Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 14, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Weatherford International Ltd./Switzerland | ' |
Entity Central Index Key | '0001453090 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 772,632,153 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and Cash Equivalents | $367 | $435 |
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $117 and $114 | 3,723 | 3,594 |
Inventories, Net | 3,403 | 3,371 |
Deferred Tax Assets | 302 | 309 |
Other Current Assets | 1,065 | 1,065 |
Total Current Assets | 8,860 | 8,774 |
Property, Plant and Equipment, Net of Accumulated Depreciation of $7,113 and $6,908 | 8,213 | 8,368 |
Goodwill | 3,648 | 3,709 |
Other Intangible Assets, Net of Accumulated Amortization of $765 and $743 | 593 | 626 |
Equity Investments | 297 | 296 |
Other Non-current Assets | 219 | 204 |
Total Assets | 21,830 | 21,977 |
Current Liabilities: | ' | ' |
Short-term Borrowings and Current Portion of Long-term Debt | 2,293 | 1,666 |
Accounts Payable | 2,012 | 2,091 |
Accrued Salaries and Benefits | 477 | 472 |
Billings in Excess of Costs and Estimated Earnings | 74 | 127 |
Income Taxes Payable | 128 | 183 |
Other Current Liabilities | 833 | 1,160 |
Total Current Liabilities | 5,817 | 5,699 |
Long-term Debt | 7,039 | 7,061 |
Other Non-current Liabilities | 1,003 | 1,014 |
Total Liabilities | 13,859 | 13,774 |
Shareholders’ Equity: | ' | ' |
Shares - Par Value 1.16 Swiss Francs; Authorized 840 shares, Conditionally Authorized 372 shares, Issued 840 shares at March 31, 2014 and December 31, 2013, respectively, Outstanding 768 and 767 shares at March 31, 2014 and December 31, 2013, respectively. | 777 | 775 |
Capital in Excess of Par Value | 4,603 | 4,600 |
Treasury Shares, 72 shares and 73 shares, at cost, at March 31, 2014 and December 31, 2013, respectively. | -34 | -37 |
Retained Earnings | 2,970 | 3,011 |
Accumulated Other Comprehensive Loss | -389 | -187 |
Weatherford Shareholders’ Equity | 7,927 | 8,162 |
Noncontrolling Interests | 44 | 41 |
Total Shareholders’ Equity | 7,971 | 8,203 |
Total Liabilities and Shareholders’ Equity | $21,830 | $21,977 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
Current Assets: | ' | ' | ' | ' |
Allowance for Uncollectible Accounts | $117 | ' | $114 | ' |
Noncurrent Assets: | ' | ' | ' | ' |
Accumulated Depreciation of Property, Plant and Equipment | 7,113 | ' | 6,908 | ' |
Accumulated Amortization of Other Intangible Assets | $765 | ' | $743 | ' |
Shareholders’ Equity: | ' | ' | ' | ' |
Common Shares, Par Value (in CHF per share) | ' | 1.16 | ' | 1.16 |
Common Shares, Authorized (in shares) | 840,000,000 | 840,000,000 | 840,000,000 | 840,000,000 |
Common Shares, Conditionally Authorized (in shares) | 372,000,000 | 372,000,000 | 372,000,000 | 372,000,000 |
Common Shares, Issued (in shares) | 840,000,000 | 840,000,000 | 840,000,000 | 840,000,000 |
Common Stock, Outstanding (in shares) | 768,000,000 | 768,000,000 | 767,000,000 | 767,000,000 |
Treasury Shares, at cost (in shares) | 72,000,000 | 72,000,000 | 73,000,000 | 73,000,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Products | $1,446 | $1,468 |
Services | 2,150 | 2,369 |
Total Revenues | 3,596 | 3,837 |
Costs and Expenses: | ' | ' |
Cost of Products | 1,064 | 1,145 |
Cost of Services | 1,775 | 1,861 |
Research and Development | 69 | 67 |
Selling, General and Administrative Attributable to Segments | 414 | 415 |
Corporate General and Administrative | 74 | 76 |
Restructuring Charges | 70 | 0 |
Gain on Sale of Businesses | 0 | -6 |
Total Costs and Expenses | 3,466 | 3,558 |
Operating Income (Loss) | 130 | 279 |
Other Income (Expense): | ' | ' |
Interest Expense, Net | -126 | -131 |
Devaluation of Venezuelan Bolivar | 0 | -100 |
Other, Net | -9 | -13 |
Income (Loss) Before Income Taxes | -5 | 35 |
Provision for Income Taxes | -27 | -5 |
Net Income (Loss) | -32 | 30 |
Net Income Attributable to Noncontrolling Interests | -9 | -8 |
Net Income (Loss) Attributable to Weatherford | ($41) | $22 |
Earnings (Loss) Per Share Attributable to Weatherford: | ' | ' |
Basic (in dollars per share) | ($0.05) | $0.03 |
Diluted (in dollars per share) | ($0.05) | $0.03 |
Weighted Average Shares Outstanding: | ' | ' |
Basic (in shares) | 776 | 769 |
Diluted (in shares) | 776 | 773 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net Income (Loss) | ($32) | $30 |
Other Comprehensive Income (Loss), Net of Tax: | ' | ' |
Foreign Currency Translation | -202 | -150 |
Defined Benefit Pension Activity | 0 | 1 |
Other Comprehensive Loss | -202 | -149 |
Comprehensive Loss | -234 | -119 |
Comprehensive Income Attributable to Noncontrolling Interests | -9 | -8 |
Comprehensive Loss Attributable to Weatherford | ($243) | ($127) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net Income (Loss) | ($32) | $30 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | ' | ' |
Depreciation and Amortization | 351 | 346 |
Employee Share-Based Compensation Expense | 15 | 11 |
Deferred Income Tax Provision (Benefit) | 44 | -3 |
Devaluation of Venezuelan Bolivar | 0 | 100 |
Other, Net | 27 | -14 |
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired: | ' | ' |
Accounts Receivable | -167 | -108 |
Inventories | -65 | -89 |
Other Current Assets | -7 | -33 |
Accounts Payable | -52 | 130 |
Billings in Excess of Costs and Estimated Earnings | -53 | -48 |
Other Current Liabilities | -375 | -320 |
Other, Net | -92 | -13 |
Net Cash Used in Operating Activities | -406 | -11 |
Cash Flows from Investing Activities: | ' | ' |
Capital Expenditures for Property, Plant and Equipment | -286 | -400 |
Acquisitions of Businesses, Net of Cash Acquired | 0 | -4 |
Acquisition of Intellectual Property | -2 | -1 |
Proceeds from Sale of Assets and Businesses, Net | 14 | 85 |
Net Cash Used in Investing Activities | -274 | -320 |
Cash Flows From Financing Activities: | ' | ' |
Repayments of Long-term Debt | -17 | -304 |
Borrowings of Short-term Debt, Net | 625 | 625 |
Other Financing Activities, Net | -3 | -3 |
Net Cash Provided by Financing Activities | 605 | 318 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 7 | -1 |
Net Decrease in Cash and Cash Equivalents | -68 | -14 |
Cash and Cash Equivalents at Beginning of Year | 435 | 300 |
Cash and Cash Equivalents at End of Year | 367 | 286 |
Supplemental Cash Flow Information: | ' | ' |
Interest Paid | 179 | 183 |
Income Taxes Paid, Net of Refunds | $103 | $124 |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
The accompanying unaudited condensed consolidated financial statements of Weatherford International Ltd. (the “Company”) are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 March 31, 2014, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013. When referring to “Weatherford” and using phrases such as “we,” “us,” and “our,” the intent is to refer to Weatherford International Ltd., a Swiss joint-stock corporation, and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made. | |
Although we believe the disclosures in these financial statements are adequate, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP 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 December 31, 2013 included in our Annual Report on Form 10-K, as amended. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results expected for the year ending December 31, 2014. | |
The preparation of financial statements in conformity with U.S. GAAP 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 assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, 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, foreign currency exchange rates, pension and post retirement benefit plans, contingencies and share-based compensation. 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 | |
We consolidate all wholly-owned subsidiaries, controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. Investments in affiliates in which we exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. | |
Foreign Currency Exchange Rates | |
In early 2014, the Venezuelan government announced its intent to expand the types of transactions that would be subject to the Venezuela’s Complementary System of Foreign Currency Acquirement (“SICAD”) rate, and created a National Center of Foreign Commerce (“CENCOEX”) that would absorb changes to the existing multiple currency exchange rate mechanisms that may be available for a company to exchange funds. In February, the government officially dissolved CADIVI and established CENCOEX, giving them the authority to determine the sectors that will be allowed to buy U.S. dollars in SICAD auctions, and subsequently introduced a more accessible SICAD 2 daily auction exchange market. In March 2014, SICAD 2, a market-based, state-run exchange, was initiated by the Central Bank of Venezuela. | |
Despite the recent announcements made by the Venezuelan government, there remains a significant degree of uncertainty as to which exchange markets might be available for particular types of transactions. We have not historically participated in the exchanges made available for access to U.S. dollars nor do we have contractual relationships that would require the use of a particular exchange. Because we have sufficient Venezuelan bolivar fuertes (“bolivars”) to settle our bolivar denominated obligations and similarly sufficient U.S. dollars to settle our U.S. dollar denominated obligations, we currently have no forecasted need to participate in the auction-based SICAD exchanges nor sufficient indication that we will ultimately be required to participate in those exchanges and as such, will continue to utilize the rate published in the primary CADIVI/CENCOEX exchange at March 31, 2014 which is 6.3 Venezuelan bolivars per U.S. dollar. The other two legal exchange rates are approximately 11 and 50 Venezuelan bolivars, respectively, to the U.S. dollar. As of March 31, 2014, we had a net monetary asset position denominated in Venezuelan bolivars of approximately $233 million, comprised primarily of accounts receivable and current liabilities. Management is closely monitoring the applicability and viability of this new exchange system. |
Business_Combinations_and_Dive
Business Combinations and Divestitures | 3 Months Ended |
Mar. 31, 2014 | |
Mergers, Acquisitions and Dispositions Disclosures [Abstract] | ' |
Business Combinations and Divestitures | ' |
Business Combinations and Divestitures | |
Acquisitions | |
From time to time, we acquire businesses we feel are important to our long-term strategy. Results of operations for acquisitions are included in the accompanying Condensed Consolidated Statements of Operations from the date of acquisition. The balances included in the Condensed Consolidated Balance Sheets related to current year 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 for the acquisitions is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition. We did not complete any acquisitions during the quarter ended March 31, 2014. During the three months ended March 31, 2013, we acquired businesses and equity investments for cash consideration of $5 million, net of cash acquired. | |
In May 2012, as part of a business combination, we entered into a contingent consideration arrangement valued at approximately $11 million at March 31, 2014. This contingent consideration arrangement will be settled in early 2015 and is dependent on the acquired company’s 2014 revenue. It will be marked to market through current earnings in each reporting period prior to settlement. The liability is valued using Level 3 inputs. | |
Divestitures | |
During the first quarter of 2014, we entered into an agreement to sell our pipeline and specialty services business for total consideration of $250 million, including $241 million in cash and $9 million in retained working capital. The closing of the sale is subject to customary closing conditions and regulatory approvals, including antitrust approval. The sale is part of our announced plan to divest our non-core businesses, which is still ongoing. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||||||
Restructuring Charges | ' | |||||||||||||||||||||||
Restructuring Charges | ||||||||||||||||||||||||
In the first quarter of 2014, we announced a cost reduction plan (“the Plan”), which includes a worldwide workforce reduction. In connection with the Plan, the Company has a restructuring charge for the three months ended March 31, 2014 that includes one-time termination (severance) benefits of $66 million and other restructuring charges of $4 million, including contract termination costs and other associated costs that have been or will be incurred. The Company currently estimates that it will recognize pre-tax charges of $125 million to $150 million associated with the Plan. | ||||||||||||||||||||||||
The Plan resulted in a charge of $70 million, $3 million of which is related to the vesting of stock based compensation in accordance with the related employment agreements and $36 million was paid prior to March 31, 2014. We anticipate completing our Plan by the end of 2014. | ||||||||||||||||||||||||
The following table presents the components of the restructuring charges by segment: | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(Dollars in millions) | North America | MENA/Asia Pacific | Europe/SSA/Russia | Latin America | Corporate and Research and Development | Total | ||||||||||||||||||
Severance and other restructuring charges | $ | 9 | $ | 5 | $ | 20 | $ | 20 | $ | 16 | $ | 70 | ||||||||||||
The restructuring charges gave rise to certain future liabilities, the components of which are summarized below, and relate to severance accrued as part of the Plan that will be paid pursuant to the respective severance arrangements and statutory requirements. | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
(Dollars in millions) | North America | MENA/Asia Pacific | Europe/SSA/Russia | Latin America | Corporate and Research and Development | Total | ||||||||||||||||||
Severance and other restructuring liability | $ | 1 | $ | 3 | $ | 19 | $ | 1 | $ | 7 | $ | 31 | ||||||||||||
Accounts_Receivable_Factoring
Accounts Receivable Factoring | 3 Months Ended |
Mar. 31, 2014 | |
Receivables [Abstract] | ' |
Accounts Receivable Factoring | ' |
Accounts Receivable Factoring | |
We participate in a program to sell accounts receivable in Mexico to third party financial institutions. We did not sell any accounts receivable during the three months ended March 31, 2014. In the three months ended March 31, 2013, we sold approximately $83 million of accounts receivable. We received cash totaling $79 million and ultimately collected amounts that resulted in a loss of less than $1 million on these sales. Our factoring transactions in the first quarter of 2013 qualified for sale accounting under U.S. GAAP and the proceeds are included in operating cash flows in our Condensed Consolidated Statements of Cash Flows. |
Inventories_Net
Inventories, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories, Net | ' | |||||||
Inventories, Net | ||||||||
Inventories, net of reserves, by category were as follows: | ||||||||
(Dollars in millions) | 31-Mar-14 | December 31, 2013 | ||||||
Raw materials, components and supplies | $ | 374 | $ | 386 | ||||
Work in process | 151 | 130 | ||||||
Finished goods | 2,878 | 2,855 | ||||||
$ | 3,403 | $ | 3,371 | |||||
Goodwill
Goodwill | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill | ' | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2014 were as follows: | ||||||||||||||||||||
(Dollars in millions) | North | MENA/ | Europe/ | Latin | Total | |||||||||||||||
America | Asia Pacific | SSA/ | America | |||||||||||||||||
Russia | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 2,243 | $ | 209 | $ | 912 | $ | 345 | $ | 3,709 | ||||||||||
Foreign currency translation adjustments | (47 | ) | 2 | (14 | ) | (2 | ) | (61 | ) | |||||||||||
Balance at March 31, 2014 | $ | 2,196 | $ | 211 | $ | 898 | $ | 343 | $ | 3,648 | ||||||||||
Shortterm_Borrowings_and_Curre
Short-term Borrowings and Current Portion of Long-term Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Borrowings and Current Portion of Long-term Debt | ' | |||||||
Short-term Borrowings and Current Portion of Long-term Debt | ||||||||
(Dollars in millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Commercial paper program | $ | 848 | $ | 292 | ||||
Revolving credit facility | 700 | 772 | ||||||
364-day term loan facility | 300 | 300 | ||||||
Other short-term bank loans | 369 | 229 | ||||||
Total short-term borrowings | 2,217 | 1,593 | ||||||
Current portion of long-term debt | 76 | 73 | ||||||
Short-term borrowings and current portion of long-term debt | $ | 2,293 | $ | 1,666 | ||||
Revolving Credit Facility | ||||||||
We maintain a $2.25 billion unsecured, revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, scheduled to mature July 13, 2016. The Credit Agreement can be used for a combination of borrowings, support for our $2.25 billion commercial paper program and issuances of letters of credit. This agreement requires that we maintain a debt-to-total capitalization ratio of less than 60%. We were in compliance with this covenant at March 31, 2014. At March 31, 2014, there were $43 million in outstanding letters of credit under the Credit Agreement. | ||||||||
364-Day Term Loan Facilities | ||||||||
On May 1, 2013, we entered into a $300 million, 364-day term loan facility with a syndicate of banks. The facility was fully drawn on May 1, 2013 and was scheduled to mature on April 30, 2014. The terms and conditions of the facility were substantially similar to our $2.25 billion revolving credit agreement. The facility was used for general corporate purposes, including the repayment of other credit facility borrowings and the reduction of outstanding commercial paper. | ||||||||
On April 10, 2014, we entered into a $400 million, 364-day term loan facility with a syndicate of banks. The facility has substantially similar terms and conditions to our previously existing $300 million, 364-day term loan facility, which was scheduled to mature on April 30, 2014. Proceeds from the new facility were used to refinance the existing $300 million, 364-day facility, and for general corporate purposes, including the repayment of short-term debt. The $400 million facility closed and was fully drawn on April 10, 2014 and will mature on April 9, 2015. See “Note 18 – Subsequent Events.” | ||||||||
Other Short-Term Borrowings | ||||||||
We have short-term borrowings with various domestic and international institutions pursuant to uncommitted and letter of credit facilities. At March 31, 2014, we had $369 million in short-term borrowings under these arrangements including $150 million borrowed under a credit agreement entered into in the first quarter of 2014, with a Libor-based interest rate that was 1.3% as of March 31, 2014, scheduled to mature March 20, 2016. In addition, we had $530 million of letters of credit under various uncommitted facilities and $284 million of surety bonds, primarily performance bonds, issued by financial sureties against an indemnification from us at March 31, 2014. | ||||||||
The carrying value of our short-term borrowings approximates their fair value as of March 31, 2014. A majority of the current portion of long-term debt at March 31, 2014 is primarily related to payments on our capital leases. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments | ||||||||
Financial Instruments Measured and Recognized at Fair Value | ||||||||
We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Other than the contingent consideration discussed in Note 2 and our derivative instruments discussed in Note 9, we had no assets or liabilities measured and recognized at fair value on a recurring basis at March 31, 2014 and December 31, 2013. | ||||||||
Fair Value of Other Financial Instruments | ||||||||
Our other financial instruments include short-term borrowings and long-term debt. The carrying value of our commercial paper and other short-term borrowings approximates their fair value due to the short-term duration of the associated interest rate periods. These short-term borrowings are classified as Level 2 in the fair value hierarchy. | ||||||||
The fair value of our long-term debt fluctuates with changes in applicable interest rates. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is a measure of its current value under present market conditions and is established based on observable inputs in less active markets. | ||||||||
The fair value and carrying value of our senior notes were as follows: | ||||||||
(Dollars in millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Fair value | $ | 7,873 | $ | 7,580 | ||||
Carrying value | 6,803 | 6,805 | ||||||
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Derivative Instruments | ' | |||||||||
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. 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. | ||||||||||
Fair Value Hedges | ||||||||||
We may use interest rate swaps to help mitigate exposures related to changes in the fair values of the associated debt. Amounts paid or received upon termination of interest rate swaps accounted for as fair value hedges represent the fair value of the agreements at the time of termination and are amortized as a reduction, in the case of gains, or as an increase, in the case of losses, of interest expense over the remaining term of the debt. As of March 31, 2014, we had net unamortized gains of $40 million associated with interest rate swap terminations. These gains are being amortized over the remaining term of the originally hedged debt as a reduction in interest expense. | ||||||||||
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. These hedges were terminated at the time of the issuance of the debt and the associated loss on these hedges is being amortized from “Accumulated Other Comprehensive Income (Loss)” into interest expense over the remaining term of the debt. As of March 31, 2014, there were no significant changes associated with our cash flow hedge terminations. | ||||||||||
Other Derivative Instruments | ||||||||||
As of March 31, 2014 and December 31, 2013, we had foreign currency forward contracts with aggregate notional amounts of $447 million and $635 million, respectively. These contracts were entered into to hedge exposure to currency fluctuations in various foreign currencies. The total estimated fair value of these contracts and amounts receivable or owed associated with closed contracts at both March 31, 2014 and December 31, 2013 resulted in a net liability of $1 million. These derivative instruments were not designated as hedges, and the changes in fair value of the contracts are recorded each period in current earnings in the line captioned “Other, Net” on the accompanying Condensed Consolidated Statements of Operations. | ||||||||||
We have cross-currency swaps between the U.S. dollar and Canadian dollar to hedge certain exposures to the Canadian dollar. At March 31, 2014 and December 31, 2013, we had swaps with notional amounts outstanding of $168 million for both periods. The total estimated fair value of these contracts at March 31, 2014, resulted in the recognition of a $12 million liability. These derivative instruments were not designated as hedges, and the changes in fair value of the contracts are recorded in current earnings each period in the line captioned “Other, Net” on the accompanying Condensed Consolidated Statements of Operations. | ||||||||||
The fair values of outstanding derivative instruments are summarized as follows: | ||||||||||
(Dollars in millions) | March 31, 2014 | December 31, 2013 | Classification | |||||||
Derivative assets not designated as hedges: | ||||||||||
Foreign currency forward contracts | $ | 3 | $ | 5 | Other Current Assets | |||||
Derivative liabilities not designated as hedges: | ||||||||||
Foreign currency forward contracts | (4 | ) | (6 | ) | Other Current Liabilities | |||||
Cross-currency swap contracts | (12 | ) | (21 | ) | Other Liabilities | |||||
The effect of derivative instruments designated as fair value hedges and those not designated as hedges on the Condensed Consolidated Statements of Operations was as follows: | ||||||||||
Gain (Loss) Recognized in Income | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
(Dollars In millions) | 2014 | 2013 | Classification | |||||||
Derivatives designated as fair value hedges: | ||||||||||
Interest rate swaps | $ | 2 | $ | 3 | Interest Expense, Net | |||||
Derivative liabilities not designated as hedges: | ||||||||||
Foreign currency forward contracts | (11 | ) | (14 | ) | Other, Net | |||||
Cross-currency swap contracts | 9 | 5 | Other, Net | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We estimate our annual effective tax rate based on year-to-date operating results and our forecast of operating results for the remainder of the year, by jurisdiction, and apply this rate to the year-to-date operating results. If our actual results, by jurisdiction, differ from the forecasted operating results our effective tax rate can change affecting the tax expense for both successive interim results as well as the annual tax results. For the three months ended March 31, 2014, we had a tax provision of $27 million on loss before taxes of $5 million. Our results were impacted by discrete income before tax items, including restructuring charges and project losses of approximately $116 million, with no significant tax benefit. | |
We are continuously under tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. We continue to anticipate a possible reduction in the balance of uncertain tax positions by approximately $40 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations. | |
For the three months ended March 31, 2013, we had a tax provision of $5 million on income before taxes of $35 million. Our effective tax rate for the three months ended March 31, 2013 includes one-time tax benefits due to the devaluation of the Venezuelan bolivar, tax restructuring benefit, enactment of the American Taxpayer Relief Act and decreases in reserves for uncertain tax positions due to statute of limitation expiration and audit settlements, which decreased our effective tax rate for the period to 14%. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Shareholders' Equity | ' | |||||||||||||||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||
The following summarizes our shareholders’ equity activity for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Dollars in millions) | Par Value of Issued Shares | Capital In Excess of Par Value | Retained Earnings | Accumulated | Treasury Shares | Non-controlling Interests | Total Shareholders’ Equity | |||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 775 | $ | 4,674 | $ | 3,356 | $ | 163 | $ | (182 | ) | $ | 32 | $ | 8,818 | |||||||||||||
Net Income | — | — | 22 | — | — | 8 | 30 | |||||||||||||||||||||
Other Comprehensive Loss | — | — | — | (149 | ) | — | — | (149 | ) | |||||||||||||||||||
Dividends Paid to Noncontrolling Interests | — | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||||
Equity Awards Granted, Vested and Exercised | — | (39 | ) | — | — | 43 | — | 4 | ||||||||||||||||||||
Balance at March 31, 2013 | $ | 775 | $ | 4,635 | $ | 3,378 | $ | 14 | $ | (139 | ) | $ | 35 | $ | 8,698 | |||||||||||||
Balance at December 31, 2013 | $ | 775 | $ | 4,600 | $ | 3,011 | $ | (187 | ) | $ | (37 | ) | $ | 41 | $ | 8,203 | ||||||||||||
Net Income (Loss) | — | — | (41 | ) | — | — | 9 | (32 | ) | |||||||||||||||||||
Other Comprehensive Loss | — | — | — | (202 | ) | — | — | (202 | ) | |||||||||||||||||||
Dividends Paid to Noncontrolling Interests | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||
Equity Awards Granted, Vested and Exercised | 2 | 3 | — | — | 3 | — | 8 | |||||||||||||||||||||
Balance at March 31, 2014 | $ | 777 | $ | 4,603 | $ | 2,970 | $ | (389 | ) | $ | (34 | ) | $ | 44 | $ | 7,971 | ||||||||||||
The following table presents the changes in our accumulated other comprehensive income (loss) by component for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Dollars in millions) | Currency Translation Adjustment | Defined Benefit Pension | Deferred Loss on Derivatives | Total | ||||||||||||||||||||||||
Balance at December 31, 2012 | 213 | (40 | ) | (10 | ) | 163 | ||||||||||||||||||||||
Other comprehensive loss before reclassifications | (116 | ) | — | — | (116 | ) | ||||||||||||||||||||||
Reclassifications | (34 | ) | 1 | — | (33 | ) | ||||||||||||||||||||||
Net activity | (150 | ) | 1 | — | (149 | ) | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 63 | $ | (39 | ) | $ | (10 | ) | $ | 14 | ||||||||||||||||||
Balance at December 31, 2013 | $ | (140 | ) | $ | (38 | ) | $ | (9 | ) | $ | (187 | ) | ||||||||||||||||
Other comprehensive loss before reclassifications | (202 | ) | — | — | (202 | ) | ||||||||||||||||||||||
Net activity | (202 | ) | — | — | (202 | ) | ||||||||||||||||||||||
Balance at March 31, 2014 | $ | (342 | ) | $ | (38 | ) | $ | (9 | ) | $ | (389 | ) | ||||||||||||||||
The reclassification from the currency translation adjustment component of other comprehensive income includes $34 million from the sale of our industrial screen business. This amount was recognized in the “Gain on Sale of Businesses” line in our Condensed Consolidated Statement of Operations in the three months ended March 31, 2013. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings per Share | ' | |||||
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 including participating securities. Diluted earnings per share is computed by dividing net income by the weighted average number of our shares outstanding during the period including participating securities, adjusted for the dilutive effect of our stock options, restricted shares and performance units. | ||||||
The following reconciles basic and diluted weighted average shares outstanding: | ||||||
Three Months Ended March 31, | ||||||
(Shares in millions) | 2014 | 2013 | ||||
Basic weighted average shares outstanding | 776 | 769 | ||||
Dilutive effect of: | ||||||
Stock options, restricted shares and performance units | — | 4 | ||||
Diluted weighted average shares outstanding | 776 | 773 | ||||
Our diluted weighted average shares outstanding for the three months ended March 31, 2014 and 2013, exclude potential shares that are anti-dilutive, such as options where the exercise price exceeds the current market price of our stock. In addition, diluted weighted average shares outstanding for the three months ended March 31, 2014, exclude potential shares for stock options, restricted shares and performance units outstanding as we have net losses for that period and their inclusion would be anti-dilutive. | ||||||
The following table discloses the number of anti-dilutive shares excluded: | ||||||
Three Months Ended March 31, | ||||||
(Shares in millions) | 2014 | 2013 | ||||
Anti-dilutive potential shares | 2 | 3 | ||||
Anti-dilutive potential shares due to net loss | 5 | — | ||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Share-Based Compensation | ' | |||||||
Share-Based Compensation | ||||||||
We recognized the following employee share-based compensation expense during the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
(Dollars in millions) | 2014 | 2013 | ||||||
Share-based compensation | $ | 15 | $ | 11 | ||||
Related tax benefit | 3 | 4 | ||||||
During the three months ended March 31, 2014, we issued approximately 800,000 performance units, which will vest with continued employment, if the Company meets certain market-based performance goals. The performance units have a weighted average grant date fair value of $14.31 per share based on the Monte Carlo simulation method. The assumptions used in the Monte Carlo simulation included a risk-free rate of 0.34%, volatility of 33.53% and a zero dividend yield. As of March 31, 2014, there was $20 million of unrecognized compensation related to our performance units. This cost is expected to be recognized over a weighted average period of 2 years. | ||||||||
During the three months ended March 31, 2014, we also granted 1.2 million restricted share awards at a weighted average grant date fair value of $15.63 per share. As of March 31, 2014, there was $72 million of unrecognized compensation related to our unvested restricted share grants. This cost is expected to be recognized over a weighted average period of 2 years. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
Segment Information | ||||||||||||
Reporting Segments | ||||||||||||
Our operational performance is reviewed and managed on a geographic basis. We report the following regions, which are our operating segments, as separate and distinct reporting segments: North America, MENA/Asia Pacific, Europe/SSA/Russia, and Latin America. 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. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
(Dollars in millions) | Net | Income | Depreciation | |||||||||
Operating | from | and | ||||||||||
Revenues | Operations | Amortization | ||||||||||
North America | $ | 1,610 | $ | 194 | $ | 107 | ||||||
MENA/Asia Pacific (a) | 781 | 3 | 102 | |||||||||
Europe/SSA/Russia | 664 | 54 | 72 | |||||||||
Latin America | 541 | 91 | 64 | |||||||||
3,596 | 342 | 345 | ||||||||||
Corporate and Research and Development | (116 | ) | 6 | |||||||||
Restructuring Charges (b) | (70 | ) | ||||||||||
Other Items (c) | (26 | ) | ||||||||||
Total | $ | 3,596 | $ | 130 | $ | 351 | ||||||
Three Months Ended March 31, 2013 | ||||||||||||
(Dollars in millions) | Net | Income | Depreciation | |||||||||
Operating | from | and | ||||||||||
Revenues | Operations | Amortization | ||||||||||
North America | $ | 1,692 | $ | 224 | $ | 108 | ||||||
MENA/Asia Pacific | 785 | 42 | 93 | |||||||||
Europe/SSA/Russia | 633 | 65 | 71 | |||||||||
Latin America | 727 | 98 | 68 | |||||||||
3,837 | 429 | 340 | ||||||||||
Corporate and Research and Development | (115 | ) | 6 | |||||||||
Other Items (d) | (35 | ) | ||||||||||
Total | $ | 3,837 | $ | 279 | $ | 346 | ||||||
(a) | During the three months ended March 31, 2014, we recognized estimated project losses of $26 million related to our long-term early production facility construction contracts in Iraq accounted for under the percentage-of-completion method. Total estimated losses on these projects were $333 million at March 31, 2014. In the three months ended March 31, 2013, we recognized income of $8 million related to our long-term early production facility construction contracts in Iraq. As of March 31, 2014, our project estimates include $64 million of claims revenue. Of this claim revenue, $28 million was recognized during the current quarter based on the estimated percentage completed. | |||||||||||
(b) | For the three months ended March 31, 2014, we recognized restructuring charges of $70 million: $9 million in North America, $5 million in MENA/Asia Pacific, $20 million in Europe/SSA/Russia, $20 million in Latin America and $16 million in Corporate and Research and Development. | |||||||||||
(c) | The three months ended March 31, 2014 includes professional fees of $23 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations, the remediation of our material weakness related to income taxes and our planned redomestication and other charges of $3 million. | |||||||||||
(d) | The three months ended March 31, 2013 includes income tax restatement and material weakness remediation expenses of $21 million, severance, exit and other charges of $20 million, partially offset by a $6 million gain on the sale of our industrial screen business. |
Disputes_Litigation_and_Contin
Disputes, Litigation and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Disputes, Litigation and Contingencies | ' |
Disputes, Litigation and Contingencies | |
U.S. Government and Internal Investigations | |
On January 17, 2014, the U.S. District Court for the Southern District of Texas approved the settlement agreements between us and certain of our subsidiaries and the U.S. Department of Justice (“DOJ”). On November 26, 2013, we announced that we and our subsidiaries also entered into settlement agreements with the U.S. Departments of Treasury and Commerce and with the SEC, which the U.S. District Court for the Southern District of Texas entered on December 20, 2013. These agreements collectively resolved investigations of prior alleged violations by us and certain of our subsidiaries relating to certain trade sanctions laws, participation in the United Nations oil-for-food program governing sales of goods into Iraq, and non-compliance with the Foreign Corrupt Practices Act (“FCPA”). | |
The $253 million payable by us and our subsidiaries under the settlement agreements was paid in January and February 2014 pursuant to the terms of the settlement agreements. These agreements include a requirement to retain, for a period of at least 18 months, an independent monitor responsible to assess our compliance with the terms of the agreement so as to address and reduce the risk of recurrence of alleged misconduct, after which we would continue to evaluate our own compliance program and make periodic reports to the DOJ and SEC and maintain agreed compliance monitoring and reporting systems, all of which are costly to us. In April 2014, the independent monitor was retained and the compliance assessment period began. These agreements also require us to retain an independent third party to retroactively audit our compliance with U.S. export control laws during the years 2012, 2013 and 2014. This audit has commenced. | |
The SEC and DOJ are also investigating the circumstances surrounding the material weakness in our internal controls over financial reporting for income taxes that was disclosed in a notification of late filing on Form 12b-25 filed on March 1, 2011 and in current reports on Form 8-K filed on February 21, 2012 and on July 24, 2012 and the subsequent restatements of our historical financial statements. We are cooperating fully with these investigations. We are unable to predict the outcome of these matters due to the inherent uncertainties presented by such investigations, and we are unable to predict potential outcomes or estimate the range of potential loss contingencies, if any. The government, generally, has a broad range of civil and criminal penalties available for these types of matters under applicable law and regulation, including injunctive relief, fines, penalties and modifications to business practices, some of which, if imposed on us, could be material to our business, financial condition or results of operations. | |
Shareholder Litigation | |
In 2010, three shareholder derivative actions were filed, purportedly on behalf of the Company, asserting breach of duty and other claims against certain current and former officers and directors of the Company related to the United Nations oil-for-food program governing sales of goods into Iraq, FCPA and trade sanctions related to the U.S. government investigations disclosed above and in our SEC filings since 2007. Those shareholder derivative cases, captioned Neff v. Brady, et al., No. 201040764, Rosner v. Brady, et al., No. 201047343, and Hess v. Duroc-Danner, et al., No. 201040765, were filed in Harris County, Texas state court and consolidated. In 2014, one of the three cases, Hess v. Duroc-Danner, et al., No. 201040765, was voluntarily dismissed. Other shareholder demand letters covering the same subject matter were received by the Company in early 2014, and a fourth shareholder derivative action was filed, purportedly on behalf of the Company, and also asserting breach of duty and other claims against certain current and former officers and directors of the Company related to the same subject matter as the Neff case. That case, captioned Erste-Sparinvest KAG v. Duroc-Danner, et al., No. 2014-20933 (Harris County, Tex.) is pending. | |
In March 2011, a shareholder derivative action, Iron Workers Mid-South Pension Fund v. Duroc-Danner, et al., No. 201119822, was filed in Harris County, Texas, civil court purportedly on behalf of the Company against certain current and former officers and directors, alleging breaches of duty related to the material weakness and restatement announcements. In February 2012, a second shareholder derivative action, Wandel v. Duroc-Danner, et al., No. 1:12-cv-01305-LAK (SDNY), was filed in federal court in the Southern District of New York. In March 2012, a purported securities class action captioned Freedman v. Weatherford International Ltd., et al., No. 1:12-cv-02121-LAK (SDNY) was filed in the Southern District of New York against us and certain current and former officers. That case alleges violation of the federal securities laws related to the restatement of our historical financial statements announced on February 21, 2012, and later added claims related to the announcement of a subsequent restatement on July 24, 2012. | |
We cannot predict the outcome of these cases including the amount of any possible loss. If one or more negative outcomes were to occur relative to these cases, the aggregate impact to our financial condition could be material. | |
In March 2011, a purported shareholder class action captioned Dobina v. Weatherford International Ltd., et al., No. 1:11-cv-01646-LAK (SDNY), was filed in the U.S. District Court for the Southern District of New York, following our announcement on March 1, 2011 of a material weakness in our internal controls over financial reporting for income taxes, and restatement of our historical financial statements (the “2011 Class Action”). The associated lawsuit alleged violation of the federal securities laws by us and certain current and former officers. During the three months ended December 31, 2013, we entered into negotiations to settle the 2011 Class Action. As a result of these negotiations, settlement became probable and a settlement agreement was signed on January 29, 2014. The settlement arrangement was submitted to the court for approval and notice to the class. A final hearing has been set for July 8, 2014. The settlement agreement required payments totaling approximately $53 million which was entirely funded by our insurers. | |
Other Disputes | |
A former Senior Vice President and General Counsel (the “Executive”) left the Company in June 2009. The Executive had employment agreements with us that terminated upon his departure. There is currently a dispute between the Executive and us as to the amount of compensation we are obligated to pay under these employment agreements based on the Executive’s separation. This dispute has not resulted in a lawsuit being filed. Since 2009, it had been our belief that an unfavorable outcome regarding this dispute is not probable and, as such, we had not accrued for the Executive’s claimed severance and other benefits. However, in the three months ended December 31, 2013 we concluded that we would attempt to negotiate a settlement. As a result, we believe that settlement has become probable and we have accrued our estimate of the probable loss. | |
Additionally, we are aware of various disputes and potential claims and are a party in various litigation involving claims against us, some of which are covered by insurance. For claims, disputes and pending litigation in which we believe a negative outcome is probable and a loss can be reasonably estimated, we have recorded a liability for the expected loss. These liabilities are immaterial to our financial condition and results of operations. In addition we have certain claims, disputes and pending litigation regarding which we do not believe a negative outcome is probable or for which we can only estimate a range of liability. It is possible, however, an unexpected judgment could be rendered against us, or we could decide to resolve a case or cases, that would result in liability that could be uninsured and beyond the amounts we currently have reserved and in some cases those losses could be material. If one or more negative outcomes were to occur relative to these matters, the aggregate impact to our financial condition could be material. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to change the criteria for reporting discontinued operations while enhancing disclosures for discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. The new guidance also requires expanded disclosures about discontinued operations intended to provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Finally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This guidance is effective beginning with the first quarter of 2015, however early adoption is available. The Company is currently evaluating what impact, if any, the adoption of this guidance would have on our financial disclosures. | |
In July 2013, the FASB issued new guidance intended to clarify the presentation of unrecognized tax benefits. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss or a tax credit carryforward, with certain exceptions. The unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets to the extent that: (1) the deferred tax asset is not available under the tax law of the applicable jurisdiction to settle additional income taxes resulting from disallowance of the tax position, or (2) the entity is not required to use the deferred tax asset under the tax law of the applicable jurisdiction and the entity does not intend to use the deferred tax asset to offset additional taxes that would result from disallowance of the position. This guidance is effective for us beginning with the first quarter of 2014 and may be adopted prospectively for all unrecognized tax benefits that exist at the effective date or retrospectively. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | |||||||||||||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||||||||||||||
Weatherford International Ltd., a Swiss joint-stock corporation (“Weatherford Switzerland”) is the ultimate parent of the Weatherford group and guarantees the obligations of Weatherford International Ltd., a Bermuda exempted company (“Weatherford Bermuda”), and Weatherford International, LLC, a Delaware limited liability company (“Weatherford Delaware”), noted below. | ||||||||||||||||||||||||
The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at March 31, 2014 and December 31, 2013: (1) 6.35% senior notes and (2) 6.80% senior notes. | ||||||||||||||||||||||||
The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at March 31, 2014 and December 31, 2013: (1) revolving credit facility, (2) 5.50% senior notes, (3) 6.50% senior notes, (4) 6.00% senior notes, (5) 7.00% senior notes, (6) 9.625% senior notes, (7) 9.875% senior notes, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes and (11) 5.95% senior notes. In 2013, we entered into a 364-day term loan facility, which was an obligation of Weatherford Bermuda guaranteed by Weatherford Delaware as of March 31, 2014. | ||||||||||||||||||||||||
As a result of certain 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 | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 4 | $ | — | $ | — | $ | 363 | $ | — | $ | 367 | ||||||||||||
Other Current Assets | 59 | 3 | 406 | 8,424 | (399 | ) | 8,493 | |||||||||||||||||
Total Current Assets | 63 | 3 | 406 | 8,787 | (399 | ) | 8,860 | |||||||||||||||||
Equity Investments in Affiliates | 9,492 | 11,820 | 8,077 | 5,422 | (34,811 | ) | — | |||||||||||||||||
Equity Held in Parent | — | — | 10 | 24 | (34 | ) | — | |||||||||||||||||
Intercompany Receivables, Net | — | — | — | 6,528 | (6,528 | ) | — | |||||||||||||||||
Other Assets | 6 | 41 | 16 | 12,907 | — | 12,970 | ||||||||||||||||||
Total Assets | $ | 9,561 | $ | 11,864 | $ | 8,509 | $ | 33,668 | $ | (41,772 | ) | $ | 21,830 | |||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | $ | 2,079 | $ | 24 | $ | 190 | $ | — | $ | 2,293 | ||||||||||||
Accounts Payable and Other Current Liabilities | 70 | 60 | — | 3,793 | (399 | ) | 3,524 | |||||||||||||||||
Total Current Liabilities | 70 | 2,139 | 24 | 3,983 | (399 | ) | 5,817 | |||||||||||||||||
Long-term Debt | — | 5,890 | 982 | 166 | 1 | 7,039 | ||||||||||||||||||
Intercompany Payables, Net | 1,551 | 4,659 | 319 | — | (6,529 | ) | — | |||||||||||||||||
Other Long-term Liabilities | 13 | 88 | 1 | 901 | — | 1,003 | ||||||||||||||||||
Total Liabilities | 1,634 | 12,776 | 1,326 | 5,050 | (6,927 | ) | 13,859 | |||||||||||||||||
Weatherford Shareholders’ Equity | 7,927 | (912 | ) | 7,183 | 28,574 | (34,845 | ) | 7,927 | ||||||||||||||||
Noncontrolling Interests | — | — | — | 44 | — | 44 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 9,561 | $ | 11,864 | $ | 8,509 | $ | 33,668 | $ | (41,772 | ) | $ | 21,830 | |||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and Cash Equivalents | $ | — | $ | — | $ | — | $ | 435 | $ | — | $ | 435 | ||||||||||||
Other Current Assets | 57 | 5 | 415 | 8,270 | (408 | ) | 8,339 | |||||||||||||||||
Total Current Assets | 57 | 5 | 415 | 8,705 | (408 | ) | 8,774 | |||||||||||||||||
Equity Investments in Affiliates | 8,663 | 11,742 | 8,065 | 6,466 | (34,936 | ) | — | |||||||||||||||||
Equity Held in Parent | — | — | 10 | 27 | (37 | ) | — | |||||||||||||||||
Intercompany Receivables, Net | — | — | — | 7,304 | (7,304 | ) | — | |||||||||||||||||
Other Assets | 7 | 41 | 17 | 13,138 | — | 13,203 | ||||||||||||||||||
Total Assets | $ | 8,727 | $ | 11,788 | $ | 8,507 | $ | 35,640 | $ | (42,685 | ) | $ | 21,977 | |||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | $ | 1,445 | $ | 23 | $ | 198 | $ | — | $ | 1,666 | ||||||||||||
Accounts Payable and Other Current Liabilities | 312 | 129 | — | 4,000 | (408 | ) | 4,033 | |||||||||||||||||
Total Current Liabilities | 312 | 1,574 | 23 | 4,198 | (408 | ) | 5,699 | |||||||||||||||||
Long-term Debt | — | 5,891 | 986 | 184 | — | 7,061 | ||||||||||||||||||
Intercompany Payables, Net | 243 | 6,755 | 306 | — | (7,304 | ) | — | |||||||||||||||||
Other Long-term Liabilities | 10 | 97 | 2 | 905 | — | 1,014 | ||||||||||||||||||
Total Liabilities | 565 | 14,317 | 1,317 | 5,287 | (7,712 | ) | 13,774 | |||||||||||||||||
Weatherford Shareholders’ Equity | 8,162 | (2,529 | ) | 7,190 | 30,312 | (34,973 | ) | 8,162 | ||||||||||||||||
Noncontrolling Interests | — | — | — | 41 | — | 41 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 8,727 | $ | 11,788 | $ | 8,507 | $ | 35,640 | $ | (42,685 | ) | $ | 21,977 | |||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford Switzerland | Weatherford Bermuda | Weatherford Delaware | Other | Eliminations | Consolidation | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 3,596 | $ | — | $ | 3,596 | ||||||||||||
Costs and Expenses | (19 | ) | — | (1 | ) | (3,446 | ) | — | (3,466 | ) | ||||||||||||||
Operating Income (Loss) | (19 | ) | — | (1 | ) | 150 | — | 130 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Expense, Net | — | (105 | ) | (15 | ) | (6 | ) | — | (126 | ) | ||||||||||||||
Intercompany Charges, Net | — | 7,348 | — | (7,348 | ) | — | — | |||||||||||||||||
Equity in Subsidiary Income | (21 | ) | 80 | 11 | — | (70 | ) | — | ||||||||||||||||
Other, Net | (1 | ) | (4 | ) | — | (4 | ) | — | (9 | ) | ||||||||||||||
Income (Loss) Before Income Taxes | (41 | ) | 7,319 | (5 | ) | (7,208 | ) | (70 | ) | (5 | ) | |||||||||||||
(Provision) Benefit for Income Taxes | — | — | 6 | (33 | ) | — | (27 | ) | ||||||||||||||||
Net Income (Loss) | (41 | ) | 7,319 | 1 | (7,241 | ) | (70 | ) | (32 | ) | ||||||||||||||
Noncontrolling Interests | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (41 | ) | $ | 7,319 | $ | 1 | $ | (7,250 | ) | $ | (70 | ) | $ | (41 | ) | ||||||||
Comprehensive Income (Loss) Attributable to Weatherford | $ | (243 | ) | $ | 7,169 | $ | (135 | ) | $ | (7,453 | ) | $ | 419 | $ | (243 | ) | ||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 3,837 | $ | — | $ | 3,837 | ||||||||||||
Costs and Expenses | (9 | ) | 10 | — | (3,559 | ) | — | (3,558 | ) | |||||||||||||||
Operating Income (Loss) | (9 | ) | 10 | — | 278 | — | 279 | |||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Expense, Net | — | (111 | ) | (16 | ) | (4 | ) | — | (131 | ) | ||||||||||||||
Intercompany Charges, Net | — | — | 30 | (30 | ) | — | — | |||||||||||||||||
Equity in Subsidiary Income | 31 | 195 | 117 | — | (343 | ) | — | |||||||||||||||||
Other, Net | — | (14 | ) | — | (99 | ) | — | (113 | ) | |||||||||||||||
Income (Loss) Before Income Taxes | 22 | 80 | 131 | 145 | (343 | ) | 35 | |||||||||||||||||
(Provision) Benefit for Income Taxes | — | — | (6 | ) | 1 | — | (5 | ) | ||||||||||||||||
Net Income (Loss) | 22 | 80 | 125 | 146 | (343 | ) | 30 | |||||||||||||||||
Noncontrolling Interests | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | 22 | $ | 80 | $ | 125 | $ | 138 | $ | (343 | ) | $ | 22 | |||||||||||
Comprehensive Income (Loss) Attributable to Weatherford | $ | (127 | ) | $ | (71 | ) | $ | (14 | ) | $ | (12 | ) | $ | 97 | $ | (127 | ) | |||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net Income (Loss) | $ | (41 | ) | $ | 7,319 | $ | 1 | $ | (7,241 | ) | $ | (70 | ) | $ | (32 | ) | ||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | ||||||||||||||||||||||||
Charges from Parent or Subsidiary | — | (7,348 | ) | — | 7,348 | — | — | |||||||||||||||||
Equity in (Earnings) Loss of Affiliates | 21 | (80 | ) | (11 | ) | — | 70 | — | ||||||||||||||||
Deferred Income Tax Provision (Benefit) | — | — | — | 44 | — | 44 | ||||||||||||||||||
Other Adjustments | 45 | (322 | ) | (2 | ) | (139 | ) | — | (418 | ) | ||||||||||||||
Net Cash Provided (Used) by Operating Activities | 25 | (431 | ) | (12 | ) | 12 | — | (406 | ) | |||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | — | — | — | (286 | ) | — | (286 | ) | ||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired | — | — | — | — | — | — | ||||||||||||||||||
Acquisition of Intellectual Property | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Purchase of Equity Investment in Unconsolidated Affiliates | — | — | — | — | — | — | ||||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net | — | — | — | 14 | — | 14 | ||||||||||||||||||
Capital Contribution to Subsidiary | — | — | — | — | — | — | ||||||||||||||||||
Net Cash Provided (Used) by Investing Activities | — | — | — | (274 | ) | — | (274 | ) | ||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net | — | 635 | — | (10 | ) | — | 625 | |||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net | — | — | (3 | ) | (14 | ) | — | (17 | ) | |||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net | (19 | ) | (204 | ) | (7 | ) | 230 | — | — | |||||||||||||||
Proceeds from Capital Contributions | — | — | — | — | — | — | ||||||||||||||||||
Other, Net | (2 | ) | — | 22 | (23 | ) | — | (3 | ) | |||||||||||||||
Net Cash Provided (Used) by Financing Activities | (21 | ) | 431 | 12 | 183 | — | 605 | |||||||||||||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | — | — | 7 | — | 7 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 4 | — | — | (72 | ) | — | (68 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | — | — | — | 435 | — | 435 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 4 | $ | — | $ | — | $ | 363 | $ | — | $ | 367 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net Income (Loss) | $ | 22 | $ | 80 | $ | 125 | $ | 146 | $ | (343 | ) | $ | 30 | |||||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | ||||||||||||||||||||||||
Charges from Parent or Subsidiary | — | — | (30 | ) | 30 | — | — | |||||||||||||||||
Equity in (Earnings) Loss of Affiliates | (31 | ) | (195 | ) | (117 | ) | — | 343 | — | |||||||||||||||
Deferred Income Tax Provision (Benefit) | — | — | 6 | (9 | ) | — | (3 | ) | ||||||||||||||||
Other Adjustments | 129 | 246 | (125 | ) | (288 | ) | — | (38 | ) | |||||||||||||||
Net Cash Provided (Used) by Operating Activities | 120 | 131 | (141 | ) | (121 | ) | — | (11 | ) | |||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | — | — | — | (400 | ) | — | (400 | ) | ||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Acquisition of Intellectual Property | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net | — | — | — | 85 | — | 85 | ||||||||||||||||||
Capital Contribution to Subsidiary | (129 | ) | — | — | — | 129 | — | |||||||||||||||||
Net Cash Provided (Used) by Investing Activities | (129 | ) | — | — | (320 | ) | 129 | (320 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net | — | 648 | — | (23 | ) | — | 625 | |||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net | — | (294 | ) | (9 | ) | (1 | ) | — | (304 | ) | ||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net | 9 | (484 | ) | 150 | 325 | — | — | |||||||||||||||||
Proceeds from Capital Contributions | — | — | — | 129 | (129 | ) | — | |||||||||||||||||
Other, Net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Net Cash Provided (Used) by Financing Activities | 9 | (130 | ) | 141 | 427 | (129 | ) | 318 | ||||||||||||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Net Increase in Cash and Cash Equivalents | — | 1 | — | (15 | ) | — | (14 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | — | — | — | 300 | — | 300 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | — | $ | 1 | $ | — | $ | 285 | $ | — | $ | 286 | ||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Jurisdiction of Incorporation Proposal | |
On April 2, 2014, our Board of Directors unanimously approved a plan that would change our jurisdiction of incorporation from Switzerland to Ireland. In connection with the proposed change, we entered into a merger agreement on April 2, 2014 (the “Merger Agreement”) with Weatherford International Limited, a newly-formed private Irish limited company and a direct wholly-owned subsidiary of the Company (“Weatherford Ireland”). Under the Merger Agreement, Weatherford Switzerland will merge into Weatherford Ireland (the “Merger”). Weatherford Ireland will be re-registered as an Irish public limited company and renamed “Weatherford International plc” (or a similar name) immediately prior to the effective time of the Merger. The Merger is subject to approval by our shareholders and certain other customary closing conditions. If the proposal is approved by our shareholders at the June 16, 2014 meeting, we expect to complete the Merger by the end of the second quarter of 2014. | |
364-Day Term Loan Facility | |
On April 10, 2014, we entered into a $400 million, 364-day term loan facility with a syndicate of banks. The facility has substantially similar terms and conditions to our previously existing $300 million, 364-day term loan facility, which was scheduled to mature on April 30, 2014. Proceeds from the new facility were used to refinance the existing $300 million, 364-day facility, and for general corporate purposes, including the repayment of short-term debt. The $400 million facility closed and was fully drawn on April 10, 2014 and will mature on April 9, 2015. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting | ' |
The accompanying unaudited condensed consolidated financial statements of Weatherford International Ltd. (the “Company”) are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 March 31, 2014, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013. When referring to “Weatherford” and using phrases such as “we,” “us,” and “our,” the intent is to refer to Weatherford International Ltd., a Swiss joint-stock corporation, and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made. | |
Although we believe the disclosures in these financial statements are adequate, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP 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 December 31, 2013 included in our Annual Report on Form 10-K, as amended. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results expected for the year ending December 31, 2014. | |
The preparation of financial statements in conformity with U.S. GAAP 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 assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, 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, foreign currency exchange rates, pension and post retirement benefit plans, contingencies and share-based compensation. 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 | ' |
Principles of Consolidation | |
We consolidate all wholly-owned subsidiaries, controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. Investments in affiliates in which we exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. | |
Foreign Currency Exchange Rates | ' |
Foreign Currency Exchange Rates | |
In early 2014, the Venezuelan government announced its intent to expand the types of transactions that would be subject to the Venezuela’s Complementary System of Foreign Currency Acquirement (“SICAD”) rate, and created a National Center of Foreign Commerce (“CENCOEX”) that would absorb changes to the existing multiple currency exchange rate mechanisms that may be available for a company to exchange funds. In February, the government officially dissolved CADIVI and established CENCOEX, giving them the authority to determine the sectors that will be allowed to buy U.S. dollars in SICAD auctions, and subsequently introduced a more accessible SICAD 2 daily auction exchange market. In March 2014, SICAD 2, a market-based, state-run exchange, was initiated by the Central Bank of Venezuela. | |
Despite the recent announcements made by the Venezuelan government, there remains a significant degree of uncertainty as to which exchange markets might be available for particular types of transactions. We have not historically participated in the exchanges made available for access to U.S. dollars nor do we have contractual relationships that would require the use of a particular exchange. Because we have sufficient Venezuelan bolivar fuertes (“bolivars”) to settle our bolivar denominated obligations and similarly sufficient U.S. dollars to settle our U.S. dollar denominated obligations, we currently have no forecasted need to participate in the auction-based SICAD exchanges nor sufficient indication that we will ultimately be required to participate in those exchanges and as such, will continue to utilize the rate published in the primary CADIVI/CENCOEX exchange at March 31, 2014 which is 6.3 Venezuelan bolivars per U.S. dollar. The other two legal exchange rates are approximately 11 and 50 Venezuelan bolivars, respectively, to the U.S. dollar. As of March 31, 2014, we had a net monetary asset position denominated in Venezuelan bolivars of approximately $233 million, comprised primarily of accounts receivable and current liabilities. Management is closely monitoring the applicability and viability of this new exchange system. | |
New Accounting Pronouncements | ' |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance intended to change the criteria for reporting discontinued operations while enhancing disclosures for discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. The new guidance also requires expanded disclosures about discontinued operations intended to provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Finally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This guidance is effective beginning with the first quarter of 2015, however early adoption is available. The Company is currently evaluating what impact, if any, the adoption of this guidance would have on our financial disclosures. | |
In July 2013, the FASB issued new guidance intended to clarify the presentation of unrecognized tax benefits. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss or a tax credit carryforward, with certain exceptions. The unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets to the extent that: (1) the deferred tax asset is not available under the tax law of the applicable jurisdiction to settle additional income taxes resulting from disallowance of the tax position, or (2) the entity is not required to use the deferred tax asset under the tax law of the applicable jurisdiction and the entity does not intend to use the deferred tax asset to offset additional taxes that would result from disallowance of the position. This guidance is effective for us beginning with the first quarter of 2014 and may be adopted prospectively for all unrecognized tax benefits that exist at the effective date or retrospectively. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||||||
Schedule of Restructuring Charges | ' | |||||||||||||||||||||||
The following table presents the components of the restructuring charges by segment: | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(Dollars in millions) | North America | MENA/Asia Pacific | Europe/SSA/Russia | Latin America | Corporate and Research and Development | Total | ||||||||||||||||||
Severance and other restructuring charges | $ | 9 | $ | 5 | $ | 20 | $ | 20 | $ | 16 | $ | 70 | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||||||||||
The restructuring charges gave rise to certain future liabilities, the components of which are summarized below, and relate to severance accrued as part of the Plan that will be paid pursuant to the respective severance arrangements and statutory requirements. | ||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||
(Dollars in millions) | North America | MENA/Asia Pacific | Europe/SSA/Russia | Latin America | Corporate and Research and Development | Total | ||||||||||||||||||
Severance and other restructuring liability | $ | 1 | $ | 3 | $ | 19 | $ | 1 | $ | 7 | $ | 31 | ||||||||||||
Inventories_Net_Tables
Inventories, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Inventories, net of reserves, by category were as follows: | ||||||||
(Dollars in millions) | 31-Mar-14 | December 31, 2013 | ||||||
Raw materials, components and supplies | $ | 374 | $ | 386 | ||||
Work in process | 151 | 130 | ||||||
Finished goods | 2,878 | 2,855 | ||||||
$ | 3,403 | $ | 3,371 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2014 were as follows: | ||||||||||||||||||||
(Dollars in millions) | North | MENA/ | Europe/ | Latin | Total | |||||||||||||||
America | Asia Pacific | SSA/ | America | |||||||||||||||||
Russia | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 2,243 | $ | 209 | $ | 912 | $ | 345 | $ | 3,709 | ||||||||||
Foreign currency translation adjustments | (47 | ) | 2 | (14 | ) | (2 | ) | (61 | ) | |||||||||||
Balance at March 31, 2014 | $ | 2,196 | $ | 211 | $ | 898 | $ | 343 | $ | 3,648 | ||||||||||
Shortterm_Borrowings_and_Curre1
Short-term Borrowings and Current Portion of Long-term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Components of Short-Term Borrowings | ' | |||||||
(Dollars in millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Commercial paper program | $ | 848 | $ | 292 | ||||
Revolving credit facility | 700 | 772 | ||||||
364-day term loan facility | 300 | 300 | ||||||
Other short-term bank loans | 369 | 229 | ||||||
Total short-term borrowings | 2,217 | 1,593 | ||||||
Current portion of long-term debt | 76 | 73 | ||||||
Short-term borrowings and current portion of long-term debt | $ | 2,293 | $ | 1,666 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
Fair Value and Carrying Value of Long-Term Debt | ' | |||||||
The fair value and carrying value of our senior notes were as follows: | ||||||||
(Dollars in millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Fair value | $ | 7,873 | $ | 7,580 | ||||
Carrying value | 6,803 | 6,805 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Schedule of Derivatives Instruments in Statements of Financial Performance and Financial Position | ' | |||||||||
The fair values of outstanding derivative instruments are summarized as follows: | ||||||||||
(Dollars in millions) | March 31, 2014 | December 31, 2013 | Classification | |||||||
Derivative assets not designated as hedges: | ||||||||||
Foreign currency forward contracts | $ | 3 | $ | 5 | Other Current Assets | |||||
Derivative liabilities not designated as hedges: | ||||||||||
Foreign currency forward contracts | (4 | ) | (6 | ) | Other Current Liabilities | |||||
Cross-currency swap contracts | (12 | ) | (21 | ) | Other Liabilities | |||||
The effect of derivative instruments designated as fair value hedges and those not designated as hedges on the Condensed Consolidated Statements of Operations was as follows: | ||||||||||
Gain (Loss) Recognized in Income | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
(Dollars In millions) | 2014 | 2013 | Classification | |||||||
Derivatives designated as fair value hedges: | ||||||||||
Interest rate swaps | $ | 2 | $ | 3 | Interest Expense, Net | |||||
Derivative liabilities not designated as hedges: | ||||||||||
Foreign currency forward contracts | (11 | ) | (14 | ) | Other, Net | |||||
Cross-currency swap contracts | 9 | 5 | Other, Net | |||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | |||||||||||||||||||||||||||
The following summarizes our shareholders’ equity activity for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Dollars in millions) | Par Value of Issued Shares | Capital In Excess of Par Value | Retained Earnings | Accumulated | Treasury Shares | Non-controlling Interests | Total Shareholders’ Equity | |||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 775 | $ | 4,674 | $ | 3,356 | $ | 163 | $ | (182 | ) | $ | 32 | $ | 8,818 | |||||||||||||
Net Income | — | — | 22 | — | — | 8 | 30 | |||||||||||||||||||||
Other Comprehensive Loss | — | — | — | (149 | ) | — | — | (149 | ) | |||||||||||||||||||
Dividends Paid to Noncontrolling Interests | — | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||||
Equity Awards Granted, Vested and Exercised | — | (39 | ) | — | — | 43 | — | 4 | ||||||||||||||||||||
Balance at March 31, 2013 | $ | 775 | $ | 4,635 | $ | 3,378 | $ | 14 | $ | (139 | ) | $ | 35 | $ | 8,698 | |||||||||||||
Balance at December 31, 2013 | $ | 775 | $ | 4,600 | $ | 3,011 | $ | (187 | ) | $ | (37 | ) | $ | 41 | $ | 8,203 | ||||||||||||
Net Income (Loss) | — | — | (41 | ) | — | — | 9 | (32 | ) | |||||||||||||||||||
Other Comprehensive Loss | — | — | — | (202 | ) | — | — | (202 | ) | |||||||||||||||||||
Dividends Paid to Noncontrolling Interests | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||
Equity Awards Granted, Vested and Exercised | 2 | 3 | — | — | 3 | — | 8 | |||||||||||||||||||||
Balance at March 31, 2014 | $ | 777 | $ | 4,603 | $ | 2,970 | $ | (389 | ) | $ | (34 | ) | $ | 44 | $ | 7,971 | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||
The following table presents the changes in our accumulated other comprehensive income (loss) by component for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Dollars in millions) | Currency Translation Adjustment | Defined Benefit Pension | Deferred Loss on Derivatives | Total | ||||||||||||||||||||||||
Balance at December 31, 2012 | 213 | (40 | ) | (10 | ) | 163 | ||||||||||||||||||||||
Other comprehensive loss before reclassifications | (116 | ) | — | — | (116 | ) | ||||||||||||||||||||||
Reclassifications | (34 | ) | 1 | — | (33 | ) | ||||||||||||||||||||||
Net activity | (150 | ) | 1 | — | (149 | ) | ||||||||||||||||||||||
Balance at March 31, 2013 | $ | 63 | $ | (39 | ) | $ | (10 | ) | $ | 14 | ||||||||||||||||||
Balance at December 31, 2013 | $ | (140 | ) | $ | (38 | ) | $ | (9 | ) | $ | (187 | ) | ||||||||||||||||
Other comprehensive loss before reclassifications | (202 | ) | — | — | (202 | ) | ||||||||||||||||||||||
Net activity | (202 | ) | — | — | (202 | ) | ||||||||||||||||||||||
Balance at March 31, 2014 | $ | (342 | ) | $ | (38 | ) | $ | (9 | ) | $ | (389 | ) |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Schedule of Weighted Average Number of Shares | ' | |||||
The following reconciles basic and diluted weighted average shares outstanding: | ||||||
Three Months Ended March 31, | ||||||
(Shares in millions) | 2014 | 2013 | ||||
Basic weighted average shares outstanding | 776 | 769 | ||||
Dilutive effect of: | ||||||
Stock options, restricted shares and performance units | — | 4 | ||||
Diluted weighted average shares outstanding | 776 | 773 | ||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||
The following table discloses the number of anti-dilutive shares excluded: | ||||||
Three Months Ended March 31, | ||||||
(Shares in millions) | 2014 | 2013 | ||||
Anti-dilutive potential shares | 2 | 3 | ||||
Anti-dilutive potential shares due to net loss | 5 | — | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | ' | |||||||
We recognized the following employee share-based compensation expense during the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
(Dollars in millions) | 2014 | 2013 | ||||||
Share-based compensation | $ | 15 | $ | 11 | ||||
Related tax benefit | 3 | 4 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Financial information by segment | ' | |||||||||||
Our operational performance is reviewed and managed on a geographic basis. We report the following regions, which are our operating segments, as separate and distinct reporting segments: North America, MENA/Asia Pacific, Europe/SSA/Russia, and Latin America. 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. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
(Dollars in millions) | Net | Income | Depreciation | |||||||||
Operating | from | and | ||||||||||
Revenues | Operations | Amortization | ||||||||||
North America | $ | 1,610 | $ | 194 | $ | 107 | ||||||
MENA/Asia Pacific (a) | 781 | 3 | 102 | |||||||||
Europe/SSA/Russia | 664 | 54 | 72 | |||||||||
Latin America | 541 | 91 | 64 | |||||||||
3,596 | 342 | 345 | ||||||||||
Corporate and Research and Development | (116 | ) | 6 | |||||||||
Restructuring Charges (b) | (70 | ) | ||||||||||
Other Items (c) | (26 | ) | ||||||||||
Total | $ | 3,596 | $ | 130 | $ | 351 | ||||||
Three Months Ended March 31, 2013 | ||||||||||||
(Dollars in millions) | Net | Income | Depreciation | |||||||||
Operating | from | and | ||||||||||
Revenues | Operations | Amortization | ||||||||||
North America | $ | 1,692 | $ | 224 | $ | 108 | ||||||
MENA/Asia Pacific | 785 | 42 | 93 | |||||||||
Europe/SSA/Russia | 633 | 65 | 71 | |||||||||
Latin America | 727 | 98 | 68 | |||||||||
3,837 | 429 | 340 | ||||||||||
Corporate and Research and Development | (115 | ) | 6 | |||||||||
Other Items (d) | (35 | ) | ||||||||||
Total | $ | 3,837 | $ | 279 | $ | 346 | ||||||
(a) | During the three months ended March 31, 2014, we recognized estimated project losses of $26 million related to our long-term early production facility construction contracts in Iraq accounted for under the percentage-of-completion method. Total estimated losses on these projects were $333 million at March 31, 2014. In the three months ended March 31, 2013, we recognized income of $8 million related to our long-term early production facility construction contracts in Iraq. As of March 31, 2014, our project estimates include $64 million of claims revenue. Of this claim revenue, $28 million was recognized during the current quarter based on the estimated percentage completed. | |||||||||||
(b) | For the three months ended March 31, 2014, we recognized restructuring charges of $70 million: $9 million in North America, $5 million in MENA/Asia Pacific, $20 million in Europe/SSA/Russia, $20 million in Latin America and $16 million in Corporate and Research and Development. | |||||||||||
(c) | The three months ended March 31, 2014 includes professional fees of $23 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations, the remediation of our material weakness related to income taxes and our planned redomestication and other charges of $3 million. | |||||||||||
(d) | The three months ended March 31, 2013 includes income tax restatement and material weakness remediation expenses of $21 million, severance, exit and other charges of $20 million, partially offset by a $6 million gain on the sale of our industrial screen business. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 4 | $ | — | $ | — | $ | 363 | $ | — | $ | 367 | ||||||||||||
Other Current Assets | 59 | 3 | 406 | 8,424 | (399 | ) | 8,493 | |||||||||||||||||
Total Current Assets | 63 | 3 | 406 | 8,787 | (399 | ) | 8,860 | |||||||||||||||||
Equity Investments in Affiliates | 9,492 | 11,820 | 8,077 | 5,422 | (34,811 | ) | — | |||||||||||||||||
Equity Held in Parent | — | — | 10 | 24 | (34 | ) | — | |||||||||||||||||
Intercompany Receivables, Net | — | — | — | 6,528 | (6,528 | ) | — | |||||||||||||||||
Other Assets | 6 | 41 | 16 | 12,907 | — | 12,970 | ||||||||||||||||||
Total Assets | $ | 9,561 | $ | 11,864 | $ | 8,509 | $ | 33,668 | $ | (41,772 | ) | $ | 21,830 | |||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | $ | 2,079 | $ | 24 | $ | 190 | $ | — | $ | 2,293 | ||||||||||||
Accounts Payable and Other Current Liabilities | 70 | 60 | — | 3,793 | (399 | ) | 3,524 | |||||||||||||||||
Total Current Liabilities | 70 | 2,139 | 24 | 3,983 | (399 | ) | 5,817 | |||||||||||||||||
Long-term Debt | — | 5,890 | 982 | 166 | 1 | 7,039 | ||||||||||||||||||
Intercompany Payables, Net | 1,551 | 4,659 | 319 | — | (6,529 | ) | — | |||||||||||||||||
Other Long-term Liabilities | 13 | 88 | 1 | 901 | — | 1,003 | ||||||||||||||||||
Total Liabilities | 1,634 | 12,776 | 1,326 | 5,050 | (6,927 | ) | 13,859 | |||||||||||||||||
Weatherford Shareholders’ Equity | 7,927 | (912 | ) | 7,183 | 28,574 | (34,845 | ) | 7,927 | ||||||||||||||||
Noncontrolling Interests | — | — | — | 44 | — | 44 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 9,561 | $ | 11,864 | $ | 8,509 | $ | 33,668 | $ | (41,772 | ) | $ | 21,830 | |||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and Cash Equivalents | $ | — | $ | — | $ | — | $ | 435 | $ | — | $ | 435 | ||||||||||||
Other Current Assets | 57 | 5 | 415 | 8,270 | (408 | ) | 8,339 | |||||||||||||||||
Total Current Assets | 57 | 5 | 415 | 8,705 | (408 | ) | 8,774 | |||||||||||||||||
Equity Investments in Affiliates | 8,663 | 11,742 | 8,065 | 6,466 | (34,936 | ) | — | |||||||||||||||||
Equity Held in Parent | — | — | 10 | 27 | (37 | ) | — | |||||||||||||||||
Intercompany Receivables, Net | — | — | — | 7,304 | (7,304 | ) | — | |||||||||||||||||
Other Assets | 7 | 41 | 17 | 13,138 | — | 13,203 | ||||||||||||||||||
Total Assets | $ | 8,727 | $ | 11,788 | $ | 8,507 | $ | 35,640 | $ | (42,685 | ) | $ | 21,977 | |||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | $ | 1,445 | $ | 23 | $ | 198 | $ | — | $ | 1,666 | ||||||||||||
Accounts Payable and Other Current Liabilities | 312 | 129 | — | 4,000 | (408 | ) | 4,033 | |||||||||||||||||
Total Current Liabilities | 312 | 1,574 | 23 | 4,198 | (408 | ) | 5,699 | |||||||||||||||||
Long-term Debt | — | 5,891 | 986 | 184 | — | 7,061 | ||||||||||||||||||
Intercompany Payables, Net | 243 | 6,755 | 306 | — | (7,304 | ) | — | |||||||||||||||||
Other Long-term Liabilities | 10 | 97 | 2 | 905 | — | 1,014 | ||||||||||||||||||
Total Liabilities | 565 | 14,317 | 1,317 | 5,287 | (7,712 | ) | 13,774 | |||||||||||||||||
Weatherford Shareholders’ Equity | 8,162 | (2,529 | ) | 7,190 | 30,312 | (34,973 | ) | 8,162 | ||||||||||||||||
Noncontrolling Interests | — | — | — | 41 | — | 41 | ||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 8,727 | $ | 11,788 | $ | 8,507 | $ | 35,640 | $ | (42,685 | ) | $ | 21,977 | |||||||||||
Condensed Consolidating Statement of Operations | ' | |||||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford Switzerland | Weatherford Bermuda | Weatherford Delaware | Other | Eliminations | Consolidation | |||||||||||||||||||
Subsidiaries | ||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 3,596 | $ | — | $ | 3,596 | ||||||||||||
Costs and Expenses | (19 | ) | — | (1 | ) | (3,446 | ) | — | (3,466 | ) | ||||||||||||||
Operating Income (Loss) | (19 | ) | — | (1 | ) | 150 | — | 130 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Expense, Net | — | (105 | ) | (15 | ) | (6 | ) | — | (126 | ) | ||||||||||||||
Intercompany Charges, Net | — | 7,348 | — | (7,348 | ) | — | — | |||||||||||||||||
Equity in Subsidiary Income | (21 | ) | 80 | 11 | — | (70 | ) | — | ||||||||||||||||
Other, Net | (1 | ) | (4 | ) | — | (4 | ) | — | (9 | ) | ||||||||||||||
Income (Loss) Before Income Taxes | (41 | ) | 7,319 | (5 | ) | (7,208 | ) | (70 | ) | (5 | ) | |||||||||||||
(Provision) Benefit for Income Taxes | — | — | 6 | (33 | ) | — | (27 | ) | ||||||||||||||||
Net Income (Loss) | (41 | ) | 7,319 | 1 | (7,241 | ) | (70 | ) | (32 | ) | ||||||||||||||
Noncontrolling Interests | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | (41 | ) | $ | 7,319 | $ | 1 | $ | (7,250 | ) | $ | (70 | ) | $ | (41 | ) | ||||||||
Comprehensive Income (Loss) Attributable to Weatherford | $ | (243 | ) | $ | 7,169 | $ | (135 | ) | $ | (7,453 | ) | $ | 419 | $ | (243 | ) | ||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 3,837 | $ | — | $ | 3,837 | ||||||||||||
Costs and Expenses | (9 | ) | 10 | — | (3,559 | ) | — | (3,558 | ) | |||||||||||||||
Operating Income (Loss) | (9 | ) | 10 | — | 278 | — | 279 | |||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest Expense, Net | — | (111 | ) | (16 | ) | (4 | ) | — | (131 | ) | ||||||||||||||
Intercompany Charges, Net | — | — | 30 | (30 | ) | — | — | |||||||||||||||||
Equity in Subsidiary Income | 31 | 195 | 117 | — | (343 | ) | — | |||||||||||||||||
Other, Net | — | (14 | ) | — | (99 | ) | — | (113 | ) | |||||||||||||||
Income (Loss) Before Income Taxes | 22 | 80 | 131 | 145 | (343 | ) | 35 | |||||||||||||||||
(Provision) Benefit for Income Taxes | — | — | (6 | ) | 1 | — | (5 | ) | ||||||||||||||||
Net Income (Loss) | 22 | 80 | 125 | 146 | (343 | ) | 30 | |||||||||||||||||
Noncontrolling Interests | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Net Income (Loss) Attributable to Weatherford | $ | 22 | $ | 80 | $ | 125 | $ | 138 | $ | (343 | ) | $ | 22 | |||||||||||
Comprehensive Income (Loss) Attributable to Weatherford | $ | (127 | ) | $ | (71 | ) | $ | (14 | ) | $ | (12 | ) | $ | 97 | $ | (127 | ) | |||||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net Income (Loss) | $ | (41 | ) | $ | 7,319 | $ | 1 | $ | (7,241 | ) | $ | (70 | ) | $ | (32 | ) | ||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | ||||||||||||||||||||||||
Charges from Parent or Subsidiary | — | (7,348 | ) | — | 7,348 | — | — | |||||||||||||||||
Equity in (Earnings) Loss of Affiliates | 21 | (80 | ) | (11 | ) | — | 70 | — | ||||||||||||||||
Deferred Income Tax Provision (Benefit) | — | — | — | 44 | — | 44 | ||||||||||||||||||
Other Adjustments | 45 | (322 | ) | (2 | ) | (139 | ) | — | (418 | ) | ||||||||||||||
Net Cash Provided (Used) by Operating Activities | 25 | (431 | ) | (12 | ) | 12 | — | (406 | ) | |||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | — | — | — | (286 | ) | — | (286 | ) | ||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired | — | — | — | — | — | — | ||||||||||||||||||
Acquisition of Intellectual Property | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Purchase of Equity Investment in Unconsolidated Affiliates | — | — | — | — | — | — | ||||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net | — | — | — | 14 | — | 14 | ||||||||||||||||||
Capital Contribution to Subsidiary | — | — | — | — | — | — | ||||||||||||||||||
Net Cash Provided (Used) by Investing Activities | — | — | — | (274 | ) | — | (274 | ) | ||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net | — | 635 | — | (10 | ) | — | 625 | |||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net | — | — | (3 | ) | (14 | ) | — | (17 | ) | |||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net | (19 | ) | (204 | ) | (7 | ) | 230 | — | — | |||||||||||||||
Proceeds from Capital Contributions | — | — | — | — | — | — | ||||||||||||||||||
Other, Net | (2 | ) | — | 22 | (23 | ) | — | (3 | ) | |||||||||||||||
Net Cash Provided (Used) by Financing Activities | (21 | ) | 431 | 12 | 183 | — | 605 | |||||||||||||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | — | — | 7 | — | 7 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 4 | — | — | (72 | ) | — | (68 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | — | — | — | 435 | — | 435 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 4 | $ | — | $ | — | $ | 363 | $ | — | $ | 367 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||||||||||
Weatherford | Weatherford | Weatherford | Other | Eliminations | Consolidation | |||||||||||||||||||
Switzerland | Bermuda | Delaware | Subsidiaries | |||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net Income (Loss) | $ | 22 | $ | 80 | $ | 125 | $ | 146 | $ | (343 | ) | $ | 30 | |||||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | ||||||||||||||||||||||||
Charges from Parent or Subsidiary | — | — | (30 | ) | 30 | — | — | |||||||||||||||||
Equity in (Earnings) Loss of Affiliates | (31 | ) | (195 | ) | (117 | ) | — | 343 | — | |||||||||||||||
Deferred Income Tax Provision (Benefit) | — | — | 6 | (9 | ) | — | (3 | ) | ||||||||||||||||
Other Adjustments | 129 | 246 | (125 | ) | (288 | ) | — | (38 | ) | |||||||||||||||
Net Cash Provided (Used) by Operating Activities | 120 | 131 | (141 | ) | (121 | ) | — | (11 | ) | |||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment | — | — | — | (400 | ) | — | (400 | ) | ||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Acquisition of Intellectual Property | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net | — | — | — | 85 | — | 85 | ||||||||||||||||||
Capital Contribution to Subsidiary | (129 | ) | — | — | — | 129 | — | |||||||||||||||||
Net Cash Provided (Used) by Investing Activities | (129 | ) | — | — | (320 | ) | 129 | (320 | ) | |||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net | — | 648 | — | (23 | ) | — | 625 | |||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net | — | (294 | ) | (9 | ) | (1 | ) | — | (304 | ) | ||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net | 9 | (484 | ) | 150 | 325 | — | — | |||||||||||||||||
Proceeds from Capital Contributions | — | — | — | 129 | (129 | ) | — | |||||||||||||||||
Other, Net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Net Cash Provided (Used) by Financing Activities | 9 | (130 | ) | 141 | 427 | (129 | ) | 318 | ||||||||||||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Net Increase in Cash and Cash Equivalents | — | 1 | — | (15 | ) | — | (14 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | — | — | — | 300 | — | 300 | ||||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | — | $ | 1 | $ | — | $ | 285 | $ | — | $ | 286 | ||||||||||||
General_Details
General (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | National Center of Foreign Commerce (CENCOEX) [Member] | Additional Legal Exchange Market 1 [Member] | Additional Legal Exchange Market 2 [Member] | Venezuela [Member] |
Venezuelan bolÃvar [Member] | Venezuelan bolÃvar [Member] | Venezuelan bolÃvar [Member] | USD ($) | |
VEB | VEB | VEB | ||
Impact of Foreign Currency Devaluation [Line Items] | ' | ' | ' | ' |
Foreign currency exchange rate, translation (in VEB per US dollar) | 6.3 | 11 | 50 | ' |
Net monetary asset position | ' | ' | ' | $233 |
Business_Combinations_and_Dive1
Business Combinations and Divestitures (Acquisitions) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 |
Company that Designs and Produces Well Completion Tools [Member] | ||
Business Acquisition [Line Items] | ' | ' |
Payments to acquire businesses and equity investments, net of cash acquired | $5 | ' |
Contingent consideration | ' | $11 |
Business_Combinations_and_Dive2
Business Combinations and Divestitures (Divestitures) (Details) (Pipeline and Specialty Services Business [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Pipeline and Specialty Services Business [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Total consideration to be received from disposal of business | $250 |
Cash to be received from disposal of business | 241 |
Retained working capital adjustments from disposal of business | $9 |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | $70 | $0 |
Payments for restructuring | 36 | ' |
One-time Termination Benefits [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 66 | ' |
Other Restructuring [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 4 | ' |
Vested Share-based Compensation [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 3 | ' |
Minimum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Estimated restructuring charges | 125 | ' |
Maximum [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Estimated restructuring charges | $150 | ' |
Restructuring_Charges_Restruct
Restructuring Charges (Restructuring Charges) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | $70 | $0 |
Corporate and Research and Development [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 16 | ' |
North America [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 9 | ' |
Middle East/North Africa/Asia [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 5 | ' |
Europe/Sub-Sahara Africa/Russia [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | 20 | ' |
Latin America [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Severance and other restructuring charges | $20 | ' |
Restructuring_Charges_Restruct1
Restructuring Charges (Restructuring Liability) (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | $31 |
Corporate and Research and Development [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | 7 |
North America [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | 1 |
Middle East/North Africa/Asia [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | 3 |
Europe/Sub-Sahara Africa/Russia [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | 19 |
Latin America [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance and other restructuring liability | $1 |
Accounts_Receivable_Factoring_
Accounts Receivable Factoring (Details) (Mexico [Member], USD $) | 3 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2014 | |
Mexico [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable sold, carrying value | $83,000,000 | $0 |
Proceeds from sale of accounts receivable | 79,000,000 | ' |
Gain (loss) on sale of accounts receivable (less than $1 million) | ($1,000,000) | ' |
Inventories_Net_Schedule_of_In
Inventories, Net (Schedule of Inventory) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials, components and supplies | $374 | $386 |
Work in process | 151 | 130 |
Finished goods | 2,878 | 2,855 |
Total Inventory | $3,403 | $3,371 |
Goodwill_Schedule_of_Goodwill_
Goodwill (Schedule of Goodwill) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Beginning Balance | $3,709 |
Foreign currency translation adjustments | -61 |
Ending Balance | 3,648 |
North America [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 2,243 |
Foreign currency translation adjustments | -47 |
Ending Balance | 2,196 |
Middle East/North Africa/Asia [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 209 |
Foreign currency translation adjustments | 2 |
Ending Balance | 211 |
Europe/Sub-Sahara Africa/Russia [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 912 |
Foreign currency translation adjustments | -14 |
Ending Balance | 898 |
Latin America [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 345 |
Foreign currency translation adjustments | -2 |
Ending Balance | $343 |
Shortterm_Borrowings_and_Curre2
Short-term Borrowings and Current Portion of Long-term Debt (Schedule of Short-term Debt) (Details) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | 2-May-13 | Mar. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ' | ' | ' |
Total short-term borrowings | ' | $2,217 | $1,593 |
Current portion of long-term debt | ' | 76 | 73 |
Short-term borrowings and current portion of long-term debt | ' | 2,293 | 1,666 |
Commercial paper program [Member] | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' |
Total short-term borrowings | ' | 848 | 292 |
Revolving credit facility [Member] | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' |
Total short-term borrowings | ' | 700 | 772 |
364-day term loan facility [Member] | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' |
Total short-term borrowings | ' | 300 | 300 |
Debt instrument, term | '364 days | ' | ' |
Other short-term bank loans [Member] | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' |
Total short-term borrowings | ' | $369 | $229 |
Shortterm_Borrowings_and_Curre3
Short-term Borrowings and Current Portion of Long-term Debt (Narrative) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 2-May-13 | Apr. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 10, 2014 | Apr. 10, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Revolving credit facility [Member] | Commercial paper program and letters of credit [Member] | Committed letters of credit [Member] | 364-day term loan facility [Member] | 364-day term loan facility [Member] | Domestic and foreign facility [Member] | Uncommitted letters of credit [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Bi-Lateral Revolver Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Revolving credit facility [Member] | 364-day term loan facility [Member] | Domestic and foreign facility [Member] | Domestic and foreign facility [Member] | ||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, maximum capacity | ' | $2,250,000,000 | $2,250,000,000 | ' | ' | $300,000,000 | ' | ' | ' | ' | $400,000,000 | ' | ' |
Ratio of indebtedness to net capital percent required | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | ' | ' | ' | ' |
Letters of credit outstanding, amount | ' | ' | ' | 43,000,000 | ' | ' | ' | 530,000,000 | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | '364 days | ' | ' | ' |
Short term borrowings | ' | ' | ' | ' | ' | ' | 369,000,000 | ' | ' | ' | ' | 150,000,000 | ' |
Interest rate at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.30% |
Performance bonds | $284,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Senior Notes [Member], Level 2 [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value of long-term debt | $7,873 | $7,580 |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value of long-term debt | $6,803 | $6,805 |
Derivative_Instruments_Schedul
Derivative Instruments (Schedule of Derivatives - Balance Sheet) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Foreign currency forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset, fair value, gross | $3 | $5 |
Foreign currency forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value, gross | -4 | -6 |
Cross-currency swap contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value, gross | -12 | ' |
Cross-currency swap contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, fair value, gross | ($12) | ($21) |
Derivative_Instruments_Schedul1
Derivative Instruments (Schedule of Derivatives - Income Statement) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest rate swap [Member] | Interest Expense, Net [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (Loss) Recognized in Income | $2 | $3 |
Foreign currency forward contracts [Member] | Other, Net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (Loss) Recognized in Income | -11 | -14 |
Cross-currency swap contracts [Member] | Other, Net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (Loss) Recognized in Income | $9 | $5 |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest rate swap [Member] | Fair Value Hedging [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Deferred (gain) loss on discontinuation of fair value hedge | ($40) | ' |
Foreign currency forward contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | 447 | 635 |
Estimated net fair value of foreign currency forward contracts resulting in a net (liability) asset | -1 | -1 |
Cross-currency swap contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | 168 | 168 |
Derivative liability, fair value, gross | $12 | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Tax provision | $27 | $5 |
Income (loss) before taxes | -5 | 35 |
Discrete income before tax | 116 | ' |
Uncertain tax positions, estimated for next twelve months | $40 | ' |
Effective tax rate for the period | ' | 14.00% |
Shareholders_Equity_Shareholde
Shareholders' Equity (Shareholders' Equity Activity) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | $8,203 | $8,818 |
Net Income | -32 | 30 |
Other Comprehensive Income (Loss) | -202 | -149 |
Dividends Paid to Noncontrolling Interests | -6 | -5 |
Equity Awards Granted, Vested and Exercised | 8 | 4 |
Balance, ending balance | 7,971 | 8,698 |
Par Value of Issued Shares [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | 775 | 775 |
Equity Awards Granted, Vested and Exercised | 2 | 0 |
Balance, ending balance | 777 | 775 |
Capital in Excess of Par Value [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | 4,600 | 4,674 |
Equity Awards Granted, Vested and Exercised | 3 | -39 |
Balance, ending balance | 4,603 | 4,635 |
Retained Earnings [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | 3,011 | 3,356 |
Net Income | -41 | 22 |
Balance, ending balance | 2,970 | 3,378 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | -187 | 163 |
Other Comprehensive Income (Loss) | -202 | -149 |
Balance, ending balance | -389 | 14 |
Treasury Shares [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | -37 | -182 |
Equity Awards Granted, Vested and Exercised | 3 | 43 |
Balance, ending balance | -34 | -139 |
Noncontrolling Interests [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance, beginning balance | 41 | 32 |
Net Income | 9 | 8 |
Dividends Paid to Noncontrolling Interests | -6 | -5 |
Balance, ending balance | $44 | $35 |
Shareholders_Equity_Changes_in
Shareholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | ($187) | $163 |
Other comprehensive loss before reclassifications | -202 | -116 |
Reclassifications | ' | -33 |
Other Comprehensive Loss | -202 | -149 |
Ending balance | -389 | 14 |
Currency Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | -140 | 213 |
Other comprehensive loss before reclassifications | -202 | -116 |
Reclassifications | ' | -34 |
Other Comprehensive Loss | -202 | -150 |
Ending balance | -342 | 63 |
Defined Benefit Pension [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | -38 | -40 |
Other comprehensive loss before reclassifications | 0 | 0 |
Reclassifications | ' | 1 |
Other Comprehensive Loss | 0 | 1 |
Ending balance | -38 | -39 |
Deferred Loss on Derivatives [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | -9 | -10 |
Other comprehensive loss before reclassifications | 0 | 0 |
Reclassifications | ' | 0 |
Other Comprehensive Loss | 0 | 0 |
Ending balance | ($9) | ($10) |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Reclassifications from AOCI | $33 |
Gain on Sale of Business [Member] | Industrial Screen Business [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Reclassifications from AOCI | $34 |
Earnings_per_Share_Weighted_Av
Earnings per Share (Weighted Average Shares Outstanding) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Basic weighted average shares outstanding | 776 | 769 |
Dilutive effect of: | ' | ' |
Stock options, restricted shares and performance units (in shares) | 0 | 4 |
Diluted weighted average shares outstanding | 776 | 773 |
Earnings_per_Share_Antidilutiv
Earnings per Share (Antidilutive Shares) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Anti-dilutive potential shares | 2 | 3 |
Anti-dilutive potential shares due to net loss | 5 | 0 |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule of Share-based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Share-based compensation | $15 | $11 |
Related tax benefit | $3 | $4 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
Performance units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted (in shares) | 800,000 |
Weighted-average grant date fair value (in dollars per share) | $14.31 |
Fair value, risk-free rate | 0.34% |
Fair value, volatility rate | 33.53% |
Fair value, dividend yield | 0.00% |
Unrecognized compensation expense | $20 |
Unrecognized compensation expense, recognition period | '2 years |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted (in shares) | 1,200,000 |
Weighted-average grant date fair value (in dollars per share) | $15.63 |
Unrecognized compensation expense | $72 |
Unrecognized compensation expense, recognition period | '2 years |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | $3,596 | $3,837 | ||
Income from Operations | 130 | 279 | ||
Restructuring Charges | 70 | 0 | ||
Depreciation and Amortization | 351 | 346 | ||
North America [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Restructuring Charges | 9 | ' | ||
Middle East/North Africa/Asia [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Restructuring Charges | 5 | ' | ||
Europe/Sub-Sahara Africa/Russia [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Restructuring Charges | 20 | ' | ||
Latin America [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Restructuring Charges | 20 | ' | ||
Operating Segments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | 3,596 | 3,837 | ||
Income from Operations | 342 | 429 | ||
Depreciation and Amortization | 345 | 340 | ||
Operating Segments [Member] | North America [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | 1,610 | 1,692 | ||
Income from Operations | 194 | 224 | ||
Restructuring Charges | 9 | ' | ||
Depreciation and Amortization | 107 | 108 | ||
Operating Segments [Member] | Middle East/North Africa/Asia [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | 781 | [1] | 785 | |
Income from Operations | 3 | [1] | 42 | |
Restructuring Charges | 5 | ' | ||
Depreciation and Amortization | 102 | [1] | 93 | |
Operating Segments [Member] | Europe/Sub-Sahara Africa/Russia [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | 664 | 633 | ||
Income from Operations | 54 | 65 | ||
Restructuring Charges | 20 | ' | ||
Depreciation and Amortization | 72 | 71 | ||
Operating Segments [Member] | Latin America [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Operating Revenues | 541 | 727 | ||
Income from Operations | 91 | 98 | ||
Restructuring Charges | 20 | ' | ||
Depreciation and Amortization | 64 | 68 | ||
Corporate and Research and Development [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Income from Operations | -116 | -115 | ||
Restructuring Charges | 16 | ' | ||
Depreciation and Amortization | 6 | 6 | ||
Segment Reconciling Items [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Restructuring Charges | -70 | [2] | ' | |
Other Items | ($26) | [3] | ($35) | [4] |
[1] | During the three months ended March 31, 2014, we recognized estimated project losses of $26 million related to our long-term early production facility construction contracts in Iraq accounted for under the percentage-of-completion method. Total estimated losses on these projects were $333 million at March 31, 2014. In the three months ended March 31, 2013, we recognized income of $8 million related to our long-term early production facility construction contracts in Iraq. As of March 31, 2014, our project estimates include $64 million of claims revenue. Of this claim revenue, $28 million was recognized during the current quarter based on the estimated percentage completed. | |||
[2] | For the three months ended March 31, 2014, we recognized restructuring charges of $70 million: $9 million in North America, $5 million in MENA/Asia Pacific, $20 million in Europe/SSA/Russia, $20 million in Latin America and $16 million in Corporate and Research and Development. | |||
[3] | The three months ended March 31, 2014 includes professional fees of $23 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations, the remediation of our material weakness related to income taxes and our planned redomestication and other charges of $3 million. | |||
[4] | The three months ended March 31, 2013 includes income tax restatement and material weakness remediation expenses of $21 million, severance, exit and other charges of $20 million, partially offset by a $6 million gain on the sale of our industrial screen business. |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | $70 | $0 |
Professional fees and expenses for investigations and remediation of material weakness | 23 | 21 |
Severance, exit and other charges | 3 | 20 |
Gain (loss) on sale of business | 0 | 6 |
North America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 9 | ' |
Middle East/North Africa/Asia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 5 | ' |
Europe/Sub-Sahara Africa/Russia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 20 | ' |
Latin America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 20 | ' |
Operating Segments [Member] | North America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 9 | ' |
Operating Segments [Member] | Middle East/North Africa/Asia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 5 | ' |
Operating Segments [Member] | Europe/Sub-Sahara Africa/Russia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 20 | ' |
Operating Segments [Member] | Latin America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 20 | ' |
Corporate and Research and Development [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Severance and other restructuring charges | 16 | ' |
Iraq [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Loss on contracts | 26 | ' |
Estimated loss on long term construction contract | 333 | ' |
Recognized contract revenue | 28 | 8 |
Claims revenue | $64 | ' |
Disputes_Litigation_and_Contin1
Disputes, Litigation and Contingencies (Details) (USD $) | 2 Months Ended | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 | Mar. 31, 2014 | Jan. 29, 2014 |
U.S. District Court for the Southern District of Texas v. Weatherford International Ltd. [Member] | U.S. District Court for the Southern District of Texas v. Weatherford International Ltd. [Member] | Dobina v. Weatherford International Ltd., et al. [Member] | |
Oil-for-Food Program and Foreign Corrupt Practices Act [Member] | Oil-for-Food Program and Foreign Corrupt Practices Act [Member] | Material Weakness in Internal Controls [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' |
Payments for legal settlements | $253 | ' | $53 |
Period of time expected to be monitored for assessing company's compliance upon settlement | ' | '18 months | ' |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Narrative) (Details) (Senior Notes [Member]) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Weatherford Delaware [Member] | Senior Notes, 6.35% due 2017 [Member] | Senior Notes, 6.35% due 2017 [Member] | Senior Notes, 6.80% due 2037 [Member] | Senior Notes, 6.80% due 2037 [Member] | Senior Notes, 5.50% due 2016 [Member] | Senior Notes, 5.50% due 2016 [Member] | Senior Notes, 6.50% due 2036 [Member] | Senior Notes, 6.50% due 2036 [Member] | Senior Notes, 6.00% due 2018 [Member] | Senior Notes, 6.00% due 2018 [Member] | Senior Notes, 7.00% due 2038 [Member] | Senior Notes, 7.00% due 2038 [Member] | Senior Notes, 9.625% due 2019 [Member] | Senior Notes, 9.625% due 2019 [Member] | Senior Notes, 9.875% due 2039 [Member] | Senior Notes, 9.875% due 2039 [Member] | Senior Notes, 5.125% due 2020 [Member] | Senior Notes, 5.125% due 2020 [Member] | Senior Notes, 6.75% due 2040 [Member] | Senior Notes, 6.75% due 2040 [Member] | Senior Notes, 4.50% due 2022 [Member] | Senior Notes, 4.50% due 2022 [Member] | Senior Notes, 5.95% due 2042 [Member] | Senior Notes, 5.95% due 2042 [Member] | |
Weatherford Bermuda [Member] | Weatherford Bermuda [Member] | Weatherford Bermuda [Member] | Weatherford Bermuda [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | Weatherford Delaware [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate on debt | ' | 6.35% | 6.35% | 6.80% | 6.80% | 5.50% | 5.50% | 6.50% | 6.50% | 6.00% | 6.00% | 7.00% | 7.00% | 9.63% | 9.63% | 9.88% | 9.88% | 5.13% | 5.13% | 6.75% | 6.75% | 4.50% | 4.50% | 5.95% | 5.95% |
Debt instrument, term | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Current Assets | ' | ' | ' | ' |
Cash and Cash Equivalents | $367 | $435 | $286 | $300 |
Other Current Assets | 8,493 | 8,339 | ' | ' |
Total Current Assets | 8,860 | 8,774 | ' | ' |
Other Assets | 12,970 | 13,203 | ' | ' |
Total Assets | 21,830 | 21,977 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Short-term Borrowings and Current Portion of Long-Term Debt | 2,293 | 1,666 | ' | ' |
Accounts Payable and Other Current Liabilities | 3,524 | 4,033 | ' | ' |
Total Current Liabilities | 5,817 | 5,699 | ' | ' |
Long-term Debt | 7,039 | 7,061 | ' | ' |
Other Long-term Liabilities | 1,003 | 1,014 | ' | ' |
Total Liabilities | 13,859 | 13,774 | ' | ' |
Weatherford Shareholders’ Equity | 7,927 | 8,162 | ' | ' |
Noncontrolling Interests | 44 | 41 | ' | ' |
Total Liabilities and Shareholders’ Equity | 21,830 | 21,977 | ' | ' |
Weatherford Switzerland [Member] | ' | ' | ' | ' |
Current Assets | ' | ' | ' | ' |
Cash and Cash Equivalents | 4 | ' | ' | ' |
Other Current Assets | 59 | 57 | ' | ' |
Total Current Assets | 63 | 57 | ' | ' |
Equity Investments in Affiliates | 9,492 | 8,663 | ' | ' |
Other Assets | 6 | 7 | ' | ' |
Total Assets | 9,561 | 8,727 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Accounts Payable and Other Current Liabilities | 70 | 312 | ' | ' |
Total Current Liabilities | 70 | 312 | ' | ' |
Intercompany Payables, Net | 1,551 | 243 | ' | ' |
Other Long-term Liabilities | 13 | 10 | ' | ' |
Total Liabilities | 1,634 | 565 | ' | ' |
Weatherford Shareholders’ Equity | 7,927 | 8,162 | ' | ' |
Total Liabilities and Shareholders’ Equity | 9,561 | 8,727 | ' | ' |
Weatherford Bermuda [Member] | ' | ' | ' | ' |
Current Assets | ' | ' | ' | ' |
Cash and Cash Equivalents | ' | ' | 1 | ' |
Other Current Assets | 3 | 5 | ' | ' |
Total Current Assets | 3 | 5 | ' | ' |
Equity Investments in Affiliates | 11,820 | 11,742 | ' | ' |
Other Assets | 41 | 41 | ' | ' |
Total Assets | 11,864 | 11,788 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Short-term Borrowings and Current Portion of Long-Term Debt | 2,079 | 1,445 | ' | ' |
Accounts Payable and Other Current Liabilities | 60 | 129 | ' | ' |
Total Current Liabilities | 2,139 | 1,574 | ' | ' |
Long-term Debt | 5,890 | 5,891 | ' | ' |
Intercompany Payables, Net | 4,659 | 6,755 | ' | ' |
Other Long-term Liabilities | 88 | 97 | ' | ' |
Total Liabilities | 12,776 | 14,317 | ' | ' |
Weatherford Shareholders’ Equity | -912 | -2,529 | ' | ' |
Total Liabilities and Shareholders’ Equity | 11,864 | 11,788 | ' | ' |
Weatherford Delaware [Member] | ' | ' | ' | ' |
Current Assets | ' | ' | ' | ' |
Other Current Assets | 406 | 415 | ' | ' |
Total Current Assets | 406 | 415 | ' | ' |
Equity Investments in Affiliates | 8,077 | 8,065 | ' | ' |
Equity Held in Parent | 10 | 10 | ' | ' |
Other Assets | 16 | 17 | ' | ' |
Total Assets | 8,509 | 8,507 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Short-term Borrowings and Current Portion of Long-Term Debt | 24 | 23 | ' | ' |
Total Current Liabilities | 24 | 23 | ' | ' |
Long-term Debt | 982 | 986 | ' | ' |
Intercompany Payables, Net | 319 | 306 | ' | ' |
Other Long-term Liabilities | 1 | 2 | ' | ' |
Total Liabilities | 1,326 | 1,317 | ' | ' |
Weatherford Shareholders’ Equity | 7,183 | 7,190 | ' | ' |
Total Liabilities and Shareholders’ Equity | 8,509 | 8,507 | ' | ' |
Other Subsidiaries [Member] | ' | ' | ' | ' |
Current Assets | ' | ' | ' | ' |
Cash and Cash Equivalents | 363 | 435 | 285 | 300 |
Other Current Assets | 8,424 | 8,270 | ' | ' |
Total Current Assets | 8,787 | 8,705 | ' | ' |
Equity Investments in Affiliates | 5,422 | 6,466 | ' | ' |
Equity Held in Parent | 24 | 27 | ' | ' |
Intercompany Receivables, Net | 6,528 | 7,304 | ' | ' |
Other Assets | 12,907 | 13,138 | ' | ' |
Total Assets | 33,668 | 35,640 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Short-term Borrowings and Current Portion of Long-Term Debt | 190 | 198 | ' | ' |
Accounts Payable and Other Current Liabilities | 3,793 | 4,000 | ' | ' |
Total Current Liabilities | 3,983 | 4,198 | ' | ' |
Long-term Debt | 166 | 184 | ' | ' |
Other Long-term Liabilities | 901 | 905 | ' | ' |
Total Liabilities | 5,050 | 5,287 | ' | ' |
Weatherford Shareholders’ Equity | 28,574 | 30,312 | ' | ' |
Noncontrolling Interests | 44 | 41 | ' | ' |
Total Liabilities and Shareholders’ Equity | 33,668 | 35,640 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current Assets | ' | ' | ' | ' |
Other Current Assets | -399 | -408 | ' | ' |
Total Current Assets | -399 | -408 | ' | ' |
Equity Investments in Affiliates | -34,811 | -34,936 | ' | ' |
Equity Held in Parent | -34 | -37 | ' | ' |
Intercompany Receivables, Net | -6,528 | -7,304 | ' | ' |
Total Assets | -41,772 | -42,685 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Accounts Payable and Other Current Liabilities | -399 | -408 | ' | ' |
Total Current Liabilities | -399 | -408 | ' | ' |
Long-term Debt | 1 | ' | ' | ' |
Intercompany Payables, Net | -6,529 | -7,304 | ' | ' |
Total Liabilities | -6,927 | -7,712 | ' | ' |
Weatherford Shareholders’ Equity | -34,845 | -34,973 | ' | ' |
Total Liabilities and Shareholders’ Equity | ($41,772) | ($42,685) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Revenues | $3,596 | $3,837 |
Costs and Expenses | -3,466 | -3,558 |
Operating Income (Loss) | 130 | 279 |
Other Income (Expense): | ' | ' |
Interest Expense, Net | -126 | -131 |
Other, Net | -9 | -113 |
Income (Loss) Before Income Taxes | -5 | 35 |
(Provision) Benefit for Income Taxes | -27 | -5 |
Net Income (Loss) | -32 | 30 |
Net Income Attributable to Noncontrolling Interests | -9 | -8 |
Net Income (Loss) Attributable to Weatherford | -41 | 22 |
Comprehensive Income (Loss) Attributable to Weatherford | -243 | -127 |
Weatherford Switzerland [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Costs and Expenses | -19 | -9 |
Operating Income (Loss) | -19 | -9 |
Other Income (Expense): | ' | ' |
Equity in Subsidiary Income (Loss) | -21 | 31 |
Other, Net | -1 | ' |
Income (Loss) Before Income Taxes | -41 | 22 |
Net Income (Loss) | -41 | 22 |
Net Income (Loss) Attributable to Weatherford | -41 | 22 |
Comprehensive Income (Loss) Attributable to Weatherford | -243 | -127 |
Weatherford Bermuda [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Costs and Expenses | ' | 10 |
Operating Income (Loss) | ' | 10 |
Other Income (Expense): | ' | ' |
Interest Expense, Net | -105 | -111 |
Intercompany Charges, Net | 7,348 | ' |
Equity in Subsidiary Income (Loss) | 80 | 195 |
Other, Net | -4 | -14 |
Income (Loss) Before Income Taxes | 7,319 | 80 |
Net Income (Loss) | 7,319 | 80 |
Net Income (Loss) Attributable to Weatherford | 7,319 | 80 |
Comprehensive Income (Loss) Attributable to Weatherford | 7,169 | -71 |
Weatherford Delaware [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Costs and Expenses | -1 | ' |
Operating Income (Loss) | -1 | ' |
Other Income (Expense): | ' | ' |
Interest Expense, Net | -15 | -16 |
Intercompany Charges, Net | ' | 30 |
Equity in Subsidiary Income (Loss) | 11 | 117 |
Income (Loss) Before Income Taxes | -5 | 131 |
(Provision) Benefit for Income Taxes | 6 | -6 |
Net Income (Loss) | 1 | 125 |
Net Income (Loss) Attributable to Weatherford | 1 | 125 |
Comprehensive Income (Loss) Attributable to Weatherford | -135 | -14 |
Other Subsidiaries [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Revenues | 3,596 | 3,837 |
Costs and Expenses | -3,446 | -3,559 |
Operating Income (Loss) | 150 | 278 |
Other Income (Expense): | ' | ' |
Interest Expense, Net | -6 | -4 |
Intercompany Charges, Net | -7,348 | -30 |
Other, Net | -4 | -99 |
Income (Loss) Before Income Taxes | -7,208 | 145 |
(Provision) Benefit for Income Taxes | -33 | 1 |
Net Income (Loss) | -7,241 | 146 |
Net Income Attributable to Noncontrolling Interests | -9 | -8 |
Net Income (Loss) Attributable to Weatherford | -7,250 | 138 |
Comprehensive Income (Loss) Attributable to Weatherford | -7,453 | -12 |
Eliminations [Member] | ' | ' |
Other Income (Expense): | ' | ' |
Equity in Subsidiary Income (Loss) | -70 | -343 |
Income (Loss) Before Income Taxes | -70 | -343 |
Net Income (Loss) | -70 | -343 |
Net Income (Loss) Attributable to Weatherford | -70 | -343 |
Comprehensive Income (Loss) Attributable to Weatherford | $419 | $97 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | ($32) | $30 |
Cash Flows from Operating Activities: | ' | ' |
Deferred Income Tax Provision (Benefit) | 44 | -3 |
Other Adjustments | -418 | -38 |
Net Cash Provided (Used) by Operating Activities | -406 | -11 |
Cash Flows from Investing Activities: | ' | ' |
Capital Expenditures for Property, Plant and Equipment | -286 | -400 |
Acquisitions of Businesses, Net of Cash Acquired | 0 | -4 |
Acquisition of Intellectual Property | -2 | -1 |
Proceeds from Sale of Assets and Businesses, Net | 14 | 85 |
Net Cash Provided (Used) by Investing Activities | -274 | -320 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings of Short-term Debt, Net | 625 | 625 |
Borrowings (Repayments) Long-term Debt, Net | -17 | -304 |
Other, Net | -3 | -3 |
Net Cash Provided (Used) by Financing Activities | 605 | 318 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 7 | -1 |
Net Increase in Cash and Cash Equivalents | -68 | -14 |
Cash and Cash Equivalents at Beginning of Year | 435 | 300 |
Cash and Cash Equivalents at End of Year | 367 | 286 |
Weatherford Switzerland [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | -41 | 22 |
Cash Flows from Operating Activities: | ' | ' |
Equity in (Earnings) Loss of Affiliates | 21 | -31 |
Other Adjustments | 45 | 129 |
Net Cash Provided (Used) by Operating Activities | 25 | 120 |
Cash Flows from Investing Activities: | ' | ' |
Capital Contribution to Subsidiary | 0 | -129 |
Net Cash Provided (Used) by Investing Activities | 0 | -129 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings (Repayments) Between Subsidiaries, Net | -19 | 9 |
Other, Net | -2 | ' |
Net Cash Provided (Used) by Financing Activities | -21 | 9 |
Net Increase in Cash and Cash Equivalents | 4 | ' |
Cash and Cash Equivalents at End of Year | 4 | ' |
Weatherford Bermuda [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | 7,319 | 80 |
Cash Flows from Operating Activities: | ' | ' |
Charges from Parent or Subsidiary | -7,348 | ' |
Equity in (Earnings) Loss of Affiliates | -80 | -195 |
Other Adjustments | -322 | 246 |
Net Cash Provided (Used) by Operating Activities | -431 | 131 |
Cash Flows from Investing Activities: | ' | ' |
Capital Contribution to Subsidiary | 0 | ' |
Net Cash Provided (Used) by Investing Activities | 0 | 0 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings of Short-term Debt, Net | 635 | 648 |
Borrowings (Repayments) Long-term Debt, Net | ' | -294 |
Borrowings (Repayments) Between Subsidiaries, Net | -204 | -484 |
Net Cash Provided (Used) by Financing Activities | 431 | -130 |
Net Increase in Cash and Cash Equivalents | ' | 1 |
Cash and Cash Equivalents at End of Year | ' | 1 |
Weatherford Delaware [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | 1 | 125 |
Cash Flows from Operating Activities: | ' | ' |
Charges from Parent or Subsidiary | ' | -30 |
Equity in (Earnings) Loss of Affiliates | -11 | -117 |
Deferred Income Tax Provision (Benefit) | ' | 6 |
Other Adjustments | -2 | -125 |
Net Cash Provided (Used) by Operating Activities | -12 | -141 |
Cash Flows from Investing Activities: | ' | ' |
Net Cash Provided (Used) by Investing Activities | 0 | 0 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings (Repayments) Long-term Debt, Net | -3 | -9 |
Borrowings (Repayments) Between Subsidiaries, Net | -7 | 150 |
Other, Net | 22 | ' |
Net Cash Provided (Used) by Financing Activities | 12 | 141 |
Other Subsidiaries [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | -7,241 | 146 |
Cash Flows from Operating Activities: | ' | ' |
Charges from Parent or Subsidiary | 7,348 | 30 |
Deferred Income Tax Provision (Benefit) | 44 | -9 |
Other Adjustments | -139 | -288 |
Net Cash Provided (Used) by Operating Activities | 12 | -121 |
Cash Flows from Investing Activities: | ' | ' |
Capital Expenditures for Property, Plant and Equipment | -286 | -400 |
Acquisitions of Businesses, Net of Cash Acquired | ' | -4 |
Acquisition of Intellectual Property | -2 | -1 |
Proceeds from Sale of Assets and Businesses, Net | 14 | 85 |
Net Cash Provided (Used) by Investing Activities | -274 | -320 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings of Short-term Debt, Net | -10 | -23 |
Borrowings (Repayments) Long-term Debt, Net | -14 | -1 |
Borrowings (Repayments) Between Subsidiaries, Net | 230 | 325 |
Proceeds from Capital Contributions | 0 | 129 |
Other, Net | -23 | -3 |
Net Cash Provided (Used) by Financing Activities | 183 | 427 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 7 | -1 |
Net Increase in Cash and Cash Equivalents | -72 | -15 |
Cash and Cash Equivalents at Beginning of Year | 435 | 300 |
Cash and Cash Equivalents at End of Year | 363 | 285 |
Eliminations [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net Income (Loss) | -70 | -343 |
Cash Flows from Operating Activities: | ' | ' |
Equity in (Earnings) Loss of Affiliates | 70 | 343 |
Cash Flows from Investing Activities: | ' | ' |
Capital Contribution to Subsidiary | 0 | 129 |
Net Cash Provided (Used) by Investing Activities | 0 | 129 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from Capital Contributions | 0 | -129 |
Net Cash Provided (Used) by Financing Activities | $0 | ($129) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |||
Apr. 10, 2014 | 2-May-13 | Apr. 30, 2013 | Apr. 10, 2014 | |
Subsequent Event [Member] | 364-day term loan facility [Member] | 364-day term loan facility [Member] | 364-day term loan facility [Member] | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Credit agreement, maximum capacity | ' | ' | $300,000,000 | $400,000,000 |
Debt instrument, term | '364 days | '364 days | ' | ' |