Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2014 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Condensed Consolidating Financial Statements | ' |
Condensed Consolidating Financial Statements |
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Weatherford International plc (“Weatherford Ireland”), a public limited company organized under the laws of Ireland, and the ultimate parent of the Weatherford group guarantees certain obligations of Weatherford International Ltd., a Bermuda exempted company (“Weatherford Bermuda”), and Weatherford International, LLC, a Delaware limited liability company (“Weatherford Delaware”), including the notes and credit facilities listed below. |
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The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at September 30, 2014 and December 31, 2013: (1) 6.35% senior notes and (2) 6.80% senior notes. |
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The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2014 and December 31, 2013: (1) revolving credit facility, (2) 5.50% senior notes, (3) 6.50% senior notes, (4) 6.00% senior notes, (5) 7.00% senior notes, (6) 9.625% senior notes, (7) 9.875% senior notes, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes and (11) 5.95% senior notes. In 2013, we entered into a 364-day term loan facility, which was an obligation of Weatherford Bermuda guaranteed by Weatherford Delaware as of December 31, 2013. In 2014, we refinanced the 364-day term loan facility with a new 364-day term loan facility, which was an obligation of Weatherford Bermuda guaranteed by Weatherford Delaware as of September 30, 2014. |
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As a result of certain of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The accompanying guarantor financial information is presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. |
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Condensed Consolidating Statement of Operations and |
Comprehensive Income (Loss) |
Three Months Ended September 30, 2014 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford Bermuda | | Weatherford Delaware | | Other | | Eliminations | | Consolidation |
Ireland | Subsidiaries |
Revenues | $ | — | | | $ | — | | | $ | — | | | $ | 3,877 | | | $ | — | | | $ | 3,877 | |
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Costs and Expenses | (6 | ) | | — | | | — | | | (3,553 | ) | | — | | | (3,559 | ) |
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Operating Income (Loss) | (6 | ) | | — | | | — | | | 324 | | | — | | | 318 | |
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| | | | | | | | | | | |
Other Income (Expense): | | | | | | | | | | | |
Interest Expense, Net | — | | | (106 | ) | | (14 | ) | | (2 | ) | | — | | | (122 | ) |
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Intercompany Charges, Net | (31 | ) | | 5 | | | (28 | ) | | 54 | | | — | | | — | |
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Equity in Subsidiary Income | 112 | | | 242 | | | 429 | | | (1 | ) | | (782 | ) | | — | |
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Other, Net | 1 | | | 15 | | | — | | | (25 | ) | | — | | | (9 | ) |
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Income (Loss) Before Income Taxes | 76 | | | 156 | | | 387 | | | 350 | | | (782 | ) | | 187 | |
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(Provision) Benefit for Income Taxes | 1 | | | — | | | 15 | | | (114 | ) | | — | | | (98 | ) |
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Net Income (Loss) | 77 | | | 156 | | | 402 | | | 236 | | | (782 | ) | | 89 | |
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Noncontrolling Interests | — | | | — | | | — | | | (12 | ) | | — | | | (12 | ) |
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Net Income (Loss) Attributable to Weatherford | $ | 77 | | | $ | 156 | | | $ | 402 | | | $ | 224 | | | $ | (782 | ) | | $ | 77 | |
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Comprehensive Income (Loss) Attributable to Weatherford | $ | (130 | ) | | $ | 175 | | | $ | 450 | | | $ | 161 | | | $ | (786 | ) | | $ | (130 | ) |
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Condensed Consolidating Statement of Operations and |
Comprehensive Income (Loss) |
Three Months Ended September 30, 2013 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Switzerland | Bermuda | Delaware | Subsidiaries |
Revenues | $ | — | | | $ | — | | | $ | — | | | $ | 3,820 | | | $ | — | | | $ | 3,820 | |
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Costs and Expenses | (6 | ) | | — | | | (1 | ) | | (3,574 | ) | | — | | | (3,581 | ) |
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Operating Income (Loss) | (6 | ) | | — | | | (1 | ) | | 246 | | | — | | | 239 | |
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Other Income (Expense): | | | | | | | | | | | |
Interest Expense, Net | — | | | (108 | ) | | (15 | ) | | (6 | ) | | — | | | (129 | ) |
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Intercompany Charges, Net | (2 | ) | | 12 | | | (85 | ) | | 75 | | | — | | | — | |
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Equity in Subsidiary Income | 31 | | | 35 | | | 62 | | | — | | | (128 | ) | | — | |
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Other, Net | (1 | ) | | (26 | ) | | — | | | (3 | ) | | — | | | (30 | ) |
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Income (Loss) Before Income Taxes | 22 | | | (87 | ) | | (39 | ) | | 312 | | | (128 | ) | | 80 | |
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(Provision) Benefit for Income Taxes | — | | | — | | | 35 | | | (84 | ) | | — | | | (49 | ) |
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Net Income (Loss) | 22 | | | (87 | ) | | (4 | ) | | 228 | | | (128 | ) | | 31 | |
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Noncontrolling Interests | — | | | — | | | — | | | (9 | ) | | — | | | (9 | ) |
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Net Income (Loss) Attributable to Weatherford | $ | 22 | | | $ | (87 | ) | | $ | (4 | ) | | $ | 219 | | | $ | (128 | ) | | $ | 22 | |
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Comprehensive Income (Loss) Attributable to Weatherford | $ | 118 | | | $ | (10 | ) | | $ | 73 | | | $ | 314 | | | $ | (377 | ) | | $ | 118 | |
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Condensed Consolidating Statement of Operations and |
Comprehensive Income (Loss) |
Nine Months Ended September 30, 2014 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Ireland | Bermuda | Delaware | Subsidiaries |
Revenues | $ | — | | | $ | — | | | $ | — | | | $ | 11,184 | | | $ | — | | | $ | 11,184 | |
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Costs and Expenses | (34 | ) | | (1 | ) | | (1 | ) | | (10,675 | ) | | — | | | (10,711 | ) |
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Operating Income (Loss) | (34 | ) | | (1 | ) | | (1 | ) | | 509 | | | — | | | 473 | |
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Other Income (Expense): | | | | | | | | | | | |
Interest Expense, Net | — | | | (317 | ) | | (43 | ) | | (16 | ) | | — | | | (376 | ) |
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Intercompany Charges, Net | (43 | ) | | 7,331 | | | (105 | ) | | (9,003 | ) | | 1,820 | | | — | |
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Equity in Subsidiary Income | (32 | ) | | 130 | | | 265 | | | (1 | ) | | (362 | ) | | — | |
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Other, Net | — | | | — | | | (1 | ) | | (36 | ) | | — | | | (37 | ) |
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Income (Loss) Before Income Taxes | (109 | ) | | 7,143 | | | 115 | | | (8,547 | ) | | 1,458 | | | 60 | |
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(Provision) Benefit for Income Taxes | — | | | — | | | 52 | | | (188 | ) | | — | | | (136 | ) |
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Net Income (Loss) | (109 | ) | | 7,143 | | | 167 | | | (8,735 | ) | | 1,458 | | | (76 | ) |
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Noncontrolling Interests | — | | | — | | | — | | | (33 | ) | | — | | | (33 | ) |
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Net Income (Loss) Attributable to Weatherford | $ | (109 | ) | | $ | 7,143 | | | $ | 167 | | | $ | (8,768 | ) | | $ | 1,458 | | | $ | (109 | ) |
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Comprehensive Income (Loss) Attributable to Weatherford | $ | (352 | ) | | $ | 7,162 | | | $ | 215 | | | $ | (8,831 | ) | | $ | 1,454 | | | $ | (352 | ) |
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Condensed Consolidating Statement of Operations and |
Comprehensive Income (Loss) |
Nine Months Ended September 30, 2013 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Switzerland | Bermuda | Delaware | Subsidiaries |
Revenues | $ | — | | | $ | — | | | $ | — | | | $ | 11,525 | | | $ | — | | | $ | 11,525 | |
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Costs and Expenses | (24 | ) | | (122 | ) | | (2 | ) | | (10,804 | ) | | — | | | (10,952 | ) |
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Operating Income (Loss) | (24 | ) | | (122 | ) | | (2 | ) | | 721 | | | — | | | 573 | |
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Other Income (Expense): | | | | | | | | | | | |
Interest Expense, Net | — | | | (326 | ) | | (46 | ) | | (16 | ) | | — | | | (388 | ) |
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Intercompany Charges, Net | (27 | ) | | 25 | | | (164 | ) | | 166 | | | — | | | — | |
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Equity in Subsidiary Income | (23 | ) | | 213 | | | 293 | | | — | | | (483 | ) | | — | |
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Other, Net | — | | | (16 | ) | | (1 | ) | | (144 | ) | | — | | | (161 | ) |
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Income (Loss) Before Income Taxes | (74 | ) | | (226 | ) | | 80 | | | 727 | | | (483 | ) | | 24 | |
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(Provision) Benefit for Income Taxes | — | | | — | | | 74 | | | (148 | ) | | — | | | (74 | ) |
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Net Income (Loss) | (74 | ) | | (226 | ) | | 154 | | | 579 | | | (483 | ) | | (50 | ) |
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Noncontrolling Interests | — | | | — | | | — | | | (24 | ) | | — | | | (24 | ) |
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Net Income (Loss) Attributable to Weatherford | $ | (74 | ) | | $ | (226 | ) | | $ | 154 | | | $ | 555 | | | $ | (483 | ) | | $ | (74 | ) |
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Comprehensive Income (Loss) Attributable to Weatherford | $ | (300 | ) | | $ | (406 | ) | | $ | 38 | | | $ | 328 | | | $ | 40 | | | $ | (300 | ) |
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Condensed Consolidating Balance Sheet |
September 30, 2014 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Ireland | Bermuda | Delaware | Subsidiaries |
Current Assets: | | | | | | | | | | | |
Cash and Cash Equivalents | $ | — | | | $ | 3 | | | $ | 22 | | | $ | 557 | | | $ | — | | | $ | 582 | |
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Other Current Assets | 4 | | | 5 | | | 453 | | | 8,329 | | | (446 | ) | | 8,345 | |
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Total Current Assets | 4 | | | 8 | | | 475 | | | 8,886 | | | (446 | ) | | 8,927 | |
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Equity Investments in Affiliates | 9,493 | | | 11,082 | | | 8,329 | | | 5,281 | | | (34,185 | ) | | — | |
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Intercompany Receivables, Net | — | | | — | | | — | | | 7,183 | | | (7,183 | ) | | — | |
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Other Assets | 5 | | | 37 | | | 17 | | | 11,741 | | | — | | | 11,800 | |
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Total Assets | $ | 9,502 | | | $ | 11,127 | | | $ | 8,821 | | | $ | 33,091 | | | $ | (41,814 | ) | | $ | 20,727 | |
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Current Liabilities: | | | | | | | | | | | |
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | | | $ | 1,585 | | | $ | 22 | | | $ | 108 | | | $ | — | | | $ | 1,715 | |
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Accounts Payable and Other Current Liabilities | 19 | | | 70 | | | — | | | 3,520 | | | (446 | ) | | 3,163 | |
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Total Current Liabilities | 19 | | | 1,655 | | | 22 | | | 3,628 | | | (446 | ) | | 4,878 | |
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Long-term Debt | — | | | 5,888 | | | 970 | | | 145 | | | 1 | | | 7,004 | |
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Intercompany Payables, Net | 1,607 | | | 5,133 | | | 443 | | | — | | | (7,183 | ) | | — | |
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Other Long-term Liabilities | 13 | | | 89 | | | 8 | | | 793 | | | — | | | 903 | |
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Total Liabilities | 1,639 | | | 12,765 | | | 1,443 | | | 4,566 | | | (7,628 | ) | | 12,785 | |
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Weatherford Shareholders’ Equity | 7,863 | | | (1,638 | ) | | 7,378 | | | 28,446 | | | (34,186 | ) | | 7,863 | |
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Noncontrolling Interests | — | | | — | | | — | | | 79 | | | — | | | 79 | |
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Total Liabilities and Shareholders’ Equity | $ | 9,502 | | | $ | 11,127 | | | $ | 8,821 | | | $ | 33,091 | | | $ | (41,814 | ) | | $ | 20,727 | |
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Condensed Consolidating Balance Sheet |
December 31, 2013 |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Switzerland | Bermuda | Delaware | Subsidiaries |
Current Assets: | | | | | | | | | | | |
Cash and Cash Equivalents | $ | — | | | $ | — | | | $ | — | | | $ | 435 | | | $ | — | | | $ | 435 | |
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Other Current Assets | 57 | | | 5 | | | 415 | | | 9,280 | | | (408 | ) | | 9,349 | |
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Total Current Assets | 57 | | | 5 | | | 415 | | | 9,715 | | | (408 | ) | | 9,784 | |
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Equity Investments in Affiliates | 8,663 | | | 11,742 | | | 8,065 | | | 6,466 | | | (34,936 | ) | | — | |
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Equity Held in Parent | — | | | — | | | 10 | | | 27 | | | (37 | ) | | — | |
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Intercompany Receivables, Net | — | | | — | | | — | | | 7,304 | | | (7,304 | ) | | — | |
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Other Assets | 7 | | | 41 | | | 17 | | | 12,128 | | | — | | | 12,193 | |
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Total Assets | $ | 8,727 | | | $ | 11,788 | | | $ | 8,507 | | | $ | 35,640 | | | $ | (42,685 | ) | | $ | 21,977 | |
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Current Liabilities: | | | | | | | | | | | |
Short-term Borrowings and Current Portion of Long-Term Debt | $ | — | | | $ | 1,445 | | | $ | 23 | | | $ | 185 | | | $ | — | | | $ | 1,653 | |
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Accounts Payable and Other Current Liabilities | 312 | | | 129 | | | — | | | 4,052 | | | (408 | ) | | 4,085 | |
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Total Current Liabilities | 312 | | | 1,574 | | | 23 | | | 4,237 | | | (408 | ) | | 5,738 | |
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Long-term Debt | — | | | 5,891 | | | 986 | | | 184 | | | — | | | 7,061 | |
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Intercompany Payables, Net | 243 | | | 6,755 | | | 306 | | | — | | | (7,304 | ) | | — | |
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Other Long-term Liabilities | 10 | | | 97 | | | 2 | | | 866 | | | — | | | 975 | |
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Total Liabilities | 565 | | | 14,317 | | | 1,317 | | | 5,287 | | | (7,712 | ) | | 13,774 | |
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Weatherford Shareholders’ Equity | 8,162 | | | (2,529 | ) | | 7,190 | | | 30,312 | | | (34,973 | ) | | 8,162 | |
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Noncontrolling Interests | — | | | — | | | — | | | 41 | | | — | | | 41 | |
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Total Liabilities and Shareholders’ Equity | $ | 8,727 | | | $ | 11,788 | | | $ | 8,507 | | | $ | 35,640 | | | $ | (42,685 | ) | | $ | 21,977 | |
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Condensed Consolidating Statement of Cash Flows |
Nine Months Ended September 30, 2014 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Ireland | Bermuda | Delaware | Subsidiaries |
Cash Flows from Operating Activities: | | | | | | | | | | | |
Net Income (Loss) | $ | (109 | ) | | $ | 7,143 | | | $ | 167 | | | $ | (8,735 | ) | | $ | 1,458 | | | $ | (76 | ) |
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Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | | | | | | | | | | | |
Charges from Parent or Subsidiary | 43 | | | (7,331 | ) | | 105 | | | 9,003 | | | (1,820 | ) | | — | |
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Equity in (Earnings) Loss of Affiliates | 32 | | | (130 | ) | | (265 | ) | | 1 | | | 362 | | | — | |
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Deferred Income Tax Provision (Benefit) | — | | | — | | | — | | | 31 | | | — | | | 31 | |
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Other Adjustments | 3 | | | (65 | ) | | 23 | | | 463 | | | — | | | 424 | |
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Net Cash Provided (Used) by Operating Activities | (31 | ) | | (383 | ) | | 30 | | | 763 | | | — | | | 379 | |
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Cash Flows from Investing Activities: | | | | | | | | | | | |
Capital Expenditures for Property, Plant and Equipment | — | | | — | | | — | | | (1,045 | ) | | — | | | (1,045 | ) |
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Acquisitions of Businesses, Net of Cash Acquired | — | | | — | | | — | | | 17 | | | — | | | 17 | |
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Acquisition of Intellectual Property | — | | | — | | | — | | | (3 | ) | | — | | | (3 | ) |
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Proceeds from Sale of Assets and Businesses, Net | — | | | — | | | — | | | 781 | | | — | | | 781 | |
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Capital Contribution to Subsidiary | — | | | — | | | — | | | — | | | — | | | — | |
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Net Cash Provided (Used) by Investing Activities | — | | | — | | | — | | | (250 | ) | | — | | | (250 | ) |
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Cash Flows from Financing Activities: | | | | | | | | | | | |
Borrowings (Repayments) Short-term Debt, Net | — | | | 140 | | | — | | | (94 | ) | | — | | | 46 | |
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Borrowings (Repayments) Long-term Debt, Net | — | | | — | | | (16 | ) | | (33 | ) | | — | | | (49 | ) |
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Borrowings (Repayments) Between Subsidiaries, Net | 31 | | | 246 | | | 8 | | | (285 | ) | | — | | | — | |
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Proceeds from Sale of EDC Treasury Shares | — | | | — | | | — | | | 22 | | | — | | | 22 | |
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Other, Net | — | | | — | | | — | | | (12 | ) | | — | | | (12 | ) |
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Net Cash Provided (Used) by Financing Activities | 31 | | | 386 | | | (8 | ) | | (402 | ) | | — | | | 7 | |
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Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | | | — | | | — | | | 11 | | | — | | | 11 | |
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Net Increase in Cash and Cash Equivalents | — | | | 3 | | | 22 | | | 122 | | | — | | | 147 | |
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Cash and Cash Equivalents at Beginning of Period | — | | | — | | | — | | | 435 | | | — | | | 435 | |
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Cash and Cash Equivalents at End of Period | $ | — | | | $ | 3 | | | $ | 22 | | | $ | 557 | | | $ | — | | | $ | 582 | |
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Condensed Consolidating Statement of Cash Flows |
Nine Months Ended September 30, 2013 |
(Unaudited) |
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| | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | Weatherford | | Weatherford | | Weatherford | | Other | | Eliminations | | Consolidation |
Switzerland | Bermuda | Delaware | Subsidiaries |
Cash Flows from Operating Activities: | | | | | | | | | | | |
Net Income (Loss) | $ | (74 | ) | | $ | (226 | ) | | $ | 154 | | | $ | 579 | | | $ | (483 | ) | | $ | (50 | ) |
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Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: | | | | | | | | | | | |
Charges from Parent or Subsidiary | 27 | | | (25 | ) | | 164 | | | (166 | ) | | — | | | — | |
|
Equity in (Earnings) Loss of Affiliates | 23 | | | (213 | ) | | (293 | ) | | — | | | 483 | | | — | |
|
Deferred Income Tax Provision (Benefit) | — | | | — | | | — | | | (168 | ) | | — | | | (168 | ) |
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Other Adjustments | 208 | | | 625 | | | 34 | | | (82 | ) | | — | | | 785 | |
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Net Cash Provided (Used) by Operating Activities | 184 | | | 161 | | | 59 | | | 163 | | | — | | | 567 | |
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Cash Flows from Investing Activities: | | | | | | | | | | | |
Capital Expenditures for Property, Plant and Equipment | — | | | — | | | — | | | (1,211 | ) | | — | | | (1,211 | ) |
|
Acquisitions of Businesses, Net of Cash Acquired | — | | | — | | | — | | | (7 | ) | | — | | | (7 | ) |
|
Acquisition of Intellectual Property | — | | | — | | | — | | | (7 | ) | | — | | | (7 | ) |
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Proceeds from Sale of Assets and Businesses, Net | — | | | — | | | — | | | 74 | | | — | | | 74 | |
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Capital Contribution to Subsidiary | (129 | ) | | — | | | — | | | — | | | 129 | | | — | |
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Net Cash Provided (Used) by Investing Activities | (129 | ) | | — | | | — | | | (1,151 | ) | | 129 | | | (1,151 | ) |
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Cash Flows from Financing Activities: | | | | | | | | | | | |
Borrowings (Repayments) Short-term Debt, Net | — | | | 905 | | | (4 | ) | | 31 | | | — | | | 932 | |
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Borrowings (Repayments) Long-term Debt, Net | — | | | (294 | ) | | (18 | ) | | (17 | ) | | — | | | (329 | ) |
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Borrowings (Repayments) Between Subsidiaries, Net | (54 | ) | | (769 | ) | | (37 | ) | | 860 | | | — | | | — | |
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Proceeds from Capital Contributions | — | | | — | | | — | | | 129 | | | (129 | ) | | — | |
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Other, Net | — | | | — | | | — | | | 1 | | | — | | | 1 | |
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Net Cash Provided (Used) by Financing Activities | (54 | ) | | (158 | ) | | (59 | ) | | 1,004 | | | (129 | ) | | 604 | |
|
Effect of Exchange Rate Changes On Cash and Cash Equivalents | — | | | — | | | — | | | (4 | ) | | — | | | (4 | ) |
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Net Increase in Cash and Cash Equivalents | 1 | | | 3 | | | — | | | 12 | | | — | | | 16 | |
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Cash and Cash Equivalents at Beginning of Period | — | | | — | | | — | | | 300 | | | — | | | 300 | |
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Cash and Cash Equivalents at End of Period | $ | 1 | | | $ | 3 | | | $ | — | | | $ | 312 | | | $ | — | | | $ | 316 | |
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