584) | $ (1,357) |
Foreign income tax rate differential | (9) | (30) | (40) |
Goodwill impairment | 271 | 666 | |
Reduction of FTC carryforwards | 184 | ||
Tax Benefit from CARES Act | (83) | ||
Change in deferred tax valuation allowance | 31 | (83) | 218 |
Nondeductible expenses | 17 | 44 | 61 |
Foreign dividends, net of foreign tax credits | 54 | 28 | 163 |
Change in uncertain tax positions | 13 | 20 | (60) |
State income taxes - net of federal benefit | (1) | (4) | (16) |
Income tax credits | (11) | ||
Other | (31) | (5) | (4) |
Total income tax provision | $ 15 | $ (242) | $ (369) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Effective income tax rate | (6.50%) | 8.70% | ||
Tax adjustments, Settlements, and unusual provisions | $ 287 | |||
Unrecognized tax benefit | $ 60 | 57 | $ 38 | $ 98 |
Decrease in unrecognized tax benefits from resolutions of domestic foreign jurisdiction audit | 1 | 4 | ||
Increase in unrecognized tax position from completion of audits of domestic and foreign jurisdictions from prior years | 8 | 25 | 10 | |
Income tax interest and penalties related to unrecognized tax benefit | 8 | 2 | $ 0 | |
Accrued income tax interest and penalties related to unrecognized tax benefit | 20 | 11 | ||
Foreign tax credit | 387 | |||
Net operating loss carry forward | 2,213 | |||
Tax-deductible goodwill | $ 93 | |||
Maximum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Period of amortization of goodwill | 10 years | |||
Carry Forward Expiration Year 2022 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carry forward | $ 128 | |||
Carry Forward Expiration Year 2027 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carry forward | 144 | |||
Carry Forward Expiration Year 2028 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carry forward | 96 | |||
Carry Forward Expiration Year 2030 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carry forward | 12 | |||
Carry Forward Expiration Year 2031 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carry forward | $ 7 | |||
Cares Act [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax adjustments, Settlements, and unusual provisions | $ 591 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowances and operating liabilities | $ 297 | $ 318 |
Net operating loss carryforwards | 446 | 387 |
Stock Compensation | 56 | 61 |
Tax credit carryforwards | 398 | 411 |
Other | 135 | 122 |
Valuation allowance | (1,127) | (1,093) |
Total deferred tax assets | 205 | 206 |
Deferred tax liabilities: | ||
Tax over book depreciation | 56 | 60 |
Capital leases | 76 | 80 |
Intangible assets | 52 | 49 |
Deferred income | 51 | 47 |
Accrued tax on unremitted earnings | 33 | 33 |
Other | 3 | 15 |
Total deferred tax liabilities | 271 | 284 |
Net deferred tax liability | $ 66 | $ 78 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of year | $ 57 | $ 38 | $ 98 |
Gross increase for tax positions in prior years | 8 | 25 | 10 |
Gross decrease for tax positions in prior years | (1) | (2) | (60) |
Cash Settlements | (1) | (1) | (3) |
Lapse of statute of limitations | (3) | (3) | (7) |
Unrecognized tax benefit at end of year | $ 60 | $ 57 | $ 38 |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss Carryforwards (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | $ 2,213 |
Tax Effected NOL | 446 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 555 |
Tax Effected NOL | 117 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 387 |
Tax Effected NOL | 25 |
Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 1,271 |
Tax Effected NOL | 304 |
2021 - 2025 Expiration [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 267 |
2021 - 2025 Expiration [Member] | Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 19 |
2021 - 2025 Expiration [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 4 |
2021 - 2025 Expiration [Member] | Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 244 |
2026 - 2040 Expiration [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 795 |
2026 - 2040 Expiration [Member] | Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 31 |
2026 - 2040 Expiration [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 383 |
2026 - 2040 Expiration [Member] | Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 381 |
Unlimited Expiration [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 1,151 |
Unlimited Expiration [Member] | Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | 505 |
Unlimited Expiration [Member] | Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Total Net Operating Loss (NOL) | $ 646 |
Business Segments and Geograp_3
Business Segments and Geographic Areas - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments and Geograp_4
Business Segments and Geographic Areas - Revenues by Country Based on Sales Destination of Products or Services (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 5,524 | $ 6,090 | $ 8,479 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,760 | 1,634 | 3,112 |
Norway [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 365 | 464 | 512 |
Saudi Arabia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 316 | 343 | 436 |
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 316 | 224 | 269 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 222 | 288 | 285 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 207 | 168 | 247 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 204 | 222 | 333 |
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 143 | 242 | 473 |
United Arab Emirates [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 130 | 221 | 224 |
South Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 32 | 33 | 69 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 1,829 | $ 2,251 | $ 2,519 |
Business Segments and Geograp_5
Business Segments and Geographic Areas - Plant, Property and Equipment by Country Based on the Location (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 1,823 | $ 1,927 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 898 | 1,011 |
Saudi Arabia [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 231 | 176 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 87 | 92 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 84 | 86 |
Denmark [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 72 | 76 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 59 | 73 |
United Arab Emirates [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 65 | 68 |
South Korea [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 60 | 51 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 28 | 30 |
Singapore [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 14 | 15 |
Russia [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 10 | 13 |
Other Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 215 | $ 236 |
Business Segments and Geograp_6
Business Segments and Geographic Areas - Business Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 5,524 | $ 6,090 | $ 8,479 |
Operating profit (loss) | (134) | (2,425) | (6,279) |
Capital expenditures | 201 | 226 | 233 |
Depreciation and amortization | 306 | 352 | 533 |
Goodwill | 1,527 | 1,493 | 2,807 |
Total assets | 9,550 | 9,929 | 13,149 |
Wellbore Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 342 | 308 | 843 |
Completion & Production Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 473 | 473 | 1,054 |
Rig Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 712 | 712 | 910 |
Operating Segments [Member] | Wellbore Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,959 | 1,867 | 3,214 |
Operating profit (loss) | 74 | (858) | (3,551) |
Capital expenditures | 77 | 87 | 123 |
Depreciation and amortization | 158 | 187 | 284 |
Goodwill | 342 | 308 | 843 |
Total assets | 2,670 | 2,665 | 4,078 |
Operating Segments [Member] | Completion & Production Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,963 | 2,433 | 2,771 |
Operating profit (loss) | (65) | (977) | (1,934) |
Capital expenditures | 46 | 48 | 64 |
Depreciation and amortization | 62 | 75 | 150 |
Goodwill | 473 | 473 | 1,054 |
Total assets | 2,465 | 2,472 | 3,826 |
Operating Segments [Member] | Rig Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,739 | 1,919 | 2,682 |
Operating profit (loss) | 43 | (362) | (524) |
Capital expenditures | 74 | 80 | 31 |
Depreciation and amortization | 71 | 77 | 87 |
Goodwill | 712 | 712 | 910 |
Total assets | 2,621 | 2,923 | 3,758 |
Eliminations and Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | (137) | (129) | (188) |
Operating profit (loss) | (186) | (228) | (270) |
Capital expenditures | 4 | 11 | 15 |
Depreciation and amortization | 15 | 13 | 12 |
Total assets | $ 1,794 | $ 1,869 | $ 1,487 |
Business Segments and Geograp_7
Business Segments and Geographic Areas - Business Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | $ (134) | $ (2,425) | $ (6,279) |
Wellbore Technologies [Member] | Goodwill Indefinite Lived And Finite Lived Intangible And Long Lived Tangible Assets | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 665 | ||
Wellbore Technologies [Member] | Inventory Charges | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | (2) | 50 | |
Wellbore Technologies [Member] | Severance And Facility Closures Cost | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 32 | 134 | |
Completion & Production Solutions [Member] | Goodwill Indefinite Lived And Finite Lived Intangible And Long Lived Tangible Assets | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 1,010 | ||
Completion & Production Solutions [Member] | Inventory Charges | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | (12) | 101 | |
Completion & Production Solutions [Member] | Severance And Facility Closures Cost | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 12 | 21 | |
Rig Technologies [Member] | Goodwill Indefinite Lived And Finite Lived Intangible And Long Lived Tangible Assets | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 198 | ||
Rig Technologies [Member] | Inventory Charges | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 1 | 175 | |
Rig Technologies [Member] | Severance And Facility Closures Cost | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | $ 19 | $ 29 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance beginning of year | $ 100 | $ 132 | $ 161 |
Additions (Deductions) charged to costs and expenses | 5 | 7 | 21 |
Charge off's and other | (17) | (39) | (50) |
Balance end of year | 88 | 100 | 132 |
Reserve for Excess and Obsolete Inventories [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance beginning of year | 577 | 843 | 644 |
Additions (Deductions) charged to costs and expenses | 73 | 367 | 659 |
Charge off's and other | (206) | (633) | (460) |
Balance end of year | 444 | 577 | 843 |
Valuation Allowance for Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance beginning of year | 1,093 | 1,175 | 955 |
Additions (Deductions) charged to costs and expenses | 31 | (83) | 218 |
Charge off's and other | 3 | 1 | 2 |
Balance end of year | 1,127 | 1,093 | 1,175 |
Environmental Accruals [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance beginning of year | 90 | 104 | 66 |
Additions (Deductions) charged to costs and expenses | 12 | 13 | 57 |
Charge off's and other | (24) | (27) | (19) |
Balance end of year | 78 | 90 | 104 |
Warranty Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance beginning of year | 87 | 90 | 105 |
Additions (Deductions) charged to costs and expenses | 15 | 22 | 41 |
Charge off's and other | (29) | (25) | (56) |
Balance end of year | $ 73 | $ 87 | $ 90 |