NOW (DNOW) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 26, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	DNOW
Entity Registrant Name	NOW INC.
Entity Central Index Key	1,599,617
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		108,390,737

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 91	$ 98
Receivables, net	495	423
Inventories, net	604	590
Prepaid and other current assets	23	18
Total current assets	1,213	1,129
Property, plant and equipment, net	109	119
Deferred income taxes	2	2
Goodwill	321	328
Intangibles, net	155	166
Other assets	11	5
Total assets	1,811	1,749
Current liabilities:
Accounts payable	315	290
Accrued liabilities	103	103
Other current liabilities	2	1
Total current liabilities	420	394
Long-term debt	195	162
Deferred income taxes	6	7
Other long-term liabilities	1	1
Total liabilities	622	564
Commitments and contingencies
Stockholders' equity:
Preferred stock—par value $0.01; 20 million shares authorized; no shares issued and outstanding
Common stock - par value $0.01; 330 million shares authorized; 108,390,737 and 108,030,438 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	1	1
Additional paid-in capital	2,026	2,019
Accumulated deficit	(714)	(730)
Accumulated other comprehensive loss	(124)	(105)
Total stockholders' equity	1,189	1,185
Total liabilities and stockholders' equity	$ 1,811	$ 1,749

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	330,000,000	330,000,000
Common stock, shares issued	108,390,737	108,030,438
Common stock, shares outstanding	108,390,737	108,030,438

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 777	$ 651	$ 1,541	$ 1,282
Operating expenses:
Cost of products	620	527	1,236	1,044
Warehousing, selling and administrative	139	138	280	273
Operating profit (loss)	18	(14)	25	(35)
Other expense	(3)	(3)	(7)	(5)
Income (loss) before income taxes	15	(17)	18	(40)
Income tax provision (benefit)	1	0	2	0
Net income (loss)	$ 14	$ (17)	$ 16	$ (40)
Earnings (loss) per share:
Basic earnings (loss) per common share	$ 0.12	$ (0.16)	$ 0.15	$ (0.37)
Diluted earnings (loss) per common share	$ 0.12	$ (0.16)	$ 0.15	$ (0.37)
Weighted-average common shares outstanding, basic	108,278,356	107,689,554	108,177,100	107,635,122
Weighted-average common shares outstanding, diluted	108,476,988	107,689,554	108,325,437	107,635,122

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 14	$ (17)	$ 16	$ (40)
Other comprehensive income (loss):
Foreign currency translation adjustments	(20)	12	(19)	22
Comprehensive loss	$ (6)	$ (5)	$ (3)	$ (18)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 16	$ (40)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	22	26
Deferred income taxes	(1)	(1)
Stock-based compensation	8	11
Provision for doubtful accounts	2	2
Provision for inventory	5	8
Change in operating assets and liabilities, net of acquisitions:
Receivables	(79)	(61)
Inventories	(25)	(50)
Prepaid and other current assets	(4)	(5)
Accounts payable and accrued liabilities	31	37
Income taxes receivable, net		(1)
Net cash used in operating activities	(25)	(74)
Cash flows from investing activities:
Purchases of property, plant and equipment	(3)	(1)
Business acquisitions, net of cash acquired		(4)
Other, net	1	3
Net cash used in investing activities	(2)	(2)
Cash flows from financing activities:
Borrowing under the revolving credit facility	391	172
Repayments under the revolving credit facility	(358)	(109)
Other	(8)
Net cash provided by financing activities	25	63
Effect of exchange rates on cash and cash equivalents	(5)	4
Net change in cash and cash equivalents	(7)	(9)
Cash and cash equivalents, beginning of period	98	106
Cash and cash equivalents, end of period	$ 91	$ 97

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation Nature of Operations NOW Inc. (“NOW” or the “Company”) is a holding company headquartered in Houston, Texas that was incorporated in Delaware on November 22, 2013. NOW operates primarily under the DistributionNOW and Wilson Export brands. NOW is a global distributor of energy products as well as products for industrial applications through its locations in the U.S., Canada and internationally which are geographically positioned to serve the energy and industrial markets in over 80 countries. NOW’s energy product offerings are used in the oil and gas industry including upstream drilling and completion, exploration and production, midstream infrastructure development and downstream petroleum refining – as well as in other industries, such as chemical processing, power generation and industrial manufacturing operations. The industrial distribution portion of NOW’s business targets a diverse range of manufacturing and other facilities across numerous industries and end markets. NOW also provides supply chain management to drilling contractors, E&P operators, midstream operators, downstream energy and industrial manufacturing companies. NOW’s supplier network consists of thousands of vendors in approximately 40 countries. Basis of Presentation All significant intercompany transactions and accounts have been eliminated. The unaudited consolidated financial information included in this report has been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of SEC Regulation S-X. The principles for interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statements included in the Company’s most recent Annual Report on Form 10-K. In the opinion of the Company’s management, the consolidated 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 and six months ended June 30, 2018 are not Use of Estimates The preparation of financial statements in conformity with GAAP 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. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, receivables and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. See Note 12 Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition revenue policies. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2018, the FASB issued ASU No. 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ,

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue Adoption of ASC Topic 606, Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with ASC Topic 605, “Revenue Recognition”. The adoption of ASC Topic 606 resulted in $5 million additional receivables and deferred revenue related to the recognition of receivables with unconditional right to payment. Revenue Recognition The Company’s primary source of revenue is the sale of energy products and an extensive selection of products for industrial applications based upon purchase orders or contracts with customers. The majority of revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the product is shipped, delivered, or picked up by the customer. The Company does not grant extended payment terms. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to government authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods, and are recorded in cost of products. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration, which may include product returns, trade discounts and allowances. The Company accrues for variable consideration using the expected value method. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. See Note 7 “Business Segments” for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed on contracts with an original expected duration of one year or more. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Receivables Receivables are recorded when the Company has an unconditional right to consideration. Contract Assets and Liabilities Contract assets primarily consist of retainage amounts held as a form of security by customers until the Company satisfies its remaining performance obligations . assets were de minimis for were not material Contract liabilities primarily consist of deferred revenues recorded when customer payments are received or due in advance of satisfying performance obligations, including amounts which are refundable, and other accrued customer liabilities. Revenue recognition is deferred to a future period until the Company completes its obligations contractually agreed with customers. The increase in contract liabilities for the six months ended June 30, 2018 was primarily related to customer deposits of approximately $17 million, partially offset by approximately $11 million of revenue recognized that was deferred at the beginning of the period.

Property, Plant and Equipment,

Property, Plant and Equipment, net	6 Months Ended
	Jun. 30, 2018
Property Plant And Equipment [Abstract]
Property, Plant and Equipment, net	3. Property, Plant and Equipment, net Property, plant and equipment consist of (in millions): Estimated Useful Lives June 30, 2018 December 31, 2017 Information technology assets 1-7 Years $ 45 $ 48 Operating equipment 2-15 Years 90 93 Buildings and land (1) 5-35 Years 96 97 Construction in progress 1 — Total property, plant and equipment 232 238 Less: accumulated depreciation (123 ) (119 ) Property, plant and equipment, net $ 109 $ 119 (1) Land has an indefinite life .

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables And Accruals [Abstract]
Accrued Liabilities	4. Accrued Liabilities Accrued liabilities consist of (in millions): June 30, 2018 December 31, 2017 Compensation and other related expenses $ 32 $ 36 Contract liabilities (1) 29 19 Taxes (non-income) 12 15 Other 30 33 Total $ 103 $ 103 (1) Previously shown as customer credits and prepayments.

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	5. Debt On April 30, 2018, the Company replaced its existing senior secured revolving credit facility and entered into a senior secured revolving credit facility (the “Credit Facility”) with a syndicate of lenders with Wells Fargo Bank, National Association, serving as the administrative agent. The five-year Credit Facility provides for a $750 million global revolving credit facility (with a letter of credit subfacility of $60 million, and a swing line subfacility of 10% of the facility amount), of which up to $100 million is available for the Company’s Canadian subsidiaries and $40 million for the Company’s UK subsidiaries. The Company has the right, subject to certain conditions, to increase the aggregate principal amount of commitments under the credit facility by $250 million. The obligations under the Credit Facility are secured by substantially all the assets of the Company and its subsidiaries. The Credit Facility contains customary covenants, representations and warranties and events of default. The Company will be required to maintain a fixed charge coverage ratio of at least 1.00:1.00 as of the end of each fiscal quarter if excess availability under the Credit Facility falls below the greater of 12.5% of the borrowing base or $60 million. Borrowings under the Credit Facility will bear an interest rate at the Company’s option, at (i) the base rate plus an applicable margin based on the Company’s fixed charge coverage ratio (and if applicable, the Company’s leverage ratio); or (ii) the greater of LIBOR for the applicable interest period and zero, plus an applicable margin based on the Company’s fixed charge coverage ratio (and if applicable, the Company’s leverage ratio). The Credit Facility includes a commitment fee on the unused portion of commitments that ranges from 25 to 37.5 basis points. Commitment fees incurred during the period were included in other expense in the consolidated statements of operations. Availability under the Credit Facility is determined by a borrowing base comprised of eligible receivables and eligible inventory in the U.S and Canada. As of June 30, 2018, the Company borrowed $195 million against the Credit Facility and had approximately $ 332 62 The Company issued $6 million in letters of credit under the Credit Facility primarily for casualty insurance expiring in July 2019

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	6. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive loss are as follows (in millions) Foreign Currency Translation Adjustments Balance at December 31, 2017 $ (105 ) Other comprehensive loss (19 ) Balance at June 30, 2018 $ (124 ) 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, foreign 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.”

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Business Segments	7. Business Segments Operating results by reportable segment are as follows (in millions) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue: United States $ 600 $ 481 $ 1,162 $ 920 Canada 75 79 177 175 International 102 91 202 187 Total revenue $ 777 $ 651 $ 1,541 $ 1,282 Operating profit (loss): United States $ 16 $ (16 ) $ 19 $ (42 ) Canada 1 2 5 5 International 1 — 1 2 Total operating profit (loss) $ 18 $ (14 ) $ 25 $ (35 ) Operating profit (loss) % of revenue: United States 2.7 % (3.3 %) 1.6 % (4.6 %) Canada 1.3 % 2.5 % 2.8 % 2.9 % International 1.0 % 0.0 % 0.5 % 1.1 % Total operating profit (loss) % 2.3 % (2.2 %) 1.6 % (2.7 %)

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes On May 1, 2014, the National Oilwell Varco, Inc. (“NOV”) Board of Directors approved the Spin-Off (the “Spin-Off” or “Separation”) of its distribution business into an independent, publicly traded company named NOW Inc. In connection with the Separation, the Company and NOV entered into a Tax Matters Agreement, dated as of May 29, 2014 (the “Tax Matters Agreement”). The Tax Matters Agreement sets forth the Company and NOV’s rights and obligations related to the allocation of federal, state, local and foreign taxes for periods before and after the Spin-Off, as well as taxes attributable to the Spin-Off, and related matters such as the filing of tax returns and the conduct of IRS and other audits. Pursuant to the Tax Matters Agreement, NOV has prepared and filed the consolidated federal income tax return, and any other tax returns that include both NOV and the Company for all the liability periods ended on or prior to May 30, 2014. NOV will indemnify and hold harmless the Company for any income tax liability for periods before the Separation date. The Company will prepare and file all tax returns that include solely the Company for all taxable periods ending after that date. Settlements of tax payments between NOV and the Company were generally treated as contributions from or distributions to NOV in periods prior to the Separation date. The effective tax rates for the three and six months ended June 30 to (0.1%) and 1.0% three and six months ended June 30 , Provisional Amounts in the Effective Tax Rate The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Tax Cuts and Jobs Act contains several tax law changes that will impact the Company in prior, current and future periods, including a reduction in the U.S. federal corporate tax rate from 35% to 21%, requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, creating new taxes on certain foreign sourced earnings and changes to bonus depreciation, the deduction for executive compensation and interest expense. The Company is applying the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Cuts and Jobs Act. At June 30, 2018, the Company has not completed its accounting for all of the tax effects of the Tax Cuts and Jobs Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the tax effects. As further discussed below, during the six-month period ended June 30, 2018, the Company recognized adjustments of $9 million to the provisional amounts recorded at December 31, 2017 related to the one-time transition tax and the reduction in the corporate income tax rate. The Company will continue to refine its calculations as additional analysis is completed. The Company originally remeasured its U.S. deferred tax assets and liabilities and recorded a $69 million charge relating to the U.S. federal corporate income tax rate change, with a corresponding decrease to its valuation allowance of $69 million. Similarly, the Company originally recorded a $33 million charge for the one-time, mandatory transition tax on unremitted foreign earnings . Subsequent guidance was issued by the Treasury Department and Internal Revenue Service in Notice 2018-26 which clarifies that companies may elect-out of using 2017 net operating losses when computing the one-time, mandatory transition tax. The Company refined its one-time, mandatory transition tax calculation, and while the election does not impact the $33 million charge originally recorded, it results in the Company utilizing additional foreign tax credits and preserves the Company’s 2017 net operating loss. The Company remeasured its 2017 net operating loss deferred tax asset and recorded an additional charge of $9 million relating to the U.S. federal corporate income tax rate change with a corresponding decrease to its valuation allowance of $9 million. There was no net impact to the Company’s provision for income taxes related to this adjustment at June 30, 2018. The Tax Cuts and Jobs Act subjects a U.S. shareholder to current tax on Global Intangible Low Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5 Accounting for Global Intangible Low-Taxed Income June 30 To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts would be classified as a component of income tax provision (benefit) in the financial statements consistent with the Company’s policy. The Company is subject to taxation in the United States, various states and foreign jurisdictions. The Company has significant operations in the United States and Canada and to a lesser extent in various other international jurisdictions. 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 2013 and outside the U.S. for the tax years ending after 2011. The Company is indemnified for any income tax exposures related to the periods prior to the Separation under the Tax Matters Agreement with NOV.

Earnings Per Share (_EPS_)

Earnings Per Share (“EPS”)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share (“EPS”)	9. Earnings Per Share (“EPS”) For the three and six months ended June 30, 2018, approximately 6 million and 6 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect. For the three and six months ended June 30, 2017, approximately 8 million and 8 million, respectively, of potentially dilutive shares were excluded from the computation of diluted loss per share due to the Company recognizing a net loss for the period. Basic and diluted income (loss) per share follows (in millions, except share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to the Company $ 14 $ (17 ) $ 16 $ (40 ) Less: net income (loss) attributable to nonvested shares — — — — Net income (loss) attributable to the Company's stockholders $ 14 $ (17 ) $ 16 $ (40 ) Denominator: Weighted average basic common shares outstanding 108,278,356 107,689,554 108,177,100 107,635,122 Effect of dilutive securities 198,632 — 148,337 — Weighted average diluted common shares outstanding 108,476,988 107,689,554 108,325,437 107,635,122 Earnings (loss) per share attributable to the Company's stockholders: Basic $ 0.12 $ (0.16 ) $ 0.15 $ (0.37 ) Diluted $ 0.12 $ (0.16 ) $ 0.15 $ (0.37 ) ASC Topic 260, “Earnings Per Share,” requires companies with unvested participating securities to utilize a two-class method for the computation of net income attributable to the Company per share. The two-class method requires a portion of net income attributable to the Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, if declared. Net losses are not allocated to nonvested shares in periods that the Company determines that those shares are not obligated to participate in losses. For the periods that the Company recognized net income, net income attributable to the Company allocated to these participating securities was excluded from net income attributable to the Company’s stockholders in the numerator of the earnings per share computation.

Stock-based Compensation and Ou

Stock-based Compensation and Outstanding Awards	6 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation and Outstanding Awards	10. Stock-based Compensation and Outstanding Awards The Company has a stock-based compensation plan known as the NOW Inc. Long-Term Incentive Plan (the “Plan”). Under the Plan, the Company’s employees are eligible to be granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock awards (“PSAs”). For the six ended June 30 granted 1,807,822 stock options with a weighted average fair value of $3.95 per share and 357,481 shares of RSAs and RSUs with a weighted average fair value of $10.82 per share. In addition, the Company granted PSAs to senior management employees with potential payouts varying from zero to 364,518 shares. over a three-year period from RSUs vest on anniversary a three-year into three equal, independent parts that are subject to three separate performance : (i) one-third of the PSAs have a Total Shareholder Return (TSR) metric, (ii) one-third of the PSAs have an EBITDA metric, and (iii) one-third Performance against the TSR metric is determined by comparing the performance of the Company’s TSR with the TSR performance of designated peer companies for the three-year performance period. Performance against the EBITDA metric is determined by comparing the performance of the Company’s actual EBITDA average for each of the three-years of the performance period against the EBITDA metrics set by the Company’s Compensation Committee of the Board of Directors. Performance against the WC metric is determined by comparing the performance of the Company’s actual WC average for each of the three-years Stock-based compensation expense totaled $4 million and $8

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies The Company is involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters . The Company has also assessed 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 matters cannot be determined; however, in the Company’s opinion, any ultimate liability, to the extent not otherwise recorded or accrued for, will not materially affect the Company’s 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. The Company’s 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 the Company’s business. Although the Company has not incurred material costs in connection with its 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 the Company. The Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible, but not probable. Estimating reasonably possible losses also requires the analysis of multiple possible outcomes that often depend on judgments about potential actions by third parties. NOW’s management currently estimates a range of loss for reasonably possible losses for which an estimate can be made is between zero and $15 million in the international segment primarily attributable to accounts receivable with one customer. The Company has accrued its best estimate for loss as of June 30, 2018. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly The Company maintains credit arrangements with several banks providing for short-term borrowing capacity, overdraft protection and other bonding requirements. As of June 30, 2018, these credit arrangements totaled approximately $ million. The Company was contingently liable for approximately million of outstanding standby letters of credit, including bid and performance related bonds and surety bonds. The Company does not believe, based on historical experience and information currently

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	12. Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency exchange rate risk. The Company has entered into certain financial derivative instruments to manage this risk. The derivative financial instruments the Company has entered into are forward exchange contracts which have terms of less than one year to economically hedge foreign currency exchange rate risk on recognized non-functional currency monetary accounts. The purpose of the Company’s foreign currency economic hedging activities is to economically hedge the Company’s risk from changes in the fair value of non-functional currency denominated monetary accounts. The Company records all derivative financial instruments at their fair value in its consolidated balance sheets. None of the derivative financial instruments that the Company holds are designated as either a fair value hedge or cash flow hedge and the gain or loss on the derivative instrument is recorded in earnings. The Company has determined that the fair value of its derivative financial instruments are computed using level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange rates at each financial reporting date. As of June 30, 2018, and December 31, 2017, the fair value of the Company’s foreign currency forward contracts totaled an asset of less than $1 million and less than $1 million, respectively, and is included in prepaid and other current assets in the accompanying consolidated balance sheets; a liability of less than $1 million and less than $1 million, respectively, and is included in other current liabilities in the accompanying consolidated balance sheets. For the three and six months ended June 30, 2018, the Company recorded a loss of $1 million and $1 million, respectively, related to the changes in fair value. All gains and losses recorded are included in other expense in the accompanying consolidated statements of operations. The notional principal associated with those contracts was $ 20 As of June 30, 2018, the Company’s financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when the Company’s financial instruments are in net liability positions. The Company does not use derivative financial instruments for trading or speculative purposes.

Organization and Basis of Pre19

Organization and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations NOW Inc. (“NOW” or the “Company”) is a holding company headquartered in Houston, Texas that was incorporated in Delaware on November 22, 2013. NOW operates primarily under the DistributionNOW and Wilson Export brands. NOW is a global distributor of energy products as well as products for industrial applications through its locations in the U.S., Canada and internationally which are geographically positioned to serve the energy and industrial markets in over 80 countries. NOW’s energy product offerings are used in the oil and gas industry including upstream drilling and completion, exploration and production, midstream infrastructure development and downstream petroleum refining – as well as in other industries, such as chemical processing, power generation and industrial manufacturing operations. The industrial distribution portion of NOW’s business targets a diverse range of manufacturing and other facilities across numerous industries and end markets. NOW also provides supply chain management to drilling contractors, E&P operators, midstream operators, downstream energy and industrial manufacturing companies. NOW’s supplier network consists of thousands of vendors in approximately 40 countries.
Basis of Presentation	Basis of Presentation All significant intercompany transactions and accounts have been eliminated. The unaudited consolidated financial information included in this report has been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of SEC Regulation S-X. The principles for interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statements included in the Company’s most recent Annual Report on Form 10-K. In the opinion of the Company’s management, the consolidated 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 and six months ended June 30, 2018 are not
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP 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.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, receivables and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. See Note 12
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition revenue policies. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2018, the FASB issued ASU No. 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ,
Revenue Recognition	Revenue Recognition The Company’s primary source of revenue is the sale of energy products and an extensive selection of products for industrial applications based upon purchase orders or contracts with customers. The majority of revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the product is shipped, delivered, or picked up by the customer. The Company does not grant extended payment terms. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to government authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods, and are recorded in cost of products. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration, which may include product returns, trade discounts and allowances. The Company accrues for variable consideration using the expected value method. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. See Note 7 “Business Segments” for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Remaining Performance Obligations	Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed on contracts with an original expected duration of one year or more. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.
Receivables	Receivables Receivables are recorded when the Company has an unconditional right to consideration.
Contract Assets and Liabilities	Contract Assets and Liabilities Contract assets primarily consist of retainage amounts held as a form of security by customers until the Company satisfies its remaining performance obligations . assets were de minimis for were not material Contract liabilities primarily consist of deferred revenues recorded when customer payments are received or due in advance of satisfying performance obligations, including amounts which are refundable, and other accrued customer liabilities. Revenue recognition is deferred to a future period until the Company completes its obligations contractually agreed with customers. The increase in contract liabilities for the six months ended June 30, 2018 was primarily related to customer deposits of approximately $17 million, partially offset by approximately $11 million of revenue recognized that was deferred at the beginning of the period.

Property, Plant and Equipment20

Property, Plant and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2018
Property Plant And Equipment [Abstract]
Summary of Property, Plant and Equipment	Property, plant and equipment consist of (in millions): Estimated Useful Lives June 30, 2018 December 31, 2017 Information technology assets 1-7 Years $ 45 $ 48 Operating equipment 2-15 Years 90 93 Buildings and land (1) 5-35 Years 96 97 Construction in progress 1 — Total property, plant and equipment 232 238 Less: accumulated depreciation (123 ) (119 ) Property, plant and equipment, net $ 109 $ 119 (1) Land has an indefinite life .

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables And Accruals [Abstract]
Summary of Accrued Liabilities	Accrued liabilities consist of (in millions): June 30, 2018 December 31, 2017 Compensation and other related expenses $ 32 $ 36 Contract liabilities (1) 29 19 Taxes (non-income) 12 15 Other 30 33 Total $ 103 $ 103 (1) Previously shown as customer credits and prepayments.

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Components of Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are as follows (in millions) Foreign Currency Translation Adjustments Balance at December 31, 2017 $ (105 ) Other comprehensive loss (19 ) Balance at June 30, 2018 $ (124 )

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Summary of Operating Results by Reportable Segment	Operating results by reportable segment are as follows (in millions) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue: United States $ 600 $ 481 $ 1,162 $ 920 Canada 75 79 177 175 International 102 91 202 187 Total revenue $ 777 $ 651 $ 1,541 $ 1,282 Operating profit (loss): United States $ 16 $ (16 ) $ 19 $ (42 ) Canada 1 2 5 5 International 1 — 1 2 Total operating profit (loss) $ 18 $ (14 ) $ 25 $ (35 ) Operating profit (loss) % of revenue: United States 2.7 % (3.3 %) 1.6 % (4.6 %) Canada 1.3 % 2.5 % 2.8 % 2.9 % International 1.0 % 0.0 % 0.5 % 1.1 % Total operating profit (loss) % 2.3 % (2.2 %) 1.6 % (2.7 %)

Earnings Per Share (_EPS_) (Tab

Earnings Per Share (“EPS”) (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income (Loss) Per Share	Basic and diluted income (loss) per share follows (in millions, except share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to the Company $ 14 $ (17 ) $ 16 $ (40 ) Less: net income (loss) attributable to nonvested shares — — — — Net income (loss) attributable to the Company's stockholders $ 14 $ (17 ) $ 16 $ (40 ) Denominator: Weighted average basic common shares outstanding 108,278,356 107,689,554 108,177,100 107,635,122 Effect of dilutive securities 198,632 — 148,337 — Weighted average diluted common shares outstanding 108,476,988 107,689,554 108,325,437 107,635,122 Earnings (loss) per share attributable to the Company's stockholders: Basic $ 0.12 $ (0.16 ) $ 0.15 $ (0.37 ) Diluted $ 0.12 $ (0.16 ) $ 0.15 $ (0.37 )

Organization and Basis of Pre25

Organization and Basis of Presentation - Additional Information (Detail)	Nov. 22, 2013GeographicMarketVendorCountry	Jun. 30, 2018Pension_Plan
Basis Of Presentation And Organization [Line Items]
Number of geographical area covered | GeographicMarket	80
Number of vendors | Vendor	1,000
Number of countries distribution occur through vendors | Country	40
UK [Member]
Basis Of Presentation And Organization [Line Items]
Number of defined benefit plan | Pension_Plan		2

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Increase in contract liabilies for customer deposits	$ 17
Deferred revenue recognized		$ 11
Maximum [Member]
Disaggregation Of Revenue [Line Items]
Expected recognition period of revenue	1 year
Amortization period of revenue recognized	1 year
Accounting Standards Update 2014-09 [Member] | Receivables and Deferred Revenue [Member]
Disaggregation Of Revenue [Line Items]
Additional receivables and deferred revenue related to recognition of receivables with unconditional right to payment	$ 5

Property, Plant and Equipment27

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 232	$ 238
Less: accumulated depreciation	(123)	(119)
Property, plant and equipment, net	109	119
Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	45	48
Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	90	93
Buildings and Land [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	96	$ 97
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1
Minimum [Member] | Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	1 year
Minimum [Member] | Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	2 years
Minimum [Member] | Buildings [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	5 years
Maximum [Member] | Information Technology Assets [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	7 years
Maximum [Member] | Operating Equipment [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	15 years
Maximum [Member] | Buildings [Member]
Property Plant And Equipment [Line Items]
Property plant and equipment estimated useful lives	35 years

Property, Plant and Equipment28

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2018
Land [Member]
Property Plant And Equipment [Line Items]
Estimated Useful Lives	indefinite life

Accrued Liabilities - Summary o

Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Compensation and other related expenses	$ 32	$ 36
Contract liabilities	29	19
Taxes (non-income)	12	15
Other	30	33
Total	$ 103	$ 103

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Apr. 30, 2018	Jun. 30, 2018
Debt Instrument [Line Items]
Term of loan	5 years
Agreement date		Apr. 30, 2018
Senior secured revolving credit facility commitment	$ 750,000,000
Sub-facility for letter of credit	$ 60,000,000
Percentage of swing line sub facility	10.00%
Increase in aggregate principal amount	$ 250,000,000
Description of line of credit		The Company will be required to maintain a fixed charge coverage ratio of at least 1.00:1.00 as of the end of each fiscal quarter if excess availability under the Credit Facility falls below the greater of 12.5% of the borrowing base or $60 million.
Minimum amount of credit facility required to maintain coverage ratio percentage	12.50%
Minimum amount of credit facility required to maintain coverage ratio	$ 60,000,000
Fixed charge coverage ratio	100.00%
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility borrowings		$ 195,000,000
Line of Credit Facility, Available Borrowing Capacity		$ 332,000,000
Line Of credit Unused Capacity Percentage		62.00%
Letters of credit		$ 6,000,000
Casualty insurance, expiration month and year		2019-07
Minimum [Member]
Debt Instrument [Line Items]
Unused portion of commitment fee range		0.25%
Maximum [Member]
Debt Instrument [Line Items]
Unused portion of commitment fee range		0.375%
Canadian Subsidiaries [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility commitment	$ 100,000,000
UK Subsidiaries [Member]
Debt Instrument [Line Items]
Senior secured revolving credit facility commitment	$ 40,000,000

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Accumulated other comprehensive income (loss), Beginning balance	$ (105)
Accumulated other comprehensive income (loss), Ending balance	(124)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated other comprehensive income (loss), Beginning balance	(105)
Other comprehensive loss	(19)
Accumulated other comprehensive income (loss), Ending balance	$ (124)

Business Segments - Summary of

Business Segments - Summary of Operating Results by Reportable Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Total revenue	$ 777	$ 651	$ 1,541	$ 1,282
Operating profit (loss):
Total operating loss	$ 18	$ (14)	$ 25	$ (35)
Operating profit (loss) % of revenue:
Total operating loss %	2.30%	(2.20%)	1.60%	(2.70%)
United States [Member]
Revenue:
Total revenue	$ 600	$ 481	$ 1,162	$ 920
Operating profit (loss):
Total operating loss	$ 16	$ (16)	$ 19	$ (42)
Operating profit (loss) % of revenue:
Total operating loss %	2.70%	(3.30%)	1.60%	(4.60%)
Canada [Member]
Revenue:
Total revenue	$ 75	$ 79	$ 177	$ 175
Operating profit (loss):
Total operating loss	$ 1	$ 2	$ 5	$ 5
Operating profit (loss) % of revenue:
Total operating loss %	1.30%	2.50%	2.80%	2.90%
International [Member]
Revenue:
Total revenue	$ 102	$ 91	$ 202	$ 187
Operating profit (loss):
Total operating loss	$ 1		$ 1	$ 2
Operating profit (loss) % of revenue:
Total operating loss %	1.00%	0.00%	0.50%	1.10%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Schedule Of Income Tax [Line Items]
Effective tax rates	6.10%	(0.10%)	9.30%	1.00%
U.S. federal corporate tax rate			21.00%		35.00%
Tax cuts and jobs act of 2017, Adjustments of provisional income tax expense			$ 9
Charge relating to change in U.S. federal corporate tax rate			69
Change in valuation allowance			(69)
Charge relating to one-time transition tax on unremitted foreign earnings			33
Net operating loss deferred tax asset, additional charge			9
Maximum [Member]
Schedule Of Income Tax [Line Items]
Global intangible low taxed income provisions and recognized provisional tax expense			1
Valuation Allowance,Net Operating Loss [Member]
Schedule Of Income Tax [Line Items]
Change in valuation allowance			$ (9)

Earnings Per Share ("EPS") - Ad

Earnings Per Share ("EPS") - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Antidilutive Securities excluded from Computation of Earnings Per Share	6,000,000	8,000,000	6,000,000	8,000,000

Earnings Per Share ("EPS") - Co

Earnings Per Share ("EPS") - Computation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income (loss) attributable to the Company	$ 14	$ (17)	$ 16	$ (40)
Net income (loss) attributable to the Company's stockholders	$ 14	$ (17)	$ 16	$ (40)
Denominator:
Weighted-average common shares outstanding, basic	108,278,356	107,689,554	108,177,100	107,635,122
Effect of dilutive securities	198,632		148,337
Weighted average diluted common shares outstanding	108,476,988	107,689,554	108,325,437	107,635,122
Basic	$ 0.12	$ (0.16)	$ 0.15	$ (0.37)
Diluted	$ 0.12	$ (0.16)	$ 0.15	$ (0.37)

Stock-based Compensation and 36

Stock-based Compensation and Outstanding Awards - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option granted			1,807,822
Stock option granted, weighted average fair value			$ 3.95
Stock-based compensation expense	$ 4	$ 5	$ 8	$ 11
Restricted Stock and Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			357,481
Stock based awards, shares granted, weighted average fair value			$ 10.82
Performance-base restricted stock [Member] | Minimum [Member] | Senior Management Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			0
Performance-base restricted stock [Member] | Maximum [Member] | Senior Management Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, shares granted			364,518
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based awards, vested, number of years			3 years
TSR metric [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock awards granted in percent			33.33%
Performance based restricted stock awards goals over performance period			3 years
EBITDA metric [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock awards granted in percent			33.33%
Performance based restricted stock awards goals over performance period			3 years
Working Capital (WC) metric [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based restricted stock awards granted in percent			33.33%
Performance based restricted stock awards goals over performance period			3 years

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jun. 30, 2018USD ($)
Loss Contingencies [Line Items]
Credit arrangements	$ 35,000,000
Contingent liability	10,000,000
Minimum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	0
Maximum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	$ 15,000,000

Derivative Financial Instrume38

Derivative Financial Instruments - Additional Information (Detail) - Derivatives Not Designated as Hedging Instrument [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, notional amount	$ 20	$ 20	$ 37
Other Expense [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, loss related to changes in fair value	1	1
Prepaid and Other Current Assets [Member] | Maximum [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, assets	1	1	1
Other Current Liabilities [Member] | Maximum [Member]
Derivatives Fair Value [Line Items]
Foreign currency forward contracts, liability	$ 1	$ 1	$ 1