NOW (DNOW) 10-Q 14 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	14-May-14
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'DNOW	'
Entity Registrant Name	'NOW INC.	'
Entity Central Index Key	'0001599617	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	1,000

COMBINED_BALANCE_SHEETS

COMBINED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$175	$101
Receivables, net	754	661
Inventories, net	839	850
Deferred income taxes	29	21
Prepaid and other current assets	29	29
Total current assets	1,826	1,662
Property, plant and equipment, net	104	102
Deferred income taxes	15	15
Goodwill	330	333
Intangibles, net	67	68
Other assets	1	3
Total assets	2,343	2,183
Current liabilities:	'	'
Accounts payable	313	264
Accrued liabilities	100	99
Accrued income taxes	7	'
Total current liabilities	420	363
Deferred income taxes	17	16
Other liabilities	2	2
Total liabilities	439	381
Commitments and contingencies	'	'
Net parent company investment:	'	'
Net parent company investment	1,921	1,802
Accumulated other comprehensive income (loss)	-17	'
Total net parent company investment	1,904	1,802
Total liabilities and net parent company investment	$2,343	$2,183

COMBINED_STATEMENTS_OF_INCOME_

COMBINED STATEMENTS OF INCOME (UNAUDITED) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Revenue	$1,077	$1,072
Operating expenses:	'	'
Cost of products	869	874
Operating and warehousing costs	102	101
Selling, general and administrative	44	39
Operating profit	62	58
Other income (expense), net	'	2
Income before income taxes	62	60
Provision for income taxes	21	19
Net income	$41	$41

COMBINED_STATEMENTS_OF_COMPREH

COMBINED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]	'	'
Net income	$41	$41
Other comprehensive income (loss):	'	'
Currency translation adjustments	-17	-18
Comprehensive income	$24	$23

COMBINED_STATEMENTS_OF_CASH_FL

COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$41	$41
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	4	4
Deferred income taxes	-7	'
Other, net	-3	2
Change in operating assets and liabilities:	'	'
Receivables	-93	-22
Inventories	11	14
Prepaid and other current assets	'	-5
Accounts payable	49	-5
Income taxes payable	7	-6
Other assets/liabilities, net	-6	-3
Net cash provided by operating activities	3	20
Cash flows from investing activities:	'	'
Purchases of property, plant and equipment	-6	-19
Net cash used in investing activities	-6	-19
Cash flows from financing activities:	'	'
Contributions from parent company	78	8
Net cash provided by financing activities	78	8
Effect of exchange rates on cash and cash equivalents	-1	-1
Increase in cash and cash equivalents	74	8
Cash and cash equivalents, beginning of period	101	138
Cash and cash equivalents, end of period	175	146
Supplemental disclosures of cash flow information:	'	'
Income taxes	$18	$19

Organization_and_Basis_of_Pres

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Organization and Basis of Presentation	'
	1. Organization and Basis of Presentation
	The Spin-Off
	On May 1, 2014, the National Oilwell Varco, Inc. (“NOV”) Board of Directors approved the spin-off of its distribution business (the “Spin-Off”) into an independent, publicly traded company named NOW Inc. (“NOW” or the “Company”). NOW will be headquartered in Houston, Texas. In accordance with a separation and distribution agreement, the spin-off will be completed by way of a pro rata distribution of all of the outstanding shares of NOW common stock to holders of NOV common stock. This distribution is expected to occur after market close on May 30, 2014 (the “Distribution Date”) to NOV stockholders of record as of the close of business on May 22, 2014 (the “Record Date”). On the Distribution Date, each NOV stockholder as of the Record Date will receive one share of NOW common stock for every four shares of NOV common stock held at the close of business on the Record Date. Fractional shares of NOW common stock will not be distributed and any fractional share of NOW common stock otherwise issuable to a NOV stockholder will be sold in the open market on such stockholder’s behalf, and such stockholder will receive a cash payment with respect to that fractional share. NOV expects to receive an opinion from its legal counsel to the effect that, based on certain facts, assumptions, representations and undertakings, for U.S. federal income tax purposes, the distribution of NOW common stock and certain related transactions generally will not be taxable to NOV or U.S. holders of NOV common stock, except in respect to cash received in lieu of fractional shares, which generally will be taxable to such holders as capital gain.
	Following the distribution of NOW common stock, NOW will be an independent, publicly traded company, and NOV will retain no ownership interest in NOW. NOW has received approval for the listing of its common stock on the New York Stock Exchange under the symbol “DNOW”. An registration statement on Form 10 relating to the spin-off was filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective on May 13, 2014. NOW expects a “when-issued” public trading market for NOW common stock to commence on or about May 20, 2014 under the symbol “DNOW WI” and will continue through the Distribution Date. NOW also anticipates that “regular way” trading of NOW common stock will begin on the first trading day following the Distribution Date.
	Basis of Presentation
	The combined financial statements in this 10-Q were derived from the consolidated financial statements and accounting records of National Oilwell Varco. These statements reflect the combined historical results of operations, financial position and cash flows of NOW Inc. operations and an allocable portion of corporate costs.
	These financial statements are presented as if such businesses had been combined for all periods presented. All intercompany transactions and accounts within NOW have been eliminated. The assets and liabilities in the combined financial statements have been reflected on a historical cost basis, as immediately prior to the separation all of the assets and liabilities presented are wholly owned by NOV and are being transferred within NOV. The combined statement of income also includes expense allocations for certain corporate functions historically performed by NOV and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations are based primarily on specific identification of time and/or activities associated with NOW, employee headcount or capital expenditures. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses from NOV, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred had we been a stand-alone public company during the periods presented and may not reflect our combined results of operations, financial position and cash flows had we been a stand-alone public company during the periods presented. Actual costs that would have been incurred if we had been a stand-alone public company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure.
	The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	The accompanying unaudited combined financial statements of the Company present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete combined financial statements and should be read in conjunction with our most recent Information Statement on Form 10.
	In our opinion, the combined financial statements include all adjustments, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.
	Cash and Cash Equivalents
	Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase.

Property_Plant_and_Equipment_n

Property, Plant and Equipment, net	3 Months Ended
	Mar. 31, 2014
Property Plant And Equipment [Abstract]	'
Property, Plant and Equipment, net	'
	2. Property, Plant and Equipment, net
	Property, plant and equipment consist of (in millions):
		Estimated	March 31,			December 31,
		Useful Lives	2014			2013
	Information technology equipment	1-7 Years	$	48		$	44
	Operating equipment	3-15 Years		57			57
	Land and buildings	5-35 Years		60			62
				165			163
	Less: accumulated depreciation			(61	)		(61	)
	Total		$	104		$	102

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2014
Payables And Accruals [Abstract]	'
Accrued Liabilities	'
	3. Accrued Liabilities
	Accrued liabilities consist of (in millions):
		March 31,		December 31,
		2014		2013
	Compensation and other related expenses	$	21	$	24
	Customer prepayments		17		18
	Taxes (non income)		21		25
	Other		41		32
	Total	$	100	$	99

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Accumulated Other Comprehensive Income (Loss)	'
	4. Accumulated Other Comprehensive Income (Loss)
	The components of accumulated other comprehensive income (loss) are as follows (in millions):
		Currency
		Translation
		Adjustments
	Balance at December 31, 2013	$	—
	Accumulated other comprehensive income (loss) before reclassifications		(17	)
	Amounts reclassified from accumulated other comprehensive income (loss)		—
	Balance at March 31, 2014	$	(17	)
	The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income or Loss in accordance with ASC Topic 830 “Foreign Currency Matters” (“ASC Topic 830”). For the three months ended March 31, 2014 the majority of these local currencies weakened against the U.S. dollar resulting in net Other Comprehensive Loss of $17 million upon the translation from local currencies to the U.S. dollar.

Business_Segments

Business Segments	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Business Segments	'
	5. Business Segments
	Operating results by segment are as follows (in millions):
		Three Months
		Ended March 31,
		2014			2013
	Revenue:
	United States	$	704		$	712
	Canada		191			215
	International		182			145
	Total Revenue	$	1,077		$	1,072
	Operating Profit:
	United States	$	30		$	33
	Canada		16			17
	International		16			8
	Total Operating Profit	$	62		$	58
	Operating Profit %:
	United States		4.3	%		4.6	%
	Canada		8.4	%		7.9	%
	International		8.8	%		5.5	%
	Total Operating Profit %		5.8	%		5.4	%
	Primary End-Market:
	The following table presents combined revenues by primary end-market (in millions):
		Three Months
		Ended March 31,
		2014			2013
	Energy Branches	$	899		$	890
	Supply Chain		178			182
	Total	$	1,077		$	1,072
	Our Energy Branches are the legacy brick and mortar supply store operations that provide products to multiple upstream and midstream customers from a single location. These branches serve repeat customers across a variety of pricing models. Our Supply Chain group targets a broader customer sector to include downstream, upstream, industrial and manufacturing, in which our customers are generally contractually committed to source from us under a single business model that includes a fixed pricing structure. We are typically integrated into our customers’ facilities; have on-site NOW branches and inventory committed to a specific customer; perform duties otherwise managed by our customers; manage third party materials on behalf of our customers; employ vending machines and/or tool cribs to store and dispense materials on-demand; and have a much greater component of technology to enable e-commerce and key performance indicators to be measured and reported specifically to each customer. While Energy Branches and Supply Chain serve different markets, in some cases customers require the similar products resulting in some overlap of products carried and sold.
	The following table presents a comparison of the approximate sales mix in the principal product categories (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Product Category
	Drilling and production	$	248		$	245
	Valves		222			194
	Pipe		202			220
	Fittings and flanges		186			191
	Mill tool, MRO, safety and other		219			222
	Total	$	1,077		$	1,072

Income_Tax

Income Tax	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Tax	'
	6. Income Tax
	The effective tax rate for the three months ended March 31, 2014 was 33.8%, compared to 31.7% for the same period in 2013. Compared to the U.S. statutory rate, the effective tax rate was favorably impacted in the periods by the effect of lower tax rates on income earned in foreign jurisdictions which are permanently reinvested.
	The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Federal income tax at U.S. federal statutory rate	$	22		$	21
	Foreign income tax rate differential		(2	)		(2	)
	State income tax, net of federal benefit		1			1
	Other		—			(1	)
	Provision for income taxes	$	21		$	19
	The Company is subject to taxation in the United States, various states and foreign jurisdictions. The Company has significant operations in the United States, Canada, the United Kingdom, Indonesia, and Norway. Tax years that remain subject to examination by major tax jurisdictions vary by legal entity, but are generally open in the U.S. for the tax years ending after 2007 and outside the U.S. for the tax years ending after 2006.
	To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Stock-Based Compensation	'
	7. Stock-Based Compensation
	NOV has a stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”). The Plan provides for the granting of stock options, performance-based share awards, restricted stock, phantom shares, stock payments and stock appreciation rights. Total stock-based compensation for all stock-based compensation arrangements for NOW employees under the Plan was $2 million and $1 million for the three months ended March 31, 2014 and 2013, respectively. The total income tax benefit recognized in the Combined Statements of Income for all stock-based compensation arrangements for employees of NOW under the Plan was $1 million and less than $1 million for the three months ended March 31, 2014 and 2013, respectively.
	During the three months ended March 31, 2014, employees of NOW were granted 204,952 stock options with a fair value of $25.60 per share and 30,008 shares of restricted stock and restricted stock units with a fair value of $74.83 per share. In addition, certain members of senior management of NOW were granted performance share awards on February 25, 2014, with potential payouts varying from zero to 22,472 shares. The stock options were granted February 25, 2014 with an exercise price of $74.83. These options generally vest over a three-year period from the grant date. The restricted stock and restricted stock units were granted February 25, 2014 and vest on the third anniversary of the date of grant. The performance share awards can be earned based on performance against established goals over a three-year performance period. The performance share awards are divided into two equal, independent parts that are subject to two separate performance metrics: 50% with a TSR (total shareholder return) goal (the “TSR Award”) and 50% with an internal ROC (return on capital) goal (the “ROC Award”).
	After the Spin-Off, pursuant to the terms of the agreements entered into between NOW and NOV in connection with the Spin-Off, outstanding equity awards under the Plan held by NOV employees who will become NOW employees will be converted to similar awards under NOW’s Long-Term Incentive Plan, provided, that performance conditions attached to the performance share awards for the members of senior management of NOV that joined NOW will be removed and the vesting of such awards will only be subject to continued employment by such employees with NOW through the original performance period.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments And Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	8. Commitments and Contingencies
	We are involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters. We record accruals for estimated losses from these matters when available information indicates that a loss is probable and the loss can be reasonably estimated. We also assess the potential for additional losses above the amounts accrued as well as potential losses for matters that are not probable but are reasonably possible. The total potential loss on these pending matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise recorded or accrued for, will not materially affect our financial position, cash flow or results of operations. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s intention and experience.
	Our business is affected both directly and indirectly by governmental laws and regulations relating to the oilfield service industry in general, as well as by environmental and safety regulations that specifically apply to our business. Although we have not incurred material costs in connection with our compliance with such laws, there can be no assurance that other developments, such as new environmental laws, regulations and enforcement policies hereunder may not result in additional, presently unquantifiable, costs or liabilities to us.

Related_Party_Transactions_and

Related Party Transactions and Net Parent Company Investment	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions and Net Parent Company Investment	'
	9. Related Party Transactions and Net Parent Company Investment
	Allocation of General Corporate Expenses
	The combined financial statements include expense allocations for certain functions provided by NOV as well as other NOV employees not solely dedicated to NOW, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, shared services, employee benefits and incentives, and stock-based compensation. These expenses have been allocated to NOW on the basis of direct usage when identifiable, with the remainder allocated on the basis of operating profit, headcount or other measures. During the three months ended March 31, 2014 and 2013, NOW was allocated $3 million and $2 million, respectively, of general corporate expenses incurred by NOV which is included within selling, general and administrative expenses in the accompanying combined statements of income.
	The expense allocations have been determined on a basis that is considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented. The allocations may not reflect the expense the Company would have incurred as an independent, publicly traded company for the periods presented. Actual costs that may have been incurred if the Company had been a stand-alone public company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure.
	Net Parent Company Investment
	Net contributions from (distributions to) net parent company investment are included within net parent company investment on the Combined Balance Sheets and Statements of Cash Flows. The components of the net transfers to and from parent as of March 31, 2014 and 2013 are as follows (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Net contributions from parent company per the combined changes in net parent company investment	$	119		$	49
	Less: Net income		(41	)		(41	)
	Contributions from parent company per the combined statements of cash flows	$	78		$	8
	The combined financial statements include certain assets and liabilities that have historically been held at the parent company corporate level but which are specifically identifiable or otherwise allocable to the Company. The cash and cash equivalents held by the parent company at the corporate level are not specifically identifiable to NOW and therefore were not allocated to it for any of the periods presented. Cash and equivalents in the Company’s combined balance sheets primarily represent cash held locally by entities included in its combined financial statements. Transfers of cash to and from the parent company’s cash management system are reflected as a component of net parent company investment on the combined balance sheets.
	All significant intercompany transactions between NOW and the parent company have been included in these combined financial statements and are considered to be effectively settled for cash in the combined financial statements at the time the transaction is recorded when the underlying transaction is to be settled in cash by the parent company. The total net effect of the settlement of these intercompany transactions is reflected in the combined statements of cash flow as a financing activity and in the combined balance sheets as parent company investment.

Recently_Issued_Accounting_Sta

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2014
Accounting Changes And Error Corrections [Abstract]	'
Recently Issued Accounting Standards	'
	10. Recently Issued Accounting Standards
	In April 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of and Entity” (ASU No. 2014-08), which is an update for Accounting Standards Codification Topic No. 205 “Presentation of Financial Statements” and Topic No. 360 “Property, Plant and Equipment’. This update changes the requirements of reporting discontinued operations. Under the amended guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendments in this update are effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years, with early adoption permitted. The adoption of this update concerns presentation and disclosure only as it relates to our consolidated financial statements. The Company is currently assessing the impact of ASU No. 2014-08 on its combined financial position and results of operations. No material changes are expected upon adoption of this ASU.

Subsequent_Event

Subsequent Event	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Event	'
	11. Subsequent Event
	On April 18, 2014, we entered into a five-year senior unsecured credit facility with a syndicate of lenders, including Wells Fargo Bank, National Association, as administrative agent. The credit facility will become available to us upon the satisfaction of customary conditions, including the consummation of the separation.
	The credit facility will be for an aggregate principal amount of up to $750 million with sub-facilities for standby letters of credit and swingline loans, each with a sublimit of $150 million and $50 million, respectively. We have the right, subject to certain conditions, to increase the aggregate principal amount of commitments under the credit facility by $250 million.
	The credit facility will be unsecured and guaranteed by our domestic subsidiaries. In the event that we or any subsidiary incurs long-term debt which is secured (other than certain excluded obligations), then we are required to secure the credit facility on equal terms with the security granted to such future debt.
	The credit agreement related to the credit facility contains usual and customary affirmative and negative covenants for credit facilities of this type including financial covenants consisting of (a) a maximum capitalization ratio (as defined in the credit agreement) of 50% and (b) a minimum interest coverage ratio (as defined in the credit agreement) of no less than 3.00x. Borrowings under the credit facility will bear interest at a base rate (as defined in the credit agreement) plus an applicable interest margin based on our capitalization ratio. The base rate is calculated as the highest of (a) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1%, (b) the prime commercial lending rate of the administrative agent, as established from time to time at its principal U.S. office, and (c) the Daily One-Month LIBOR (as defined in the credit agreement) plus 1%. We also have the option for our borrowings under the credit facility to bear interest based on LIBOR (as defined in the credit agreement). The credit agreement also provides for customary fees, including administrative agent fees, commitment fees, fees in respect of letters of credit and other fees.

Organization_and_Basis_of_Pres1

Organization and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
The Spin-Off	'
	The Spin-Off
	On May 1, 2014, the National Oilwell Varco, Inc. (“NOV”) Board of Directors approved the spin-off of its distribution business (the “Spin-Off”) into an independent, publicly traded company named NOW Inc. (“NOW” or the “Company”). NOW will be headquartered in Houston, Texas. In accordance with a separation and distribution agreement, the spin-off will be completed by way of a pro rata distribution of all of the outstanding shares of NOW common stock to holders of NOV common stock. This distribution is expected to occur after market close on May 30, 2014 (the “Distribution Date”) to NOV stockholders of record as of the close of business on May 22, 2014 (the “Record Date”). On the Distribution Date, each NOV stockholder as of the Record Date will receive one share of NOW common stock for every four shares of NOV common stock held at the close of business on the Record Date. Fractional shares of NOW common stock will not be distributed and any fractional share of NOW common stock otherwise issuable to a NOV stockholder will be sold in the open market on such stockholder’s behalf, and such stockholder will receive a cash payment with respect to that fractional share. NOV expects to receive an opinion from its legal counsel to the effect that, based on certain facts, assumptions, representations and undertakings, for U.S. federal income tax purposes, the distribution of NOW common stock and certain related transactions generally will not be taxable to NOV or U.S. holders of NOV common stock, except in respect to cash received in lieu of fractional shares, which generally will be taxable to such holders as capital gain.
	Following the distribution of NOW common stock, NOW will be an independent, publicly traded company, and NOV will retain no ownership interest in NOW. NOW has received approval for the listing of its common stock on the New York Stock Exchange under the symbol “DNOW”. An registration statement on Form 10 relating to the spin-off was filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective on May 13, 2014. NOW expects a “when-issued” public trading market for NOW common stock to commence on or about May 20, 2014 under the symbol “DNOW WI” and will continue through the Distribution Date. NOW also anticipates that “regular way” trading of NOW common stock will begin on the first trading day following the Distribution Date.
Basis of Presentation	'
	Basis of Presentation
	The combined financial statements in this 10-Q were derived from the consolidated financial statements and accounting records of National Oilwell Varco. These statements reflect the combined historical results of operations, financial position and cash flows of NOW Inc. operations and an allocable portion of corporate costs.
	These financial statements are presented as if such businesses had been combined for all periods presented. All intercompany transactions and accounts within NOW have been eliminated. The assets and liabilities in the combined financial statements have been reflected on a historical cost basis, as immediately prior to the separation all of the assets and liabilities presented are wholly owned by NOV and are being transferred within NOV. The combined statement of income also includes expense allocations for certain corporate functions historically performed by NOV and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations are based primarily on specific identification of time and/or activities associated with NOW, employee headcount or capital expenditures. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses from NOV, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred had we been a stand-alone public company during the periods presented and may not reflect our combined results of operations, financial position and cash flows had we been a stand-alone public company during the periods presented. Actual costs that would have been incurred if we had been a stand-alone public company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure.
	The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	The accompanying unaudited combined financial statements of the Company present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete combined financial statements and should be read in conjunction with our most recent Information Statement on Form 10.
	In our opinion, the combined financial statements include all adjustments, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase.
Accumulated Other Comprehensive Income (Loss)	'
	The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income or Loss in accordance with ASC Topic 830 “Foreign Currency Matters” (“ASC Topic 830”)
Recently Issued Accounting Standards	'
	Recently Issued Accounting Standards
	In April 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of and Entity” (ASU No. 2014-08), which is an update for Accounting Standards Codification Topic No. 205 “Presentation of Financial Statements” and Topic No. 360 “Property, Plant and Equipment’. This update changes the requirements of reporting discontinued operations. Under the amended guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendments in this update are effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years, with early adoption permitted. The adoption of this update concerns presentation and disclosure only as it relates to our consolidated financial statements. The Company is currently assessing the impact of ASU No. 2014-08 on its combined financial position and results of operations. No material changes are expected upon adoption of this ASU.

Property_Plant_and_Equipment_n1

Property, Plant and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2014
Property Plant And Equipment [Abstract]	'
Summary of Property, Plant and Equipment	'
	Property, plant and equipment consist of (in millions):
		Estimated	March 31,			December 31,
		Useful Lives	2014			2013
	Information technology equipment	1-7 Years	$	48		$	44
	Operating equipment	3-15 Years		57			57
	Land and buildings	5-35 Years		60			62
				165			163
	Less: accumulated depreciation			(61	)		(61	)
	Total		$	104		$	102

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2014
Payables And Accruals [Abstract]	'
Summary of Accrued Liabilities	'
	Accrued liabilities consist of (in millions):
		March 31,		December 31,
		2014		2013
	Compensation and other related expenses	$	21	$	24
	Customer prepayments		17		18
	Taxes (non income)		21		25
	Other		41		32
	Total	$	100	$	99

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Components of Accumulated Other Comprehensive Income (Loss)	'
	The components of accumulated other comprehensive income (loss) are as follows (in millions):
		Currency
		Translation
		Adjustments
	Balance at December 31, 2013	$	—
	Accumulated other comprehensive income (loss) before reclassifications		(17	)
	Amounts reclassified from accumulated other comprehensive income (loss)		—
	Balance at March 31, 2014	$	(17	)

Business_Segments_Tables

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Summary of Operating Results by Segment	'
	Operating results by segment are as follows (in millions):
		Three Months
		Ended March 31,
		2014			2013
	Revenue:
	United States	$	704		$	712
	Canada		191			215
	International		182			145
	Total Revenue	$	1,077		$	1,072
	Operating Profit:
	United States	$	30		$	33
	Canada		16			17
	International		16			8
	Total Operating Profit	$	62		$	58
	Operating Profit %:
	United States		4.3	%		4.6	%
	Canada		8.4	%		7.9	%
	International		8.8	%		5.5	%
	Total Operating Profit %		5.8	%		5.4	%
Schedule of Combined Revenues by Primary End-Market	'
	The following table presents combined revenues by primary end-market (in millions):
		Three Months
		Ended March 31,
		2014			2013
	Energy Branches	$	899		$	890
	Supply Chain		178			182
	Total	$	1,077		$	1,072
Schedule of Comparison of the Approximate Sales Mix in the Principal Product Categories	'
	The following table presents a comparison of the approximate sales mix in the principal product categories (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Product Category
	Drilling and production	$	248		$	245
	Valves		222			194
	Pipe		202			220
	Fittings and flanges		186			191
	Mill tool, MRO, safety and other		219			222
	Total	$	1,077		$	1,072

Income_Tax_Tables

Income Tax (Tables)	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Difference Between Effective Tax Rate	'
	The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Federal income tax at U.S. federal statutory rate	$	22		$	21
	Foreign income tax rate differential		(2	)		(2	)
	State income tax, net of federal benefit		1			1
	Other		—			(1	)
	Provision for income taxes	$	21		$	19

Related_Party_Transactions_and1

Related Party Transactions and Net Parent Company Investment (Tables)	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Schedule of Components of the Net Transfers to and from Parents	'
	The components of the net transfers to and from parent as of March 31, 2014 and 2013 are as follows (in millions):
		Three Months Ended
		March 31,
		2014			2013
	Net contributions from parent company per the combined changes in net parent company investment	$	119		$	49
	Less: Net income		(41	)		(41	)
	Contributions from parent company per the combined statements of cash flows	$	78		$	8

Organization_and_Basis_of_Pres2

Organization and Basis of Presentation - Additional Information (Detail) (Spin-off [Member])	3 Months Ended
	Mar. 31, 2014
Spin-off [Member]	'
Basis Of Presentation And Organization [Line Items]	'
Spin-off description	'Distribution is expected to occur after market close on May 30, 2014 (the "Distribution Date") to NOV stockholders of record as of the close of business on May 22, 2014 (the "Record Date"). On the Distribution Date, each NOV stockholder as of the Record Date will receive one share of NOW common stock for every four shares of NOV common stock held at the close of business on the Record Date.

Property_Plant_and_Equipment_S

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $)

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

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

In Millions, unless otherwise specified

Information Technology Equipment [Member]

Information Technology Equipment [Member]

Operating Equipment [Member]

Operating Equipment [Member]

Land and Buildings [Member]

Land and Buildings [Member]

Minimum [Member]

Minimum [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Maximum [Member]

Information Technology Equipment [Member]

Operating Equipment [Member]

Land and Buildings [Member]

Information Technology Equipment [Member]

Operating Equipment [Member]

Land and Buildings [Member]

Property, Plant and Equipment [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property, plant and equipment, Gross

$165

$163

$48

$44

$57

$57

$60

$62

'

'

'

'

'

'

Less: accumulated depreciation

-61

-61

'

'

'

'

'

'

'

'

'

'

'

'

Property, plant and equipment, net

$104

$102

'

'

'

'

'

'

'

'

'

'

'

'

Property, plant and equipment, estimated useful lives

'

'

'

'

'

'

'

'

'1 year

'3 years

'5 years

'7 years

'15 years

'35 years

Accrued_Liabilities_Summary_of

Accrued Liabilities - Summary of Accrued Liabilities (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Payables And Accruals [Abstract]	'	'
Compensation and other related expenses	$21	$24
Customer prepayments	17	18
Taxes (non income)	21	25
Other	41	32
Total	$100	$99

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Income (Loss) - Summary of Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]	'
Accumulated other comprehensive income (loss), Beginning balance	'
Accumulated other comprehensive income (loss) before reclassifications	-17
Amounts reclassified from accumulated other comprehensive income (loss)	'
Accumulated other comprehensive income (loss), Ending balance	($17)

Accumulated_Other_Comprehensiv3

Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]	'
Net increase to other comprehensive income or loss upon the translation	$17

Business_Segment_Summary_of_Op

Business Segment - Summary of Operating Results by Segment (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue:	'	'
Total Revenue	$1,077	$1,072
Operating Profit:	'	'
Total Operating Profit	62	58
Operating Profit %:	'	'
Total Operating Profit %	5.80%	5.40%
United States (Member)	'	'
Revenue:	'	'
Total Revenue	704	712
Operating Profit:	'	'
Total Operating Profit	30	33
Operating Profit %:	'	'
Total Operating Profit %	4.30%	4.60%
Canada (Member)	'	'
Revenue:	'	'
Total Revenue	191	215
Operating Profit:	'	'
Total Operating Profit	16	17
Operating Profit %:	'	'
Total Operating Profit %	8.40%	7.90%
International [Member]	'	'
Revenue:	'	'
Total Revenue	182	145
Operating Profit:	'	'
Total Operating Profit	$16	$8
Operating Profit %:	'	'
Total Operating Profit %	8.80%	5.50%

Business_Segments_Schedule_of_

Business Segments - Schedule of Combined Revenues by Primary End-Market (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Sales Information [Line Items]	'	'
Total Revenues	$1,077	$1,072
Energy Branches [Member]	'	'
Sales Information [Line Items]	'	'
Total Revenues	899	890
Supply Chain [Member]	'	'
Sales Information [Line Items]	'	'
Total Revenues	$178	$182

Business_Segments_Schedule_of_1

Business Segments - Schedule of Comparison of the Approximate Sales Mix in the Principal Product Categories (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue	'	'
Total Revenue	$1,077	$1,072
Drilling and production [Member]	'	'
Revenue	'	'
Total Revenue	248	245
Valves [Member]	'	'
Revenue	'	'
Total Revenue	222	194
Pipe [Member]	'	'
Revenue	'	'
Total Revenue	202	220
Fittings and flanges [Member]	'	'
Revenue	'	'
Total Revenue	186	191
Mill tool, MRO, safety and other [Member]	'	'
Revenue	'	'
Total Revenue	$219	$222

Income_Tax_Additional_Informat

Income Tax - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]	'	'
Effective tax rate	33.80%	31.70%
U.S. federal statutory rate	35.00%	'

Income_Tax_Difference_Between_

Income Tax - Difference Between Effective Tax Rate (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]	'	'
Federal income tax at U.S. federal statutory rate	$22	$21
Foreign income tax rate differential	-2	-2
State income tax, net of federal benefit	1	1
Other	'	-1
Provision for income taxes	$21	$19

Stock_Based_Compensation_Addit

Stock Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Total stock-based compensation compensation arrangements under the Plan	$2	$1
Total income tax benefit stock-based compensation arrangements under the Plan	$1	$1
Restricted Stock Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Performance based restricted stock awards vested, number of years	'3 years	'
TSR Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Performance based restricted stock awards granted in percent	50.00%	'
ROC Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Performance based restricted stock awards granted in percent	50.00%	'
Restricted Stock And Restricted Stock Units [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted stock granted	30,008	'
Restricted stock units fair value	$74.83	'
Stock Options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock option granted	204,952	'
Stock option granted fair value	$25.60	'
Stock Options [Member] | Restricted Stock Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock option granted, exercise price	$74.83	'
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Minimum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted stock granted	0	'
Performance-base restricted stock [Member] | Senior Management Employees [Member] | Maximum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted stock granted	22,472	'

Related_Party_Transactions_and2

Related Party Transactions and Net Parent Company Investment - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Related Party Transaction [Abstract]	'	'
Selling general and Administration Expenses	$3	$2

Related_Party_Transactions_and3

Related Party Transactions and Net Parent Company Investment - Schedule of Components of the Net Transfers to and from Parents (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Related Party Transaction [Abstract]	'	'
Net contributions from parent company per the combined changes in net parent company investment	$119	$49
Less: Net income	-41	-41
Contributions from parent company per the combined statements of cash flows	$78	$8

Subsequent_Event_Additional_In

Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], USD $)	0 Months Ended
In Millions, unless otherwise specified	Apr. 18, 2014
Subsequent Event [Line Items]	'
Term of loan	'5 years
Agreement date	18-Apr-14
Aggregate loan amount	$750
Sub-facility for letter of credit	150
Sub-facility for swing line loans	50
Increase in aggregate principal amount	$250
Maximum capitalization ratio	50.00%
Minimum interest coverage ratio	3.00%
Federal Funds Rate [Member]	'
Subsequent Event [Line Items]	'
Base rate	0.50%
London Interbank Offered Rate (LIBOR) [Member]	'
Subsequent Event [Line Items]	'
Base rate	1.00%