Weatherford International Ltd./Switzerland (WFT) 10-Q 3 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 23, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	Weatherford International Ltd./Switzerland
Entity Central Index Key	0001453090
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$11
Entity Common Stock, Shares Outstanding		740,659,690

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
Current Assets:
Cash and Cash Equivalents	$207,099	$252,519
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $21,847 and $20,466, Respectively	2,655,677	2,504,876
Inventories	2,316,155	2,239,762
Current Deferred Tax Assets	258,790	259,077
Other Current Assets	889,984	884,372
Total Current Assets	6,327,705	6,140,606
Property, Plant and Equipment, Net of Accumulated Depreciation of $3,602,222 and $3,438,248, Respectively	6,883,744	6,991,579
Goodwill	4,141,362	4,156,105
Other Intangible Assets, Net of Accumulated Amortization of $379,789 and $359,052, Respectively	761,716	778,786
Equity Investments	538,621	542,667
Other Assets	304,611	256,440
Total Assets	18,957,759	18,866,183
Current Liabilities:
Short-term Borrowings and Current Portion of Long-term Debt	991,440	869,581
Accounts Payable	1,121,175	1,002,359
Other Current Liabilities	840,863	924,948
Total Current Liabilities	2,953,478	2,796,888
Long-term Debt	5,844,610	5,847,258
Other Liabilities	383,547	423,333
Total Liabilities	9,181,635	9,067,479
Shareholders' Equity:
Shares, CHF 1.16 Par Value, Authorized 1,093,303 Shares, Conditionally Authorized 364,434 Shares, Issued 758,447 Shares at March 31, 2010 and at December 31, 2009	761,077	761,077
Capital in Excess of Par Value	4,640,579	4,642,800
Treasury Shares, Net	(573,847)	(616,048)
Retained Earnings	4,777,092	4,817,101
Accumulated Other Comprehensive Income	94,260	114,742
Weatherford Shareholders' Equity	9,699,161	9,719,672
Noncontrolling Interests	76,963	79,032
Total Shareholders' Equity	9,776,124	9,798,704
Total Liabilities and Shareholders' Equity	$18,957,759	$18,866,183

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical)
In Thousands	Mar. 31, 2010 CHF	Mar. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2009 CHF
Current Assets:
Allowance for Uncollectible Accounts		$21,847	$20,466
Accumulated Depreciation on Property, Plant and Equipment		3,602,222	3,438,248
Accumulated Amortization on Other Intangible Assets		$379,789	$359,052
Shareholders' Equity:
Common Shares, Par Value	1.16			1.16
Common Shares, Shares Authorized		1,093,303	1,093,303
Common Shares, Shares Conditionally Authorized		364,434	364,434
Common Shares, Shares Issued		758,447	758,447

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues:
Products	$781,056	$742,900
Services	1,557,192	1,513,241
Total Revenue	2,338,248	2,256,141
Costs and Expenses:
Cost of Products	573,797	569,056
Cost of Services	1,175,523	965,464
Research and Development	48,857	49,021
Selling, General and Administrative Attributable to Segments	336,845	308,744
Corporate General and Administrative	86,315	53,131
Operating Income	116,911	310,725
Other Expense:
Interest Expense, Net	(95,339)	(91,063)
Devaluation of Venezuelan Bolivar	(63,859)	0
Other, Net	(9,218)	(13,539)
Income (Loss) Before Income Taxes	(51,505)	206,123
Benefit (Provision) for Income Taxes	15,531	(32,463)
Net Income (Loss)	(35,974)	173,660
Net Income Attributable to Noncontrolling Interests	(4,035)	(8,858)
Net Income (Loss) Attributable to Weatherford	($40,009)	$164,802
Earnings (Loss) Per Share Attributable to Weatherford:
Basic	-0.05	0.24
Diluted	-0.05	0.23
Weighted Average Shares Outstanding:
Basic	737,865	698,327
Diluted	737,865	702,636

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash Flows from Operating Activities:
Net Income (Loss)	($35,974)	$173,660
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	249,392	201,394
Employee Share-Based Compensation Expense	22,974	26,429
Deferred Income Tax Benefit	(93,623)	(23,594)
Devaluation of Venezuelan Bolivar	63,859	0
Supplemental Executive Retirement Plan	38,021	0
Other, Net	22,456	5,146
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired
Accounts Receivable	(219,098)	152,807
Inventories	(98,444)	(147,536)
Accounts Payable	128,522	53,453
Other	(72,554)	(274,201)
Net Cash Provided by Operating Activities	5,531	167,558
Cash Flows from Investing Activities:
Acquisitions of Businesses, Net of Cash Acquired	(46,579)	(7,094)
Capital Expenditures for Property, Plant and Equipment	(231,087)	(583,719)
Acquisition of Intellectual Property	(6,647)	(11,096)
Acquisition of Equity Investments in Unconsolidated Affiliates	0	(26,509)
Proceeds from Sale of Assets and Businesses, Net	87,790	30,616
Other Investing Activities	41,840	0
Net Cash Used by Investing Activities	(154,683)	(597,802)
Cash Flows from Financing Activities:
Borrowings (Repayments) of Short-term Debt, Net	122,746	(873,938)
Borrowings (Repayments) of Long-term Debt, Net	(2,113)	1,231,209
Other Financing Activities, Net	3,227	(3,883)
Net Cash Provided by Financing Activities	123,860	353,388
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(20,128)	174
Net Decrease in Cash and Cash Equivalents	(45,420)	(76,682)
Cash and Cash Equivalents at Beginning of Period	252,519	238,398
Cash and Cash Equivalents at End of Period	207,099	161,716
Supplemental Cash Flow Information:
Interest Paid	139,597	98,725
Income Taxes Paid, Net of Refunds	$90,735	$128,632

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Consolidated Statements of Comprehensive Income
Net Income (Loss)	($35,974)	$173,660
Other Comprehensive Income:
Curtailment of Supplemental Executive Retirement Plan	45,237	0
Amortization of Pension Components	1,513	1,180
Foreign Currency Translation Adjustment	(67,387)	(50,060)
Other	155	151
Comprehensive Income (Loss)	(56,456)	124,931
Comprehensive Income Attributable to Noncontrolling Interests	(4,035)	(8,737)
Comprehensive Income (Loss) Attributable to Weatherford	($60,491)	$116,194

General

General
	3 Months Ended Mar. 31, 2010
General [Abstract]
General	1. General The accompanying unaudited condensed consolidated financial statements of Weatherford International Ltd. and all majority-owned subsidiaries (the Company) are prepared in accordance with U.S. generally accepted accounting principles and include all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly our Condensed Consolidated Balance Sheet at March31, 2010, Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows for the three months ended March31, 2010 and 2009. Although we believe the disclosures in these financial statements are adequate to make the interim information presented not misleading, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in this Form 10-Q pursuant to U.S. Securities and Exchange Commission (SEC) rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December31, 2009 and the related notes included in our Annual Report on Form 10-K. The results of operations for the three months ended March31, 2010 are not necessarily indicative of the results expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and disclosure of contingent liabilities. On an ongoing basis, we evaluate our estimates, including those related to uncollectible accounts receivable, lower of cost or market of inventories, equity investments, intangible assets and goodwill, property, plant and equipment, income taxes, percentage-of-completion accounting for long-term contracts, self-insurance, pension and post retirement benefit plans and contingent liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include the accounts of Weatherford International Ltd., all majority-owned subsidiaries, all controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. When referring to Weatherford and using phrases such as we, us, and our, the intent is to refer to Weatherford International Ltd. and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made. Investments in affiliates in which we exercise significant influence over operating and fina

Business Combinations

Business Combinations
	3 Months Ended Mar. 31, 2010
Business Combinations [Abstract]
Business Combinations	2. Business Combinations We have acquired businesses we feel are important to our long-term growth strategy. Results of operations for acquisitions are included in the accompanying Condensed Consolidated Statements of Income from the date of acquisition. The balances included in the Condensed Consolidated Balance Sheets related to recent acquisitions are based on preliminary information and are subject to change when final asset valuations are obtained and the potential for liabilities has been evaluated. The purchase price is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition. In July2009, we acquired the Oilfield Services Division (OFS) of TNK-BP. In this transaction, we acquired drilling, well workover and cementing services operations in West Siberia, East Siberia and the Volga-Urals region. We issued 24.3million shares valued at approximately $450million. In addition, if TNK-BP sells the shares it received in consideration for the transaction for a price less than $18.50 per share prior to June29, 2010, we are obligated to pay TNK-BP additional consideration in an amount equal to the difference between the price at which the shares were sold and $18.50. We will pay any additional consideration in cash or, at our option in certain instances, in additional shares following such date. We made a preliminary allocation of the purchase price as of the date of the acquisition. We will continue to adjust the allocations until final valuation of the assets and liabilities are completed. Accounting guidance for business combinations requires contingent consideration to be recognized at its acquisition date fair value. Based on the terms of the arrangement, we classified the contingent consideration as a liability. Such liabilities are required to be remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value being recognized in earnings. We estimated the fair value of the contingent consideration for the OFS acquisition at the date of acquisition to be a liability of $84million and $63million at December31, 2009. This liability was estimated to have a fair value of $71 million at March31, 2010, resulting in the recognition of an $8million loss during 2010. This loss was recorded in the Selling, General and Administrative Attributable to Segments line in the Consolidated Statements of Income. The valuation of the contingent consideration was determined using a lattice-based model incorporating the term of the contingency, the price of our shares over the relevant periods and the volatility of our stock price. In November2008, we acquired a group of affiliated companies in Latin America, which provide project management services, drilling fluids, contract drilling and environmental services in that region. Consideration for the transaction totaled approximately $160million, which was comprised of approximately six million shares valued at approximately $65million, non-cash consideration of approximately $75million and cash of approximately $20million. Additional consideration of up to $65million in cash or the issuance of shares of

Inventories

Inventories
	3 Months Ended Mar. 31, 2010
Inventories [Abstract]
Inventories	3. Inventories The components of inventory were as follows: March 31, December 31, 2010 2009 (In thousands) Raw materials, components and supplies $ 337,061 $ 328,253 Work in process 117,082 115,564 Finished goods 1,862,012 1,795,945 $ 2,316,155 $ 2,239,762 Work in process and finished goods inventories include the cost of materials, labor and plant overhead.

Goodwill

Goodwill
	3 Months Ended Mar. 31, 2010
Goodwill [Abstract]
Goodwill	4. Goodwill Goodwill is evaluated for impairment on at least an annual basis. We perform our annual goodwill impairment test as of October 1. Our 2009 impairment tests indicated goodwill was not impaired. We will continue to test our goodwill annually as of October 1 unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The changes in the carrying amount of goodwill for the three months ended March31, 2010 were as follows: Middle East/ Europe/ North North Africa/ West Africa/ Latin America Asia FSU America Total (In thousands) As of December31, 2009 $ 2,097,549 $ 698,896 $ 1,045,577 $ 314,083 $ 4,156,105 Acquisitions 3,463 3,463 Disposals Purchase price and other adjustments (3,482 ) (643 ) (1,093 ) (906 ) (6,124 ) Foreign currency translation 16,299 1,541 (27,803 ) (2,119 ) (12,082 ) As of March31, 2010 $ 2,113,829 $ 699,794 $ 1,016,681 $ 311,058 $ 4,141,362

Short-Term Borrowings and Curre

Short-Term Borrowings and Current Portion of Long-Term Debt
	3 Months Ended Mar. 31, 2010
Short-Term Borrowings and Current Portion of Long-Term Debt [Abstract]
Short-term Borrowings and Current Portion of Long-term Debt	5. Short-term Borrowings and Current Portion of Long-term Debt The components of short-term borrowings were as follows: March 31, December 31, 2010 2009 (In thousands) Revolving credit facilities $ 943,000 $ 798,500 Commercial paper program Other short-term bank loans 30,849 53,007 Total short-term borrowings 973,849 851,507 Current portion of long-term debt 17,591 18,074 Short-term borrowings and current portion of long-term debt $ 991,440 $ 869,581 We maintain various revolving credit facilities with syndicates of banks that can be used for a combination of borrowings, support for our commercial paper program and issuances of letters of credit. At March31, 2010, these facilities allow for an aggregate availability of $1.8billion and mature in May2011. The weighted average interest rate on outstanding borrowings of these facilities at March31, 2010 was 1.0%. There were $75million in outstanding letters of credit under these facilities at March31, 2010. These borrowing facilities require us to maintain a debt-to-capitalization ratio of less than 60% and contain other covenants and representations customary for an investment-grade commercial credit. We are in compliance with these covenants at March31, 2010. We have a $1.5billion commercial paper program under which we may from time to time issue short-term unsecured notes. The commercial paper program is supported by our revolving credit facilities. There was no commercial paper outstanding at March31, 2010. We have short-term borrowings with various domestic and international institutions pursuant to uncommitted facilities. At March31, 2010, we had $31million in short-term borrowings under these arrangements with a weighted average interest rate of 1.4%. In addition, we had $276million of letters of credit and bid and performance bonds under these uncommitted facilities. The carrying value of our short-term borrowings approximates their fair value as of March31, 2010.

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	3 Months Ended Mar. 31, 2010
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	6. Fair Value of Financial Instruments Financial Instruments Measured and Recognized at Fair Value The accounting guidance for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted)in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based upon our own assumptions used to measure assets and liabilities at fair value. A financial asset or liabilitys classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The following table presents our non-derivative assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March31, 2010 and December31, 2009: March 31, 2010 Level 1 Level 2 Level 3 Total (In thousands) Other Assets: Other investments $ $ $ $ Other Current Liabilities: Contingent consideration on acquisition (See Note 2) 70,573 70,573 December 31, 2009 Level 1 Level 2 Level 3 Total (In thousands) Other Assets: Other investments $ $ 40,822 $ $ 40,822 Other Current Liabilities: Contingent consideration on acquisition (See Note 2) 62,763 62,763 During the first quarter of 2010, we received proceeds of approximately $42million from the redemption of our other investments recorded at fair value at December31, 2009. The proceeds are included in investing activities in the Condensed Consolidated Statement of Cash Flows for the period ended March31, 2010. The following table provides a summary of changes in fair value of our Level 3 financial liability for the three months ended March31, 2010: Three Months Ended March 31, 2010 (In thousands) Balance at beginning of period $ 62,763 Contingent consideration on acquisition (See Note 2) Unrealized loss on contingent consideration on acquisition included in earnings 7,810 Balance at end of period $ 70,573 The $8million loss recorded during the first quarter of 2010 is included in the Selling, General and Administrative Attributable to Segments line in the Consolidated Statements of Income. Fair Value of Other Financial Instruments Our other financial instruments include cash and cash equivalents, foreign currency exchange contracts, interest rate swaps, accounts receivable, notes receivable, accounts payable and sh

Derivative Instruments

Derivative Instruments
	3 Months Ended Mar. 31, 2010
Derivative Instruments [Abstract]
Derivative Instruments	7. Derivative Instruments We are exposed to market risk from changes in foreign currency and changes in interest rates. From time to time, we may enter into derivative financial instrument transactions to manage or reduce our market risk, but we do not enter into derivative transactions for speculative purposes. We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and we may employ interest rate swaps as a tool to achieve that goal. The major risks from interest rate derivatives include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties in such transactions. In light of events in the global credit markets and the potential impact of these events on the liquidity of the banking industry, we continue to monitor the creditworthiness of our counterparties, which are multinational commercial banks. The fair values of all our outstanding derivative instruments are determined using a model with Level 2 inputs including quoted market prices for contracts with similar terms and maturity dates. Interest Rate Swaps We use interest rate swaps to help mitigate exposures related to interest rate movements. Amounts received upon termination of the swaps accounted for as fair value hedges represent the fair value of the agreements at the time of termination and are recorded as an adjustment to the carrying value of the related debt. These amounts are being amortized as a reduction to interest expense over the remaining term of the debt. We have no interest rate swaps outstanding at March 31, 2010. As of March31, 2010, we had net unamortized gains of $67million, associated with interest rate swap terminations. Cash Flow Hedges In 2008, we entered into interest rate derivative instruments to hedge projected exposures to interest rates in anticipation of a debt offering. Those hedges were terminated at the time of the issuance of the debt, and the loss on these hedges is being amortized from Accumulated Other Comprehensive Income to interest expense over the remaining term of the debt. As of March31, 2010, we had net unamortized losses of $13million associated with our cash flow hedge terminations. Other Derivative Instruments As of March31, 2010, we had several foreign currency forward and option contracts with notional amounts aggregating to $620million, which were entered into to hedge exposure to currency fluctuations in various foreign currencies, including, but not limited to, the British pound sterling, the Canadian dollar, the euro and the Norwegian krone. The total estimated fair value of these contracts at March31, 2010 resulted in a net liability of approximately $8million. These derivative instruments were not designated as hedges and the changes in fair value of the contracts are recorded each period in Other, Net in the accompanying Condensed Consolidated Statements of Income. We have cross-currency swaps between the U.S. dollar and Canadian dollar to hedge certain exposures to the Canadian dollar. At March31,

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
Income Taxes	8. Income Taxes Our effective tax rate was a benefit of 30.2% and a provision of 15.7% for the three months ended March31, 2010 and 2009, respectively. The change in the effective tax rate is primarily due to the tax benefit related to the devaluation of the Venezuelan Bolivar, which was partially offset by curtailment expense on our supplemental executive retirement plan (SERP) that had no related tax benefit and changes in our geographic earnings mix.

Shareholders Equity

Shareholders Equity
	3 Months Ended Mar. 31, 2010
Stockholders' Equity [Abstract]
Stockholders' Equity	9. Shareholders Equity The following summarizes our shareholders equity activity for the period presented: Noncontrolling Total Company Interests in Shareholders Shareholders Consolidated Equity Equity Subsidiaries (In thousands) Balance at December31, 2009 $ 9,798,704 $ 9,719,672 $ 79,032 Comprehensive Income: Net Income (Loss) (35,974 ) (40,009 ) 4,035 Curtailment of Supplemental Executive Retirement Plan 45,237 45,237 Amortization of Pension Components 1,513 1,513 Foreign Currency Translation Adjustments (67,387 ) (67,387 ) Other 155 155 Comprehensive Income (Loss) (56,456 ) (60,491 ) 4,035 Transactions with Shareholders 39,980 39,980 Dividends paid to Noncontrolling Interests (6,442 ) (6,442 ) Other 338 338 Balance at March31, 2010 $ 9,776,124 $ 9,699,161 $ 76,963

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share [Abstract]
Earnings Per Share	10. Earnings Per Share Basic earnings per share for all periods presented equals net income divided by the weighted average number of our shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of our shares outstanding during the period, adjusted for the dilutive effect of our stock option and restricted share plans and our outstanding warrants. Our diluted earnings per share calculation excludes three million potential shares for the three months ended March31, 2010 and 19million potential shares for the three months ended March31, 2009, due to their antidilutive effect. Our diluted earnings per share calculation for the three months ended March31, 2010 also excludes 10 million potential shares that would have been included if we had net income for that period, but are excluded as we had a net loss and their inclusion would have been anti-dilutive. The following reconciles basic and diluted weighted average of shares outstanding: Three Months Ended March 31, 2010 2009 (In thousands) Basic weighted average shares outstanding 737,865 698,327 Dilutive effect of: Warrants Stock options and restricted shares 4,309 Diluted weighted average shares outstanding 737,865 702,636

Share-Based Compensation

Share-Based Compensation
	3 Months Ended Mar. 31, 2010
Share-Based Compensation [Abstract]
Share-Based Compensation	11. Share-Based Compensation In March2010, our compensation committee of our board of directors authorized the award of performance units to officers under our 2006 Omnibus Incentive Plan. Subsequently, we issued 707,000 performance units, which will vest ratably over a three-year period assuming continued employment of the officer and if the Company meets certain market-based performance goals. The performance units were valued at $13.19 based on the Monte Carlo simulation method. We recognized the following employee share-based compensation expense during the three months ended March31, 2010 and 2009: Three Months Ended March 31, 2010 2009 (In thousands) Share-based compensation $ 22,974 $ 26,429 Related tax benefit 8,041 9,250 During the three months ended March31, 2010, we granted one million restricted share awards and units at a weighted average grant date fair value of $14.49 per share. As of March31, 2010, there was $216million of total unrecognized compensation cost related to our unvested stock options, restricted share grants, and units. This cost is expected to be recognized over a weighted average period of 2years.

Retirement and Employee Benefit

Retirement and Employee Benefit Plans
	3 Months Ended Mar. 31, 2010
Retirement and Employee Benefit Plans [Abstract]
Retirement and Employee Benefit Plans	12. Retirement and Employee Benefit Plans We have defined benefit pension and other post-retirement benefit plans covering certain employees. The components of net periodic benefit cost for the three months ended March31, 2010 and 2009 were as follows: Three Months Ended March 31, 2010 2009 United United States International States International (In thousands) Service cost $ 951 $ 1,528 $ 875 $ 1,604 Interest cost 1,937 1,830 1,706 1,596 Expected return on plan assets (149 ) (1,201 ) (165 ) (954 ) Amortization of transition obligation (1 ) Amortization of prior service cost (credit) 1,512 (13 ) 458 (11 ) Amortization of loss 772 42 1,025 228 Curtailment/settlement loss 34,958 Net periodic benefit cost $ 39,981 $ 2,186 $ 3,899 $ 2,462 The net curtailment loss shown above primarily represents the accelerated recognition of prior service costs associated with the amendment of our SERP which was effective as of March31, 2010 and resulted in the freezing of the benefits under this plan. The freezing of the SERP may constitute good reason for five of our executive officers to terminate their employment under their employment agreements, if they choose to do so, which would entitle these officers to certain termination benefits. Our CEO entered into a new employment agreement effectively waiving his right to assert good reason due to the freezing of the SERP. However, one of our operational vice presidents, David Colley, has notified the Company of his intention to terminate his employment for good reason, and we expect to record a charge of approximately $4 million in connection with his termination and pay out total cash consideration of approximately $7 million, both during 2010. The amount recorded related to the curtailment of the SERP for the three months ended March31, 2010 does not include any accrual for any executives potential termination for good reason. If the remaining three executives were to terminate their employment for good reason, we would anticipate recording an expense of approximately $25 million and make total cash consideration payments of approximately $41 million. We previously disclosed in our financial statements for the year ended December31, 2009, that we expected to contribute approximately $7million to our pension and other postretirement benefit plans during 2010. As of March31, 2010, we have contributed approximately $2million to these plans and anticipate total annual contributions to approximate original estimates previously disclosed and pay out total cash consideration of approximately $7 million, both during 2010.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information [Abstract]
Segment Information	13. Segment Information Financial information by segment is summarized below. Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. Three Months Ended March 31, 2010 Net Income Depreciation Operating from and Revenues Operations Amortization (In thousands) North America $ 890,544 $ 112,327 $ 80,660 Middle East/North Africa/Asia 564,979 82,796 72,290 Europe/West Africa/FSU 454,701 30,718 48,958 Latin America 428,024 31,079 42,479 2,338,248 256,920 244,387 Corporate and Research and Development (95,977 ) 5,005 Other (a) (44,032 ) Total $ 2,338,248 $ 116,911 $ 249,392 Three Months Ended March 31, 2009 Net Income Depreciation Operating from and Revenues Operations Amortization (In thousands) North America $ 837,353 $ 123,036 $ 75,098 Middle East/North Africa/Asia 581,946 134,026 57,634 Europe/West Africa/FSU 368,843 74,943 34,678 Latin America 467,999 92,217 30,442 2,256,141 424,222 197,852 Corporate and Research and Development (88,620 ) 3,542 Other (b) (24,877 ) Total $ 2,256,141 $ 310,725 $ 201,394 (a) The three months ended March31, 2010 includes $2million for costs incurred in connection with on-going investigations by the U.S. government, $9million for severance and facility closure costs associated with reorganization activities and a $38million charge related to our SERP which was frozen on March31, 2010. These changes were offset by a $5million benefit related to the reversal of prior cost accruals for our exit from certain sanctioned countries. (b) The three months ended March31, 2009 includes $12million for severance charges associated with reorganization activities and $13million in costs incurred in connection with on-going investigations by the U.S. government.

Disputes, Litigation and Contin

Disputes, Litigation and Contingencies
	3 Months Ended Mar. 31, 2010
Disputes, Litigation and Contingencies [Abstract]
Disputes, Litigation and Contingencies	14. Disputes, Litigation and Contingencies U.S. Government and Internal Investigations We are currently involved in government and internal investigations involving various areas of our operations. Until 2003, we participated in the United Nations oil-for-food program governing sales of goods and services into Iraq. The U.S. Department of Justice (DOJ) and the SEC have undertaken investigations of our participation in the oil-for-food program and have subpoenaed certain documents in connection with these investigations. We have cooperated fully with these investigations. We have retained legal counsel, reporting to our audit committee, to investigate this matter. These investigations are not yet resolved, and we cannot anticipate the timing, outcome or possible impact of the ultimate resolution of the investigations, financial or otherwise. The U.S. Department of Commerce, Bureau of Industry Security, Office of Foreign Assets Control (OFAC), DOJ and SEC have undertaken investigations of allegations of improper sales of products and services by the Company and its subsidiaries in certain sanctioned countries. We have cooperated fully with this investigation. We have retained legal counsel, reporting to our audit committee, to investigate these matters and to cooperate fully with these agencies. This investigation is not yet resolved, and we cannot anticipate the timing, outcome or possible impact of the ultimate resolution of the investigation, financial or otherwise. In light of this investigation and of the current U.S. and foreign policy environment and the inherent uncertainties surrounding these countries, we decided in September2007 to direct our foreign subsidiaries to discontinue doing business in countries that are subject to comprehensive U.S. economic and trade sanctions, specifically Cuba, Iran, and Sudan, as well as Syria. Effective September2007, we ceased entering into any new contracts in these countries and began an orderly discontinuation and winding down of our existing business in these sanctioned countries. Effective March31, 2008, we substantially completed our winding down of business in these countries. We can complete the withdrawal process only pursuant to licenses issued by OFAC. Our remaining activities in Iran, Sudan and Syria include ongoing withdrawal activities such as attempts to collect accounts receivable, attempts to settle tax liabilities or legal claims and attempts to recover or liquidate assets, including equipment and funds. Certain of our subsidiaries continue to conduct business in countries such as Myanmar that are subject to more limited U.S. trading sanctions. The DOJ and SEC are investigating the embezzlement of approximately $175,000 at a European subsidiary and the possible improper use of these funds, including possible payments to government officials in Europe, during the period from 2000 to 2004, and our compliance with the Foreign Corrupt Practices Act (FCPA) and other laws worldwide. We have retained legal counsel, reporting to our audit committee, to investigate these matters and to cooperate fully with the DOJ and SEC. As part of our investigations, we have uncove

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	15.New Accounting Pronouncements In October2009, the FASB issued an update to existing guidance on revenue recognition for arrangements with multiple deliverables. This update will allow companies to allocate consideration received for qualified separate deliverables using estimated selling price for both delivered and undelivered items when vendor-specific objective evidence or third-party evidence is unavailable. Additional disclosures discussing the nature of multiple element arrangements, the types of deliverables under the arrangements, the general timing of their delivery, and significant factors and estimates used to determine estimated selling prices are required. We will adopt this update for new revenue arrangements entered into or materially modified beginning January1, 2011. We do not expect the provisions of this update to have a material impact on our condensed consolidated financial statements.

Condensed Consolidating Financi

Condensed Consolidating Financial Statements
	3 Months Ended Mar. 31, 2010
Condensed Consolidating Financial Statements [Abstract]
Condensed Consolidating Financial Statements	16. Condensed Consolidating Financial Statements A Swiss corporation named Weatherford International Ltd. is the ultimate parent of the Weatherford group (Parent). The Parent guarantees the obligations of Weatherford International Ltd. incorporated in Bermuda (Weatherford Bermuda) and Weatherford International, Inc. incorporated in Delaware (Weatherford Delaware) noted below. The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at March31, 2010 and December31, 2009: (i)the 6.625% Senior Notes, (ii)the 5.95% Senior Notes, (iii)the 6.35% Senior Notes and (iv)the 6.80% Senior Notes. The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at March31, 2010 and December31, 2009: (i)the revolving credit facilities, (ii)the 4.95% Senior Notes, (iii)the 5.50% Senior Notes, (iv)the 6.50% Senior Notes, (v)the 5.15% Senior Notes, (vi) the 6.00% Senior Notes, (vii)the 7.00% Senior Notes (viii)the 9.625% Senior Notes, (ix)the 9.875% Senior Notes and (x)issuances of notes under the commercial paper program. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The accompanying guarantor financial information is presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. Condensed Consolidating Balance Sheet March31, 2010 (unaudited) (In thousands) Other Parent Bermuda Delaware Subsidiaries Eliminations Consolidation ASSETS Current Assets: Cash and Cash Equivalents $ 1,462 $ 24 $ 51 $ 205,562 $ $ 207,099 Other Current Assets 3,923 10,276 101,799 6,004,608 6,120,606 Total Current Assets 5,385 10,300 101,850 6,210,170 6,327,705 Equity Investments in Affiliates 8,591,895 15,179,580 6,820,587 12,092,067 (42,684,129 ) Shares Held in Parent 105,372 468,800 (574,172 ) Intercompany Receivables, Net 1,872,468 978,812 (2,851,280 ) Other Assets 9,271 27,296 185,889 12,407,598 12,630,054 Total Assets $ 8,606,551 $ 17,089,644 $ 8,192,510 $ 31,178,635 $ (46,109,581 ) $ 18,957,759 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities