MRC Global (MRC) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Registrant Name	MRC GLOBAL INC.
Entity Central Index Key	1,439,095
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Stock [Member]
Entity Common Stock, Shares Outstanding		102,180,775
Restricted Stock [Member]
Entity Common Stock, Shares Outstanding		817,684

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 32,942	$ 25,064
Accounts receivable, net	750,500	974,454
Inventories, net	1,033,451	1,186,946
Other current assets	35,367	35,698
Total current assets	1,852,260	2,222,162
Other assets	26,887	28,534
Property, plant and equipment, net	115,134	116,001
Intangible assets:
Goodwill, net	792,478	806,006
Other intangible assets, net	664,993	701,118
Total assets	3,451,752	3,873,821
Current liabilities:
Trade accounts payable	422,981	538,943
Accrued expenses and other current liabilities	116,367	167,825
Deferred income taxes	68,389	69,435
Current portion of long term debt	7,935	7,935
Total current liabilities	615,672	784,138
Long-term obligations:
Long-term debt, net	840,101	1,445,709
Deferred income taxes	213,172	223,705
Other liabilities	$ 23,031	$ 23,054
Commitments and contingencies
Stockholders' equity:
6.5% Series A Convertible Perpetual Preferred Stock, $0.01 par value; authorized 363 shares; 363 and no issued and outstanding, respectively	$ 355,467
Common stock, $0.01 par value per share: 500,000 shares authorized, 102,179 and 102,095 issued and outstanding, respectively	1,022	$ 1,022
Additional paid-in capital	1,660,473	1,655,696
Retained deficit	(78,578)	(122,625)
Accumulated other comprehensive loss	(178,608)	(136,878)
Total stockholders' equity	1,404,309	1,397,215
Total liabilities and stockholders' equity	$ 3,451,752	$ 3,873,821

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, dividend rate	6.50%	6.50%
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	363,000	363,000
Preferred stock, shares issued	363,000	0
Preferred stock, shares outstanding	363,000	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	102,179,000	102,095,000
Common stock, shares outstanding	102,179,000	102,095,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Income [Abstract]
Sales	$ 1,198,064	$ 1,497,295	$ 2,490,354	$ 2,802,974
Cost of sales	992,147	1,237,873	2,064,515	2,311,420
Gross profit	205,917	259,422	425,839	491,554
Selling, general and administrative expenses	158,903	185,287	318,351	356,676
Operating income	47,014	74,135	107,488	134,878
Other expense:
Interest expense	(13,699)	(15,363)	(28,295)	(30,511)
Write off of debt issuance costs	(3,249)		(3,249)
Change in fair value of derivative instruments	(393)	(697)	(1,136)	(4,260)
Other, net	(315)	2,026	(3,248)	(3,284)
Income before income taxes	29,358	60,101	71,560	96,823
Income tax expense	13,083	20,801	26,220	34,003
Net income	16,275	39,300	45,340	62,820
Series A preferred stock dividends	1,293		1,293
Net income available to common stockholders	$ 14,982	$ 39,300	$ 44,047	$ 62,820
Basic earnings per common share	$ 0.15	$ 0.39	$ 0.43	$ 0.62
Diluted earnings per common share	$ 0.15	$ 0.38	$ 0.43	$ 0.61
Weighted-average common shares, basic	102,168	101,986	102,142	101,955
Weighted-average common shares, diluted	102,786	102,978	102,605	102,893

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 16,275	$ 39,300	$ 45,340	$ 62,820
Other comprehensive income (loss) - Foreign currency translation adjustments	11,420	6,802	(41,730)	9,130
Comprehensive income	$ 27,695	$ 46,102	$ 3,610	$ 71,950

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income	$ 45,340	$ 62,820
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization	10,214	10,574
Amortization of intangibles	30,943	33,880
Equity-based compensation expense	5,373	4,066
Deferred income tax benefit	(15,688)	(15,338)
Amortization of debt issuance costs	2,267	2,704
Write off of debt issuance costs	3,249
(Decrease) increase in LIFO reserve	(15,092)	2,067
Change in fair value of derivative instruments	1,136	4,260
Provision for uncollectible accounts	1,842	561
Foreign currency losses (gains)	5,532	(3,117)
Other non-cash items	665	1,232
Changes in operating assets and liabilities:
Accounts receivable	207,134	(128,760)
Inventories	151,640	(90,702)
Income taxes payable	(7,440)	8,245
Other current assets	400	(2,463)
Accounts payable	(111,375)	64,222
Accrued expenses and other current liabilities	(39,305)	(6,105)
Net cash provided by (used in) operations	276,835	(51,854)
Investing activities
Purchases of property, plant and equipment	(12,713)	(4,586)
Proceeds from the disposition of property, plant and equipment	756	836
Acquisitions, net of cash acquired		(346,672)
Other investment and notes receivable transactions	(3,353)	(774)
Net cash used in investing activities	(15,310)	(351,196)
Financing activities
Payments on revolving credit facilities	(764,774)	(806,768)
Proceeds from revolving credit facilities	411,854	1,221,386
Payments on long term obligations	(253,968)	(3,968)
Proceeds from issuance of preferred stock, net of issuance costs	355,467
Debt issuance costs paid	(1,345)	(349)
Proceeds from exercise of stock options	100	1,498
Tax benefit on stock options		141
Other	753
Net cash (used in) provided by financing activities	(251,913)	411,940
Increase in cash	9,612	8,890
Effect of foreign exchange rate on cash	(1,734)	2,413
Cash -- beginning of period	25,064	25,188
Cash -- end of period	32,942	36,491
Supplemental disclosures of cash flow information:
Cash paid for interest	25,832	27,913
Cash paid for income taxes	$ 49,796	$ 40,960

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Background and Basis of Presentation [Abstract]
Background and Basis of Presentation	NOTE 1 – BACKGROUND AND BASIS OF PRESENTATION Business Operations : MRC Global Inc. is a holding company headquartered in Houston, Texas. Our wholly owned subsidiaries are global distributors of pipe, valves, fittings (“PVF”) and related products and services across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) sectors. We have branches in principal industrial, hydrocarbon producing and refining areas throughout the United States, Canada, Europe, Asia , Australasia , the Middle East and Kazakhstan . Our products are obtained from a broad range of suppliers. Basis of Presentation : We have prepared our unaudited condensed consolidated financial statements in accordance with Rule 10-01 of Regulation S-X for interim financial statements. These statements do not include all information and footnotes that generally accepted accounting principles require for complete annual financial statements. However, the information in these statements reflects all normal recurring adjustments which are, in our opinion, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results that will be realized for the fiscal year ending December 3 1, 2015 . We have derived our condensed consolidated balance sheet as of December 31, 2014 from the audited consolidated financial statements for the year ended December 31, 2014 . You should read these condensed consolidated financial statements in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014 . The consolidated financial statements include the accounts of MRC Global Inc. and its wholly owned and majority owned subsidiaries (collectively referred to as the “Company” or by such terms as “we,” “our” or “us”). All material intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Pronouncements : : In May 2014, the Financial Accounting Standards Board (“ FASB ”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The ASU also provides guidance on accounting for certain contract costs, and requires new disclosures. The FASB recently voted to defer the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the effect of the adoption of ASU 2014-09 on our consolidated financial statements and the implementation approach to be used. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015 . We expect to adopt this guidance in 2016 . As of June 30, 2015, our debt issuance costs totaled $15.0 million, which is reported in other assets.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Inventories	NOTE 2 – INVENTORIES The com position of our inventory is as follows (in thousands) : June 30, December 31, 2015 2014 Finished goods inventory at average cost: Energy carbon steel tubular products $ 426,817 $ 497,146 Valves, fittings, flanges and all other products Less: Excess of average cost over LIFO cost (LIFO reserve) Less: Other inventory reserves $ 1,033,451 $ 1,186,946 O ur inventory quantities are expected to be reduced for the year , resulting in a liquidation of a last-in, first out (“ LIFO ”) inventory layer that was carried at a lower cost prevailing from a prior year, as compared with current costs in the current year (a “LIFO decrement”). A LIFO decrement results in the erosion of layers created in earlier years, and, therefore, a LIFO layer is not created for years that have decrements. For the three and six months ended June 30, 201 5 , the effect of this LIFO decrement decreased cost of sales by approximately $2 .6 million and $ 2.9 million , respectively . There was no LIFO decrement in 201 4 .

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Long-Term Debt [Abstract]
Long-Term Debt	NOTE 3 – LONG-TERM DEBT The components of our long-term debt are as follows (in thousands): June 30, December 31, 2015 2014 Senior Secured Term Loan B, net of discount of $2,252 and $3,693 $ 527,362 $ 779,888 Global ABL Facility Other Less: Current portion $ 840,101 $ 1,445,709 Senior Secured Term Loan B : We have a seven -year Senior Secured Term Loan B (the “Term Loan”) with an original principal amount of $793.5 million which amortizes in equal quarterly installments of 1% per year with the balance payable in November 2019 when the facility matures. Subject to securing additional lender commitments, t he Term Loan allows for incremental increases in facility size up to an aggregate of $200 million, plus an additional amount such that the Company’s senior secured leverage ratio (as defined under the Term Loan) would not exceed 3.50 to 1.00 . McJunkin Red Man Corporation is the borrower under this facility, which is guaranteed by MRC Global Inc. as well as all of its wholly owned U.S. subsidiaries. In addition, it is secured by a second lien on the assets securing our Global ABL Facility (which includes accounts receivable, inventory and related assets) and a first lien on substantially all of the other assets of MRC Global Inc. and those of its U.S. subsidiaries, as well as a pledge of all of the capital stock of our domestic subsidiaries and 65 % of the capital stock of first tier, non-U.S. subsidiaries. We are required to repay the Term Loan with certain asset sales and insurance proceeds, certain debt proceeds and 50% of excess cash flow (reducing to 25% if our senior secured leverage ratio is no more than 2.75 to 1.00 and 0% if our senior secured leverage ratio is no more than 2.50 to 1.00). In addition, the Term Loan contains a number of customary restrictive covenants. The interest rate for the Term Loan , including the amortization of original issue discount, was 5.40% as of June 30, 2015 and 5.10% at December 31, 2014 . In June 2015, we repaid $250 million of the balance outstanding under the Term Loan with proceeds from the issuance of preferred stock. Global ABL Facility : We have a $1. 0 5 billion multi-currency global asset-based revolving credit facility (the “Global ABL Facility”) that matures in July 201 9 . This facility is comprised of $977 million in revolver commitments in the United States, $30 million in Norway, $20 million in Canada, $5 million in the United Kingdom, $10 million in Australia, $4 million in th e Netherlands and $4 million in Belgium. It contains an accordion feature that allows us to increase the principal amount of the facility by up to $300 million , subject to securing additional lender commitments . MRC Global Inc. and each of its current and future wholly owned material U.S. subsidiaries guarantee the obligations of our borrower subsidiaries under the Global ABL Facility. Additionally, each of our non-U.S. borrower subsidiaries guarantees the obligations of our other non-U.S. borrower subsidiaries under the Global ABL Facility. Outstanding obligations are generally secured by a first priority security interest in accounts receivable, inventory and related assets. The interest rate for the Global ABL Facility was 1.93% and 1.84% as of June 30, 2015 and December 31, 2014 , respectively. Excess A vailability , as defined under our Global ABL Facility , was $543.5 million as of June 30, 2015 .

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	NOTE 4 – STOCKHOLDERS’ EQUITY Preferred Stock Issuance In June 2015 , we filed with the Secretary of State of the State of Delaware a Certificate of Designations, Preferences, Rights and Limitations of Series A Convertible Perpetual Preferred Stock (the “Certificate of Designations”) creating the Series A Convertible Perpetual Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), and establishing the designations, preferences, and other rights of the Series A Preferred Stock. On June 10, 2015, we issued 363,000 shares of Series A Preferred Stock and received gross proceeds of $363 million. The Series A Preferred Stock ranks senior to our common stock with respect to dividend rights and rights on liquidation, winding-up and dissolution. The Series A Preferred Stock has a stated value of $1,000 per share, and holders of Series A Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6.50% per annum. Holders of Series A Preferred Stock are entitled to vote together with the holders of the common stock as a single class, in each case, on an as-converted basis, except where a separate class vote of the common stockholders is required by law. Holders of Series A Preferred Stock have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. The Series A Preferred Stock is convertible at the option of the holders into shares of common stock at an initial conversion rate of 55.9284 shares of common stock for each share of Series A Preferred Stock, which represents an initial conversion price of approximately $17.88 per share of common stock, subject to adjustment. On or after the fifth anniversary of the initial issuance of the Series A Preferred Stock, the Company will have the option to redeem, in whole but not in part, all the outstanding shares of Series A Preferred Stock, subject to certain redemption price adjustments on the basis of the date of the conversion. We may elect to convert the Series A Preferred Stock, in whole but not in part, into the relevant number of shares of common stock on or after the 54th month after the initial issuance of the Series A Preferred Stock if the last reported sale price of the common stock has been at least 150% of the conversion price then in effect for a specified period. The conversion rate is subject to customary anti-dilution and other adjustments. Stock Options and Restricted Stock Our 2011 Omnibus Incentive Plan originally had 3 ,250,000 shares reserved for issuance under the plan. In April 2015, our shareholders approved an additional 4,250,000 shares for reservation for issuance under the plan. The plan permits the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock-based and cash-based awards. Since the adoption of the 2011 Omnibus Incentive Plan, the Company’s Board of Directors has periodically granted stock options , restricted stock awards, restricted stock units and performance-based stock units to directors and employees. Options and stock appreciation rights may not be granted at prices less than the fair market value of our common stock on the date of the grant, nor for a term exceeding ten years. For employees, vesting generally occurs ratably over a three to five year period on the anniversaries of the date specified in the employees’ respective stock option, restricted stock award, restricted stock unit and performance award agreement s , subject to accelerated vesting under certain circumstances set forth in the agreements. Vesting for directors generally occurs on the on e -y ear anniversary of the grant date . In February 201 5 , 514,805 shares of restricted stock, 195,082 performance unit awards and 72,259 of restricted units were granted to employees . In April and June of 2015, 171,716 and 1,198 shares of restricted stock were granted to employees. To date , before consideration of forfeitures , 3,474,3 50 shares have been granted to management, members of our Board of Directors and key employees under this plan. We expense the fair value of the stock option grants on a straight-line basis over the vesting period. A Black-Scholes option-pricing model is used to estimate the fair value of the stock options. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss in the accompanying consolidated balance sheets consists of the following (in thousands): June 30, December 31, 2015 2014 Currency translation adjustments $ (177,995) $ (136,265) Pension related adjustments Accumulated other comprehensive loss $ (178,608) $ (136,878) Earnings per Share Earnings per share are calculated in the table below (in thousands, except per share amounts). Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Net income $ 16,275 $ 39,300 $ 45,340 $ 62,820 Less: Dividends on Series A Preferred Stock - - Net income available to common stockholders $ 14,982 $ 39,300 $ 44,047 $ 62,820 Average basic shares outstanding Effect of dilutive securities Average diluted shares outstanding Net income per share: Basic $ 0.15 $ 0.39 $ 0.43 $ 0.62 Diluted $ 0.15 $ 0.38 $ 0.43 $ 0.61 Stock options , shares of restricted stock , and shares of Series A Preferred Stock are disregarded in the calculation of diluted earnings per share if they are determined to be anti-dilutive. For the three and six months ended June 30, 2015, all of the shares of the newly issued Series A Preferred Stock were anti-dilutive. For the three months ended June 30, 2015 and 2014 , we had approximately 3.9 million and 1.1 million anti-dilutive stock options, respectively. For the six months ended June 30, 2015 and 2014, we had approximately 3.9 million and 1.0 million anti-dilutive stock options, respectively. T here was no anti-dilutive restricted stock for the six months ended June 30, 2015 and 2014 .

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Segment Information	NOTE 5 – SEGMENT INFORMATION We operate as three business segments, U.S., Canada and International. Our International segment consists of our operations outside of the U.S. and Canada. These segments represent our business of selling PVF and related products and services to the energy and industrial sectors, across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) sectors. The following table presents financial information for each segment (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Sales U.S. $ 956.3 $ 1,115.6 $ 1,928.1 $ 2,063.5 Canada International Sales $ 1,198.1 $ 1,497.3 $ 2,490.4 $ 2,803.0 Operating income U.S. $ 48.9 $ 64.6 $ 100.7 $ 118.8 Canada International Operating income Interest expense Other, net Income before income taxes $ 29.3 $ 60.1 $ 71.6 $ 96.8 June 30, December 31, 2015 2014 Total assets U.S. $ 2,826.8 $ 3,111.9 Canada International Total assets $ 3,451.8 $ 3,873.8 Our sales by product line are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Type 2015 2014 2015 2014 Energy carbon steel tubular products: Line pipe $ 241,856 $ 288,122 $ 507,938 $ 495,361 Oil country tubular goods (OCTG) $ 320,726 $ 422,032 $ 692,471 $ 759,490 Valves, fittings, flanges and other products: Valves and specialty products $ 395,479 $ 489,489 $ 806,702 $ 918,712 Carbon steel fittings and flanges andstainless steel and alloy pipe and fittings Other $ 877,338 $ 1,075,263 $ 1,797,883 $ 2,043,484

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	NOTE 6 – FAIR VALUE MEASUREMENTS From time to time, we use derivative financial instruments to help manage our exposure to interest rate risk and fluctuations in foreign currencies. All of our derivative instruments are freestanding and, accordingly, changes in their fair market value are recorded in earnings. As of June 30, 2015 , we do not have any interest rate swap agreements. Foreign exchange forward contracts and options are reported at fair value utilizing Level 2 inputs, as the fair value is based on broker quotes for the same or similar derivative instruments. The total notional amount of our forward foreign exchange contracts and options was approximately $39.2 million and $77.9 million at June 30, 2015 and December 31, 2014 , respectively. We had approximate y $0.2 million and $1.6 million recorded as assets on our consolidated balance sheets as of June 30, 2015 and December 31, 2014 , respectively. With the exception of long-term debt, the fair values of our financial instruments, including cash and cash equivalents, accounts receivable, trade accounts payable and accrued liabilities approximate carrying value. The carrying value of our debt was $0.848 billion and $1.454 billion at June 30, 2015 and December 31, 2014 , respectively. We estimate the fair value of the Term Loan using Level 2 inputs, or quoted market prices. The fair value of our debt was $0.847 billion and $1.407 billion at June 30, 2015 and December 31, 2014 , respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	NOTE 7 – COMMITMENTS AND CONTINGENCIES Litigation As bestos Claims. We are one of many defendants in lawsuits that plaintiffs have brought seeking damages for personal injuries that exposure to asbestos allegedly caused. Plaintiffs and their family members have brought these lawsuits against a large volume of defendant entities as a result of the defendants’ manufacture, distribution, supply or other involvement with asbestos, asbestos containing-products or equipment or activities that allegedly caused plaintiffs to be exposed to asbestos. These plaintiffs typically assert exposure to asbestos as a consequence of third-party manufactured products that our McJunkin Red Man Corporation subsidiary purportedly distributed. As of June 30 , 2015, we are named a defendant in approximately 453 l awsuits involving approximately 1,077 claims. No asbestos lawsuit has resulted in a judgment against us to date, with a majority being settled, dismissed or otherwise resolved. Applicable third-party insurance has substantially covered these claims, and insurance should continue to cover a substantial majority of existing and anticipated future claims. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers for our estimated recovery, to the extent we believe that the amounts of recovery are probable. It is not possible to predict the outcome of these claims and proceedings. However, in our opinion, th e likelihood that the ultimate disposition of any of these claims and legal proceeding s will have a material adverse effect on our consolidated financial statements is remote . Other Legal Claims and Proceedings. From time to time, we have been subject to various claims and involved in legal proceedings incidental to the nature of our businesses. We maintain insurance coverage to reduce financial risk associated with certain of these claims and proceedings. It is not possible to predict the outcome of these claims and proceedings. However, in our opinion, th e likelihood that the ultimate disposition of any of these claims and legal proceeding s will have a material adverse effect on our consolidated financial statements is remote. Product Claims. From time to time, in the ordinary course of our business, our customers may claim that the products that we distribute are either defective or require repair or replacement under warranties that either we or the manufacturer may provide to the customer. These proceedings are, in the opinion of management, ordinary and routine matters incidental to our normal business. Our purchase orders with our suppliers generally require the manufacturer to indemnify us against any product liability claims, leaving the manufacturer ultimately responsible for these claims. In many cases, state, provincial or foreign law provides protection to distributors for these sorts of claims, shifting the responsibility to the manufacturer. In some cases, we could be required to repair or replace the products for the benefit of our customer and seek our recovery from the manufacturer for our expense. In our opinion, th e likelihood that the ultimate disposition of any of these claims and legal proceeding s will have a material adverse effect on our consolidated financial statements is remote . Weatherford Claim. In addition to PVF, our Canadian subsidiary, Midfield Supply (“Midfield”), now known as MRC Global ULC , also distributed progressive cavity pumps and related equipment (“PCPs”) under a distribution agreement with Weatherford Canada Partnership (“Weatherford”) within a certain geographical area located in southern Alberta, Canada. I n late 2005 and early 2006, Midfield hired new employees, including former Weatherford employees , as part of Midfield’s desire to expand its PVF business into northern Alberta. Shortly thereafter, many of these employees left Midfield and formed a PCP manufacturing, distribution and service company named Europump Systems Inc. (“Europump”) in 2006. A subsidiary of Halliburton Company purchased Europump in 2014. The distribution agreement with Weatherford expired in 2006. Midfield supplied Europump with PVF products that Europump distributed along with PCP pumps. In April 2007, Midfield purchased Europump’s distribution branches and began distributing and servicing Europump PCPs. Pursuant to a complaint that Weatherford filed on April 11, 2006 in the Court of Queen’s Bench of Alberta, Judicial Bench of Edmonton (Action No. 060304628), Weatherford sued Europump, three of Europump’s part suppliers, Midfield, certain current and former employees of Midfield, and other related entities, asserting a host of claims including breach of contract, breach of fiduciary duty, misappropriation of confidential information related to the PCPs, unlawful interference with economic relations and conspiracy. The Company denies these allegations and contends that Midfield’s expansion and subsequent growth was the result of fair competition. From 2006 through 2012, the case focused largely on Weatherford’s questioning of defense witnesses. In 2013, the defendants began substantive questioning of Weatherford and its witnesses. Discovery is ongoing and expected to last through late 2015 . The case is scheduled for trial on January 16, 2017. The Company believes Weatherford’s claims are without merit and intends to defend them vigorously. SKF Claim. On February 19, 2013, in the United States District Court for the District of Delaware, SKF USA Inc. sued McJunkin Red Man Corporation and MRC Global Inc. for trademark infringement , unfair competition, unjust enrichment, federal cybersquatting, and related claims. The parties settled the case for an immaterial amount, and the case was dismissed on July 6, 2015. Customer Contracts We have contracts and agreements with many of our customers that dictate certain terms of our sales arrangements (pricing, deliverables, etc.). While we make every effort to abide by the terms of these contracts, certain provisions are complex and often subject to varying interpretations. Under the terms of these contracts, our customers have the right to audit our adherence to the contract terms. Historically, any settlements that have resulted from these customer audits have not been material to our consolidated financial statements. Purchase Commitments We ha v e purchase obligations consisting primarily of inventory purchases made in the normal course of business to meet operating needs. While our vendors often allow us to cancel these purchase orders without penalty, in certain cases, cancellations may subject us to cancellation fees or penalties depending on the terms of the contract .

Background and Basis of Prese14

Background and Basis of Presentation (Policy)	6 Months Ended
	Jun. 30, 2015
Background and Basis of Presentation [Abstract]
Business Operations	Business Operations : MRC Global Inc. is a holding company headquartered in Houston, Texas. Our wholly owned subsidiaries are global distributors of pipe, valves, fittings (“PVF”) and related products and services across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) sectors. We have branches in principal industrial, hydrocarbon producing and refining areas throughout the United States, Canada, Europe, Asia , Australasia , the Middle East and Kazakhstan . Our products are obtained from a broad range of suppliers.
Basis of Presentation	Basis of Presentation : We have prepared our unaudited condensed consolidated financial statements in accordance with Rule 10-01 of Regulation S-X for interim financial statements. These statements do not include all information and footnotes that generally accepted accounting principles require for complete annual financial statements. However, the information in these statements reflects all normal recurring adjustments which are, in our opinion, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results that will be realized for the fiscal year ending December 3 1, 2015 . We have derived our condensed consolidated balance sheet as of December 31, 2014 from the audited consolidated financial statements for the year ended December 31, 2014 . You should read these condensed consolidated financial statements in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014 . The consolidated financial statements include the accounts of MRC Global Inc. and its wholly owned and majority owned subsidiaries (collectively referred to as the “Company” or by such terms as “we,” “our” or “us”). All material intercompany balances and transactions have been eliminated in consolidation.
Recently Issued Accounting Standards	Recent Accounting Pronouncements : : In May 2014, the Financial Accounting Standards Board (“ FASB ”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The ASU also provides guidance on accounting for certain contract costs, and requires new disclosures. The FASB recently voted to defer the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the effect of the adoption of ASU 2014-09 on our consolidated financial statements and the implementation approach to be used. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2015 . We expect to adopt this guidance in 2016 . As of June 30, 2015, our debt issuance costs totaled $15.0 million, which is reported in other assets.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Composition of Inventory	June 30, December 31, 2015 2014 Finished goods inventory at average cost: Energy carbon steel tubular products $ 426,817 $ 497,146 Valves, fittings, flanges and all other products Less: Excess of average cost over LIFO cost (LIFO reserve) Less: Other inventory reserves $ 1,033,451 $ 1,186,946

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-Term Debt [Abstract]
Components of Long-Term Debt	June 30, December 31, 2015 2014 Senior Secured Term Loan B, net of discount of $2,252 and $3,693 $ 527,362 $ 779,888 Global ABL Facility Other Less: Current portion $ 840,101 $ 1,445,709

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
Accumulated Other Comprehensive Loss in Accompanying Consolidated Balance Sheets	June 30, December 31, 2015 2014 Currency translation adjustments $ (177,995) $ (136,265) Pension related adjustments Accumulated other comprehensive loss $ (178,608) $ (136,878)
Earnings Per Share	Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Net income $ 16,275 $ 39,300 $ 45,340 $ 62,820 Less: Dividends on Series A Preferred Stock - - Net income available to common stockholders $ 14,982 $ 39,300 $ 44,047 $ 62,820 Average basic shares outstanding Effect of dilutive securities Average diluted shares outstanding Net income per share: Basic $ 0.15 $ 0.39 $ 0.43 $ 0.62 Diluted $ 0.15 $ 0.38 $ 0.43 $ 0.61

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Schedule of Financial Information for Each Segment	Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Sales U.S. $ 956.3 $ 1,115.6 $ 1,928.1 $ 2,063.5 Canada International Sales $ 1,198.1 $ 1,497.3 $ 2,490.4 $ 2,803.0 Operating income U.S. $ 48.9 $ 64.6 $ 100.7 $ 118.8 Canada International Operating income Interest expense Other, net Income before income taxes $ 29.3 $ 60.1 $ 71.6 $ 96.8 June 30, December 31, 2015 2014 Total assets U.S. $ 2,826.8 $ 3,111.9 Canada International Total assets $ 3,451.8 $ 3,873.8
Schedule of Net Sales by Product Line	Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Type 2015 2014 2015 2014 Energy carbon steel tubular products: Line pipe $ 241,856 $ 288,122 $ 507,938 $ 495,361 Oil country tubular goods (OCTG) $ 320,726 $ 422,032 $ 692,471 $ 759,490 Valves, fittings, flanges and other products: Valves and specialty products $ 395,479 $ 489,489 $ 806,702 $ 918,712 Carbon steel fittings and flanges andstainless steel and alloy pipe and fittings Other $ 877,338 $ 1,075,263 $ 1,797,883 $ 2,043,484

Background and Basis of Prese19

Background and Basis of Presentation (Details) $ in Millions	Jun. 30, 2015USD ($)
Background and Basis of Presentation [Abstract]
Debt issuance costs	$ 15

Inventories (Details)

Inventories (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Finished goods inventory at average cost:
Finished goods inventory at average cost	$ 1,186,802,000	$ 1,186,802,000	$ 1,354,209,000
Less: Excess of average cost over LIFO cost (LIFO reserve)	(127,570,000)	(127,570,000)	(142,662,000)
Less: Other inventory reserves	(25,781,000)	(25,781,000)	(24,601,000)
Inventories, net	1,033,451,000	1,033,451,000	1,186,946,000
Effect of LIFO decrement on cost of sales	(2,600,000)	2,900,000	0
Energy carbon steel tubular products [Member]
Finished goods inventory at average cost:
Finished goods inventory at average cost	426,817,000	426,817,000	497,146,000
Valves, fittings, flanges and all other products [Member]
Finished goods inventory at average cost:
Finished goods inventory at average cost	$ 759,985,000	$ 759,985,000	$ 857,063,000

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Proceeds from revolving credit facilities		$ 411,854	$ 1,221,386
Revolving credit facility [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date		Jul. 31, 2019
Credit facility, maximum borrowing capacity	$ 1,050,000	$ 1,050,000
Proceeds from revolving credit facilities		300,000
Revolving credit facility [Member] | U.S. [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	977,000	977,000
Revolving credit facility [Member] | Canada [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	20,000	20,000
Revolving credit facility [Member] | United Kingdom [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	5,000	5,000
Revolving credit facility [Member] | Australia [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	10,000	10,000
Revolving credit facility [Member] | Netherlands [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	4,000	4,000
Revolving credit facility [Member] | Belgium [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	4,000	4,000
Revolving credit facility [Member] | Norway [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 30,000	$ 30,000
Global ABL Facility [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	1.93%	1.93%		1.84%
Credit facility, remaining borrowing capacity	$ 543,500	$ 543,500
Senior Secured Term Loan B [Member]
Debt Instrument [Line Items]
New Term Loan	793,500	$ 793,500
Debt maturity period		7 years
Term loan annual amortization percentage		1.00%
Debt instrument, maturity date		Nov. 30, 2019
Term Loan accordion feature	$ 200,000	$ 200,000
Percentage of capital stock in foreign subsidiaries securing Term Loan B		65.00%
Debt instrument, interest rate	5.40%	5.40%		5.10%
Repayments of term loan	$ 250,000
Senior Secured Term Loan B [Member] | Senior Secured Leverage Ratio Is No More Than 2.75 to 1.00 [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		2.75
Repayment of Term Loan, percentage		25.00%
Senior Secured Term Loan B [Member] | Senior Secured Leverage Ratio Is No More Than 2.50 to 1.00 [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		2.50
Repayment of Term Loan, percentage		0.00%
Senior Secured Term Loan B [Member] | Maximum [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		3.50
Repayment of Term Loan, percentage		50.00%

Long-Term Debt (Components of L

Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 848,036	$ 1,453,644
Less: Current portion	7,935	7,935
Long-term debt, net	840,101	1,445,709
Senior secured term loan [Member]
Debt Instrument [Line Items]
Long-term debt	527,362	779,888
Original issue discount on senior secured Term Loan B	2,252	3,693
Global ABL Facility [Member]
Debt Instrument [Line Items]
Long-term debt	320,663	673,716
Other [Member]
Debt Instrument [Line Items]
Long-term debt	$ 11	$ 40

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 10, 2015	Jun. 30, 2015	Apr. 30, 2015	Feb. 28, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Mar. 31, 2015
Stockholders Equity [Line Items]
Preferred stock, par value	$ 0.01	$ 0.01			$ 0.01		$ 0.01		$ 0.01
Preferred stock, shares issued	363,000	363,000			363,000		363,000		0
Gross proceeds from issuance of Series A Preferred Stock	$ 363
Preferred stock, stated value	$ 1,000
Preferred stock, dividend rate	6.50%						6.50%		6.50%
Preferred stock, initial conversion rate	55.9284
Preferred stock, common stock as percentage of conversion price	150.00%
Preferred stock, initial conversion price	$ 17.88
2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Shares reserved for Incentive Plan		3,250,000			3,250,000		3,250,000
Stock granted										3,474,350
Subsequent Event [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Additional shares reserved for Incentive Plan			4,250,000
Director [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Vesting period							1 year
Minimum [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Vesting period							3 years
Maximum [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Vesting period							5 years
Stock Options [Member]
Stockholders Equity [Line Items]
Anti-dilutive securities					3,900,000	1,100,000	3,900,000	1,000,000
Stock Options [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Maximum term for stock option plan grant							10 years
Restricted Stock [Member]
Stockholders Equity [Line Items]
Stock granted		1,198	171,716	514,805
Anti-dilutive securities							0	0
Performance Shares [Member]
Stockholders Equity [Line Items]
Stock granted				195,082
Restricted Stock Units (RSUs) [Member]
Stockholders Equity [Line Items]
Stock granted				72,259

Stockholders' Equity (Accumulat

Stockholders' Equity (Accumulated Other Comprehensive Loss in Accompanying Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Stockholders' Equity [Abstract]
Currency translation adjustments	$ (177,995)	$ (136,265)
Pension related adjustments	(613)	(613)
Accumulated other comprehensive loss	$ (178,608)	$ (136,878)

Stockholders' Equity (Earnings

Stockholders' Equity (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stockholders' Equity [Abstract]
Net income	$ 16,275	$ 39,300	$ 45,340	$ 62,820
Less: Dividends on Series A Preferred Stock	1,293		1,293
Net income available to common stockholders	$ 14,982	$ 39,300	$ 44,047	$ 62,820
Average basic shares outstanding	102,168	101,986	102,142	101,955
Effect of dilutive securities	618	992	463	938
Average diluted shares outstanding	102,786	102,978	102,605	102,893
Net income per share:
Basic	$ 0.15	$ 0.39	$ 0.43	$ 0.62
Diluted	$ 0.15	$ 0.38	$ 0.43	$ 0.61

Segment Information (Narrative)

Segment Information (Narrative) (Details)	6 Months Ended
	Jun. 30, 2015segment
Segment Information [Abstract]
Number of operating segments	3

Segment Information (Schedule o

Segment Information (Schedule of Financial Information for Each Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Sales
Sales	$ 1,198,064	$ 1,497,295	$ 2,490,354	$ 2,802,974
Operating income
Operating income	47,014	74,135	107,488	134,878
Interest expense	(13,699)	(15,363)	(28,295)	(30,511)
Other, net	(4,000)	1,300	(7,600)	(7,600)
Income before income taxes	29,358	60,101	71,560	96,823
Total assets
Total assets	3,451,752		3,451,752		$ 3,873,821
U.S. [Member]
Sales
Sales	956,300	1,115,600	1,928,100	2,063,500
Operating income
Operating income	48,900	64,600	100,700	118,800
Total assets
Total assets	2,826,800		2,826,800		3,111,900
Canada [Member]
Sales
Sales	77,600	150,000	197,100	316,300
Operating income
Operating income	2,500	5,500	7,900	12,800
Total assets
Total assets	148,900		148,900		204,100
International [Member]
Sales
Sales	164,200	231,700	365,200	423,200
Operating income
Operating income	(4,400)	$ 4,000	(1,100)	$ 3,300
Total assets
Total assets	$ 476,100		$ 476,100		$ 557,800

Segment Information (Schedule28

Segment Information (Schedule of Net Sales by Product Line) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Energy carbon steel tubular products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	$ 320,726	$ 422,032	$ 692,471	$ 759,490
Energy carbon steel tubular products [Member] | Line pipe [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	241,856	288,122	507,938	495,361
Energy carbon steel tubular products [Member] | Oil country tubular goods (OCTG) [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	78,870	133,910	184,533	264,129
Valves, fittings, flanges and all other products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	877,338	1,075,263	1,797,883	2,043,484
Valves, fittings, flanges and all other products [Member] | Valves and Specialty Products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	395,479	489,489	806,702	918,712
Valves, fittings, flanges and all other products [Member] | Carbon steel fittings and flanges and stainless steel and alloy pipe and fittings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	249,643	308,564	519,002	598,906
Valves, fittings, flanges and all other products [Member] | Other [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Net Sales	$ 232,216	$ 277,210	$ 472,179	$ 525,866

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of debt	$ 848	$ 1,454
Long-term Debt [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of our debt	847	1,407
Foreign exchange forward contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount of forward foreign exchange contracts and options	39.2	77.9
Foreign exchange forward contracts [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of forward foreign exchange contracts and options	$ 0.2	$ 1.6

Commitments and Contingencies (

Commitments and Contingencies (Details) - Jun. 30, 2015	claimlawsuit
Commitments and Contingencies [Abstract]
Number of lawsuits | lawsuit	453
Asbestos related pending claims	1,077