Weatherford International Ltd./Switzerland 8K Weatherford Reports Third Quarter Pre-Tax Results | WFT 13 Nov 12

Tax Remediation Material Weakness Update

Weatherford

November 12, 2012

Exhibit

99.2

Contents

Third Quarter Accomplishments

The Goal

Next Steps

•

Implemented a tax accounting timeline and calendar

•

Developed and issued new tax policies and additional soon-to-be published policies

•

Focused on filing of statutory accounts and tax returns

•

Identified and improved support for related party transactions to properly identify

withholding taxes

•

Improved process to manage all income tax audits

•

Enhanced the collaboration between Tax and other Weatherford functions including

Accounting, Technology, Treasury and Legal

•

Enhanced process for performing quarterly tax accrual following US GAAP requirements

Third Quarter Accomplishments – Tax People Enhancements

•

Completed the enhancement of Corptax as Weatherford's tax subledger

•

Leveraged SharePoint as the primary tool and platform for storing documents and data,

managing key processes and projects and monitoring the operations of the tax function

•

Implemented Tax Audit Manager International technology to capture and monitor foreign

tax audit activity

•

Implemented Tax Reporting Manager technology to track the interim tax provision process

Third Quarter Accomplishments – Tax Technology Enhancements

•

Further defined tax roles and responsibilities between the finance and tax departments

•

Developed future organizational chart and progressed recruiting for key positions

•

Since July 1

, 14 individuals have accepted employment to include Vice President Tax,

Assistant Vice President Planning, Assistant Vice President Federal Audits, Senior Director

Transfer Pricing and Director Tax Consolidations

•

Engaged approximately 30 external professionals from accounting firms (partners, directors

and managers) with significant income tax accounting experience to augment the Corporate

Tax

organization

interim

basis

until

full

time

staffing

completed

•

Engaged field teams by increasing field involvement and ownership of tax outputs

•

Implemented

extensive

training

program

all

regions

for

the

resources

involved

the

tax

processes during 2012

•

Engaged dedicated teams to focus on the preparation and/or review of certain key validation

processes

Third Quarter Accomplishments – Tax People Enhancements

Full executive management and board of directors support

Completed tax training for over 300 internal and external resources

Developed and maintained strong coordination amongst Finance, Tax and Operations

leadership

Established and reinforced accountabilities at the region and country levels

Transformed tax to a center led, process driven and field executed organization

Engaged third party resources

Implemented new tax technology

Third Quarter Accomplishments – Success Enablers

The Goal: Eliminate the Tax Material Weakness at Year-End

2012 Remediation Program structured with a goal of

establishing a sustainable strong tax function

Objectives

First

priority:

Complete

all

tax

account

baseline

assessments

year-end

2011

and

file

all required financial statements

Enhance the tax function, with a focus on finding the right people to establish basis for

consistent and reliable execution

Enhance the existing control program over tax processes

Continue cultural improvements related to roles, responsibilities and accountabilities over

controls and processes impacting tax accounting and reporting

The Goal: Complete Tax Account Baseline Assessments as of 2011

Substantially

Complete*

Complete

Borrowed Labor (Technical

Services) Payables

Home Office Expense Payables

Other Withholding Payables

*Substantially Complete: The Company has finished its processes and is following up on certain open items and finalizing its review of

the preliminary adjustments

Area of Focus

Key Activities

Status

Tax Basis Balance Sheet

(“TBBS”) including

Return to Accrual (“RTA”)

•

All Legal Entities: Reconcile and validate deferred and current income tax

accounts for every

entity and branch as of 12/31/11

•

Elimination Company: Reconciled all balances to ensure that taxes payable and

deferred taxes are valid

Uncertain Tax Positions

(“UTP”)

•

Validate all UTPs already recorded as of 12/31/11

•

Identify and assess any new unrecorded UTPs existing as of December 31, 2011

through the UTP questionnaire and other procedures

Withholding Tax Accrual

•

Calculate

and

validate

the

net

accrued

withholding

tax

amount

December

31, 2011 for each of the following intercompany payable balances:

Interest Payables

Management Fee Payables

Royalties Payables

Lease Payables

Baseline Assessment – Major Activities

A number of key activities were performed as part of the baseline validation to identify

and correct any income tax accounting issues

The Goal: Vision for Hiring Tax Personnel

General Observations

Vision Elements

in Hiring Tax Personnel

•

Hire top quality individuals with the

following qualities:

Significant experience in their

functional area of expertise

Willing to put in the effort needed

to continue improvements to the

WFT tax function

Ensure fit with entire tax and

business organization

•

The tax function is broader than the tax

department

•

Key tax processes include the areas of

planning (including transfer pricing),

accounting, compliance and audits

•

Appropriate resources in all areas that

provide data to the tax function is critical

to the tax processes

•

Resources closer to the field operations

are better

Filling

tax

positions

will

take

time

since

must

hire

the

right

people

ensure

have

the

right

culture

needed

for

long

term

success

The Goal: Enhance Control Program over Tax Accounting

Key Controls

Accomplishments

•

Mapped all tax function

processes

•

Documented and currently

testing Q3 key controls

•

Developed framework for

year-end key controls to be

in documented in Q4

•

Developed plan to test

year-end key controls in

early 2013

System Validation and

Change Control

“CONSCO “-

elimination companies for USGAAP.

16 Key Controls are in place and will be tested each period to ensure the accurate

reporting of tax financial data

Next Steps

Continue to update/ issue policies and procedures

Complete remaining open items and external audit process

Complete documentation of final controls over third quarter and baseline activity

Finalize financial disclosures and update financial statements through third quarter

Formalize controls over the following:

3rd quarter hard close process

Year-end provision process

RTA and TBBS processes performed in 2013

Perform real-time testing of controls for year-end and during 2013

Execute global training program

To Meet Third Quarter Filing Requirements:

Ongoing:

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation

Reform Act of 1995 concerning, among other things, Weatherford’s prospects for its operations, expectations

regarding future financial results and the resolution of our remediation of our material weakness in internal

controls over financial reporting of income taxes, which are subject to certain risks, uncertainties and

assumptions. These include the Company’s inability to design or improve internal controls to address identified

issues; the impact upon operations of legal compliance matters or internal controls review, improvement and

remediation, including the detection of wrongdoing, improper activities or circumvention of internal controls;

difficulties in controlling expenses, including costs of legal compliance matters or internal controls review,

improvement and remediation; impact of changes in management or staff levels; the Company’s ability to manage

its workforce to control costs; the outcome of pending government investigations, including the Securities and

Exchange Commission’s investigation of the circumstances surrounding the Company’s material weakness in its

internal control over financial reporting of income taxes; the outcome of ongoing litigation, including shareholder

litigation related to the Company’s material weakness in its internal control over financial reporting of income

taxes and its restatement of historical financial statements; and other operational and non-operational risks that

are detailed in our most recent Form 10-K and other filings with the U.S. Securities and Exchange Commission.

Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual

results may vary materially from those indicated in our forward-looking statements. We undertake no obligation

to correct or update any forward-looking statement, whether as a result of new information, future events, or

otherwise, except to the extent required under federal securities laws.

Weatherford International Ltd./Switzerland (WFT) Inactive 8-KWeatherford Reports Third Quarter Pre-Tax Results