MRC Global (MRC) 10-Q 1 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Entity File Number	001-35479
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	MRC
Title of 12(b) Security	Common Stock, par value $0.01
Security Exchange Name	NYSE
Entity Registrant Name	MRC GLOBAL INC.
Entity Central Index Key	0001439095
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Address, Address Line One	Fulbright Tower
Entity Address, Address Line Two	1301 McKinney Street, Suite 2300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77010
Entity Incorporation, State or Country Code	DE
City Area Code	877
Local Phone Number	294-7574
Entity Tax Identification Number	20-5956993
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Common Stock [Member]
Entity Common Stock, Shares Outstanding		82,187,833
Restricted Stock [Member]
Entity Common Stock, Shares Outstanding		74,055

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash	$ 25	$ 43
Accounts receivable, net	586	587
Inventories, net	742	797
Other current assets	37	38
Total current assets	1,390	1,465
Long-term assets:
Operating lease assets	186
Property, plant and equipment, net	140	140
Other assets	21	23
Intangible assets:
Goodwill, net	482	484
Other intangible assets, net	288	322
Total assets	2,507	2,434
Current liabilities:
Trade accounts payable	431	435
Accrued expenses and other current liabilities	93	130
Operating lease liabilities	34
Current portion of long-term debt	4	4
Total current liabilities	562	569
Long-term liabilities:
Long-term debt, net	623	680
Operating lease liabilities	168
Deferred income taxes	91	98
Other liabilities	37	40
Commitments and contingencies
6.5% Series A Convertible Perpetual Preferred Stock, $0.01 par value; authorized 363,000 shares; 363,000 shares issued and outstanding	355	355
Stockholders' equity:
Common stock, $0.01 par value per share: 500 million shares authorized, 105,623,390 and 104,953,693 issued, respectively	1	1
Additional paid-in capital	1,727	1,721
Retained deficit	(453)	(498)
Less: Treasury stock at cost: 23,436,329 and 19,347,839 shares, respectively	(363)	(300)
Accumulated other comprehensive loss	(241)	(232)
Total stockholders' equity	671	692
Total liabilities and stockholders' equity	$ 2,507	$ 2,434

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Condensed Condensed Consolidated Balance Sheets [Abstract]
Temporary Equity, Dividend Rate, Percentage	6.50%	6.50%
Temporary Equity, Par or Stated Value Per Share	$ 0.01	$ 0.01
Temporary Equity, Shares Authorized	363,000	363,000
Temporary Equity, Shares Issued	363,000	363,000
Temporary Equity, Shares Outstanding	363,000	363,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	105,623,390	104,953,693
Treasury stock, shares	23,436,329	19,347,839

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Operations [Abstract]
Sales	$ 942	$ 1,071	$ 2,896	$ 3,163
Cost of sales	768	899	2,374	2,645
Gross profit	174	172	522	518
Selling, general and administrative expenses	137	140	409	414
Operating income	37	32	113	104
Other (expense) income:
Interest expense	(10)	(10)	(31)	(28)
Write off of debt issuance costs				(1)
Other, net	2	2	3	4
Income before income taxes	29	24	85	79
Income tax expense	8		22	15
Net income	21	24	63	64
Series A preferred stock dividends	6	6	18	18
Net income attributable to common stockholders	$ 15	$ 18	$ 45	$ 46
Basic income per common share	$ 0.18	$ 0.20	$ 0.54	$ 0.51
Diluted income per common share	$ 0.18	$ 0.20	$ 0.53	$ 0.50
Weighted-average common shares, basic	82.7	90.3	83.4	90.6
Weighted-average common shares, diluted	83.4	91.7	84.2	92.4

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 21	$ 24	$ 63	$ 64
Other comprehensive (loss) income
Foreign currency translation adjustments	(8)		(3)	(10)
Hedge accounting adjustments, net of tax		2	(6)	2
Total other comprehensive (loss) income, net of tax	(8)	2	(9)	(8)
Comprehensive income	$ 13	$ 26	$ 54	$ 56

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained (Deficit) [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive (Loss) [Member]	Total
Balance at Dec. 31, 2017	$ 1	$ 1,691	$ (548)	$ (175)	$ (210)	$ 759
Balance (shares) at Dec. 31, 2017	103,000,000			12,000,000
Net income			18			18
Foreign currency translation adjustments					(1)	(1)
Hedge accounting adjustments					(1)	(1)
Shares withheld for taxes		(5)				(5)
Equity-based compensation expense		4				4
Exercise of stock options		5				5
Exercise of stock options (shares)	1,000,000
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock				$ (30)		(30)
Purchase of common stock, shares				(1,000,000)
Balance at Mar. 31, 2018	$ 1	1,695	(536)	$ (205)	(212)	743
Balance (shares) at Mar. 31, 2018	104,000,000			13,000,000
Balance at Dec. 31, 2017	$ 1	1,691	(548)	$ (175)	(210)	759
Balance (shares) at Dec. 31, 2017	103,000,000			12,000,000
Net income						64
Foreign currency translation adjustments						(10)
Purchase of common stock						$ (50)
Purchase of common stock, shares						(2,871,204)
Balance at Sep. 30, 2018	$ 1	1,718	(502)	$ (225)	(218)	$ 774
Balance (shares) at Sep. 30, 2018	105,000,000			15,000,000
Balance at Mar. 31, 2018	$ 1	1,695	(536)	$ (205)	(212)	743
Balance (shares) at Mar. 31, 2018	104,000,000			13,000,000
Net income			22			22
Foreign currency translation adjustments					(9)	(9)
Hedge accounting adjustments					1	1
Equity-based compensation expense		3				3
Exercise of stock options		16				16
Exercise of stock options (shares)	1,000,000
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock				$ (20)		(20)
Purchase of common stock, shares				(2,000,000)
Balance at Jun. 30, 2018	$ 1	1,714	(520)	$ (225)	(220)	750
Balance (shares) at Jun. 30, 2018	105,000,000			(15,000,000)
Net income			24			24
Hedge accounting adjustments					2	2
Equity-based compensation expense		4				4
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock
Purchase of common stock, shares
Balance at Sep. 30, 2018	$ 1	1,718	(502)	$ (225)	(218)	$ 774
Balance (shares) at Sep. 30, 2018	105,000,000			15,000,000
Balance at Dec. 31, 2018	$ 1	1,721	(498)	$ (300)	(232)	692
Balance (shares) at Dec. 31, 2018	105,000,000			19,000,000
Net income			18			18
Foreign currency translation adjustments					3	3
Hedge accounting adjustments					(2)	(2)
Shares withheld for taxes		(6)				(6)
Equity-based compensation expense		4				4
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock				$ (25)		(25)
Purchase of common stock, shares				(2,000,000)
Balance at Mar. 31, 2019	$ 1	1,719	(486)	$ (325)	(231)	678
Balance (shares) at Mar. 31, 2019	105,000,000			21,000,000
Balance at Dec. 31, 2018	$ 1	1,721	(498)	$ (300)	(232)	692
Balance (shares) at Dec. 31, 2018	105,000,000			19,000,000
Net income						63
Foreign currency translation adjustments						(3)
Purchase of common stock						$ (63)
Purchase of common stock, shares						(4,088,490)
Balance at Sep. 30, 2019	$ 1	1,727	(453)	$ (363)	(241)	$ 671
Balance (shares) at Sep. 30, 2019	106,000,000			(23,000,000)		82,187,061
Balance at Mar. 31, 2019	$ 1	1,719	(486)	$ (325)	(231)	$ 678
Balance (shares) at Mar. 31, 2019	105,000,000			21,000,000
Net income			24			24
Foreign currency translation adjustments					2	2
Hedge accounting adjustments					(4)	(4)
Equity-based compensation expense		3				3
Equity-based compensation expense (shares)	1,000,000
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock				$ (25)		(25)
Purchase of common stock, shares				(1,000,000)
Balance at Jun. 30, 2019	$ 1	1,722	(468)	$ (350)	(233)	672
Balance (shares) at Jun. 30, 2019	106,000,000			22,000,000
Net income			21			21
Foreign currency translation adjustments					(8)	(8)
Equity-based compensation expense		5				5
Dividends declared on preferred stock			(6)			(6)
Purchase of common stock				$ (13)		$ (13)
Purchase of common stock, shares				(1,000,000)		(957,869)
Balance at Sep. 30, 2019	$ 1	$ 1,727	$ (453)	$ (363)	$ (241)	$ 671
Balance (shares) at Sep. 30, 2019	106,000,000			(23,000,000)		82,187,061

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income	$ 63	$ 64
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization	16	17
Amortization of intangibles	33	34
Equity-based compensation expense	12	11
Deferred income tax benefit	(5)	(7)
Amortization of debt issuance costs	1	1
Write off of debt issuance costs		1
(Decrease) increase in LIFO reserve	(3)	48
Other	3	2
Changes in operating assets and liabilities:
Accounts receivable	(4)	(156)
Inventories	56	(206)
Other current assets		3
Accounts payable	(3)	58
Accrued expenses and other current liabilities	(35)	(16)
Net cash provided by (used in) operations	134	(146)
Investing activities
Purchases of property, plant and equipment	(12)	(15)
Proceeds from the disposition of property, plant and equipment	1	6
Other investing activities	1
Net cash used in investing activities	(10)	(9)
Financing activities
Payments on revolving credit facilities	(786)	(808)
Proceeds from revolving credit facilities	733	1,004
Payments on long-term obligations	(3)	(3)
Debt issuance costs paid		(1)
Purchase of common stock	(63)	(50)
Dividends paid on preferred stock	(18)	(18)
Repurchases of shares to satisfy tax withholdings	(6)	(5)
Proceeds from exercise of stock options		21
Other	1	(1)
Net cash (used in) provided by financing activities	(142)	139
Decrease in cash	(18)	(16)
Effect of foreign exchange rate on cash		(3)
Cash -- beginning of period	43	48
Cash -- end of period	25	29
Supplemental disclosures of cash flow information:
Cash paid for interest	30	27
Cash paid for income taxes	$ 27	$ 34

Background and Basis of Present

Background and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
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 infrastructure 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 and petrochemical and chemical 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 Caspian . We obtain products 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 nine months ended September 30, 2019 are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2019 . We have derived our condensed consolidated balance sheet as of December 31, 2018 from the audited consolidated financial statements for the year ended December 31, 2018. You should read these condensed consolidated financial statements in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018. 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 June 2016, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) 2016-13, Measurement of Credit Losses on Financial Instruments , which requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for annual and interim financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 which clarifies guidance in ASU 2016-13. We do not expect the adoption of this standard to materially impact our consolidated financial statements. Adoption of New Accounting Standards : On January 1, 2019, we adopted ASU 201 6 -0 2, Leases, which requires the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous guidance in Accounting Standards Codification 840. We adopted ASU 2016-02 using the modified retrospective approach . The guidance for this approach included an option to not restate comparative periods in transition and elect to use the effective date as the initial application of transition, which we elected . In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification s . On January 1, 2019, we recorded an operating lease asset of $ 192 million and an operating lease liability of $ 208 million. The standard did not impact our consolidated net earnings or cash flows . Adoption of the new standard is more fully described in Note 4 .

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue Recognition [Abstract]
Revenue Recognition	NOTE 2 – REVENUE RECOGNITION R evenue is recognized when control of promised goods or services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Substantially all of our revenue is recognized when products are shipped or delivered to our customers, and payment is due from our customers at the time of billing with a majority of our customers having 30 - day terms. Returns are estimated and recorded as a reduction of revenue. A mounts received in advance of shipment are deferred and recognized when the performance obligations are satisfied . Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and , therefore , are excluded from sales in the accompanying consolidated statements of operations. Cost of sales includes the cost of inventory sold and related items, such as vendor rebates, inventory allowances and reserves and shipping and handling costs associated with inbound and outbound freight, as well as depreciation and amortization and amortization of intangible assets. In some cases, particularly with third-party pipe shipments, shipping and handling costs are considered separate performance obligations, and as such, the revenue and cost of sales are recorded when the performance obligation is fulfilled. Our contracts with customers ordinarily involve performance obligations that are one year or less. Therefore, we have applied the optional exemption that permits the omission of information about our unfulfilled performance obligation s as of the balance sheet dates . Contract Balances : Variations in the timing of revenue recognition, invoicing and receipt of payment result in categories of assets and liabilities that include invoiced accounts receivable , uninvoiced accounts receivable , contract assets and deferred revenue (contract liabilities) on the consolidated balance sheet s . Generally, revenue recognition and invoicing occur simultaneous ly as we transfer control of promised goods or services to our customers. We consider contract assets to be accounts receivable when we have an unconditional right to consideration and only the passage of time is required before payment is due. In certain cases, particularly those involving customer-specific documentation requirements, invoicing is delayed until we are able to meet the documentation requirements . In these cases, we recognize a contract asset separate from accounts receivable until those requirements are met, and we are able to invoice the customer. Our contract asset balance associated with these requirements, as of September 30, 2019 and Decembe r 31, 201 8, was $ 24 million and $ 38 million, respectively. These contract asset balances are included within accounts receivable in the accompanying consolidated balance sheets. We record contract liabilities, or deferred revenue , when cash payments are received from customers in advance of our performance, including amounts which are refundable. The deferred revenue balance at September 30, 2019 and December 3 1, 2018 was $ 3 million and $ 6 million, respectively. During the three and nine months ended September 30, 2019, we recognized $ 0 million and $ 6 million, respectively, of revenue that was deferred as of December 31, 2018. Deferred revenue balances are included within accrued expenses and other current liabilities in the accompanying consolidated balance sheets. On January 29, 2019, our customer, PG&E Corporation, a large public utility company in California, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. At the time of the filing, our accounts receivable for PG&E totaled $ 16 million. As of September 30, 2019, pre-petition accounts receivable for PG&E totaled $ 7 million. During the nine months ended September 30, 2019, we recognized a charge of $ 1 million to reserve for accounts receivable we do not expect to collect. Disaggregated Revenue : Our disaggregated revenue represent s our business of selling PVF to the energy sector 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 and petrochemical and chemical processing and general industrials ) sectors in each of our reportable segments . Each of our end markets and geographical reportable segments are impacted and influenced by varying factors, including macroeconomic environment, commodity prices, maintenance and capital spending, and exploration and production activity. As such, we believe that this information is important in depicting the nature, amount, timing and uncertainty of our contracts with customers. The following table presents our revenue disaggregated by revenue source (in millions): Three Months Ended September 30, U.S. Canada International Total 2019: Upstream $ 189 $ 43 $ 55 $ 287 Midstream 356 7 7 370 Downstream 218 7 60 285 $ 763 $ 57 $ 122 $ 942 2018: Upstream $ 213 $ 59 $ 66 $ 338 Midstream 406 11 5 422 Downstream 240 8 63 311 $ 859 $ 78 $ 134 $ 1,071 Nine Months Ended September 30, U.S. Canada International Total 2019: Upstream $ 583 $ 130 $ 170 $ 883 Midstream 1,098 35 19 1,152 Downstream 667 18 176 861 $ 2,348 $ 183 $ 365 $ 2,896 2018: Upstream $ 580 $ 180 $ 187 $ 947 Midstream 1,253 33 18 1,304 Downstream 710 23 179 912 $ 2,543 $ 236 $ 384 $ 3,163

Inventories

Inventories	9 Months Ended
	Sep. 30, 2019
Inventories [Abstract]
Inventories	NOTE 3 – INVENTORIES The com position of our inventory is as follows (in millions ) : September 30, December 31, 2019 2018 Finished goods inventory at average cost: Valves, automation, measurement and instrumentation $ 361 $ 366 Carbon steel pipe, fittings and flanges 292 346 All other products 280 282 933 994 Less: Excess of average cost over LIFO cost (LIFO reserve) ( 154 ) ( 157 ) Less: Other inventory reserves ( 37 ) ( 40 ) $ 742 $ 797 The Company uses the last-in, first-out ( “ LIFO ” ) method of valuing U.S. inventories. The use of the LIFO method has the effect of reducing net income during periods of rising inventory costs (inflationary periods) and increasing net income during periods of falling inventory costs (deflationary periods). Valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs , and are subject to the final year-end LIFO inventory determination.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	NOTE 4 – LEASES We lease certain distribution centers, warehouses, office space, land and equipment. Substantially all of these leases are classified as operating leases. We recognize lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Many of our facility leases include one or more options to renew, with renewal terms that can extend the lease term from one year to 15 years with a maximum lease term of 30 years, including renewals. The exercise of lease renewal options is at our sole discretion; therefore, renewals to extend the terms of most leases are not included in our right of use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. In the case of our regional distribution centers and certain corporate offices, where the renewal is reasonably certain of exercise, we include the renewal period in our lease term. Leases with escalation adjustments based on an index, such as the consumer price index, are expensed based on current rates. Leases with specified escalation steps are expensed based on the total lease obligation ratably over the life of the lease. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Non-lease components, such as payment of real estate taxes, maintenance, insurance and other operating expenses, have been excluded from the determination of our lease liability. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments using a portfolio approach. For leases that commenced prior to the transition date, we used the incremental borrowing rates as of the beginning of the period of adoption, or January 1, 2019. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Expense associated with our operating leases was $ 10 million and $ 31 million for the three and nine months ended September 30, 2019, respectively, which is classified in selling, general and administrative expenses. Cash paid for leases recognized as liabilities was $ 11 million and $ 34 million for the three and nine months ended September 30, 2019, respectively. The maturity of lease liabilities is as follows (in millions): Maturity of Operating Lease Liabilities Remainder of 2019 $ 11 2020 38 2021 33 2022 25 2023 20 After 2023 208 Total lease payments 335 Less: Interest ( 133 ) Present value of lease liabilities $ 202 Amounts maturing after 2023 include expected renewals for leases of regional distribution centers and certain corporate offices through dates up to 2049. The term and discount rate associated with leases are as follows: September 30, Operating Lease Term and Discount Rate 2019 Weighted-average remaining lease term (years) 14 Weighted-average discount rate 7.0 %

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2019
Long-Term Debt [Abstract]
Long-Term Debt	NOTE 5 – LONG-TERM DEBT The components of our long-term debt are as follows (in millions ): September 30, December 31, 2019 2018 Senior Secured Term Loan B, net of discount and issuance costs of $ 2 and $ 3 , respectively $ 391 $ 393 Global ABL Facility 236 291 627 684 Less: Current portion ( 4 ) ( 4 ) $ 623 $ 680 Senior Secured Term Loan B : We have a Senior Secured Term Loan B (the “Term Loan”) with an original principal amount of $ 400 million, which amortizes in equal quarterly installments of 1 % per year with the balance payable in September 2024, when the facility matures. The Term Loan allows for incremental increases in facility size by up to an aggregate of $ 200 million, plus an additional amount such that the Company’s first lien leverage ratio (as defined under the Term Loan) would not exceed 4.00 to 1.00. MRC Global (US) Inc. 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 , defined below, (which includes accounts receivable and inventory) 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, as defined in the Term Loan (reducing to 25 % if our first lien leverage ratio is no more than 2.75 to 1.00 and 0 % if our first lien leverage ratio is no more than 2.50 to 1.00). In addition, the Term Loan contains a number of customary restrictive covenants. In May 2018, the Company entered into Refinancing Amendment No. 2 relating to the Term Loan. Pursuant to this amendment, the Company and the other parties thereto agreed to reduce the interest rate margin applicable to term loans, in the case of loans incurring interest based on the base rate, from 250 basis points to 200 basis points, and in the case of loans incurring interest based on LIBOR, from 350 basis points to 300 basis points. The parties to the amendment also agreed to reduce the base rate ‘floor’ from 2.00 % to 1.00 % and to reduce the LIBOR ‘floor’ from 1.00 % to 0.00 %. Except as described above, the terms of the Term Loan Agreement generally were not modified as a result of the amendment. Global ABL Facility : We have an $ 800 million multi-currency asset-based revolving credit (the “Global ABL Facility”) that matures in September 2022. This facility is comprised of revolver commitments of $ 675 million in the United States, $ 65 million in Canada, $ 18 million in Norway, $ 15 million in Australia, $ 13 million in the Netherlands, $ 7 million in the United Kingdom and $ 7 million in Belgium. It contains an accordion feature that allows us to increase the principal amount of the facility by up to $ 200 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 and inventory. Excess Availability, as defined under our Global ABL Facility, was $ 477 million as of September 30, 2019. Interest on Borrowings : The interest rates on our borrowings outstanding at September 30, 2019 and December 31, 2018, including a floating to fixed interest rate swap and amortization of debt issuance costs, are as set forth below: September 30, December 31, 2019 2018 Senior Secured Term Loan B 5.58 % 5.76 % Global ABL Facility 3.60 % 3.95 % Weighted average interest rate 4.83 % 4.99 %

Redeemable Preferred Stock

Redeemable Preferred Stock	9 Months Ended
	Sep. 30, 2019
Redeemable Preferred Stock [Abstract]
Redeemable Preferred Stock	NOTE 6 – REDEEMABLE PREFERRED STOCK Preferred Stock Issuance In June 2015, we issued 363,000 shares of Series A Convertible Perpetual Preferred Stock (the “Preferred Stock”) and received gross proceeds of $ 363 million. The Preferred Stock ranks senior to our common stock with respect to dividend rights and rights on liquidation, winding-up and dissolution. The Preferred Stock has a stated value of $ 1,000 per share, and holders of Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6.50 % per annum. In June 2018, the holders of Preferred Stock designated one member to our Board of Directors. If we fail to declare and pay the quarterly dividend for an amount equal to six or more dividend periods, the holders of the Preferred Stock would be entitled to designate an additional member to our Board of Directors. Holders of 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 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 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 Preferred Stock, which represents an initial conversion price of $ 17.88 per share of common stock, subject to adjustment. On or after June 10, 2020 , the Company will have the option to redeem, in whole but not in part, all the outstanding shares of Preferred Stock at 105 % of par value , subject to certain redemption price adjustments. On or after June 10, 2022, the Company will have the option to redeem, in whole but not in part, all of the outstanding shares of Preferred Stock at par value. We may elect to convert the Preferred Stock, in whole but not in part, into the relevant number of shares of common stock on or after December 10, 2019 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. Holders of the Preferred Stock may, at their option, require the Company to repurchase their shares in the event of a fundamental change, as defined in the agreement. The repurchase price is based on the original $ 1,000 per share purchase price except in the case of a liquidation in which case they would receive the greater of $ 1,000 per share and the amount that would be received if they held common stock converted at the conversion rate in effect at the time of the fundamental change. Because this feature could require redemption as a result of the occurrence of an event not solely within the control of the Company, the Preferred Stock is classified as temporary equity on our balance sheet.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity [Abstract]
Stockholders' Equity	NOTE 7 – STOCKHOLDERS’ EQUITY Share Repurchase Program In October 2017, the Company’s board of directors authorized a share repurchase program for common stock of up to $ 100 million. In the second quarter of 2018, the Company completed the repurchases of all shares authorized under this program. In October 2018, the Company’s board of directors authorized another share repurchase program for common stock of up to $ 150 million. The program is scheduled to expire December 31, 2019. The shares may be repurchased at management’s discretion in the open market. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. As of September 30, 2019, we had $ 12 million remaining under the October 2018 authorization. Summary of share repurchase activity under the repurchase program: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Number of shares acquired on the open market 957,869 - 4,088,490 2,871,204 Average price per share $ 13.59 $ - $ 15.43 $ 17.39 Total cost of acquired shares (in millions) $ 13 $ - $ 63 $ 50 Since 2015, under all programs, we have acquired 23,436,329 shares at an average price per share of $ 15.49 for a total cost of $ 363 million. As of September 30, 2019, we had 82,187,061 shares of common stock outstanding. Equity Compensation Plans Our 2011 Omnibus Incentive Plan originally had 3,250,000 shares reserved for issuance under the plan. In both April 2015 and 2019, our shareholders approved an additional 4,250,000 and 2,500,000 shares, respectively, 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 share 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 year s. For employees, vesting generally occurs over a three year 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 share unit 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 2019 , 242,290 performance share unit awards, 597,358 shares of restricted stock units and 74,055 restricted stock shares have been granted to employees . To date , since the plan’s inception in 2011, before consideration of forfeitures , 7,596,117 shares have been granted to management, members of our board of directors and key employees under this plan. A Black-Scholes option-pricing model is used to estimate the fair value of the stock options. A Monte Carlo simulation is completed to estimate the fair value of performance share unit awards with a stock price performance component. We expense the fair value of all equity grants , including performance share unit awards, on a straight-line basis over the vesting period. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss in the accompanying consolidated balance sheets consists of the following (in millions): September 30, December 31, 2019 2018 Foreign currency translation adjustments $ ( 232 ) $ ( 229 ) Hedge accounting adjustments ( 8 ) ( 2 ) Pension related adjustments ( 1 ) ( 1 ) Accumulated other comprehensive loss $ ( 241 ) $ ( 232 ) Earnings per Share Earnings per share are calculated in the table below (in millions , except per share amounts) : Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Net income $ 21 $ 24 $ 63 $ 64 Less: Dividends on Series A Preferred Stock 6 6 18 18 Net income attributable to common stockholders $ 15 $ 18 $ 45 $ 46 Weighted average basic shares outstanding 82.7 90.3 83.4 90.6 Effect of dilutive securities 0.7 1.4 0.8 1.8 Weighted average diluted shares outstanding 83.4 91.7 84.2 92.4 Net income per share: Basic $ 0.18 $ 0.20 $ 0.54 $ 0.51 Diluted $ 0.18 $ 0.20 $ 0.53 $ 0.50 Equity awards and shares of Preferred Stock are disregarded in the calculation of diluted earnings per share if they are determined to be anti-dilutive. For the three and nine months ended September 30, 2019 and 2018, all of the shares of the Preferred Stock were anti-dilutive. For the three and nine months ended September 30, 2019, we had approximately 2.5 million anti-dilutive stock options. For the three and nine months ended September 30, 2018, we had approximately 2.9 million and 3.3 million anti-dilutive stock options, respectively. There were no anti-dilutive restricted stock, restricted units or performance stock unit awards for the three and nine months ended September 30, 2019 and 2018.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Information [Abstract]
Segment Information	NOTE 8 – SEGMENT INFORMATION In 2019, as a result of changes in our management structure, we combined our U.S. Eastern Region and Gulf Coast and our U.S. Western region into a single operating segment. Previously, these separate operating segments were combined for reporting purposes as a result of their economic similarity. Following this change, our business is comprised of three operating and reportable 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 to the energy sector 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 and petrochemical and chemical processing and general industrials ) sectors . The following table presents financial information for each reportable segment (in millions): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Sales U.S. $ 763 $ 859 $ 2,348 $ 2,543 Canada 57 78 183 236 International 122 134 365 384 Consolidated sales $ 942 $ 1,071 $ 2,896 $ 3,163 Operating income U.S. $ 31 $ 28 $ 102 $ 93 Canada 1 4 1 8 International 5 - 10 3 Total operating income 37 32 113 104 Interest expense ( 10 ) ( 10 ) ( 31 ) ( 28 ) Other, net 2 2 3 3 Income before income taxes $ 29 $ 24 $ 85 $ 79 September 30, December 31, 2019 2018 Total assets U.S. $ 2,170 $ 2,088 Canada 96 124 International 241 222 Total assets $ 2,507 $ 2,434 Our sales by product line are as follows (in millions ): Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Type 2019 2018 2019 2018 Line pipe $ 153 $ 186 $ 468 $ 556 Carbon steel fittings and flanges 145 182 456 531 Total carbon steel pipe, fittings and flanges 298 368 924 1,087 Valves, automation, measurement and instrumentation 362 393 1,125 1,146 Gas products 147 154 425 425 Stainless steel and alloy pipe and fittings 43 48 135 150 General oilfield products 92 108 287 355 $ 942 $ 1,071 $ 2,896 $ 3,163

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements [Abstract]
Fair Value Measurements	NOTE 9 – 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. Interest Rate Swap : In March 2018, we entered into a five year interest rate swap that became effective on March 31, 2018, with a notional amount of $ 250 million from which the Company will receive payments at 1-month LIBOR and make monthly payments at a fixed rate of 2.7145 % with settlement and reset dates on or near the last business day of each month until maturity. The fair value of the swap at inception was zero . We have designated the interest rate swap as an effective cash flow hedge utilizing the guidance under ASU 2017-12. As such, the valuation of the interest rate swap is recorded as an asset or liability, and the gain or loss on the derivative is recorded as a component of other comprehensive income. I nterest rate swap agreements are reported on the accompanying balance sheets at fair value utilizing observable Level 2 inputs such as yield curves and other market-based factors. We obtain dealer quotations to value our interest rate swap agreements. The fair value of our interest rate swap is estimated based on the present value of the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows at current market interest rates. The fair value of the interest rate swap was a liability of $ 11 million and $ 3 million as of September 30, 2019 and December 31, 2018, respectively. Foreign Exchange Forward Contracts : Foreign exchange forward contracts 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. O ur foreign exchange derivative instruments are freestanding , have not been designated as hedges and, accordingly, changes in their fair market value are recorded in earnings. The total notional amount of our forward foreign exchange contracts and options was approximately $ 17 million and $ 22 million at September 30, 2019 and December 31, 2018, respectively. The fair value of our foreign exchange contracts was not material as of September 30, 2019 and December 31, 201 8. 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 $ 627 million and $ 684 m illion at September 30, 2019 and December 31, 2018, 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 $ 631 million and $ 675 million at September 30, 2019 and December 31, 2018 respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	NOTE 10 – 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 MRC Global (US) Inc. subsidiary purportedly distributed. As of September 30, 2019 , we are named a defendant in approximately 594 l awsuits involving approximately 1,170 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 . 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 Prese_2

Background and Basis of Presentation (Policy)	9 Months Ended
	Sep. 30, 2019
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 infrastructure 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 and petrochemical and chemical 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 Caspian . We obtain products 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 nine months ended September 30, 2019 are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2019 . We have derived our condensed consolidated balance sheet as of December 31, 2018 from the audited consolidated financial statements for the year ended December 31, 2018. You should read these condensed consolidated financial statements in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018. 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 & Adoption of New Accounting Standards	Recent Accounting Pronouncements : In June 2016, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) 2016-13, Measurement of Credit Losses on Financial Instruments , which requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for annual and interim financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 which clarifies guidance in ASU 2016-13. We do not expect the adoption of this standard to materially impact our consolidated financial statements. Adoption of New Accounting Standards : On January 1, 2019, we adopted ASU 201 6 -0 2, Leases, which requires the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous guidance in Accounting Standards Codification 840. We adopted ASU 2016-02 using the modified retrospective approach . The guidance for this approach included an option to not restate comparative periods in transition and elect to use the effective date as the initial application of transition, which we elected . In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification s . On January 1, 2019, we recorded an operating lease asset of $ 192 million and an operating lease liability of $ 208 million. The standard did not impact our consolidated net earnings or cash flows . Adoption of the new standard is more fully described in Note 4 .

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue Recognition [Abstract]
Summary of Revenue Disaggregation	Three Months Ended September 30, U.S. Canada International Total 2019: Upstream $ 189 $ 43 $ 55 $ 287 Midstream 356 7 7 370 Downstream 218 7 60 285 $ 763 $ 57 $ 122 $ 942 2018: Upstream $ 213 $ 59 $ 66 $ 338 Midstream 406 11 5 422 Downstream 240 8 63 311 $ 859 $ 78 $ 134 $ 1,071 Nine Months Ended September 30, U.S. Canada International Total 2019: Upstream $ 583 $ 130 $ 170 $ 883 Midstream 1,098 35 19 1,152 Downstream 667 18 176 861 $ 2,348 $ 183 $ 365 $ 2,896 2018: Upstream $ 580 $ 180 $ 187 $ 947 Midstream 1,253 33 18 1,304 Downstream 710 23 179 912 $ 2,543 $ 236 $ 384 $ 3,163

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2019
Inventories [Abstract]
Composition of Inventory	September 30, December 31, 2019 2018 Finished goods inventory at average cost: Valves, automation, measurement and instrumentation $ 361 $ 366 Carbon steel pipe, fittings and flanges 292 346 All other products 280 282 933 994 Less: Excess of average cost over LIFO cost (LIFO reserve) ( 154 ) ( 157 ) Less: Other inventory reserves ( 37 ) ( 40 ) $ 742 $ 797

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Maturity of Operating Lease Liabilities	Maturity of Operating Lease Liabilities Remainder of 2019 $ 11 2020 38 2021 33 2022 25 2023 20 After 2023 208 Total lease payments 335 Less: Interest ( 133 ) Present value of lease liabilities $ 202
Operating Lease Term and Discount Rate	September 30, Operating Lease Term and Discount Rate 2019 Weighted-average remaining lease term (years) 14 Weighted-average discount rate 7.0 %

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Long-Term Debt [Abstract]
Components of Long-Term Debt	September 30, December 31, 2019 2018 Senior Secured Term Loan B, net of discount and issuance costs of $ 2 and $ 3 , respectively $ 391 $ 393 Global ABL Facility 236 291 627 684 Less: Current portion ( 4 ) ( 4 ) $ 623 $ 680
Interest on Borrowings	September 30, December 31, 2019 2018 Senior Secured Term Loan B 5.58 % 5.76 % Global ABL Facility 3.60 % 3.95 % Weighted average interest rate 4.83 % 4.99 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity [Abstract]
Summary of Share Repurchase Activity	Summary of share repurchase activity under the repurchase program: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Number of shares acquired on the open market 957,869 - 4,088,490 2,871,204 Average price per share $ 13.59 $ - $ 15.43 $ 17.39 Total cost of acquired shares (in millions) $ 13 $ - $ 63 $ 50
Accumulated Other Comprehensive Loss in Accompanying Consolidated Balance Sheets	September 30, December 31, 2019 2018 Foreign currency translation adjustments $ ( 232 ) $ ( 229 ) Hedge accounting adjustments ( 8 ) ( 2 ) Pension related adjustments ( 1 ) ( 1 ) Accumulated other comprehensive loss $ ( 241 ) $ ( 232 )
Earnings Per Share	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Net income $ 21 $ 24 $ 63 $ 64 Less: Dividends on Series A Preferred Stock 6 6 18 18 Net income attributable to common stockholders $ 15 $ 18 $ 45 $ 46 Weighted average basic shares outstanding 82.7 90.3 83.4 90.6 Effect of dilutive securities 0.7 1.4 0.8 1.8 Weighted average diluted shares outstanding 83.4 91.7 84.2 92.4 Net income per share: Basic $ 0.18 $ 0.20 $ 0.54 $ 0.51 Diluted $ 0.18 $ 0.20 $ 0.53 $ 0.50

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Information [Abstract]
Schedule of Financial Information for Each Segment	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Sales U.S. $ 763 $ 859 $ 2,348 $ 2,543 Canada 57 78 183 236 International 122 134 365 384 Consolidated sales $ 942 $ 1,071 $ 2,896 $ 3,163 Operating income U.S. $ 31 $ 28 $ 102 $ 93 Canada 1 4 1 8 International 5 - 10 3 Total operating income 37 32 113 104 Interest expense ( 10 ) ( 10 ) ( 31 ) ( 28 ) Other, net 2 2 3 3 Income before income taxes $ 29 $ 24 $ 85 $ 79 September 30, December 31, 2019 2018 Total assets U.S. $ 2,170 $ 2,088 Canada 96 124 International 241 222 Total assets $ 2,507 $ 2,434
Schedule of Net Sales by Product Line	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Type 2019 2018 2019 2018 Line pipe $ 153 $ 186 $ 468 $ 556 Carbon steel fittings and flanges 145 182 456 531 Total carbon steel pipe, fittings and flanges 298 368 924 1,087 Valves, automation, measurement and instrumentation 362 393 1,125 1,146 Gas products 147 154 425 425 Stainless steel and alloy pipe and fittings 43 48 135 150 General oilfield products 92 108 287 355 $ 942 $ 1,071 $ 2,896 $ 3,163

Background and Basis of Prese_3

Background and Basis of Presentation (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Operating lease assets	$ 186
Operating Lease, Liability	$ 133
Accounting Standards Update 2016-02 [Member]
Concentration Risk [Line Items]
Operating lease assets		$ 192
Operating Lease, Liability		$ 208

Revenue Recognition (Narrative)

Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Jan. 29, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Contract assets	$ 24	$ 24		$ 38
Deferred revenue	3	3		$ 6
Deferred revenue recognized	0	6
PG&E Corporation [Member]
Disaggregation of Revenue [Line Items]
Accounts receivable	7	7	$ 16
Accounts receivable write-off	$ 1	$ 1

Revenue Recognition (Summary of

Revenue Recognition (Summary of Revenue Disaggregation) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 942	$ 1,071	$ 2,896	$ 3,163
U.S. [Member]
Disaggregation of Revenue [Line Items]
Revenue	763	859	2,348	2,543
Canada [Member]
Disaggregation of Revenue [Line Items]
Revenue	57	78	183	236
International [Member]
Disaggregation of Revenue [Line Items]
Revenue	122	134	365	384
Upstream [Member]
Disaggregation of Revenue [Line Items]
Revenue	287	338	883	947
Upstream [Member] | U.S. [Member]
Disaggregation of Revenue [Line Items]
Revenue	189	213	583	580
Upstream [Member] | Canada [Member]
Disaggregation of Revenue [Line Items]
Revenue	43	59	130	180
Upstream [Member] | International [Member]
Disaggregation of Revenue [Line Items]
Revenue	55	66	170	187
Midstream [Member]
Disaggregation of Revenue [Line Items]
Revenue	370	422	1,152	1,304
Midstream [Member] | U.S. [Member]
Disaggregation of Revenue [Line Items]
Revenue	356	406	1,098	1,253
Midstream [Member] | Canada [Member]
Disaggregation of Revenue [Line Items]
Revenue	7	11	35	33
Midstream [Member] | International [Member]
Disaggregation of Revenue [Line Items]
Revenue	7	5	19	18
Downstream [Member]
Disaggregation of Revenue [Line Items]
Revenue	285	311	861	912
Downstream [Member] | U.S. [Member]
Disaggregation of Revenue [Line Items]
Revenue	218	240	667	710
Downstream [Member] | Canada [Member]
Disaggregation of Revenue [Line Items]
Revenue	7	8	18	23
Downstream [Member] | International [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 60	$ 63	$ 176	$ 179

Inventories (Composition of Inv

Inventories (Composition of Inventory) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Finished goods inventory at average cost:
Finished goods inventory at average cost	$ 933	$ 994
Less: Excess of average cost over LIFO cost (LIFO reserve)	(154)	(157)
Less: Other inventory reserves	(37)	(40)
Inventories, net	742	797
Valves, Automation, Measurement And Instrumentation [Member]
Finished goods inventory at average cost:
Finished goods inventory at average cost	361	366
Carbon Steel Pipe, Fittings And Flanges [Member]
Finished goods inventory at average cost:
Finished goods inventory at average cost	292	346
All Other Products [Member]
Finished goods inventory at average cost:
Finished goods inventory at average cost	$ 280	$ 282

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Operating lease cost	$ 10	$ 31
Cash paid	$ 11	$ 34
Minimum [Member]
Renewal term	1 year	1 year
Maximum [Member]
Renewal term	15 years	15 years
Term	30 years	30 years

Leases (Maturity of Operating L

Leases (Maturity of Operating Lease Liabilities) (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
Remainder of 2019	$ 11
2020	38
2021	33
2022	25
2023	20
After 2023	208
Total lease payments	335
Less: Interest	(133)
Present value of lease liabilities	$ 202

Leases (Operating Lease Term an

Leases (Operating Lease Term and Discount Rate) (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term (years)	14 years
Weighted-average discount rate	7.00%

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($)	May 22, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Proceeds from revolving credit facilities		$ 733,000,000	$ 1,004,000,000
Global ABL Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		800,000,000
Proceeds from revolving credit facilities		200,000,000
Credit facility, remaining borrowing capacity		477,000,000
Global ABL Facility [Member] | U.S. [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		675,000,000
Global ABL Facility [Member] | Canada [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		65,000,000
Global ABL Facility [Member] | United Kingdom [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		7,000,000
Global ABL Facility [Member] | Australia [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		15,000,000
Global ABL Facility [Member] | Belgium [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		7,000,000
Global ABL Facility [Member] | Norway [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		18,000,000
Global ABL Facility [Member] | Netherlands [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 13,000,000
Minimum [Member] | Senior Secured Term Loan B [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Variable interest rate		2.00%
Minimum [Member] | Senior Secured Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Variable interest rate		1.00%
Minimum [Member] | Senior Secured Term Loan B, Refinanced [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Variable interest rate		1.00%
Minimum [Member] | Senior Secured Term Loan B, Refinanced [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Variable interest rate		0.00%
Secured Term Loan [Member] | Senior Secured Term Loan B [Member]
Debt Instrument [Line Items]
Principal amount		$ 400,000,000
Term loan annual amortization percentage		1.00%
Term Loan accordion feature		$ 200,000,000
Percentage of capital stock in foreign subsidiaries securing Term Loan B		65.00%
Secured Term Loan [Member] | Senior Secured Term Loan B [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Variable interest rate	2.50%
Secured Term Loan [Member] | Senior Secured Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Variable interest rate	3.50%
Secured Term Loan [Member] | Senior Secured Term Loan B, Refinanced [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Variable interest rate	2.00%
Secured Term Loan [Member] | Senior Secured Term Loan B, Refinanced [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Variable interest rate	3.00%
Secured Term Loan [Member] | Senior Secured Leverage Ratio Is No More Than 2.75 to 1.00 [Member] | Senior Secured Term Loan B [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		2.75
Repayment of Term Loan, percentage		25.00%
Secured Term Loan [Member] | Senior Secured Leverage Ratio Is No More Than 2.50 to 1.00 [Member] | Senior Secured Term Loan B [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		2.50
Repayment of Term Loan, percentage		0.00%
Secured Term Loan [Member] | Maximum [Member] | Senior Secured Term Loan B [Member]
Debt Instrument [Line Items]
Senior secured leverage ratio		4
Repayment of Term Loan, percentage		50.00%

Long-Term Debt (Components of L

Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 627	$ 684
Less: Current portion	(4)	(4)
Long-term debt, net	623	680
Secured Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt	391	393
Original issue discount and issuance costs on senior secured Term Loan B	2	3
Global ABL Facility [Member]
Debt Instrument [Line Items]
Long-term debt	$ 236	$ 291

Long-Term Debt (Interest on Bor

Long-Term Debt (Interest on Borrowings) (Details)	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Weighted average interest rate	4.83%	4.99%
Global ABL Facility [Member]
Debt Instrument [Line Items]
Weighted average interest rate	3.60%	3.95%
Senior Secured Term Loan B [Member] | Secured Term Loan [Member]
Debt Instrument [Line Items]
Weighted average interest rate	5.58%	5.76%

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Jun. 30, 2015	Sep. 30, 2019	Dec. 31, 2018
Stockholders' Equity [Abstract]
Preferred stock, issued	363,000	363,000	363,000
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%
Percent of par value	105.00%
Preferred stock, initial conversion rate	55.9284
Preferred stock, initial conversion price	$ 17.88
Preferred stock, common stock as percentage of conversion price	150.00%

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended		105 Months Ended
	Apr. 30, 2019	Apr. 30, 2015	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Oct. 31, 2018	Oct. 31, 2017
Stockholders Equity [Line Items]
Share repurchase program, total shares acquired			23,436,329		23,436,329		23,436,329
Share repurchase program, average cost per share			$ 15.49		$ 15.49		$ 15.49
Share repurchase program, cost of total shares acquired			$ 363		$ 363		$ 363
Common stock, shares outstanding			82,187,061		82,187,061		82,187,061
2017 Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Share repurchase program, authorized amount									$ 100
2018 Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Share repurchase program, authorized amount								$ 150
Remaining authorized amount			$ 12		$ 12		$ 12
2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Shares reserved for Incentive Plan			3,250,000		3,250,000		3,250,000
Additional shares reserved for Incentive Plan	2,500,000	4,250,000
Stock granted							7,596,117
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			2,500,000	2,900,000	2,500,000	3,300,000
Stock Options [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Maximum term for stock option plan grant					10 years
Restricted Stock [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Stock granted					74,055
Performance Shares [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Stock granted					242,290
Restricted Stock Units (RSUs) [Member] | 2011 Omnibus Incentive Plan [Member]
Stockholders Equity [Line Items]
Stock granted					597,358
Restricted Stock, Restricted Unites And Performance Stock Units [Member]
Stockholders Equity [Line Items]
Anti-dilutive securities			0	0	0	0

Stockholders' Equity (Summary o

Stockholders' Equity (Summary of Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Stockholders' Equity [Abstract]
Number of shares acquired on the open market	957,869						4,088,490	2,871,204
Average price per share	$ 13.59						$ 15.43	$ 17.39
Total cost of acquired shares	$ 13	$ 25	$ 25		$ 20	$ 30	$ 63	$ 50

Stockholders' Equity (Accumulat

Stockholders' Equity (Accumulated Other Comprehensive Loss in Accompanying Consolidated Balance Sheets) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (232)	$ (229)
Hedge Accounting Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(8)	(2)
Pension Related Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(1)	(1)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (241)	$ (232)

Stockholders' Equity (Earnings

Stockholders' Equity (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Stockholders' Equity [Abstract]
Net income	$ 21	$ 24	$ 18	$ 24	$ 22	$ 18	$ 63	$ 64
Less: Dividends on Series A Preferred Stock	6			6			18	18
Net income attributable to common stockholders	$ 15			$ 18			$ 45	$ 46
Weighted average basic shares outstanding	82.7			90.3			83.4	90.6
Effect of dilutive securities	0.7			1.4			0.8	1.8
Weighted average diluted shares outstanding	83.4			91.7			84.2	92.4
Net income per share:
Basic	$ 0.18			$ 0.20			$ 0.54	$ 0.51
Diluted	$ 0.18			$ 0.20			$ 0.53	$ 0.50

Segment Information (Narrative)

Segment Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2019segment
Segment Information [Abstract]
Number of operating segments	3
Number of Reportable Segments	3

Segment Information (Schedule o

Segment Information (Schedule of Financial Information for Each Segment) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Sales
Sales	$ 942	$ 1,071	$ 2,896	$ 3,163
Operating income
Operating income	37	32	113	104
Interest expense	(10)	(10)	(31)	(28)
Other, net	2	2	3	3
Income before income taxes	29	24	85	79
Total assets
Total assets	2,507		2,507		$ 2,434
U.S. [Member]
Sales
Sales	763	859	2,348	2,543
Operating income
Operating income	31	28	102	93
Total assets
Total assets	2,170		2,170		2,088
Canada [Member]
Sales
Sales	57	78	183	236
Operating income
Operating income	1	4	1	8
Total assets
Total assets	96		96		124
International [Member]
Sales
Sales	122	$ 134	365	384
Operating income
Operating income	5		10	$ 3
Total assets
Total assets	$ 241		$ 241		$ 222

Segment Information (Schedule_2

Segment Information (Schedule of Net Sales by Product Line) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	$ 942	$ 1,071	$ 2,896	$ 3,163
Line pipe [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	153	186	468	556
Carbon Steel Fittings And Flanges [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	145	182	456	531
Carbon Steel Pipe, Fittings And Flanges [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	298	368	924	1,087
Valves, Automation, Measurement And Instrumentation [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	362	393	1,125	1,146
Gas Products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	147	154	425	425
Stainless Steel And Alloy Pipe And Fittings [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	43	48	135	150
General Oilfield Products [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Sales	$ 92	$ 108	$ 287	$ 355

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018	Mar. 31, 2018
Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of debt		$ 627,000,000	$ 684,000,000
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		631,000,000	675,000,000
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		11,000,000	3,000,000	$ 0
Term of swap	5 years
Fixed interest rate	2.7145%
Notional amount				$ 250,000,000
Foreign exchange forward contracts [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount		$ 17,000,000	$ 22,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	Sep. 30, 2019lawsuitclaim
Commitments and Contingencies [Abstract]
Number of lawsuits | lawsuit	594
Asbestos related pending claims | claim	1,170