Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 23, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Weatherford International plc | |
Entity Central Index Key | 1,603,923 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 992,527,349 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Products | $ 535,000,000 | $ 485,000,000 | $ 1,534,000,000 | $ 1,524,000,000 |
Services | 925,000,000 | 871,000,000 | 2,675,000,000 | 2,819,000,000 |
Total Revenues | 1,460,000,000 | 1,356,000,000 | 4,209,000,000 | 4,343,000,000 |
Costs and Expenses: | ||||
Cost of Products | 480,000,000 | 508,000,000 | 1,439,000,000 | 1,603,000,000 |
Cost of Services | 716,000,000 | 722,000,000 | 2,151,000,000 | 2,339,000,000 |
Research and Development | 42,000,000 | 33,000,000 | 117,000,000 | 119,000,000 |
Selling, General and Administrative Attributable to Segments | 230,000,000 | 237,000,000 | 676,000,000 | 736,000,000 |
Corporate General and Administrative | 28,000,000 | 30,000,000 | 94,000,000 | 106,000,000 |
Long-lived Asset Impairments, Write-Downs and Other Charges | (2,000,000) | 740,000,000 | (17,000,000) | 952,000,000 |
Restructuring Charges | 34,000,000 | 22,000,000 | 140,000,000 | 150,000,000 |
Litigation Charges, Net | (4,000,000) | 9,000,000 | (4,000,000) | 190,000,000 |
Total Costs and Expenses | 1,524,000,000 | 2,301,000,000 | 4,596,000,000 | 6,195,000,000 |
Operating Income (Loss) | (64,000,000) | (945,000,000) | (387,000,000) | (1,852,000,000) |
Other Income (Expense): | ||||
Interest Expense, Net | (148,000,000) | (129,000,000) | (427,000,000) | (363,000,000) |
Bond Tender Premium, Net | 0 | 0 | 0 | (78,000,000) |
Warrant Fair Value Adjustment | (7,000,000) | 0 | 58,000,000 | 0 |
Currency Devaluation Charges | 0 | 0 | 0 | (31,000,000) |
Other Expense, Net | (7,000,000) | (10,000,000) | (28,000,000) | (16,000,000) |
Loss Before Income Taxes | (226,000,000) | (1,084,000,000) | (784,000,000) | (2,340,000,000) |
Income Tax Provision | (25,000,000) | (692,000,000) | (75,000,000) | (489,000,000) |
Net Loss | (251,000,000) | (1,776,000,000) | (859,000,000) | (2,829,000,000) |
Net Income Attributable to Noncontrolling Interests | 5,000,000 | 4,000,000 | 16,000,000 | 14,000,000 |
Net Income (Loss) Attributable to Weatherford | $ (256,000,000) | $ (1,780,000,000) | $ (875,000,000) | $ (2,843,000,000) |
Loss Per Share Attributable to Weatherford: | ||||
Basic | $ (0.26) | $ (1.98) | $ (0.88) | $ (3.27) |
Diluted | $ (0.26) | $ (1.98) | $ (0.88) | $ (3.27) |
Weighted Average Shares Outstanding: | ||||
Weighted average number of shares outstanding, basic | 990 | 899 | 989 | 871 |
Diluted | 990 | 899 | 989 | 871 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Loss | $ (251) | $ (1,776) | $ (859) | $ (2,829) |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Currency Translation Adjustments | 91 | (42) | 165 | 90 |
Defined Benefit Pension Activity | (3) | 0 | (44) | 1 |
Other | 0 | 0 | 0 | 1 |
Other Comprehensive Income (Loss) | 88 | (42) | 121 | 92 |
Comprehensive Loss | (163) | (1,818) | (738) | (2,737) |
Comprehensive Income Attributable to Noncontrolling Interests | 5 | 4 | 16 | 14 |
Comprehensive Loss Attributable to Weatherford | $ (168) | $ (1,822) | $ (754) | $ (2,751) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and Cash Equivalents | $ 445 | $ 1,037 |
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $85 in 2017 and $129 in 2016 | 1,236 | 1,383 |
Inventories, Net | 1,752 | 1,802 |
Prepaid Expenses | 266 | 263 |
Other Current Assets | 409 | 402 |
Assets Held for Sale | 935 | 23 |
Total Current Assets | 5,043 | 4,910 |
Property, Plant and Equipment, Net of Accumulated Depreciation of $7,633 in 2017 and $7,362 in 2016 | 3,989 | 4,480 |
Goodwill | 2,346 | 2,797 |
Other Intangible Assets, Net of Accumulated Amortization of $860 in 2017 and $801 in 2016 | 229 | 248 |
Equity Investments | 65 | 66 |
Other Non-Current Assets | 341 | 163 |
Total Assets | 12,013 | 12,664 |
Current Liabilities: | ||
Short-term Borrowings and Current Portion of Long-term Debt | 391 | 179 |
Accounts Payable | 815 | 845 |
Accrued Salaries and Benefits | 285 | 291 |
Income Taxes Payable | 223 | 255 |
Other Current Liabilities | 702 | 858 |
Liabilities Held for Sale | 54 | 0 |
Total Current Liabilities | 2,470 | 2,428 |
Long-term Debt | 7,530 | 7,403 |
Other Non-Current Liabilities | 629 | 765 |
Total Liabilities | 10,629 | 10,596 |
Shareholders’ Equity: | ||
Shares - Par Value $0.001; Authorized 1,356 shares, Issued and Outstanding 992 shares at September 30, 2017 and 983 shares at December 31, 2016 | 1 | 1 |
Capital in Excess of Par Value | 6,641 | 6,571 |
Retained Deficit | (3,825) | (2,950) |
Accumulated Other Comprehensive Loss | (1,489) | (1,610) |
Weatherford Shareholders’ Equity | 1,328 | 2,012 |
Noncontrolling Interests | 56 | 56 |
Total Shareholders’ Equity | 1,384 | 2,068 |
Total Liabilities and Shareholders’ Equity | $ 12,013 | $ 12,664 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for Uncollectible Accounts | $ 85 | $ 129 |
Noncurrent Assets: | ||
Accumulated Depreciation of Property, Plant and Equipment | 7,633 | 7,362 |
Accumulated Amortization of Other Intangible Assets | $ 860 | $ 801 |
Shareholders’ Equity: | ||
Common Shares, Par Value (in USD) | $ 0.001 | $ 0.001 |
Common Shares, Authorized (in shares) | 1,356,000,000 | 1,356,000,000 |
Common Shares, Conditionally Authorized (in shares) | 0 | 0 |
Common Shares, Issued (in shares) | 986,000,000 | 983,000,000 |
Common Stock, Outstanding (in shares) | 986,000,000 | 983,000,000 |
Treasury Shares, at cost (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Costs and Asset Impairment Charges | $ 36,000,000 | $ 130,000,000 |
Provision for Doubtful Accounts | 3,000,000 | 72,000,000 |
Capital Lease Obligations Incurred | 24,000,000 | 25,000,000 |
Cash Flows from Operating Activities: | ||
Net Loss | (859,000,000) | (2,829,000,000) |
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities: | ||
Depreciation and Amortization | 611,000,000 | 741,000,000 |
Employee Share-Based Compensation Expense | 55,000,000 | 57,000,000 |
Long-Lived Asset Impairments | 0 | 436,000,000 |
Inventory Charges | 66,000,000 | 213,000,000 |
Defined Benefit Pension Plan Gains | (47,000,000) | 0 |
Litigation Charges | (4,000,000) | 190,000,000 |
Bond Tender Premium | 0 | (78,000,000) |
Deferred Income Tax Provision (Benefit) | (7,000,000) | 426,000,000 |
Currency Devaluation Charges | 0 | 31,000,000 |
Warrant Fair Value Adjustment | (58,000,000) | 0 |
Other, Net | 75,000,000 | 80,000,000 |
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired: | ||
Accounts Receivable | (77,000,000) | 185,000,000 |
Inventories | (94,000,000) | 208,000,000 |
Other Current Assets | 55,000,000 | 27,000,000 |
Accounts Payable | (44,000,000) | (203,000,000) |
Accrued Litigation and Settlements | (93,000,000) | (12,000,000) |
Other Current Liabilities | (35,000,000) | (236,000,000) |
Other, Net | (67,000,000) | (38,000,000) |
Net Cash Used in Operating Activities | (484,000,000) | (444,000,000) |
Cash Flows From Investing Activities: | ||
Capital Expenditures for Property, Plant and Equipment | (147,000,000) | (136,000,000) |
Acquisition of Assets Held for Sale | (244,000,000) | 0 |
Acquisition of Intellectual Property | (13,000,000) | (10,000,000) |
Insurance Proceeds Related to Asset Casualty Loss | 0 | 39,000,000 |
Proceeds from Sale of Assets | 36,000,000 | 28,000,000 |
Payment Related to Sale of Businesses, Net | (1,000,000) | (20,000,000) |
Other Investing Activities | (25,000,000) | 0 |
Net Cash Used in Investing Activities | (401,000,000) | (104,000,000) |
Cash Flows From Financing Activities: | ||
Borrowings of Long-term Debt | 250,000,000 | 3,153,000,000 |
Repayments of Long-term Debt | (53,000,000) | (1,895,000,000) |
Borrowings (Repayments) of Short-term Debt, Net | 118,000,000 | (1,138,000,000) |
Proceeds from Issuance of Ordinary Common Shares | 0 | 623,000,000 |
Bond Tender Premium | 0 | 78,000,000 |
Payments to Acquire Equipment on Lease | 0 | 87,000,000 |
Other Financing Activities | (28,000,000) | (21,000,000) |
Net Cash Provided by Financing Activities | 287,000,000 | 557,000,000 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 6,000,000 | (36,000,000) |
Net Decrease in Cash and Cash Equivalents | (592,000,000) | (27,000,000) |
Cash and Cash Equivalents at Beginning of Period | 1,037,000,000 | 467,000,000 |
Cash and Cash Equivalents at End of Period | 445,000,000 | 440,000,000 |
Supplemental Cash Flow Information: | ||
Interest Paid | 434,000,000 | 362,000,000 |
Income Taxes Paid, Net of Refunds | $ 71,000,000 | $ 140,000,000 |
General
General | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company”) are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include all adjustments which, in our opinion, are considered necessary to present fairly our Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , and Condensed Consolidated Statements of Operations , Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2017 and 2016 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 . When referring to “Weatherford” and using phrases such as “we,” “us,” and “our,” the intent is to refer to Weatherford International plc, a public limited company organized under the law of Ireland, and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made. Although we believe the disclosures in these financial statements are adequate, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations. These financial statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2016 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results expected for the year ending December 31, 2017 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to uncollectible accounts receivable, lower of cost or net realizable value for inventories, equity investments, derivative financial instruments, intangible assets and goodwill, property, plant and equipment (PP&E), income taxes, percentage-of-completion accounting for long-term contracts, self-insurance, foreign currency exchange rates, pension and post-retirement benefit plans, disputes, litigation, contingencies and share-based compensation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Principles of Consolidation We consolidate all wholly-owned subsidiaries, controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. Investments in affiliates in which we exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior year cash flow amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards. Net income and shareholders’ equity were not affected by these reclassifications. See “ Note 18 – New Accounting Pronouncements ” for additional details. Revenue Recognition In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela to record a discount reflecting the time value of money and accrete the discount as interest income over the expected collection period using the effective interest method. In connection with this development, the Company corrected this immaterial error for the three and six month periods ended June 30, 2017. The impact of the correction decreased revenue and increased interest income by approximately $31 million and $4 million , respectively, for the three month period ended June 30, 2017 and reduced accounts receivable by approximately $27 million as of June 30, 2017. As of September 30, 2017, to reflect the impact of payment delays and expectation that the time to collect may exceed one year, we reclassified $158 million of accounts receivable related to this customer in Other Non-Current Assets on the accompanying Condensed Consolidated Balance Sheets . While we are continuing to experience delays with collections on our outstanding receivables with this customer, we believe the amounts are fully collectible based on the financial position and solvency of this customer and the dependence of the Venezuelan economy on oil production from this customer. We also considered our collections history with this customer and lack of historical material allowances or write-offs to our receivables balances. Our assumptions and related judgments are sensitive to the continued significant political and economic turmoil in Venezuela. If conditions continue to deteriorate, we may be required to record allowances or write-offs to our receivables balances that could have a material impact on our financial position and results of operations. Currency Devaluation Charges Currency devaluation charges are included in current earnings in “ Currency Devaluation Charges ” on the accompanying Condensed Consolidated Statements of Operations . In the first nine months of 2016 , currency devaluation charges of $31 million reflected the impact of the devaluation of the Angolan kwanza. In the third quarter and the first nine months of 2017, we had no currency devaluation charges. |
Business Combinations and Dives
Business Combinations and Divestitures | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations and Dvestitures | Business Combinations and Divestitures Held for Sale On March 24, 2017, we entered a master formation agreement with affiliates of Schlumberger Limited (“Schlumberger”) to form a joint venture named “ OneStim SM ,” which will provide completion products and services for the development of unconventional land reservoirs in the United States and Canada. Under the terms of the master formation agreement, both parties will contribute their respective pressure pumping assets, multistage completions, and pump-down perforating businesses on land in the lower contiguous 48 states of the United States and the provinces of British Columbia, Saskatchewan, Manitoba and Alberta in Canada . In addition, we will contribute manufacturing facilities and supply chain resources to OneStim , and Schlumberger will provide the joint venture with access to its surface and downhole technologies and advanced geo-engineered workflows. At closing we will receive a one-time $535 million cash payment from Schlumberger, subject to agreed purchase price adjustments and will own a 30% equity interest in the OneStim joint venture while Schlumberger will own 70% . The transaction is expected to close in the fourth quarter of 2017 and is subject to regulatory approvals and other customary closing conditions. The carrying amounts of the major classes of assets and liabilities from our North America segment to be contributed to OneStim have been classified as held for sale in the table below. September 30, (Dollars in millions) 2017 Assets Held for Sale: Inventory, Net $ 89 Property, Plant and Equipment, Net 261 Goodwill 559 Total Assets $ 909 Liabilities Held for Sale: Long-term Debt $ 28 Other Liabilities 26 Total Liabilities $ 54 As of September 30, 2017 , we also had $26 million of PP&E held for sale unrelated to the OneStim joint venture. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Due to the ongoing lower than anticipated levels of exploration and production spending, we continue to reduce our overall cost structure and workforce to better align with current activity levels. The ongoing cost reduction plans, which began in 2016 and is continuing through 2017 (the “ 2016 Plan ”), included a workforce reduction and other cost reduction measures initiated across our geographic regions. In connection with the 2016 Plan , we recognized restructuring charges of $34 million and $140 million in the third quarter and the first nine months of 2017 , respectively, which include termination (severance) charges of $15 million and $71 million , respectively, and other restructuring charges of $19 million and $57 million , respectively. Other restructuring charges include contract termination costs, relocation and other associated costs. The first nine months of 2017 also includes restructuring related asset charges of $12 million . Also in connection with the 2016 Plan , we recognized restructuring charges of $22 million and $150 million in the third quarter and the first nine months of 2016 , respectively, which include termination (severance) charges of $18 million and $126 million , respectively, and other restructuring charges of $4 million and $24 million , respectively. Other restructuring charges include contract termination costs, relocation and other associated costs. The following tables present the components of restructuring charges by segment for the third quarter and the first nine months of 2017 and 2016 . Three Months Ended September 30, 2017 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 1 $ — $ 1 MENA/Asia Pacific 4 16 20 Europe/SSA/Russia 2 — 2 Latin America 7 2 9 Subtotal 14 18 32 Land Drilling Rigs — — — Corporate and Research and Development 1 1 2 Total $ 15 $ 19 $ 34 Three Months Ended September 30, 2016 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 5 $ — $ 5 MENA/Asia Pacific 4 1 5 Europe/SSA/Russia (2 ) 2 — Latin America 9 1 10 Subtotal 16 4 20 Land Drilling Rigs — — — Corporate and Research and Development 2 — 2 Total $ 18 $ 4 $ 22 Nine Months Ended September 30, 2017 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 3 $ 21 $ 24 MENA/Asia Pacific 12 17 29 Europe/SSA/Russia 10 21 31 Latin America 20 5 25 Subtotal 45 64 109 Land Drilling Rigs 2 — 2 Corporate and Research and Development 24 5 29 Total $ 71 $ 69 $ 140 Nine Months Ended September 30, 2016 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 29 $ 15 $ 44 MENA/Asia Pacific 22 3 25 Europe/SSA/Russia 21 4 25 Latin America 35 2 37 Subtotal 107 24 131 Land Drilling Rigs 5 — 5 Corporate and Research and Development 14 — 14 Total $ 126 $ 24 $ 150 The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to the severance accrued as part of earlier 2014 and 2015 Plans, the 2016 Plan that will be paid pursuant to the respective arrangements and statutory requirements. At September 30, 2017 2016 Plan 2015 and 2014 Plans Total Severance Severance Other Severance Other and Other (Dollars in millions) Liability Liability Liability Liability Liability North America $ 1 $ 17 $ — $ — $ 18 MENA/Asia Pacific 4 11 — — 15 Europe/SSA/Russia 2 9 — 5 16 Latin America — — — — — Subtotal 7 37 — 5 49 Land Drilling Rigs — — — — — Corporate and Research and Development 9 — — — 9 Total $ 16 $ 37 $ — $ 5 $ 58 The following table presents the restructuring liability activity for the first nine months of 2017 . Nine Months Ended September 30, 2017 (Dollars in millions) Accrued Balance at December 31, 2016 Charges Cash Payments Other Accrued Balance at September 30, 2017 2016 Plan: Severance liability $ 52 $ 71 $ (104 ) $ (3 ) $ 16 Other restructuring liability 22 57 (21 ) (21 ) 37 2015 and 2014 Plan: Severance liability 3 — (3 ) — — Other restructuring liability 9 — (1 ) (3 ) 5 Total severance and other restructuring liability $ 86 $ 128 $ (129 ) $ (27 ) $ 58 |
Accounts Receivable Factoring a
Accounts Receivable Factoring and Other Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable Factoring and Other Receivables | Accounts Receivable Factoring and Other Receivables From time to time, we participate in factoring arrangements to sell accounts receivable to third-party financial institutions. In the first nine months of 2017, we sold accounts receivable of $150 million and recognized a loss of approximately $1 million on these sales. We received cash proceeds totaling $148 million . In the first nine months of 2016 , we sold approximately $102 million and recognized a loss of $0.4 million . Our factoring transactions in the first nine months of 2017 and 2016 were recognized as sales, and the proceeds are included as operating cash flows in our Condensed Consolidated Statements of Cash Flows . In the first quarter of 2017, Weatherford converted trade receivables of $65 million into a note from the customer with a face value of $65 million . The note had a three year term at a 4.625% stated interest rate. We reported the note as a trading security within “Other Current Assets” at fair value on the Condensed Consolidated Balance Sheets at its fair value of $58 million on March 31, 2017. The note fair value was considered a Level 2 valuation and was estimated using secondary market data for similar bonds. During the second quarter of 2017, we sold the note for $59 million . |
Percentage of Completion Contra
Percentage of Completion Contracts | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
Percentage of Completion Contracts | Percentage-of-Completion Contracts We account for our long-term early production facility construction contracts in Iraq under the percentage-of-completion method. In the third quarter and the first nine months of 2017 , there was no change to our cumulative estimated loss since December 31, 2016 . Our net billings in excess of costs as of September 30, 2017 were $47 million and are shown in the “Other Current Liabilities” on the accompanying Condensed Consolidated Balance Sheets. On May 26, 2016, we entered into an agreement with our customer containing the terms and conditions of the settlement on the Zubair contract which included variation order requests, claims for extension of time, payments of remaining contract milestones and new project completion timelines that resulted in relief from the liquidated damages provisions. The settlement paid to us was a gross amount of $150 million , of which we received $62 million in the second quarter of 2016, $72 million in the third quarter of 2016 and $16 million in the first quarter of 2017. In the third quarter and the first nine months of 2016 , we were break-even for our Zubair contract. As of September 30, 2016 , cumulative estimated losses on our Iraq projects were $532 million , project estimates included no claims revenue, $25 million in approved change orders and $25 million of back charges. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories, net of reserves, by category were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Raw materials, components and supplies $ 145 $ 168 Work in process 70 49 Finished goods 1,537 1,585 $ 1,752 $ 1,802 We recognized inventory charges, including excess and obsolete and non-recurring inventory charges, totaling $66 million and $213 million in the first nine months of 2017 and 2016 , respectively. |
Long-Lived Asset Impairments
Long-Lived Asset Impairments | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment Disclosure [Text Block] | Long-Lived Asset Impairments In the first nine months of 2017, we had no long-lived asset impairment charges. During the third quarter of 2016, we recognized long-lived asset impairment charges of $436 million , of which $388 million was related to product line PP&E impairments and $48 million was related to the impairment of intangible assets. The PP&E impairment charges were related to our MENA/Asia Pacific Pressure Pumping and North America Well Construction, Drilling Services and Secure Drilling Service product lines. These impairment charges were attributed to the following segments: $235 million in North America, $109 million in MENA/Asia Pacific, $12 million in Europe/SSA/Russia, $16 million in Latin America and $16 million in Land Drilling Rigs. The intangible asset charge is related to the Well Construction and Completions businesses with $35 million attributable to the North America segment and $13 million related the Europe/SSA/Russia segment. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2017 , were as follows: (Dollars in millions) North America MENA/ Asia Pacific Europe/ SSA/ Russia Latin America Total Balance at December 31, 2016 $ 1,777 $ 189 $ 543 $ 288 $ 2,797 Reclassification to assets held for sale (559 ) — — — (559 ) Foreign currency translation adjustments 66 5 37 — 108 Balance at September 30, 2017 $ 1,284 $ 194 $ 580 $ 288 $ 2,346 |
Short-term Borrowings and Other
Short-term Borrowings and Other Debt Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Other Debt Obligations | Short-Term Borrowings and Other Debt Obligations (Dollars in millions) September 30, 2017 December 31, 2016 Revolving Credit Agreement $ 225 $ — Other short-term loans 28 2 Total short-term borrowings 253 2 Current portion of long-term debt and term loan agreement 138 177 Short-term borrowings and current portion of long-term debt $ 391 $ 179 Revolving Credit Agreement and Secured Term Loan Agreement At September 30, 2017 , we had total commitments under our revolving credit facility (the “Revolving Credit Agreement”) maturing in July of 2019 of $1.0 billion and borrowings of $388 million under our secured term loan agreement (“the Term Loan Agreement and collectively with the Revolving Credit Agreement, the “Credit Agreements”) maturing in July of 2020. At September 30, 2017 , we had $691 million available under the Credit Agreements and the following table summarizes our borrowing availability under these agreements: (Dollars in millions) September 30, 2017 Facilities $ 1,388 Less uses of facilities: Revolving credit agreement 225 Letters of credit 84 Secured term loan before debt issuance cost 388 Borrowing Availability $ 691 Loans under the Credit Agreements are subject to varying interest rates based on whether the loan is Eurodollar loan or an alternate base rate loan. We also incur a quarterly facility fee on the amount of the Revolving Credit Agreement. For the three months ended September 30, 2017 , the interest rate for the Revolving Credit Agreement was LIBOR plus a margin rate of 2.80% . For the three months ended September 30, 2017 , the interest rate for the Term Loan Agreement was LIBOR plus a margin rate of 2.30% . Our Credit Agreements contain customary events of default, including our failure to comply with our financial covenants. We must maintain a leverage ratio of no greater than 2.5 to 1, a leverage and letters of credit ratio of no greater than 3.5 to 1 and an asset coverage ratio of at least 4.0 to 1. At September 30, 2017 , we were in compliance with these financial covenants. Other Borrowings and Debt Activity On June 26, 2017, we issued an additional $250 million aggregate principal amount of our 9.875% senior notes due 2024 (“Notes”). These Notes were issued as additional securities under an indenture pursuant to which we previously issued $540 million aggregate principal amount of our 9.875% senior notes due 2024. We have short-term borrowings with various domestic and international institutions pursuant to uncommitted credit facilities. At September 30, 2017 , we had $28 million in short-term borrowings under these arrangements. In addition, we had $387 million of letters of credit under various uncommitted facilities, of which $72 million has been cash collateralized (included in “ Cash and Cash Equivalents ” in the accompanying Condensed Consolidated Balance Sheets), and $59 million of surety bonds, primarily performance bonds, issued by financial sureties against an indemnification from us at September 30, 2017 . In June 2017, we repaid $88 million of our 6.35% Senior Notes on the maturity date. At September 30, 2017 , the current portion of long-term debt was primarily related to $66 million of our 6.00% Senior Notes due March 2018, the $50 million current portion of our Term Loan Agreement and $22 million of current portion of capital leases and other debt. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial Instruments Measured and Recognized at Fair Value We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three level hierarchy, from highest to lowest level of observable inputs. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted prices or other market data for similar assets and liabilities in active markets, or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based upon our own judgment and assumptions used to measure assets and liabilities at fair value. Classification of a financial asset or liability within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Other than the derivative instruments discussed in “ Note 11 – Derivative Instruments ”, we had no other material assets or liabilities measured and recognized at fair value on a recurring basis at September 30, 2017 and December 31, 2016 . Fair Value of Other Financial Instruments Our other financial instruments include cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings and long-term debt. The carrying value of our cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings approximates their fair value due to their short maturities. These short-term borrowings are classified as Level 2 in the fair value hierarchy. The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will generally exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will generally be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The fair value and carrying value of our senior notes were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Fair value $ 7,231 $ 6,739 Carrying value 7,210 7,028 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, we may enter into derivative financial instrument transactions to manage or reduce our market risk. We manage our debt portfolio to achieve an overall desired position of fixed and floating rates, and we may employ interest rate swaps as a tool to achieve that goal. We enter into foreign currency forward contracts and cross-currency swap contracts to economically hedge our exposure to fluctuations in various foreign currencies. The major risks from interest rate derivatives include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates, changes in foreign exchange rates and the creditworthiness of the counterparties in such transactions. We monitor the creditworthiness of our counterparties, which are multinational commercial banks. The fair values of all our outstanding derivative instruments are determined using a model with Level 2 inputs including quoted market prices for contracts with similar terms and maturity dates. Warrant During the fourth quarter of 2016, in conjunction with the issuance of 84.5 million ordinary shares, we issued a warrant that gives the holder the option to acquire an additional 84.5 million ordinary shares. The exercise price on the warrant is $6.43 per share and is exercisable any time prior to May 21, 2019. The warrant is classified as a liability and carried at fair value with changes in its fair value reported through earnings. The warrant participates in dividends and other distributions as if the shares subject to the warrants were outstanding. In addition, the warrant permits early redemption due to a change in control. The warrant fair value is considered a Level 3 valuation and is estimated using a combination of the Black Scholes option valuation model and Monte-Carlo simulation. Inputs to these models include Weatherford’s share price and volatility and the risk free interest rate. The valuation also considers the probabilities of future share issuances and anticipated issuance discounts, which are considered Level 3 inputs. The fair value of the warrant was $156 million on December 31, 2016 and $98 million on September 30, 2017 , generating an unrealized loss of $7 million for the third quarter of 2017 and an unrealized gain of $58 million for the first nine months of 2017 . The change in fair value of the warrant during the first nine months of 2017 was principally due to a decrease in Weatherford’s stock price. The warrant valuation would be negatively affected due to an increase in the likelihood of a future share issuance. Fair Value Hedges We may use interest rate swaps to help mitigate exposures related to changes in the fair values of fixed-rate debt. The interest rate swap would be recorded at fair value with changes in fair value recorded in earnings. The carrying value of fixed-rate debt would be adjusted for changes in interest rates, with the changes in value recorded in earnings. After termination of the hedge, any discount or premium on the fixed-rate debt is amortized to interest expense over the remaining term of the debt. As of September 30, 2017 , we did not have any fair value hedges designated. As of September 30, 2017 , we had net unamortized premiums on fixed-rate debt of $4 million associated with fair value hedge terminations. These premiums are being amortized over the remaining term of the originally hedged debt as a reduction in interest expense included in “ Interest Expense, Net ” on the accompanying Condensed Consolidated Statements of Operations. Cash Flow Hedges In 2008, we entered into interest rate derivative instruments to hedge projected exposures to interest rates in anticipation of a debt offering. These hedges were terminated at the time of the issuance of the debt, and the associated loss is being amortized from “Accumulated Other Comprehensive Income (Loss) ” to interest expense over the remaining term of the debt. As of September 30, 2017 , we had net unamortized losses of $9 million associated with our cash flow hedge terminations. As of September 30, 2017 , we did not have any cash flow hedges designated. Foreign Currency and Warrant Derivative Instruments At September 30, 2017 and December 31, 2016 , we had outstanding foreign currency forward contracts with notional amounts aggregating to $1.2 billion and $1.6 billion , respectively. The notional amounts of our foreign currency forward contracts do not generally represent amounts exchanged by the parties and thus are not a measure of the cash requirements related to these contracts or of any possible loss exposure. The amounts actually exchanged at maturity are calculated by reference to the notional amounts and by other terms of the derivative contracts, such as exchange rates. Our foreign currency derivatives are not designated as hedges under ASC 815, and the changes in fair value of the contracts are recorded each period in “ Other Expense, Net ” on the accompanying Condensed Consolidated Statements of Operations . The total estimated fair values of our foreign currency forward contracts and warrant derivative were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Classification Derivative assets not designated as hedges: Foreign currency forward contracts $ 10 $ 7 Other Current Assets Derivative liabilities not designated as hedges: Foreign currency forward contracts (5 ) (14 ) Other Current Liabilities Warrant on Weatherford Shares (98 ) (156 ) Other Non-current Liabilities The amount of derivative instruments’ gain or (loss) on the Condensed Consolidated Statements of Operations is in the table below. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2017 2016 2017 2016 Classification Foreign currency forward contracts $ 2 $ (22 ) $ (20 ) $ (12 ) Other Expense, Net Warrant on Weatherford Shares (7 ) — 58 — Warrant Fair Value Adjustment |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to ordinary income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items and pre-tax losses for which no benefit has been recognized) for the reporting period. For the three month and nine months periods ended September 30, 2017 , we determined that since small changes in estimated ordinary annual income would result in significant changes in the estimated annual effective tax rate, the use of a discrete effective tax rate is appropriate for the current quarter. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. We will use this method each quarter until the annual effective tax rate method is deemed appropriate. For the third quarter and the first nine months of 2017 , we had a tax expense of $25 million and $75 million , respectively, on a loss before income taxes of $226 million and $784 million , respectively. Results for the third quarter and the first nine months of 2017 include losses with no significant tax benefit. The tax expense for the third quarter and the first nine months of 2017 also includes withholding taxes, minimum taxes and deemed profit taxes that do not directly correlate to ordinary income or loss. We are continuously under tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. We continue to anticipate a possible reduction in the balance of uncertain tax positions of approximately $10 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations. For both the third quarter and the first nine months of 2016 , we had a tax expense of $692 million and $489 million , respectively, on a loss before income taxes of $1.1 billion and $2.3 billion , respectively. The primary component of the tax expense for the third quarter and first nine months of 2016 relates to the Company’s conclusion that certain deferred tax assets that had previously been benefited are not more likely than not to be realized. As a result, additional valuation allowances have been established for the United States and other jurisdictions. Our results for the third quarter of 2016 include charges with no significant tax benefit principally related to $436 million of long-lived asset impairment, $198 million of excess and obsolete inventory charges, $62 million in accounts receivable reserves and write-offs, and $44 million of other asset write-offs and charges. In addition, we recorded a tax charge of $137 million for a non-cash tax expense related to an internal restructuring of subsidiaries. Our results for the first nine months of 2016 also include charges with no significant tax benefit principally related to $436 million of long-lived asset impairment, $213 million of excess and obsolete inventory charges, $140 million of settlement charges, $84 million related to a note adjustment for our largest customer in Venezuela, $78 million of bond tender premium, $62 million in accounts receivable reserves and write-offs, $31 million of currency devaluation related to the Angolan kwanza, $20 million in pressure pumping business related charges, and $15 million in supply agreement charges related to a non-core business divestitures. In addition, we recorded a tax charge of $526 million for the establishment of a valuation allowance, and $137 million for a non-cash tax expense related to an internal restructuring of subsidiaries. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following summarizes our shareholders’ equity activity for the first nine months of 2017 and 2016 : (Dollars in millions) Par Value of Issued Shares Capital in Excess of Par Value Retained Earnings (Deficit) Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Shareholders’ Equity Balance at December 31, 2015 $ 1 $ 5,502 $ 442 $ (1,641 ) $ 61 $ 4,365 Net Income (Loss) — — (2,843 ) — 14 (2,829 ) Other Comprehensive Income — — — 92 — 92 Dividends Paid to Noncontrolling Interests — — — — (15 ) (15 ) Issuance of Common Shares — 623 — — — 623 Issuance of Exchangeable Notes — 97 — — — 97 Equity Awards Granted, Vested and Exercised — 51 — — — 51 Other — — — — (1 ) (1 ) Balance at September 30, 2016 $ 1 $ 6,273 $ (2,401 ) $ (1,549 ) $ 59 $ 2,383 Balance at December 31, 2016 $ 1 $ 6,571 $ (2,950 ) $ (1,610 ) $ 56 $ 2,068 Net Income (Loss) — — (875 ) — 16 (859 ) Other Comprehensive Income — — — 121 — 121 Dividends Paid to Noncontrolling Interests — — — — (16 ) (16 ) Equity Awards Granted, Vested and Exercised — 70 — — — 70 Balance at September 30, 2017 $ 1 $ 6,641 $ (3,825 ) $ (1,489 ) $ 56 $ 1,384 In March 2016, we issued 115 million ordinary shares, and the amount in excess of par value of $623 million is reported in “ Capital in Excess of Par Value ” on the accompanying Condensed Consolidated Balance Sheets . On June 7, 2016, we issued exchangeable notes with a par value of $1.265 billion . The exchange feature carrying value of $97 million is included in the line captioned “ Capital in Excess of Par Value ” on the accompanying Condensed Consolidated Balance Sheets . The following table presents the changes in our accumulated other comprehensive loss by component for the first nine months of 2017 and 2016 : (Dollars in millions) Currency Translation Adjustment Defined Benefit Pension Deferred Loss on Derivatives Total Balance at December 31, 2015 $ (1,602 ) $ (29 ) $ (10 ) $ (1,641 ) Other Comprehensive Income before Reclassifications 90 1 — 91 Reclassifications — — 1 1 Net activity 90 1 1 92 Balance at September 30, 2016 $ (1,512 ) $ (28 ) $ (9 ) $ (1,549 ) Balance at December 31, 2016 $ (1,614 ) $ 13 $ (9 ) $ (1,610 ) Other Comprehensive Income before Reclassifications 165 — — 165 Reclassifications — (44 ) — (44 ) Net activity 165 (44 ) — 121 Balance at September 30, 2017 $ (1,449 ) $ (31 ) $ (9 ) $ (1,489 ) Defined benefit pension reclassifications relate to amortization of unrecognized net gains associated primarily with our supplemental executive retirement plan. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share for all periods presented equals net income (loss) divided by the weighted average number of our shares outstanding during the period including participating securities. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of our shares outstanding during the period including participating securities, adjusted for the dilutive effect of our stock options, restricted shares and performance share units. The following table presents our basic and diluted weighted average shares outstanding for the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Shares in millions) 2017 2016 2017 2016 Basic and Diluted weighted average shares outstanding 990 899 989 871 Our basic and diluted weighted average shares outstanding for the periods presented are equivalent due to the net loss attributable to shareholders. Diluted weighted average shares outstanding for the third quarter and the first nine months of 2017 and 2016 exclude potential shares for stock options, restricted shares, performance share units, exchangeable notes, warrant outstanding and the Employee Stock Purchase Plan as we have net losses for those periods, and their inclusion would be anti-dilutive. The following table presents the number of anti-dilutive shares excluded for the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Shares in millions) 2017 2016 2017 2016 Anti-dilutive potential shares due to net loss 250 166 250 71 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized the following employee share-based compensation expense during the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2017 2016 2017 2016 Share-based compensation $ 14 $ 19 $ 55 $ 57 Related tax benefit — (8 ) — — During the first nine months of 2017 , we granted to certain employees approximately 3.1 million performance share units that will vest with continued employment if the Company meets certain market-based performance goals. The performance share units have a weighted average grant date fair value of $6.06 per share based on the Monte Carlo simulation method. The assumptions used in the Monte Carlo simulation included a weighted average risk-free rate of 1.17% , volatility of 67% and a zero dividend yield. As of September 30, 2017 , there was $12 million of unrecognized compensation expense related to our performance share units. This cost is expected to be recognized over a weighted average period of less than 2 years. During the first nine months of 2017 , we also granted 5 million restricted share units at a weighted average grant date fair value of $5.11 per share. As of September 30, 2017 , there was $55 million of unrecognized compensation expense related to our unvested restricted share grants. This cost is expected to be recognized over a weighted average period of less than 2 years. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Financial information by segment is summarized below. Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our Form 10-K. In the beginning of the fourth quarter of 2017, management commenced with the implementation of internal changes to the Company’s organization structure and as a result we are in the process of reassessing our reportable segments. See “ Note 20 – Subsequent Event ” for additional information. Three Months Ended September 30, 2017 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 538 $ 33 $ 39 MENA/Asia Pacific 335 8 49 Europe/SSA/Russia 252 14 36 Latin America 229 (5 ) 49 Subtotal 1,354 50 173 Land Drilling Rigs 106 (16 ) 23 1,460 34 196 Corporate and Research and Development (70 ) 3 Restructuring Charges (a) (34 ) Asset Write-Downs and Other 2 Litigation Credit 4 Total $ 1,460 $ (64 ) $ 199 (a) Includes restructuring charges of $34 million : $20 million in MENA/Asia Pacific, $9 million in Latin America, $2 million in Europe/SSA/Russia, $2 million in Corporate and Research and Development, and $1 million in North America. Three Months Ended September 30, 2016 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 449 $ (95 ) $ 55 MENA/Asia Pacific 329 (8 ) 60 Europe/SSA/Russia 225 (3 ) 45 Latin America 255 14 56 Subtotal 1,258 (92 ) 216 Land Drilling Rigs 98 (19 ) 22 1,356 (111 ) 238 Corporate and Research and Development (63 ) 4 Long-lived Asset Impairments, Write-Downs and Other Charges (b) (740 ) Restructuring Charges (c) (22 ) Litigation Charges, Net (9 ) Total $ 1,356 $ (945 ) $ 242 (b) Includes $436 million in long-lived asset impairments, $198 million in inventory write-downs, $62 million in accounts receivable reserves and write-offs, and $44 million of other asset write-offs and charges. (c) Includes restructuring charges of $22 million : $10 million in Latin America, $5 million in North America, $5 million in MENA/Asia Pacific, and $2 million in Corporate and Research and Development. Nine Months Ended September 30, 2017 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 1,503 $ 17 $ 119 MENA/Asia Pacific 996 14 151 Europe/SSA/Russia 740 9 114 Latin America (a) 674 (31 ) 148 Subtotal 3,913 9 532 Land Drilling Rigs 296 (66 ) 70 4,209 (57 ) 602 Corporate and Research and Development (211 ) 9 Restructuring Charges (b) (140 ) Asset Write-Downs and Other 17 Litigation Credit 4 Total $ 4,209 $ (387 ) $ 611 (a) In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela. The total impact of this change for the first six months of 2017 related to prior periods is a reduction in revenues and income from operations of approximately $23 million for the second half of 2016. See “ Note 1 – General ” for additional details. (b) Includes restructuring charges of $140 million : $31 million in Europe/SSA/Russia, $29 million in MENA/Asia Pacific, $29 million in Corporate and Research and Development, $25 million in Latin America, $24 million in North America, and $2 million in Land Drilling Rigs. Nine Months Ended September 30, 2016 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 1,393 $ (324 ) $ 167 MENA/Asia Pacific 1,090 (4 ) 181 Europe/SSA/Russia 725 (3 ) 141 Latin America 809 59 173 Subtotal 4,017 (272 ) 662 Land Drilling Rigs 326 (62 ) 67 4,343 (334 ) 729 Corporate and Research and Development (226 ) 12 Long-lived Asset Impairments, Write-Downs and Other Charges (c) (952 ) Restructuring Charges (d) (150 ) Litigation Charges, Net (190 ) Total $ 4,343 $ (1,852 ) $ 741 (c) Includes $436 million in long-lived asset impairments, $213 million in inventory write-downs, $121 million in other asset write-offs and charges, $84 million to adjust a note from our largest customer in Venezuela to fair value, $62 million in accounts receivable reserves and write-offs, $20 million in pressure pumping related charges, and $15 million in supply agreement charges related to a non-core business divestiture. (d) Includes restructuring charges of $150 million : $44 million in North America, $37 million in Latin America, $25 million in Europe/SSA/Russia, $25 million in MENA/Asia Pacific, $14 million in Corporate and Research and Development and $5 million in Land Drilling Rigs. |
Disputes, Litigation and Contin
Disputes, Litigation and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Disputes, Litigation and Contingencies | Disputes, Litigation and Contingencies Shareholder Litigation In 2010, three shareholder derivative actions were filed, purportedly on behalf of the Company, asserting breach of duty and other claims against certain current and former officers and directors of the Company related to the United Nations oil-for-food program governing sales of goods into Iraq, the Foreign Corrupt Practices Act of 1977 and trade sanctions related to the U.S. government investigations disclosed in our SEC filings since 2007. Those shareholder derivative cases were filed in Harris County, Texas state court and consolidated under the caption Neff v. Brady, et al. , No. 2010040764 (collectively referred to as the “ Neff Case ”). Other shareholder demand letters covering the same subject matter were received by the Company in early 2014, and a fourth shareholder derivative action was filed, purportedly on behalf of the Company, also asserting breach of duty and other claims against certain current and former officers and directors of the Company related to the same subject matter as the Neff Case . That case, captioned Erste-Sparinvest KAG v. Duroc-Danner, et al., No. 201420933 (Harris County, Texas) was consolidated into the Neff Case in September 2014. A motion to dismiss was granted May 15, 2015, and an appeal was filed on June 15, 2015. Following briefing and oral argument, on June 29, 2017, the Texas Court of Appeals denied in part and granted in part the shareholders’ appeal. The Court ruled that the shareholders lacked standing to bring claims that arose prior to the Company’s redomestication to Switzerland in 2009, and upheld the dismissal of those claims. The Court reversed as premature the trial court’s dismissal of claims arising after the redomestication and remanded to the trial court for further proceedings. We cannot reliably predict the outcome of the remaining claims, including the amount of any possible loss. Securities Class Action Settlement On June 30, 2015, we signed a stipulation to settle a shareholder securities class action captioned Freedman v. Weatherford International Ltd., et al. , No. 1:12-cv-02121-LAK (S.D.N.Y.) for $120 million subject to notice to the class and court approval. The Freedman lawsuit had been filed in the U.S. District Court for the Southern District of New York in March 2012, and alleged that we and certain current and former officers of Weatherford violated the federal securities laws in connection with the restatements of the Company’s historical financial statements announced on February 21, 2012 and July 24, 2012. On November 4, 2015, the U.S. District Court for the Southern District of New York entered a final judgment and an order approving the settlement. Pursuant to the settlement, we were required to pay $120 million , which was partially funded by insurance proceeds. There was no admission of liability or fault by a party in connection with the settlement. We are pursuing reimbursement from our insurance carriers and recovered $23 million of the settlement amount to date, of which $4 million was recovered in the second quarter of 2017. U.S. Government and Other Investigations The SEC and the U.S. Department of Justice (“DOJ”) investigated certain accounting issues associated with the material weakness in our internal control over financial reporting for income taxes that was disclosed in a notification of late filing on Form 12b-25 filed on March 1, 2011 and in current reports on Form 8-K filed on February 21, 2012 and on July 24, 2012 and the subsequent restatements of our historical financial statements. During the first quarter 2016, we recorded a loss contingency in the amount of $65 million and increased it to $140 million in the second quarter to reflect our best estimate of the potential settlement. As disclosed in the Form 8-K filed on September 27, 2016, the Company settled with the SEC without admitting or denying the findings of the SEC, by consenting to the entry of an administrative order that requires the Company to cease and desist from committing or causing any violations and any future violations of the anti-fraud provisions of the Securities Act of 1933 (as amended, the “Securities Act”), and the anti-fraud, reporting, books and records, and internal controls provisions of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”), and the rules promulgated thereunder. As part of the terms of the SEC settlement, the Company agreed to pay a total civil monetary penalty of $140 million . In addition, certain reports and certifications regarding our tax internal controls must be delivered to the SEC during the two years following the settlement. We have completed two of three such reports and expect the final report to be delivered when due in March of 2018. A payment of $50 million was made during the fourth quarter of 2016, and a payment of $30 million was made in each of January and May 2017. A final payment of $30 million was made in September 2017. Spitzer Industries Litigation In August 2016, after a bench trial in Harris County, Texas, the court entered a judgment of $36 million against the Company in the case of Spitzer Industries, Inc. (“Spitzer”) vs. Weatherford U.S., L.P. in connection with Spitzer’s fabrication work on two mobile capture vessels used in the cleanup of marine oil spills. We continue to maintain a reserve in the amount of the judgment, and an appellate brief was filed on June 16, 2017 to the First Court of Appeals in Houston, Texas. Rapid Completions and Packers Plus Litigation Several subsidiaries of the Company are defendants in a patent infringement lawsuit filed by Rapid Completions LLC (“RC”) in U.S. District Court for the Eastern District of Texas on July 31, 2015. RC claims that we and other defendants are liable for infringement of seven U.S. patents related to specific downhole completion equipment and the methods of using such equipment. These patents have been assigned to Packers Plus Energy Services, Inc., a Canadian corporation (“Packers Plus”), and purportedly exclusively licensed to RC. The litigation is currently stayed pending resolution of inter partes reviews of each of the patents-in-suit, which are pending before the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office (“USPTO”). RC is seeking a permanent injunction against further alleged infringement, unspecified damages for infringement, supplemental and enhanced damages, and additional relief such as attorneys’ fees. The Company has filed a counterclaim against Packers Plus, seeking declarations of non-infringement, invalidity, and unenforceability of the patents-in-suit on the grounds of inequitable conduct before the USPTO. The Company is seeking attorneys’ fees and costs incurred in the lawsuit. On October 14, 2015, Packers Plus and RC filed suit in Federal Court in Toronto, Canada against the Company and certain subsidiaries alleging infringement of a related Canadian patent and seeking unspecified damages and an accounting of the Company’s profits. Trial on the validity of the Canadian patent was completed in March 2017. The parties are still awaiting a decision from the Court. If the Federal Court upholds the validity of the patent, a trial on infringement will be held in September 2018. The parties mediated both the U.S. and Canadian cases on July 5, 2017, but were unable to reach a settlement. During the second quarter of 2017, the negotiations related to this matter progressed to a point where we recognized a liability for a loss contingency that we believe to be probable and for which a reasonable estimate could be made. The estimate remains unchanged as of September 30, 2017. In both cases, we will continue to defend ourselves vigorously. If one or more negative outcomes were to occur in either case, the impact to our financial position, results of operations, or cash flows could be material. Other Disputes and Litigation Additionally, we are aware of various disputes and potential claims and are a party in various litigation involving claims against us, including as a defendant in various employment claims alleging our failure to pay certain classes of workers overtime in compliance with the Fair Labor Standards Act for which an agreement was reached and settled during 2016. Some of these disputes and claims are covered by insurance. For claims, disputes and pending litigation in which we believe a negative outcome is probable and a loss can be reasonably estimated, we have recorded a liability for the expected loss. These liabilities are immaterial to our financial condition and results of operations. In addition we have certain claims, disputes and pending litigation for which we do not believe a negative outcome is probable or for which we can only estimate a range of liability. It is possible, however, that an unexpected judgment could be rendered against us, or we could decide to resolve a case or cases, that would result in liability that could be uninsured and beyond the amounts we currently have reserved and in some cases those losses could be material. If one or more negative outcomes were to occur relative to these matters, the aggregate impact to our financial condition could be material. Accrued litigation and settlements recorded in “Other Current Liabilities” on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 were $91 million and $181 million , respectively. Other Contingencies The contractual residual value guarantee balance of $28 million in “ Other Non-Current Liabilities ” on the accompanying Condensed Consolidated Balance Sheets at December 31, 2016 was extinguished after the underlying leased equipment in our North America pressure pumping operations was purchased during the first quarter of 2017. We have minimum purchase commitments related to supply contracts and maintain a liability at September 30, 2017 of $122 million for losses incurred on the contracts, of which $52 million is recorded in “ Other Current Liabilities ,” $47 million is recorded in “ Other Non-Current Liabilities ” and $23 million to be contributed to the OneStim joint venture is recorded in “ Liabilities Held for Sale ” on our Condensed Consolidated Balance Sheets . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Changes In May 2017, the Finan cial Accounting Standards Board (“FASB”) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies that modification accounting is required only if the fair value, the vesting conditions, or the classification of a share-based payment award changes as a result of changes in terms or conditions of the award. We have elected to early adopt ASU 2017-09 in the second quarter of 2017 and the adoption of this ASU had no impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 requires all income tax effects related to share-based payments at settlement (or expiration) be recorded through the income statement, including unrealized excess tax benefits. ASU 2016-09 also requires that all tax related cash flows resulting from share-based payments be presented as operating activities in the statement of cash flows. In addition, the guidance allows entities to increase the net-share settlement of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to estimate forfeitures or recognize them as they occur. Finally, the new guidance requires all cash payments made to a taxing authority on an employee’s behalf for shares withheld be presented as financing activities in the statement of cash flows. We adopted ASU 2016-09 in the first quarter of 2017. We prospectively adopted the changes requiring all tax effects related to share-based payments to be recorded through the income statement and all tax related cash flows from share based payments to be presented as operating activities in the statement of cash flows. There is no cumulative effect as there is no impact from unrecognized excess tax benefits or minimum withholding requirements and prior periods have not been adjusted. We have also made an entity-wide accounting policy election to continue to estimate forfeitures and adjust the estimate when it is likely to change. We have retrospectively adopted the guidance to classify as a financing activity on the statement of cash flows all cash payments made to a taxing authority on an employee’s behalf for shares withheld for tax-withholding purposes. We have reclassified $5 million from other operating activities to other financing activities in the Statements of Cash Flows for the nine months ended September 30, 2016 . Accounting Standards Issued Not Yet Adopted In July 2017, the FASB issued ASU 2017-11, which amends the accounting for certain equity-linked financial instruments and states a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. For an equity-linked financial instrument no longer accounted for as a liability at fair value, the amendments require a down round to be treated as a dividend and as a reduction of income available to common shareholders in basic earnings per share. The ASU is effective beginning with the first quarter of 2019, and early adoption is permitted. The ASU is required to be applied retrospectively to outstanding instruments. Weatherford is evaluating the impact that the ASU will have on our Consolidated Financial Statements and whether we will early adopt the ASU. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”). The service cost component of net benefit cost will be bifurcated and presented with other employee compensation costs, while other components of net benefit costs will be presented separately. The standard is required to be applied on a retrospective basis and will be effective beginning with the first quarter of 2018, although early adoption is permitted. We are evaluating the impact that this new standard will have on our Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which eliminates a current exception in U.S. GAAP to the recognition of the income tax effects of temporary differences that result from intra-entity transfers of non-inventory assets. The intra-entity exception is being eliminated under the ASU. The standard is required to be applied on a modified retrospective basis and will be effective beginning with the first quarter of 2018. Early adoption is permitted. We estimate that the impact that this new standard will have on our Consolidated Financial Statements will be a reversal of $110 million of prepaid taxes through retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires a lessee to recognize a lease asset and lease liability for most leases, including those classified as operating leases under existing U.S. GAAP. The ASU also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. Under ASU 2016-02, we will revise our leasing policies to require most of the leases, where we are the lessee, to be recognized on the balance sheet as a lease asset and lease liability whereas currently we do not recognize operating leases on our balance sheet. Further, we will separate leases from other contracts where we are either the lessor or lessee when the rights conveyed under the contract indicate there is a lease, where we may not be required to do so under existing policies. While we cannot calculate the impact ASU 2016-02 will have on Weatherford’s financial statements, we anticipate that Weatherford’s assets and liabilities will increase by a significant amount. This standard will be effective for us beginning with the first quarter of 2019. We do not anticipate adopting ASU 2016-02 early, which is permitted under the standard. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition method but permits certain practical expedients to be applied, which may exclude certain leases that commenced before the effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which will replace most existing revenue recognition guidance in U.S. GAAP. ASU 2014-09 will require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 requires a five-step approach to recognizing revenue: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. Subsequent to ASU 2014-09’s issuance, Topic 606 has been affected by other FASB updates that address certain aspects of Topic 606 or revised the effective date of the accounting changes. Under ASU 2014-09, we will revise our revenue recognition policy to require revenue recognition when control passes. This is a change from current policies, which generally require revenue recognition when delivery has occurred and risk and rewards of ownership have passed. We intend to adopt ASU 2014-09 as of its effective date in the first quarter of 2018. ASU 2014-09 permits two transition methods: the retrospective method or the modified retrospective method. Weatherford will be applying modified retrospective method which requires the recognition of a cumulative effect as an adjustment to opening retained earnings on the initial date of adoption. We have planned and commenced our implementation of ASU 2014-09. We have substantially completed an assessment of the differences between ASU 2014-09 and current accounting practices (gap analysis). Our approach involved comparing existing accounting requirements to the requirements under Topic 606 for each of our product lines and reviewing a sample of contracts within each product line and region. We are currently in the process of establishing new policies, procedures, and controls, establishing appropriate presentation and disclosure changes and quantifying any adoption date adjustments. Although not finalized, based on the implementation efforts performed, management’s assessment is that ASU 2014-09 is not expected to materially affect us. Any changes are not expected to have any direct impact to our cash flows. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements Weatherford International plc (“Weatherford Ireland”), a public limited company organized under the laws of Ireland, a Swiss tax resident, and the ultimate parent of the Weatherford group, guarantees the obligations of its subsidiaries – 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. The 6.80% senior notes of Weatherford Delaware were guaranteed by Weatherford Bermuda at September 30, 2017 and December 31, 2016 . At December 31, 2016 , Weatherford Bermuda also guaranteed the 6.35% senior notes of Weatherford Delaware. The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at September 30, 2017 and December 31, 2016 : (1) Revolving Credit Agreement, (2) Term Loan Agreement, (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 due 2039, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes, (11) 5.95% senior notes, (12) 5.875% exchangeable senior notes, (13) 7.75% senior notes, (14) 8.25% senior notes and (15) 9.875% senior notes due 2024. As a result of certain of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The accompanying guarantor financial information is presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 1,460 $ — $ 1,460 Costs and Expenses (3 ) 6 1 (1,528 ) — (1,524 ) Operating Income (Loss) (3 ) 6 1 (68 ) — (64 ) Other Income (Expense): Interest Expense, Net — (149 ) (10 ) 6 5 (148 ) Intercompany Charges, Net (2 ) 1 (59 ) 60 — — Equity in Subsidiary Income (Loss) (244 ) (518 ) (445 ) — 1,207 — Other, Net (7 ) (54 ) (53 ) 48 52 (14 ) Income (Loss) Before Income Taxes (256 ) (714 ) (566 ) 46 1,264 (226 ) (Provision) Benefit for Income Taxes — — — (25 ) — (25 ) Net Income (Loss) (256 ) (714 ) (566 ) 21 1,264 (251 ) Noncontrolling Interests — — — 5 — 5 Net Income (Loss) Attributable to Weatherford $ (256 ) $ (714 ) $ (566 ) $ 16 $ 1,264 $ (256 ) Comprehensive Income (Loss) Attributable to Weatherford $ (168 ) $ (687 ) $ (538 ) $ 104 $ 1,121 $ (168 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 1,356 $ — $ 1,356 Costs and Expenses (3 ) (6 ) (1 ) (2,291 ) — (2,301 ) Operating Income (Loss) (3 ) (6 ) (1 ) (935 ) — (945 ) Other Income (Expense): Interest Expense, Net — (127 ) (13 ) 7 4 (129 ) Intercompany Charges, Net (3 ) 11 (50 ) 42 — — Equity in Subsidiary Income (1,774 ) (1,662 ) (1,291 ) — 4,727 — Other, Net — (62 ) (49 ) 60 41 (10 ) Income (Loss) Before Income Taxes (1,780 ) (1,846 ) (1,404 ) (826 ) 4,772 (1,084 ) (Provision) Benefit for Income Taxes — — (138 ) (554 ) — (692 ) Net Income (Loss) (1,780 ) (1,846 ) (1,542 ) (1,380 ) 4,772 (1,776 ) Noncontrolling Interests — — — 4 — 4 Net Income (Loss) Attributable to Weatherford $ (1,780 ) $ (1,846 ) $ (1,542 ) $ (1,384 ) $ 4,772 $ (1,780 ) Comprehensive Income (Loss) Attributable to Weatherford $ (1,822 ) $ (1,861 ) $ (1,554 ) $ (1,427 ) $ 4,842 $ (1,822 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 4,209 $ — $ 4,209 Costs and Expenses (11 ) 45 2 (4,632 ) — (4,596 ) Operating Income (Loss) (11 ) 45 2 (423 ) — (387 ) Other Income (Expense): Interest Expense, Net — (432 ) (30 ) 21 14 (427 ) Intercompany Charges, Net 2 (89 ) (102 ) 189 — — Equity in Subsidiary Income (Loss) (924 ) (650 ) (265 ) — 1,839 — Other, Net 58 (23 ) (1 ) (2 ) (2 ) 30 Income (Loss) Before Income Taxes (875 ) (1,149 ) (396 ) (215 ) 1,851 (784 ) (Provision) Benefit for Income Taxes — — — (75 ) — (75 ) Net Income (Loss) (875 ) (1,149 ) (396 ) (290 ) 1,851 (859 ) Noncontrolling Interests — — 62 — 16 — 16 Net Income (Loss) Attributable to Weatherford $ (875 ) $ (1,149 ) $ (396 ) $ (306 ) $ 1,851 $ (875 ) Comprehensive Income (Loss) Attributable to Weatherford $ (754 ) $ (1,153 ) $ (436 ) $ (184 ) $ 1,773 $ (754 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 4,343 $ — $ 4,343 Costs and Expenses (150 ) (6 ) 4 (6,043 ) — (6,195 ) Operating Income (Loss) (150 ) (6 ) 4 (1,700 ) — (1,852 ) Other Income (Expense): Interest Expense, Net — (331 ) (39 ) — 7 (363 ) Intercompany Charges, Net 9 (30 ) (96 ) (223 ) 340 — Equity in Subsidiary Income (2,702 ) (1,922 ) (1,479 ) — 6,103 — Other, Net — (148 ) (76 ) 48 51 (125 ) Income (Loss) Before Income Taxes (2,843 ) (2,437 ) (1,686 ) (1,875 ) 6,501 (2,340 ) (Provision) Benefit for Income Taxes — — (114 ) (375 ) — (489 ) Net Income (Loss) (2,843 ) (2,437 ) (1,800 ) (2,250 ) 6,501 (2,829 ) Noncontrolling Interests — — — 14 — 14 Net Income (Loss) Attributable to Weatherford $ (2,843 ) $ (2,437 ) $ (1,800 ) $ (2,264 ) $ 6,501 $ (2,843 ) Comprehensive Income (Loss) Attributable to Weatherford $ (2,751 ) $ (2,501 ) $ (1,840 ) $ (2,173 ) $ 6,514 $ (2,751 ) Condensed Consolidating Balance Sheet September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Current Assets: Cash and Cash Equivalents $ — $ 57 $ — $ 388 $ — $ 445 Other Current Assets 1 — 512 4,628 (543 ) 4,598 Total Current Assets 1 57 512 5,016 (543 ) 5,043 Equity Investments in Affiliates 1,662 7,979 8,025 1,028 (18,694 ) — Intercompany Receivables, Net — 219 — 3,571 (3,790 ) — Other Assets — 10 4 6,956 — 6,970 Total Assets $ 1,663 $ 8,265 $ 8,541 $ 16,571 $ (23,027 ) $ 12,013 Current Liabilities: Short-term Borrowings and Current Portion of Long-Term Debt $ — $ 344 $ — $ 47 $ — $ 391 Accounts Payable and Other Current Liabilities 6 138 — 2,478 (543 ) 2,079 Total Current Liabilities 6 482 — 2,525 (543 ) 2,470 Long-term Debt — 7,127 161 148 94 7,530 Intercompany Payables, Net 232 — 3,559 — (3,791 ) — Other Long-term Liabilities 97 150 143 382 (143 ) 629 Total Liabilities 335 7,759 3,863 3,055 (4,383 ) 10,629 Weatherford Shareholders’ Equity 1,328 506 4,678 13,460 (18,644 ) 1,328 Noncontrolling Interests — — — 56 — 56 Total Liabilities and Shareholders’ Equity $ 1,663 $ 8,265 $ 8,541 $ 16,571 $ (23,027 ) $ 12,013 Condensed Consolidating Balance Sheet December 31, 2016 (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Current Assets: Cash and Cash Equivalents $ — $ 586 $ 4 $ 447 $ — $ 1,037 Other Current Assets 1 — 512 3,891 (531 ) 3,873 Total Current Assets 1 586 516 4,338 (531 ) 4,910 Equity Investments in Affiliates 2,415 8,669 8,301 1,037 (20,422 ) — Intercompany Receivables, Net — — — 3,762 (3,762 ) — Other Assets 2 13 — 7,751 (12 ) 7,754 Total Assets $ 2,418 $ 9,268 $ 8,817 $ 16,888 $ (24,727 ) $ 12,664 Current Liabilities: Short-term Borrowings and Current Portion of Long-Term Debt $ — $ 53 $ 94 $ 32 $ — $ 179 Accounts Payable and Other Current Liabilities 105 198 — 2,488 (542 ) 2,249 Total Current Liabilities 105 251 94 2,520 (542 ) 2,428 Long-term Debt — 6,944 148 204 107 7,403 Intercompany Payables, Net 145 224 3,393 — (3,762 ) — Other Long-term Liabilities 156 152 146 457 (146 ) 765 Total Liabilities 406 7,571 3,781 3,181 (4,343 ) 10,596 Weatherford Shareholders’ Equity 2,012 1,697 5,036 13,651 (20,384 ) 2,012 Noncontrolling Interests — — — 56 — 56 Total Liabilities and Shareholders’ Equity $ 2,418 $ 9,268 $ 8,817 $ 16,888 $ (24,727 ) $ 12,664 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Cash Flows from Operating Activities: Net Income (Loss) $ (875 ) $ (1,149 ) $ (396 ) $ (290 ) $ 1,851 $ (859 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: Charges from Parent or Subsidiary (2 ) 89 102 (189 ) — — Equity in (Earnings) Loss of Affiliates 924 650 265 — (1,839 ) — Deferred Income Tax Provision (Benefit) — — — (7 ) (7 ) Other Adjustments (129 ) 241 52 230 (12 ) 382 Net Cash Provided (Used) by Operating Activities (82 ) (169 ) 23 (256 ) — (484 ) Cash Flows from Investing Activities: Capital Expenditures for Property, Plant and Equipment — — — (147 ) — (147 ) Cash Paid for Assets Held for Sale — — — (244 ) — (244 ) Acquisitions of Businesses, Net of Cash Acquired — — — (7 ) — (7 ) Acquisition of Intellectual Property — — — (13 ) — (13 ) Proceeds from Sale of Assets — — — 36 — 36 Payment Related to Sale of Businesses, Net — — — (1 ) — (1 ) Other Investing Activities — — — (25 ) — (25 ) Net Cash Provided (Used) by Investing Activities — — — (401 ) — (401 ) Cash Flows from Financing Activities: Borrowings (Repayments) Short-term Debt, Net — 225 — (107 ) — 118 Borrowings (Repayments) Long-term Debt, Net — 212 (94 ) 79 — 197 Borrowings (Repayments) Between Subsidiaries, Net 82 (797 ) 67 648 — — Other, Net — — — (28 ) — (28 ) Net Cash Provided (Used) by Financing Activities 82 (360 ) (27 ) 592 — 287 Effect of Exchange Rate Changes On Cash and Cash Equivalents — — — 6 — 6 Net Increase (Decrease) in Cash and Cash Equivalents — (529 ) (4 ) (59 ) — (592 ) Cash and Cash Equivalents at Beginning of Period — 586 4 447 — 1,037 Cash and Cash Equivalents at End of Period $ — $ 57 $ — $ 388 $ — $ 445 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Cash Flows from Operating Activities: Net Income (Loss) $ (2,843 ) $ (2,437 ) $ (1,800 ) $ (2,250 ) $ 6,501 $ (2,829 ) Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: Charges from Parent or Subsidiary (9 ) 30 96 223 (340 ) — Equity in (Earnings) Loss of Affiliates 2,702 1,922 1,479 — (6,103 ) — Deferred Income Tax Provision (Benefit) — — 114 312 — 426 Other Adjustments 877 180 327 633 (58 ) 1,959 Net Cash Provided (Used) by Operating Activities 727 (305 ) 216 (1,082 ) — (444 ) Cash Flows from Investing Activities: Capital Expenditures for Property, Plant and Equipment — — — (136 ) — (136 ) Acquisitions of Intellectual Property — — — (5 ) — (5 ) Acquisition of Intellectual Property — — — (10 ) — (10 ) Insurance Proceeds Related to Rig Loss — — — 39 — 39 Proceeds from Sale of Assets and Businesses, Net — — — 28 — 28 Other Investing Activities — — — (20 ) — (20 ) Net Cash Provided (Used) by Investing Activities — — — (104 ) — (104 ) Cash Flows from Financing Activities: Borrowings (Repayments) Short-term Debt, Net — (1,167 ) — 29 — (1,138 ) Borrowings (Repayments) Long-term Debt, Net — 1,834 (515 ) (61 ) — 1,258 Borrowings (Repayments) Between Subsidiaries, Net (727 ) (343 ) 277 793 — — Proceeds from Issuance of Ordinary Shares — — — 623 — 623 Other, Net — — — (186 ) — (186 ) Net Cash Provided (Used) by Financing Activities (727 ) 324 (238 ) 1,198 — 557 Effect of Exchange Rate Changes On Cash and Cash Equivalents — — — (36 ) — (36 ) Net Increase (Decrease) in Cash and Cash Equivalents — 19 (22 ) (24 ) — (27 ) Cash and Cash Equivalents at Beginning of Period — 2 22 443 — 467 Cash and Cash Equivalents at End of Period $ — $ 21 $ — $ 419 $ — $ 440 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events At the end of the third quarter of 2017, changes to the Company’s organization structure were internally announced by the Company’s management. Implementation of these changes commenced in the beginning of the fourth quarter of 2017, and, as a result, we are in the process of reassessing our reportable segments. The reportable segment changes will be based on management’s organization and view of Weatherford’s business when making operating decisions and assessing performance. The purpose of the internal changes is to flatten the organization structure, reduce our costs and accelerate decision-making processes. These internal reporting changes, including changes to our reportable segments, will occur during the rest of the fourth quarter of 2017. The Company will begin reporting new reportable segments in the fourth quarter earnings release and the 2017 annual financial statements on Form 10-K and all prior periods reported will reflect the reportable segment changes. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company”) are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include all adjustments which, in our opinion, are considered necessary to present fairly our Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , and Condensed Consolidated Statements of Operations , Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2017 and 2016 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 . When referring to “Weatherford” and using phrases such as “we,” “us,” and “our,” the intent is to refer to Weatherford International plc, a public limited company organized under the law of Ireland, and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made. Although we believe the disclosures in these financial statements are adequate, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations. These financial statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2016 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results expected for the year ending December 31, 2017 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to uncollectible accounts receivable, lower of cost or net realizable value for inventories, equity investments, derivative financial instruments, intangible assets and goodwill, property, plant and equipment (PP&E), income taxes, percentage-of-completion accounting for long-term contracts, self-insurance, foreign currency exchange rates, pension and post-retirement benefit plans, disputes, litigation, contingencies and share-based compensation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation We consolidate all wholly-owned subsidiaries, controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. Investments in affiliates in which we exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior year cash flow amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards. Net income and shareholders’ equity were not affected by these reclassifications. See “ Note 18 – New Accounting Pronouncements ” for additional details. Revenue Recognition In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela to record a discount reflecting the time value of money and accrete the discount as interest income over the expected collection period using the effective interest method. In connection with this development, the Company corrected this immaterial error for the three and six month periods ended June 30, 2017. The impact of the correction decreased revenue and increased interest income by approximately $31 million and $4 million , respectively, for the three month period ended June 30, 2017 and reduced accounts receivable by approximately $27 million as of June 30, 2017. As of September 30, 2017, to reflect the impact of payment delays and expectation that the time to collect may exceed one year, we reclassified $158 million of accounts receivable related to this customer in Other Non-Current Assets on the accompanying Condensed Consolidated Balance Sheets . While we are continuing to experience delays with collections on our outstanding receivables with this customer, we believe the amounts are fully collectible based on the financial position and solvency of this customer and the dependence of the Venezuelan economy on oil production from this customer. We also considered our collections history with this customer and lack of historical material allowances or write-offs to our receivables balances. Our assumptions and related judgments are sensitive to the continued significant political and economic turmoil in Venezuela. If conditions continue to deteriorate, we may be required to record allowances or write-offs to our receivables balances that could have a material impact on our financial position and results of operations. |
Reclassifications | Reclassifications Certain prior year cash flow amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting standards. Net income and shareholders’ equity were not affected by these reclassifications. |
Revenue Recognition | Revenue Recognition In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela to record a discount reflecting the time value of money and accrete the discount as interest income over the expected collection period using the effective interest method. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Accounting Changes In May 2017, the Finan cial Accounting Standards Board (“FASB”) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies that modification accounting is required only if the fair value, the vesting conditions, or the classification of a share-based payment award changes as a result of changes in terms or conditions of the award. We have elected to early adopt ASU 2017-09 in the second quarter of 2017 and the adoption of this ASU had no impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 requires all income tax effects related to share-based payments at settlement (or expiration) be recorded through the income statement, including unrealized excess tax benefits. ASU 2016-09 also requires that all tax related cash flows resulting from share-based payments be presented as operating activities in the statement of cash flows. In addition, the guidance allows entities to increase the net-share settlement of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to estimate forfeitures or recognize them as they occur. Finally, the new guidance requires all cash payments made to a taxing authority on an employee’s behalf for shares withheld be presented as financing activities in the statement of cash flows. We adopted ASU 2016-09 in the first quarter of 2017. We prospectively adopted the changes requiring all tax effects related to share-based payments to be recorded through the income statement and all tax related cash flows from share based payments to be presented as operating activities in the statement of cash flows. There is no cumulative effect as there is no impact from unrecognized excess tax benefits or minimum withholding requirements and prior periods have not been adjusted. We have also made an entity-wide accounting policy election to continue to estimate forfeitures and adjust the estimate when it is likely to change. We have retrospectively adopted the guidance to classify as a financing activity on the statement of cash flows all cash payments made to a taxing authority on an employee’s behalf for shares withheld for tax-withholding purposes. We have reclassified $5 million from other operating activities to other financing activities in the Statements of Cash Flows for the nine months ended September 30, 2016 . Accounting Standards Issued Not Yet Adopted In July 2017, the FASB issued ASU 2017-11, which amends the accounting for certain equity-linked financial instruments and states a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. For an equity-linked financial instrument no longer accounted for as a liability at fair value, the amendments require a down round to be treated as a dividend and as a reduction of income available to common shareholders in basic earnings per share. The ASU is effective beginning with the first quarter of 2019, and early adoption is permitted. The ASU is required to be applied retrospectively to outstanding instruments. Weatherford is evaluating the impact that the ASU will have on our Consolidated Financial Statements and whether we will early adopt the ASU. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”). The service cost component of net benefit cost will be bifurcated and presented with other employee compensation costs, while other components of net benefit costs will be presented separately. The standard is required to be applied on a retrospective basis and will be effective beginning with the first quarter of 2018, although early adoption is permitted. We are evaluating the impact that this new standard will have on our Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which eliminates a current exception in U.S. GAAP to the recognition of the income tax effects of temporary differences that result from intra-entity transfers of non-inventory assets. The intra-entity exception is being eliminated under the ASU. The standard is required to be applied on a modified retrospective basis and will be effective beginning with the first quarter of 2018. Early adoption is permitted. We estimate that the impact that this new standard will have on our Consolidated Financial Statements will be a reversal of $110 million of prepaid taxes through retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires a lessee to recognize a lease asset and lease liability for most leases, including those classified as operating leases under existing U.S. GAAP. The ASU also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. Under ASU 2016-02, we will revise our leasing policies to require most of the leases, where we are the lessee, to be recognized on the balance sheet as a lease asset and lease liability whereas currently we do not recognize operating leases on our balance sheet. Further, we will separate leases from other contracts where we are either the lessor or lessee when the rights conveyed under the contract indicate there is a lease, where we may not be required to do so under existing policies. While we cannot calculate the impact ASU 2016-02 will have on Weatherford’s financial statements, we anticipate that Weatherford’s assets and liabilities will increase by a significant amount. This standard will be effective for us beginning with the first quarter of 2019. We do not anticipate adopting ASU 2016-02 early, which is permitted under the standard. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition method but permits certain practical expedients to be applied, which may exclude certain leases that commenced before the effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which will replace most existing revenue recognition guidance in U.S. GAAP. ASU 2014-09 will require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 requires a five-step approach to recognizing revenue: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. Subsequent to ASU 2014-09’s issuance, Topic 606 has been affected by other FASB updates that address certain aspects of Topic 606 or revised the effective date of the accounting changes. Under ASU 2014-09, we will revise our revenue recognition policy to require revenue recognition when control passes. This is a change from current policies, which generally require revenue recognition when delivery has occurred and risk and rewards of ownership have passed. We intend to adopt ASU 2014-09 as of its effective date in the first quarter of 2018. ASU 2014-09 permits two transition methods: the retrospective method or the modified retrospective method. Weatherford will be applying modified retrospective method which requires the recognition of a cumulative effect as an adjustment to opening retained earnings on the initial date of adoption. We have planned and commenced our implementation of ASU 2014-09. We have substantially completed an assessment of the differences between ASU 2014-09 and current accounting practices (gap analysis). Our approach involved comparing existing accounting requirements to the requirements under Topic 606 for each of our product lines and reviewing a sample of contracts within each product line and region. We are currently in the process of establishing new policies, procedures, and controls, establishing appropriate presentation and disclosure changes and quantifying any adoption date adjustments. Although not finalized, based on the implementation efforts performed, management’s assessment is that ASU 2014-09 is not expected to materially affect us. Any changes are not expected to have any direct impact to our cash flows. |
Business Combinations and Div29
Business Combinations and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | September 30, (Dollars in millions) 2017 Assets Held for Sale: Inventory, Net $ 89 Property, Plant and Equipment, Net 261 Goodwill 559 Total Assets $ 909 Liabilities Held for Sale: Long-term Debt $ 28 Other Liabilities 26 Total Liabilities $ 54 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following tables present the components of restructuring charges by segment for the third quarter and the first nine months of 2017 and 2016 . Three Months Ended September 30, 2017 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 1 $ — $ 1 MENA/Asia Pacific 4 16 20 Europe/SSA/Russia 2 — 2 Latin America 7 2 9 Subtotal 14 18 32 Land Drilling Rigs — — — Corporate and Research and Development 1 1 2 Total $ 15 $ 19 $ 34 Three Months Ended September 30, 2016 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 5 $ — $ 5 MENA/Asia Pacific 4 1 5 Europe/SSA/Russia (2 ) 2 — Latin America 9 1 10 Subtotal 16 4 20 Land Drilling Rigs — — — Corporate and Research and Development 2 — 2 Total $ 18 $ 4 $ 22 Nine Months Ended September 30, 2017 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 3 $ 21 $ 24 MENA/Asia Pacific 12 17 29 Europe/SSA/Russia 10 21 31 Latin America 20 5 25 Subtotal 45 64 109 Land Drilling Rigs 2 — 2 Corporate and Research and Development 24 5 29 Total $ 71 $ 69 $ 140 Nine Months Ended September 30, 2016 Total (Dollars in millions) Severance Other Severance and 2016 Plan Charges Charges Other Charges North America $ 29 $ 15 $ 44 MENA/Asia Pacific 22 3 25 Europe/SSA/Russia 21 4 25 Latin America 35 2 37 Subtotal 107 24 131 Land Drilling Rigs 5 — 5 Corporate and Research and Development 14 — 14 Total $ 126 $ 24 $ 150 The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to the severance accrued as part of earlier 2014 and 2015 Plans, the 2016 Plan that will be paid pursuant to the respective arrangements and statutory requirements. At September 30, 2017 2016 Plan 2015 and 2014 Plans Total Severance Severance Other Severance Other and Other (Dollars in millions) Liability Liability Liability Liability Liability North America $ 1 $ 17 $ — $ — $ 18 MENA/Asia Pacific 4 11 — — 15 Europe/SSA/Russia 2 9 — 5 16 Latin America — — — — — Subtotal 7 37 — 5 49 Land Drilling Rigs — — — — — Corporate and Research and Development 9 — — — 9 Total $ 16 $ 37 $ — $ 5 $ 58 |
Schedule of Restructuring Reserve by Type of Cost | The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to the severance accrued as part of earlier 2014 and 2015 Plans, the 2016 Plan that will be paid pursuant to the respective arrangements and statutory requirements. At September 30, 2017 2016 Plan 2015 and 2014 Plans Total Severance Severance Other Severance Other and Other (Dollars in millions) Liability Liability Liability Liability Liability North America $ 1 $ 17 $ — $ — $ 18 MENA/Asia Pacific 4 11 — — 15 Europe/SSA/Russia 2 9 — 5 16 Latin America — — — — — Subtotal 7 37 — 5 49 Land Drilling Rigs — — — — — Corporate and Research and Development 9 — — — 9 Total $ 16 $ 37 $ — $ 5 $ 58 The following table presents the restructuring liability activity for the first nine months of 2017 . Nine Months Ended September 30, 2017 (Dollars in millions) Accrued Balance at December 31, 2016 Charges Cash Payments Other Accrued Balance at September 30, 2017 2016 Plan: Severance liability $ 52 $ 71 $ (104 ) $ (3 ) $ 16 Other restructuring liability 22 57 (21 ) (21 ) 37 2015 and 2014 Plan: Severance liability 3 — (3 ) — — Other restructuring liability 9 — (1 ) (3 ) 5 Total severance and other restructuring liability $ 86 $ 128 $ (129 ) $ (27 ) $ 58 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories, net of reserves, by category were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Raw materials, components and supplies $ 145 $ 168 Work in process 70 49 Finished goods 1,537 1,585 $ 1,752 $ 1,802 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2017 , were as follows: (Dollars in millions) North America MENA/ Asia Pacific Europe/ SSA/ Russia Latin America Total Balance at December 31, 2016 $ 1,777 $ 189 $ 543 $ 288 $ 2,797 Reclassification to assets held for sale (559 ) — — — (559 ) Foreign currency translation adjustments 66 5 37 — 108 Balance at September 30, 2017 $ 1,284 $ 194 $ 580 $ 288 $ 2,346 |
Short-term Borrowings and Oth33
Short-term Borrowings and Other Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Line of Credit Facility [Line Items] | |
Schedule of Line of Credit Facilities [Table Text Block] | At September 30, 2017 , we had $691 million available under the Credit Agreements and the following table summarizes our borrowing availability under these agreements: (Dollars in millions) September 30, 2017 Facilities $ 1,388 Less uses of facilities: Revolving credit agreement 225 Letters of credit 84 Secured term loan before debt issuance cost 388 Borrowing Availability $ 691 |
Components of Short-Term Borrowings | (Dollars in millions) September 30, 2017 December 31, 2016 Revolving Credit Agreement $ 225 $ — Other short-term loans 28 2 Total short-term borrowings 253 2 Current portion of long-term debt and term loan agreement 138 177 Short-term borrowings and current portion of long-term debt $ 391 $ 179 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The fair value and carrying value of our senior notes were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Fair value $ 7,231 $ 6,739 Carrying value 7,210 7,028 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments in Statements of Financial Performance and Financial Position | The total estimated fair values of our foreign currency forward contracts and warrant derivative were as follows: (Dollars in millions) September 30, 2017 December 31, 2016 Classification Derivative assets not designated as hedges: Foreign currency forward contracts $ 10 $ 7 Other Current Assets Derivative liabilities not designated as hedges: Foreign currency forward contracts (5 ) (14 ) Other Current Liabilities Warrant on Weatherford Shares (98 ) (156 ) Other Non-current Liabilities The amount of derivative instruments’ gain or (loss) on the Condensed Consolidated Statements of Operations is in the table below. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2017 2016 2017 2016 Classification Foreign currency forward contracts $ 2 $ (22 ) $ (20 ) $ (12 ) Other Expense, Net Warrant on Weatherford Shares (7 ) — 58 — Warrant Fair Value Adjustment |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following summarizes our shareholders’ equity activity for the first nine months of 2017 and 2016 : (Dollars in millions) Par Value of Issued Shares Capital in Excess of Par Value Retained Earnings (Deficit) Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Shareholders’ Equity Balance at December 31, 2015 $ 1 $ 5,502 $ 442 $ (1,641 ) $ 61 $ 4,365 Net Income (Loss) — — (2,843 ) — 14 (2,829 ) Other Comprehensive Income — — — 92 — 92 Dividends Paid to Noncontrolling Interests — — — — (15 ) (15 ) Issuance of Common Shares — 623 — — — 623 Issuance of Exchangeable Notes — 97 — — — 97 Equity Awards Granted, Vested and Exercised — 51 — — — 51 Other — — — — (1 ) (1 ) Balance at September 30, 2016 $ 1 $ 6,273 $ (2,401 ) $ (1,549 ) $ 59 $ 2,383 Balance at December 31, 2016 $ 1 $ 6,571 $ (2,950 ) $ (1,610 ) $ 56 $ 2,068 Net Income (Loss) — — (875 ) — 16 (859 ) Other Comprehensive Income — — — 121 — 121 Dividends Paid to Noncontrolling Interests — — — — (16 ) (16 ) Equity Awards Granted, Vested and Exercised — 70 — — — 70 Balance at September 30, 2017 $ 1 $ 6,641 $ (3,825 ) $ (1,489 ) $ 56 $ 1,384 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in our accumulated other comprehensive loss by component for the first nine months of 2017 and 2016 : (Dollars in millions) Currency Translation Adjustment Defined Benefit Pension Deferred Loss on Derivatives Total Balance at December 31, 2015 $ (1,602 ) $ (29 ) $ (10 ) $ (1,641 ) Other Comprehensive Income before Reclassifications 90 1 — 91 Reclassifications — — 1 1 Net activity 90 1 1 92 Balance at September 30, 2016 $ (1,512 ) $ (28 ) $ (9 ) $ (1,549 ) Balance at December 31, 2016 $ (1,614 ) $ 13 $ (9 ) $ (1,610 ) Other Comprehensive Income before Reclassifications 165 — — 165 Reclassifications — (44 ) — (44 ) Net activity 165 (44 ) — 121 Balance at September 30, 2017 $ (1,449 ) $ (31 ) $ (9 ) $ (1,489 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table presents our basic and diluted weighted average shares outstanding for the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Shares in millions) 2017 2016 2017 2016 Basic and Diluted weighted average shares outstanding 990 899 989 871 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the number of anti-dilutive shares excluded for the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Shares in millions) 2017 2016 2017 2016 Anti-dilutive potential shares due to net loss 250 166 250 71 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | We recognized the following employee share-based compensation expense during the third quarter and the first nine months of 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2017 2016 2017 2016 Share-based compensation $ 14 $ 19 $ 55 $ 57 Related tax benefit — (8 ) — — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial information by segment | Segment Information Financial information by segment is summarized below. Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our Form 10-K. In the beginning of the fourth quarter of 2017, management commenced with the implementation of internal changes to the Company’s organization structure and as a result we are in the process of reassessing our reportable segments. See “ Note 20 – Subsequent Event ” for additional information. Three Months Ended September 30, 2017 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 538 $ 33 $ 39 MENA/Asia Pacific 335 8 49 Europe/SSA/Russia 252 14 36 Latin America 229 (5 ) 49 Subtotal 1,354 50 173 Land Drilling Rigs 106 (16 ) 23 1,460 34 196 Corporate and Research and Development (70 ) 3 Restructuring Charges (a) (34 ) Asset Write-Downs and Other 2 Litigation Credit 4 Total $ 1,460 $ (64 ) $ 199 (a) Includes restructuring charges of $34 million : $20 million in MENA/Asia Pacific, $9 million in Latin America, $2 million in Europe/SSA/Russia, $2 million in Corporate and Research and Development, and $1 million in North America. Three Months Ended September 30, 2016 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 449 $ (95 ) $ 55 MENA/Asia Pacific 329 (8 ) 60 Europe/SSA/Russia 225 (3 ) 45 Latin America 255 14 56 Subtotal 1,258 (92 ) 216 Land Drilling Rigs 98 (19 ) 22 1,356 (111 ) 238 Corporate and Research and Development (63 ) 4 Long-lived Asset Impairments, Write-Downs and Other Charges (b) (740 ) Restructuring Charges (c) (22 ) Litigation Charges, Net (9 ) Total $ 1,356 $ (945 ) $ 242 (b) Includes $436 million in long-lived asset impairments, $198 million in inventory write-downs, $62 million in accounts receivable reserves and write-offs, and $44 million of other asset write-offs and charges. (c) Includes restructuring charges of $22 million : $10 million in Latin America, $5 million in North America, $5 million in MENA/Asia Pacific, and $2 million in Corporate and Research and Development. Nine Months Ended September 30, 2017 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 1,503 $ 17 $ 119 MENA/Asia Pacific 996 14 151 Europe/SSA/Russia 740 9 114 Latin America (a) 674 (31 ) 148 Subtotal 3,913 9 532 Land Drilling Rigs 296 (66 ) 70 4,209 (57 ) 602 Corporate and Research and Development (211 ) 9 Restructuring Charges (b) (140 ) Asset Write-Downs and Other 17 Litigation Credit 4 Total $ 4,209 $ (387 ) $ 611 (a) In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela. The total impact of this change for the first six months of 2017 related to prior periods is a reduction in revenues and income from operations of approximately $23 million for the second half of 2016. See “ Note 1 – General ” for additional details. (b) Includes restructuring charges of $140 million : $31 million in Europe/SSA/Russia, $29 million in MENA/Asia Pacific, $29 million in Corporate and Research and Development, $25 million in Latin America, $24 million in North America, and $2 million in Land Drilling Rigs. Nine Months Ended September 30, 2016 (Dollars in millions) Net Operating Revenues Income (Loss) from Operations Depreciation and Amortization North America $ 1,393 $ (324 ) $ 167 MENA/Asia Pacific 1,090 (4 ) 181 Europe/SSA/Russia 725 (3 ) 141 Latin America 809 59 173 Subtotal 4,017 (272 ) 662 Land Drilling Rigs 326 (62 ) 67 4,343 (334 ) 729 Corporate and Research and Development (226 ) 12 Long-lived Asset Impairments, Write-Downs and Other Charges (c) (952 ) Restructuring Charges (d) (150 ) Litigation Charges, Net (190 ) Total $ 4,343 $ (1,852 ) $ 741 (c) Includes $436 million in long-lived asset impairments, $213 million in inventory write-downs, $121 million in other asset write-offs and charges, $84 million to adjust a note from our largest customer in Venezuela to fair value, $62 million in accounts receivable reserves and write-offs, $20 million in pressure pumping related charges, and $15 million in supply agreement charges related to a non-core business divestiture. (d) Includes restructuring charges of $150 million : $44 million in North America, $37 million in Latin America, $25 million in Europe/SSA/Russia, $25 million in MENA/Asia Pacific, $14 million in Corporate and Research and Development and $5 million in Land Drilling Rigs. |
Condensed Consolidating Finan40
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 1,460 $ — $ 1,460 Costs and Expenses (3 ) 6 1 (1,528 ) — (1,524 ) Operating Income (Loss) (3 ) 6 1 (68 ) — (64 ) Other Income (Expense): Interest Expense, Net — (149 ) (10 ) 6 5 (148 ) Intercompany Charges, Net (2 ) 1 (59 ) 60 — — Equity in Subsidiary Income (Loss) (244 ) (518 ) (445 ) — 1,207 — Other, Net (7 ) (54 ) (53 ) 48 52 (14 ) Income (Loss) Before Income Taxes (256 ) (714 ) (566 ) 46 1,264 (226 ) (Provision) Benefit for Income Taxes — — — (25 ) — (25 ) Net Income (Loss) (256 ) (714 ) (566 ) 21 1,264 (251 ) Noncontrolling Interests — — — 5 — 5 Net Income (Loss) Attributable to Weatherford $ (256 ) $ (714 ) $ (566 ) $ 16 $ 1,264 $ (256 ) Comprehensive Income (Loss) Attributable to Weatherford $ (168 ) $ (687 ) $ (538 ) $ 104 $ 1,121 $ (168 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 1,356 $ — $ 1,356 Costs and Expenses (3 ) (6 ) (1 ) (2,291 ) — (2,301 ) Operating Income (Loss) (3 ) (6 ) (1 ) (935 ) — (945 ) Other Income (Expense): Interest Expense, Net — (127 ) (13 ) 7 4 (129 ) Intercompany Charges, Net (3 ) 11 (50 ) 42 — — Equity in Subsidiary Income (1,774 ) (1,662 ) (1,291 ) — 4,727 — Other, Net — (62 ) (49 ) 60 41 (10 ) Income (Loss) Before Income Taxes (1,780 ) (1,846 ) (1,404 ) (826 ) 4,772 (1,084 ) (Provision) Benefit for Income Taxes — — (138 ) (554 ) — (692 ) Net Income (Loss) (1,780 ) (1,846 ) (1,542 ) (1,380 ) 4,772 (1,776 ) Noncontrolling Interests — — — 4 — 4 Net Income (Loss) Attributable to Weatherford $ (1,780 ) $ (1,846 ) $ (1,542 ) $ (1,384 ) $ 4,772 $ (1,780 ) Comprehensive Income (Loss) Attributable to Weatherford $ (1,822 ) $ (1,861 ) $ (1,554 ) $ (1,427 ) $ 4,842 $ (1,822 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 4,209 $ — $ 4,209 Costs and Expenses (11 ) 45 2 (4,632 ) — (4,596 ) Operating Income (Loss) (11 ) 45 2 (423 ) — (387 ) Other Income (Expense): Interest Expense, Net — (432 ) (30 ) 21 14 (427 ) Intercompany Charges, Net 2 (89 ) (102 ) 189 — — Equity in Subsidiary Income (Loss) (924 ) (650 ) (265 ) — 1,839 — Other, Net 58 (23 ) (1 ) (2 ) (2 ) 30 Income (Loss) Before Income Taxes (875 ) (1,149 ) (396 ) (215 ) 1,851 (784 ) (Provision) Benefit for Income Taxes — — — (75 ) — (75 ) Net Income (Loss) (875 ) (1,149 ) (396 ) (290 ) 1,851 (859 ) Noncontrolling Interests — — 62 — 16 — 16 Net Income (Loss) Attributable to Weatherford $ (875 ) $ (1,149 ) $ (396 ) $ (306 ) $ 1,851 $ (875 ) Comprehensive Income (Loss) Attributable to Weatherford $ (754 ) $ (1,153 ) $ (436 ) $ (184 ) $ 1,773 $ (754 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Revenues $ — $ — $ — $ 4,343 $ — $ 4,343 Costs and Expenses (150 ) (6 ) 4 (6,043 ) — (6,195 ) Operating Income (Loss) (150 ) (6 ) 4 (1,700 ) — (1,852 ) Other Income (Expense): Interest Expense, Net — (331 ) (39 ) — 7 (363 ) Intercompany Charges, Net 9 (30 ) (96 ) (223 ) 340 — Equity in Subsidiary Income (2,702 ) (1,922 ) (1,479 ) — 6,103 — Other, Net — (148 ) (76 ) 48 51 (125 ) Income (Loss) Before Income Taxes (2,843 ) (2,437 ) (1,686 ) (1,875 ) 6,501 (2,340 ) (Provision) Benefit for Income Taxes — — (114 ) (375 ) — (489 ) Net Income (Loss) (2,843 ) (2,437 ) (1,800 ) (2,250 ) 6,501 (2,829 ) Noncontrolling Interests — — — 14 — 14 Net Income (Loss) Attributable to Weatherford $ (2,843 ) $ (2,437 ) $ (1,800 ) $ (2,264 ) $ 6,501 $ (2,843 ) Comprehensive Income (Loss) Attributable to Weatherford $ (2,751 ) $ (2,501 ) $ (1,840 ) $ (2,173 ) $ 6,514 $ (2,751 ) |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Current Assets: Cash and Cash Equivalents $ — $ 57 $ — $ 388 $ — $ 445 Other Current Assets 1 — 512 4,628 (543 ) 4,598 Total Current Assets 1 57 512 5,016 (543 ) 5,043 Equity Investments in Affiliates 1,662 7,979 8,025 1,028 (18,694 ) — Intercompany Receivables, Net — 219 — 3,571 (3,790 ) — Other Assets — 10 4 6,956 — 6,970 Total Assets $ 1,663 $ 8,265 $ 8,541 $ 16,571 $ (23,027 ) $ 12,013 Current Liabilities: Short-term Borrowings and Current Portion of Long-Term Debt $ — $ 344 $ — $ 47 $ — $ 391 Accounts Payable and Other Current Liabilities 6 138 — 2,478 (543 ) 2,079 Total Current Liabilities 6 482 — 2,525 (543 ) 2,470 Long-term Debt — 7,127 161 148 94 7,530 Intercompany Payables, Net 232 — 3,559 — (3,791 ) — Other Long-term Liabilities 97 150 143 382 (143 ) 629 Total Liabilities 335 7,759 3,863 3,055 (4,383 ) 10,629 Weatherford Shareholders’ Equity 1,328 506 4,678 13,460 (18,644 ) 1,328 Noncontrolling Interests — — — 56 — 56 Total Liabilities and Shareholders’ Equity $ 1,663 $ 8,265 $ 8,541 $ 16,571 $ (23,027 ) $ 12,013 Condensed Consolidating Balance Sheet December 31, 2016 (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Current Assets: Cash and Cash Equivalents $ — $ 586 $ 4 $ 447 $ — $ 1,037 Other Current Assets 1 — 512 3,891 (531 ) 3,873 Total Current Assets 1 586 516 4,338 (531 ) 4,910 Equity Investments in Affiliates 2,415 8,669 8,301 1,037 (20,422 ) — Intercompany Receivables, Net — — — 3,762 (3,762 ) — Other Assets 2 13 — 7,751 (12 ) 7,754 Total Assets $ 2,418 $ 9,268 $ 8,817 $ 16,888 $ (24,727 ) $ 12,664 Current Liabilities: Short-term Borrowings and Current Portion of Long-Term Debt $ — $ 53 $ 94 $ 32 $ — $ 179 Accounts Payable and Other Current Liabilities 105 198 — 2,488 (542 ) 2,249 Total Current Liabilities 105 251 94 2,520 (542 ) 2,428 Long-term Debt — 6,944 148 204 107 7,403 Intercompany Payables, Net 145 224 3,393 — (3,762 ) — Other Long-term Liabilities 156 152 146 457 (146 ) 765 Total Liabilities 406 7,571 3,781 3,181 (4,343 ) 10,596 Weatherford Shareholders’ Equity 2,012 1,697 5,036 13,651 (20,384 ) 2,012 Noncontrolling Interests — — — 56 — 56 Total Liabilities and Shareholders’ Equity $ 2,418 $ 9,268 $ 8,817 $ 16,888 $ (24,727 ) $ 12,664 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Cash Flows from Operating Activities: Net Income (Loss) $ (875 ) $ (1,149 ) $ (396 ) $ (290 ) $ 1,851 $ (859 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: Charges from Parent or Subsidiary (2 ) 89 102 (189 ) — — Equity in (Earnings) Loss of Affiliates 924 650 265 — (1,839 ) — Deferred Income Tax Provision (Benefit) — — — (7 ) (7 ) Other Adjustments (129 ) 241 52 230 (12 ) 382 Net Cash Provided (Used) by Operating Activities (82 ) (169 ) 23 (256 ) — (484 ) Cash Flows from Investing Activities: Capital Expenditures for Property, Plant and Equipment — — — (147 ) — (147 ) Cash Paid for Assets Held for Sale — — — (244 ) — (244 ) Acquisitions of Businesses, Net of Cash Acquired — — — (7 ) — (7 ) Acquisition of Intellectual Property — — — (13 ) — (13 ) Proceeds from Sale of Assets — — — 36 — 36 Payment Related to Sale of Businesses, Net — — — (1 ) — (1 ) Other Investing Activities — — — (25 ) — (25 ) Net Cash Provided (Used) by Investing Activities — — — (401 ) — (401 ) Cash Flows from Financing Activities: Borrowings (Repayments) Short-term Debt, Net — 225 — (107 ) — 118 Borrowings (Repayments) Long-term Debt, Net — 212 (94 ) 79 — 197 Borrowings (Repayments) Between Subsidiaries, Net 82 (797 ) 67 648 — — Other, Net — — — (28 ) — (28 ) Net Cash Provided (Used) by Financing Activities 82 (360 ) (27 ) 592 — 287 Effect of Exchange Rate Changes On Cash and Cash Equivalents — — — 6 — 6 Net Increase (Decrease) in Cash and Cash Equivalents — (529 ) (4 ) (59 ) — (592 ) Cash and Cash Equivalents at Beginning of Period — 586 4 447 — 1,037 Cash and Cash Equivalents at End of Period $ — $ 57 $ — $ 388 $ — $ 445 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 (Unaudited) (Dollars in millions) Weatherford Ireland Weatherford Bermuda Weatherford Delaware Other Subsidiaries Eliminations Consolidation Cash Flows from Operating Activities: Net Income (Loss) $ (2,843 ) $ (2,437 ) $ (1,800 ) $ (2,250 ) $ 6,501 $ (2,829 ) Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities: Charges from Parent or Subsidiary (9 ) 30 96 223 (340 ) — Equity in (Earnings) Loss of Affiliates 2,702 1,922 1,479 — (6,103 ) — Deferred Income Tax Provision (Benefit) — — 114 312 — 426 Other Adjustments 877 180 327 633 (58 ) 1,959 Net Cash Provided (Used) by Operating Activities 727 (305 ) 216 (1,082 ) — (444 ) Cash Flows from Investing Activities: Capital Expenditures for Property, Plant and Equipment — — — (136 ) — (136 ) Acquisitions of Intellectual Property — — — (5 ) — (5 ) Acquisition of Intellectual Property — — — (10 ) — (10 ) Insurance Proceeds Related to Rig Loss — — — 39 — 39 Proceeds from Sale of Assets and Businesses, Net — — — 28 — 28 Other Investing Activities — — — (20 ) — (20 ) Net Cash Provided (Used) by Investing Activities — — — (104 ) — (104 ) Cash Flows from Financing Activities: Borrowings (Repayments) Short-term Debt, Net — (1,167 ) — 29 — (1,138 ) Borrowings (Repayments) Long-term Debt, Net — 1,834 (515 ) (61 ) — 1,258 Borrowings (Repayments) Between Subsidiaries, Net (727 ) (343 ) 277 793 — — Proceeds from Issuance of Ordinary Shares — — — 623 — 623 Other, Net — — — (186 ) — (186 ) Net Cash Provided (Used) by Financing Activities (727 ) 324 (238 ) 1,198 — 557 Effect of Exchange Rate Changes On Cash and Cash Equivalents — — — (36 ) — (36 ) Net Increase (Decrease) in Cash and Cash Equivalents — 19 (22 ) (24 ) — (27 ) Cash and Cash Equivalents at Beginning of Period — 2 22 443 — 467 Cash and Cash Equivalents at End of Period $ — $ 21 $ — $ 419 $ — $ 440 |
General - Revenue Recognition
General - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Change in Accounting Estimate [Line Items] | ||||||
Overstatement of accounts receivables | $ 1,236 | $ 1,236 | $ 1,383 | |||
Overstatement (reduction) of revenues | 1,460 | $ 1,356 | 4,209 | $ 4,343 | ||
Reduction in net income | (256) | $ (1,780) | (875) | $ (2,843) | ||
Accounts receivables, net of allowance for uncollectible accounts | 1,236 | 1,236 | 1,383 | |||
Other Non-Current Assets | Venezuela | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Overstatement of accounts receivables | 158 | 158 | ||||
Accounts receivables, net of allowance for uncollectible accounts | $ 158 | $ 158 | ||||
Revenue recognition adjustment | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Overstatement (reduction) of revenues | $ (23) | |||||
Accounting change adjustment | $ 31 | |||||
Interest Income (Expense), Net | 4 | |||||
Accounts Receivable, Net, Current | $ 27 |
General - Devaluation (Details
General - Devaluation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign exchange related charges | $ 0 | $ 0 | $ 0 | $ (31,000,000) |
Business Combinations and Div43
Business Combinations and Divestitures - Divestitures Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 24, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increase (decrease) in assets held-for-sale | $ 244 | $ 0 | ||
Property, plant and equipment | 3,989 | $ 4,480 | ||
OneStim | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration | $ 535 | |||
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Property, plant and equipment | $ 26 | |||
OneStim | Weatherford | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | |||
OneStim | Schlumberger | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% |
Business Combinations and Div44
Business Combinations and Divestitures Joint Venture Formation (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Total Liabilities | $ 54 | $ 0 |
OneStim | ||
Inventory, Net | 89 | |
Property, Plant and Equipment, Net | 261 | |
Goodwill | 559 | |
Total Assets | 909 | |
Other Liabilities | 26 | |
Long-term Debt | 28 | |
Total Liabilities | $ 54 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | $ 34 | $ 22 | $ 140 | $ 150 |
Asset Impairment Charges | 436 | 0 | 436 | |
2016 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 34 | 22 | 140 | 150 |
2016 Plan | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 19 | 4 | 69 | 24 |
Asset Impairment Charges | 12 | |||
2016 Plan | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 15 | 18 | 71 | $ 126 |
2016 Plan | Other Restructuring Less Asset Write-Offs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | $ 19 | $ 57 | ||
2015 Plan | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | $ 4 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | $ 34 | $ 22 | $ 140 | $ 150 |
2016 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 34 | 22 | 140 | 150 |
2016 Plan | Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 1 | 5 | 24 | 44 |
2016 Plan | Operating Segments | Middle East, North Africa, and Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 20 | 5 | 29 | 25 |
2016 Plan | Operating Segments | Europe, Sub-Sahara Africa, Russia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 2 | 0 | 31 | 25 |
2016 Plan | Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 9 | 10 | 25 | 37 |
2016 Plan | Corporate and Research and Development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 2 | 2 | 29 | 14 |
2016 Plan | Core Regional Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 32 | 20 | 109 | 131 |
2016 Plan | Land Drilling Rigs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 0 | 0 | 2 | 5 |
2016 Plan | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 15 | 18 | 71 | 126 |
2016 Plan | Employee Severance | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 1 | 5 | 3 | 29 |
2016 Plan | Employee Severance | Middle East, North Africa, and Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 4 | 4 | 12 | 22 |
2016 Plan | Employee Severance | Europe, Sub-Sahara Africa, Russia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 2 | (2) | 10 | 21 |
2016 Plan | Employee Severance | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 7 | 9 | 20 | 35 |
2016 Plan | Employee Severance | Corporate and Research and Development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 1 | 2 | 24 | 14 |
2016 Plan | Employee Severance | Core Regional Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 14 | 16 | 45 | 107 |
2016 Plan | Employee Severance | Land Drilling Rigs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | 0 | 0 | 2 | 5 |
2016 Plan | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 19 | 4 | 69 | 24 |
2016 Plan | Other Restructuring | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 0 | 0 | 21 | 15 |
2016 Plan | Other Restructuring | Middle East, North Africa, and Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 16 | 1 | 17 | 3 |
2016 Plan | Other Restructuring | Europe, Sub-Sahara Africa, Russia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 0 | 2 | 21 | 4 |
2016 Plan | Other Restructuring | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 2 | 1 | 5 | 2 |
2016 Plan | Other Restructuring | Corporate and Research and Development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 1 | 0 | 5 | 0 |
2016 Plan | Other Restructuring | Core Regional Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 18 | 4 | 64 | 24 |
2016 Plan | Other Restructuring | Land Drilling Rigs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Charges (Restru47
Restructuring Charges (Restructuring Liability) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Severance and Other Restructuring Liabilities | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of period | $ 86 |
Restructuring Charges | 128 |
Cash Payments | (129) |
Other | (27) |
Accrued balance at end of period | 58 |
Severance and Other Restructuring Liabilities | Corporate and Research and Development | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 9 |
Severance and Other Restructuring Liabilities | Core Regional Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 49 |
Severance and Other Restructuring Liabilities | Land Drilling Rigs | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2016 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of period | 52 |
Restructuring Charges | 71 |
Cash Payments | (104) |
Other | (3) |
Accrued balance at end of period | 16 |
2016 Plan | Employee Severance | Corporate and Research and Development | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 9 |
2016 Plan | Employee Severance | Core Regional Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 7 |
2016 Plan | Employee Severance | Land Drilling Rigs | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2016 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of period | 22 |
Restructuring Charges | 57 |
Cash Payments | (21) |
Other | (21) |
Accrued balance at end of period | 37 |
2016 Plan | Other Restructuring | Corporate and Research and Development | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2016 Plan | Other Restructuring | Core Regional Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 37 |
2016 Plan | Other Restructuring | Land Drilling Rigs | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of period | 3 |
Restructuring Charges | 0 |
Cash Payments | (3) |
Other | 0 |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Employee Severance | Corporate and Research and Development | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Employee Severance | Core Regional Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Employee Severance | Land Drilling Rigs | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of period | 9 |
Restructuring Charges | 0 |
Cash Payments | (1) |
Other | (3) |
Accrued balance at end of period | 5 |
2014 & 2015 Plan | Other Restructuring | Corporate and Research and Development | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
2014 & 2015 Plan | Other Restructuring | Core Regional Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 5 |
2014 & 2015 Plan | Other Restructuring | Land Drilling Rigs | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
North America | Severance and Other Restructuring Liabilities | Operating Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 18 |
North America | 2016 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 1 |
North America | 2016 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 17 |
North America | 2014 & 2015 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
North America | 2014 & 2015 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Middle East, North Africa, and Asia | Severance and Other Restructuring Liabilities | Operating Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 15 |
Middle East, North Africa, and Asia | 2016 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 4 |
Middle East, North Africa, and Asia | 2016 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 11 |
Middle East, North Africa, and Asia | 2014 & 2015 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Middle East, North Africa, and Asia | 2014 & 2015 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Europe, Sub-Sahara Africa, Russia | Severance and Other Restructuring Liabilities | Operating Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 16 |
Europe, Sub-Sahara Africa, Russia | 2016 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 2 |
Europe, Sub-Sahara Africa, Russia | 2016 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 9 |
Europe, Sub-Sahara Africa, Russia | 2014 & 2015 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Europe, Sub-Sahara Africa, Russia | 2014 & 2015 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 5 |
Latin America | Severance and Other Restructuring Liabilities | Operating Segments | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Latin America | 2016 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Latin America | 2016 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Latin America | 2014 & 2015 Plan | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | 0 |
Latin America | 2014 & 2015 Plan | Other Restructuring | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at end of period | $ 0 |
Accounts Receivable Factoring48
Accounts Receivable Factoring and Other Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from Sale of Notes Receivable | $ 59 | |||
Sale of accounts receivable | $ 150 | |||
Proceeds from sale of accounts receivable | 148 | |||
Gain (loss) on sale of accounts receivable | $ (1) | $ (0.4) | ||
Accounts receivable sold, carrying value | $ 102 | |||
Trade receivables held-for-sale, reconciliation to cash flow, deductions from held-for-sale | $ 65 | |||
Receivable with imputed interest, face amount | $ 65 | |||
Receivable with imputed interest, term | 3 years | |||
Receivable with imputed interest, effective yield (interest rate) | 4.60% | |||
Notes receivable, fair value disclosure | $ 58 |
Percentage of Completion Cont49
Percentage of Completion Contracts (Details) - USD ($) | May 26, 2016 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2017 |
Billed and Unbilled Contract Claims Subject to Uncertainty [Line Items] | ||||||
Billings in excess of cost | $ (47,000,000) | |||||
Contract settlement amount | $ 150,000,000 | |||||
Proceeds from contract settlements | $ 16,000,000 | $ 72,000,000 | $ 62,000,000 | |||
Iraq | ||||||
Billed and Unbilled Contract Claims Subject to Uncertainty [Line Items] | ||||||
Total estimated loss on contracts | 532,000,000 | $ 532,000,000 | ||||
Contract claims revenue | 0 | |||||
Deductions (back charges) | 25,000,000 | 25,000,000 | ||||
Accounts receivable, unapproved contract claims | $ 25,000,000 | $ 25,000,000 |
Inventories, Net (Schedule of I
Inventories, Net (Schedule of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials, components and supplies | $ 145 | $ 168 |
Work in process | 70 | 49 |
Finished goods | 1,537 | 1,585 |
Inventories, Net | $ 1,752 | $ 1,802 |
Long-Lived Asset Impairments Na
Long-Lived Asset Impairments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Asset Impairment Charges | $ 436 | $ 0 | $ 436 |
Long-Lived Asset Impairments | $ 0 | $ 436 | |
Impairment of Intangible Assets (Excluding Goodwill) | 48 | ||
Tangible Asset Impairment Charges | 388 | ||
Latin America | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Tangible Asset Impairment Charges | 16 | ||
Europe/ SSA/ Russia | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 13 | ||
Tangible Asset Impairment Charges | 12 | ||
MENA/ Asia Pacific | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Tangible Asset Impairment Charges | 109 | ||
North America | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 35 | ||
Tangible Asset Impairment Charges | 235 | ||
Drilling Rigs | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Tangible Asset Impairment Charges | $ 16 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | $ 2,797 |
Reclassification to assets held for sale | (559) |
Foreign currency translation adjustments | 108 |
Balance at September 30, 2017 | 2,346 |
North America | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | 1,777 |
Reclassification to assets held for sale | (559) |
Foreign currency translation adjustments | 66 |
Balance at September 30, 2017 | 1,284 |
MENA/ Asia Pacific | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | 189 |
Reclassification to assets held for sale | 0 |
Foreign currency translation adjustments | 5 |
Balance at September 30, 2017 | 194 |
Europe/ SSA/ Russia | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | 543 |
Reclassification to assets held for sale | 0 |
Foreign currency translation adjustments | 37 |
Balance at September 30, 2017 | 580 |
Latin America | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | 288 |
Reclassification to assets held for sale | 0 |
Foreign currency translation adjustments | 0 |
Balance at September 30, 2017 | $ 288 |
Short-term Borrowings and Oth53
Short-term Borrowings and Other Debt Obligations (Schedule of Short-term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 253 | $ 2 |
Current portion of long-term debt and term loan agreement | 138 | 177 |
Short-term borrowings and current portion of long-term debt | 391 | 179 |
Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 225 | 0 |
Other short-term bank loans | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 28 | $ 2 |
Short-term Borrowings and Oth54
Short-term Borrowings and Other Debt Obligations (Narrative) (Details) | May 04, 2016 | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 26, 2017USD ($) | Dec. 31, 2016USD ($) |
Short-term Debt [Line Items] | |||||||
Credit agreement, maximum capacity | $ 1,388,000,000 | $ 1,388,000,000 | |||||
Remaining borrowing capacity | $ 691,000,000 | 691,000,000 | |||||
Line of Credit Facility, Collateral | 72 | ||||||
Debt instrument, covenant, senior leverage ratio, period two | 2.5 | ||||||
Debt instrument, covenant, specified leverage and letter of credit ratio, period two | 3.5 | ||||||
Debt instrument, covenant, asset coverage ratio | 4 | ||||||
Borrowings of Long-term Debt | 250,000,000 | $ 3,153,000,000 | |||||
Short-term debt | $ 253,000,000 | 253,000,000 | $ 2,000,000 | ||||
Performance bonds | 59,000,000 | 59,000,000 | |||||
Current portion of long-term debt | 138,000,000 | 138,000,000 | 177,000,000 | ||||
Current portion of long-term debt and term loan agreement | 22,000,000 | 22,000,000 | |||||
Revolving Credit Facility [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Short-term debt | 225,000,000 | 225,000,000 | $ 0 | ||||
Committed letters of credit | |||||||
Short-term Debt [Line Items] | |||||||
Letters of Credit Outstanding, Amount | 387,000,000 | 387,000,000 | |||||
Domestic and foreign facility | |||||||
Short-term Debt [Line Items] | |||||||
Short term borrowings | 28,000,000 | 28,000,000 | |||||
A&R Credit Agreement | |||||||
Short-term Debt [Line Items] | |||||||
Credit agreement, maximum capacity | 1,000,000,000 | 1,000,000,000 | |||||
Term Loan Agreement | |||||||
Short-term Debt [Line Items] | |||||||
Current portion of long-term debt | 50,000,000 | 50,000,000 | |||||
Senior Notes, 9.875 Percent due 2024 | |||||||
Short-term Debt [Line Items] | |||||||
Long-term Debt | $ 540,000,000 | $ 250,000,000 | |||||
Term Loan Borrowings before Debt Issuance Cost [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Debt and Capital Lease Obligations | $ 388,000,000 | $ 388,000,000 | |||||
Senior Notes, 6.35% due 2017 | |||||||
Short-term Debt [Line Items] | |||||||
Short-term debt | $ 88,000,000 | ||||||
Senior Notes | Senior Notes, 9.875 Percent due 2024 | |||||||
Short-term Debt [Line Items] | |||||||
Stated interest rate on debt | 9.875% | ||||||
Weatherford Bermuda | Senior Notes | Senior Notes, 6.35% due 2017 | |||||||
Short-term Debt [Line Items] | |||||||
Stated interest rate on debt | 6.35% | 6.35% | |||||
Weatherford Bermuda | Senior Notes | Senior Notes, 6.00% due 2018 | |||||||
Short-term Debt [Line Items] | |||||||
Stated interest rate on debt | 6.00% | 6.00% | |||||
Current portion of long-term debt | $ 66,000,000 | $ 66,000,000 | |||||
London Interbank Offered Rate (LIBOR) | Term Loan Agreement | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 2.30% | ||||||
London Interbank Offered Rate (LIBOR) | Extending Lenders | Minimum | A&R Credit Agreement | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 2.80% |
Short-term Borrowings and Oth55
Short-term Borrowings and Other Debt Obligations Schedule of Borrowing Availability (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Credit agreement, maximum capacity | $ 1,388 | |
Short-term debt | 253 | $ 2 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term debt | 225 | $ 0 |
Committed Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | 84 | |
Term Loan Borrowings before Debt Issuance Cost [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt and Capital Lease Obligations | $ 388 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments (Details) - Senior Notes - Level 2 - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $ 7,231 | $ 6,739 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $ 7,210 | $ 7,028 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||||
Number of securities called by each warrant or right | 84.5 | |||||
Exercise price of warrants or rights | $ 6.43 | |||||
Warrants and rights outstanding | $ 98 | $ 156 | $ 98 | |||
Fair Value Adjustment of Warrants | 7 | $ 0 | (58) | $ 0 | ||
Foreign currency forward contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 1,200 | $ 1,600 | 1,200 | |||
Fair Value Hedging | Interest rate swap | ||||||
Derivative [Line Items] | ||||||
Debt instrument, unamortized premium | 4 | 4 | ||||
Deferred (gain) loss on discontinuation of fair value hedge | $ 9 | $ 9 | ||||
Capital in Excess of Par Value | ||||||
Derivative [Line Items] | ||||||
Stock issued during period, shares, new issues | 84.5 | 115 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule of Derivatives - Balance Sheet) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Foreign currency forward contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross | $ 10 | $ 7 |
Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross | (5) | (14) |
Warrant | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross | $ (98) | $ (156) |
Derivative Instruments (Sched59
Derivative Instruments (Schedule of Derivatives - Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Warrant Fair Value Adjustment | $ 7 | $ 0 | $ (58) | $ 0 |
Foreign currency forward contracts | Other, Net | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | 2 | (22) | (20) | (12) |
Warrant | Other, Net | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | $ (7) | $ 0 | $ 0 | |
Warrant Fair Value Adjustment | $ (58) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | |
(Provision) Benefit for Income Taxes | $ (25,000,000) | $ (692,000,000) | $ (75,000,000) | $ (489,000,000) | |
Income (loss) before income taxes | (226,000,000) | (1,084,000,000) | (784,000,000) | (2,340,000,000) | |
Asset Impairment Charges | 436,000,000 | 0 | 436,000,000 | ||
Inventory Charges | 66,000,000 | 213,000,000 | |||
Production Related Impairments or Charges | 198,000,000 | ||||
Allowance for Doubtful Accounts Receivable, Write-offs | 62,000,000 | 62,000,000 | |||
Other Asset Impairment Charges | 44,000,000 | 121,000,000 | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 137,000,000 | ||||
Bond Tender Premium | 0 | 0 | 0 | (78,000,000) | |
Financing Receivable, Allowance for Credit Losses, Write-downs | 84,000,000 | ||||
Foreign exchange related charges | $ 0 | 0 | $ 0 | 31,000,000 | |
Pressure Pumping Related Charges | 20,000,000 | ||||
Supply Agreement Charges related to Non-Core Business Divestiture | 15,000,000 | ||||
Deferred Tax Assets, Valuation Allowance | $ 526,000,000 | 526,000,000 | |||
Forecast | |||||
Uncertain tax positions, estimated for next twelve months | $ 10,000,000 | ||||
SEC Settlement | |||||
Gain (loss) related to litigation settlement | $ (140,000,000) |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity Activity) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 07, 2016 | |
Schedule of Issued and Treasury Shares [Line Items] | |||||||
Capital in Excess of Par Value | $ 6,641 | $ 6,571 | $ 6,641 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | 2,383 | $ 4,365 | 2,068 | $ 4,365 | |||
Net Income (Loss) | (251) | $ (1,776) | (859) | (2,829) | |||
Other Comprehensive Income | 88 | (42) | 121 | 92 | |||
Dividends Paid to Noncontrolling Interests | (16) | (15) | |||||
Issuance of Common Shares | 623 | 623 | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 97 | ||||||
Equity Awards Granted, Vested and Exercised | 70 | 51 | |||||
Balance, ending balance | 1,384 | 2,068 | 2,383 | 1,384 | 2,383 | ||
Stockholders' Equity, Other | 1 | ||||||
Par Value of Issued Shares | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | 1 | 1 | 1 | 1 | |||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 0 | ||||||
Equity Awards Granted, Vested and Exercised | 0 | 0 | |||||
Balance, ending balance | 1 | 1 | 1 | 1 | 1 | ||
Capital in Excess of Par Value | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | 6,273 | $ 5,502 | 6,571 | 5,502 | |||
Issuance of Common Shares | 623 | 623 | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 97 | ||||||
Equity Awards Granted, Vested and Exercised | 70 | 51 | |||||
Balance, ending balance | 6,641 | $ 6,571 | 6,273 | 6,641 | 6,273 | ||
Stock issued during period, shares, new issues | 84.5 | 115 | |||||
Stockholders' Equity, Other | 0 | ||||||
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | $ (2,401) | $ 442 | (2,950) | 442 | |||
Net Income (Loss) | (875) | (2,843) | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 0 | ||||||
Equity Awards Granted, Vested and Exercised | 0 | 0 | |||||
Balance, ending balance | (3,825) | (2,950) | (2,401) | (3,825) | (2,401) | ||
Accumulated Other Comprehensive Income (Loss) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | (1,549) | (1,641) | (1,610) | (1,641) | |||
Other Comprehensive Income | 121 | 92 | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 0 | ||||||
Equity Awards Granted, Vested and Exercised | 0 | 0 | |||||
Balance, ending balance | (1,489) | (1,610) | (1,549) | (1,489) | (1,549) | ||
Noncontrolling Interests | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, beginning balance | 59 | 61 | 56 | 61 | |||
Net Income (Loss) | 16 | 14 | |||||
Dividends Paid to Noncontrolling Interests | (16) | (15) | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 0 | ||||||
Equity Awards Granted, Vested and Exercised | 0 | 0 | |||||
Balance, ending balance | $ 56 | $ 56 | $ 59 | $ 56 | 59 | ||
Stockholders' Equity, Other | $ 1 | ||||||
Sale of Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Additional paid in capital | $ 623 | ||||||
Exchangeable Debt [Member] | |||||||
Schedule of Issued and Treasury Shares [Line Items] | |||||||
Capital in Excess of Par Value | $ 97 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Debt Instrument, Face Amount | $ 1,265 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (1,610) | $ (1,641) | ||
Other Comprehensive Income before Reclassifications | 165 | 91 | ||
Reclassifications | (44) | 1 | ||
Other Comprehensive Income (Loss) | $ 88 | $ (42) | 121 | 92 |
Ending balance | (1,489) | (1,549) | (1,489) | (1,549) |
Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (1,614) | (1,602) | ||
Other Comprehensive Income before Reclassifications | 165 | 90 | ||
Reclassifications | 0 | 0 | ||
Other Comprehensive Income (Loss) | 165 | 90 | ||
Ending balance | (1,449) | (1,512) | (1,449) | (1,512) |
Defined Benefit Pension | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 13 | (29) | ||
Other Comprehensive Income before Reclassifications | 0 | 1 | ||
Reclassifications | (44) | 0 | ||
Other Comprehensive Income (Loss) | (44) | 1 | ||
Ending balance | (31) | (28) | (31) | (28) |
Deferred Loss on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (9) | (10) | ||
Other Comprehensive Income before Reclassifications | 0 | 0 | ||
Reclassifications | 0 | 1 | ||
Other Comprehensive Income (Loss) | 0 | 1 | ||
Ending balance | $ (9) | $ (9) | $ (9) | $ (9) |
Earnings per Share (Weighted Av
Earnings per Share (Weighted Average Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of shares outstanding, basic | 990 | 899 | 989 | 871 |
Weighted average number of shares outstanding, diluted | 990 | 899 | 989 | 871 |
Earnings per Share (Antidilutiv
Earnings per Share (Antidilutive Shares) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive potential shares due to net loss | 250 | 166 | 250 | 71 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation | $ 14 | $ 19 | $ 57 | |
Related tax benefit | $ 0 | $ (8) | $ 0 | $ 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Performance units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 3.1 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 6.06 |
Fair value, risk-free rate | 1.17% |
Fair value, volatility rate | 67.00% |
Fair value, dividend yield | 0.00% |
Unrecognized compensation expense | $ | $ 12 |
Unrecognized compensation expense, recognition period | 2 years |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 5 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 5.11 |
Unrecognized compensation expense | $ | $ 55 |
Unrecognized compensation expense, recognition period | 2 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | $ (1,460) | $ (1,356) | $ (4,209) | $ (4,343) | ||||||
Operating Income (Loss) | (64) | (945) | (387) | (1,852) | ||||||
Depreciation and Amortization | 199 | 242 | 611 | 741 | ||||||
Corporate and Research and Development | (42) | (33) | (117) | (119) | ||||||
Restructuring Charges | (34) | (22) | (140) | (150) | ||||||
Overstatement (reduction) of revenues | (1,460) | (1,356) | (4,209) | (4,343) | ||||||
Litigation Charges, Net | 4 | (9) | 4 | (190) | ||||||
Revenue recognition adjustment | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | $ 23 | |||||||||
Accounting change adjustment | $ 31 | |||||||||
Overstatement (reduction) of revenues | $ 23 | |||||||||
Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (1,460) | (1,356) | (4,209) | (4,343) | ||||||
Operating Income (Loss) | 34 | (111) | (57) | (334) | ||||||
Depreciation and Amortization | 196 | 238 | 602 | 729 | ||||||
Overstatement (reduction) of revenues | (1,460) | (1,356) | (4,209) | (4,343) | ||||||
Operating Segments | Core Regional Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (1,354) | (1,258) | (3,913) | (4,017) | ||||||
Operating Income (Loss) | 50 | (92) | 9 | (272) | ||||||
Depreciation and Amortization | 173 | 216 | 532 | 662 | ||||||
Overstatement (reduction) of revenues | (1,354) | (1,258) | (3,913) | (4,017) | ||||||
Operating Segments | Drilling Rigs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (106) | (98) | (296) | (326) | ||||||
Operating Income (Loss) | (16) | (19) | (66) | (62) | ||||||
Depreciation and Amortization | 23 | 22 | 70 | 67 | ||||||
Overstatement (reduction) of revenues | (106) | (98) | (296) | (326) | ||||||
Corporate and Research and Development | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Depreciation and Amortization | 3 | 4 | 9 | 12 | ||||||
Corporate and Research and Development | (70) | (63) | (211) | (226) | ||||||
Segment Reconciling Items | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (34) | [1] | (22) | [2] | (140) | [3] | (150) | [4] | ||
Impairment of Long-Lived Assets and Other Related Charges | 2 | (740) | [5] | 17 | (952) | [6] | ||||
Litigation Charges, Net | (9) | 4 | (190) | |||||||
North America | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (538) | (449) | (1,503) | (1,393) | ||||||
Operating Income (Loss) | 33 | (95) | 17 | (324) | ||||||
Depreciation and Amortization | 39 | 55 | 119 | 167 | ||||||
Overstatement (reduction) of revenues | (538) | (449) | (1,503) | (1,393) | ||||||
MENA/ Asia Pacific | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (335) | (329) | (996) | (1,090) | ||||||
Operating Income (Loss) | 8 | (8) | 14 | (4) | ||||||
Depreciation and Amortization | 49 | 60 | 151 | 181 | ||||||
Overstatement (reduction) of revenues | (335) | (329) | (996) | (1,090) | ||||||
Europe/ SSA/ Russia | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (252) | (225) | (740) | (725) | ||||||
Operating Income (Loss) | 14 | (3) | 9 | (3) | ||||||
Depreciation and Amortization | 36 | 45 | 114 | 141 | ||||||
Overstatement (reduction) of revenues | (252) | (225) | (740) | (725) | ||||||
Latin America | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Operating Revenues | (229) | (255) | (674) | [7] | (809) | |||||
Operating Income (Loss) | (5) | 14 | (31) | 59 | ||||||
Depreciation and Amortization | 49 | 56 | 148 | 173 | ||||||
Overstatement (reduction) of revenues | (229) | (255) | (674) | [7] | (809) | |||||
2016 Plan | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (34) | (22) | (140) | (150) | ||||||
2016 Plan | Core Regional Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (32) | (20) | (109) | (131) | ||||||
2016 Plan | Drilling Rigs | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | 0 | 0 | (2) | (5) | ||||||
2016 Plan | Corporate and Research and Development | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (2) | (2) | (29) | (14) | ||||||
2016 Plan | North America | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (1) | (5) | (24) | (44) | ||||||
2016 Plan | MENA/ Asia Pacific | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (20) | (5) | (29) | (25) | ||||||
2016 Plan | Europe/ SSA/ Russia | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | (2) | 0 | (31) | (25) | ||||||
2016 Plan | Latin America | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring Charges | $ (9) | $ (10) | $ (25) | $ (37) | ||||||
[1] | Includes restructuring charges of $34 million: $20 million in MENA/Asia Pacific, $9 million in Latin America, $2 million in Europe/SSA/Russia, $2 million in Corporate and Research and Development, and $1 million in North America. | |||||||||
[2] | Includes restructuring charges of $22 million: $10 million in Latin America, $5 million in North America, $5 million in MENA/Asia Pacific, and $2 million in Corporate and Research and Development. | |||||||||
[3] | Includes restructuring charges of $140 million: $31 million in Europe/SSA/Russia, $29 million in MENA/Asia Pacific, $29 million in Corporate and Research and Development, $25 million in Latin America, $24 million in North America, and $2 million in Land Drilling Rigs. | |||||||||
[4] | Includes restructuring charges of $150 million: $44 million in North America, $37 million in Latin America, $25 million in Europe/SSA/Russia, $25 million in MENA/Asia Pacific, $14 million in Corporate and Research and Development and $5 million in Land Drilling Rigs. | |||||||||
[5] | Includes $436 million in long-lived asset impairments, $198 million in inventory write-downs, $62 million in accounts receivable reserves and write-offs, and $44 million of other asset write-offs and charges. | |||||||||
[6] | Includes $436 million in long-lived asset impairments, $213 million in inventory write-downs, $121 million in other asset write-offs and charges, $84 million to adjust a note from our largest customer in Venezuela to fair value, $62 million in accounts receivable reserves and write-offs, $20 million in pressure pumping related charges, and $15 million in supply agreement charges related to a non-core business divestiture. | |||||||||
[7] | In the second quarter of 2017, the Company changed its accounting for revenue with our largest customer in Venezuela. The total impact of this change for the first six months of 2017 related to prior periods is a reduction in revenues and income from operations of approximately $23 million for the second half of 2016. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | $ 34 | $ 22 | $ 140 | $ 150 |
Asset Impairment Charges | 436 | 0 | 436 | |
Inventory Charges | 66 | 213 | ||
Production Related Impairments or Charges | 198 | |||
Allowance for Doubtful Accounts Receivable, Write-offs | 62 | 62 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | 84 | |||
Long-Lived Asset Impairments | 0 | 436 | ||
Pressure Pumping Related Charges | 20 | |||
Supply Agreement Charges related to Non-Core Business Divestiture | 15 | |||
Other Asset Impairment Charges | 44 | 121 | ||
2016 Plan | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 34 | 22 | 140 | 150 |
2016 Plan | Drilling Rigs | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 0 | 0 | 2 | 5 |
2016 Plan | Corporate and Research and Development | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 2 | 2 | 29 | 14 |
2016 Plan | Europe, Sub-Sahara Africa, Russia | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 2 | 0 | 31 | 25 |
2016 Plan | North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 1 | 5 | 24 | 44 |
2016 Plan | Latin America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | 9 | 10 | 25 | 37 |
2016 Plan | Middle East, North Africa, and Asia | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Severance, asset impairment and other restructuring charges | $ 20 | $ 5 | $ 29 | $ 25 |
Disputes, Litigation and Cont69
Disputes, Litigation and Contingencies (Details) $ in Millions | Sep. 27, 2016 | Nov. 04, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2010lawsuit | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Estimated litigation liability | $ 181 | $ 91 | |||||||||
Recorded unconditional purchase obligation | 122 | ||||||||||
Other Current Liabilities | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Recorded unconditional purchase obligation | 52 | ||||||||||
Other Noncurrent Liabilities | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Recorded unconditional purchase obligation | 47 | ||||||||||
Liabilities Held for Sale | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Recorded unconditional purchase obligation | 23 | ||||||||||
Fair Value Guarantee | Other Noncurrent Liabilities | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Leveraged leases, net investment in leveraged leases disclosure, residual value of leased assets | 28 | ||||||||||
Neff v. Brady, et al. | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of actions filed (in lawsuits) | lawsuit | 3 | ||||||||||
Freedman v. Weatherford International Ltd., et al. | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation settlement, amount | $ 120 | ||||||||||
Payments for legal settlements | $ 120 | ||||||||||
Insurance settlements receivable | $ 4 | $ 23 | |||||||||
U.S. SEC and DOJ Investigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency accrual | $ 65 | $ 140 | |||||||||
Period of time in which reports and certifications are delivered regarding tax internal controls | 2 years | ||||||||||
U.S. SEC and DOJ Investigation | Settlement payments due 21 days from settlement | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payments for legal settlements | $ 50 | ||||||||||
U.S. SEC and DOJ Investigation | Settlement payments due in 120 days [Domain] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payments for legal settlements | $ 30 | ||||||||||
U.S. SEC and DOJ Investigation | Settlement payments due in 240 days | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payments for legal settlements | $ 30 | ||||||||||
U.S. SEC and DOJ Investigation | Settlement payments due in 360 days | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency accrual | $ 30 | ||||||||||
Spitzer | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency accrual | $ 36 |
New Accounting Pronouncements70
New Accounting Pronouncements Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash used in operating activities | $ 484 | $ 444 |
Net cash used in financing activities | 287 | 557 |
Prepaid Taxes | $ 110 | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Statutory Tax Withholding Component | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash used in operating activities | $ 5 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Statements (Narrative) (Details) - Senior Notes | Sep. 30, 2017 | Jun. 30, 2017 | Jun. 26, 2017 | Dec. 31, 2016 |
Senior Notes, 6.35% due 2017 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.35% | 6.35% | ||
Senior Notes, 6.80% due 2037 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.80% | 6.80% | ||
Senior Notes, 6.50% due 2036 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.50% | 6.50% | ||
Senior Notes, 6.00% due 2018 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.00% | |||
Senior Notes, 6.00% due 2018 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.00% | 6.00% | ||
Senior Notes, 7.00% due 2038 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 7.00% | 7.00% | ||
Senior Notes, 9.625% due 2019 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 9.625% | 9.625% | ||
Senior Notes, 9.875% due 2039 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 9.875% | 9.875% | ||
Senior Notes, 5.125% due 2020 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 5.125% | 5.125% | ||
Senior Notes, 6.75% due 2040 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 6.75% | 6.75% | ||
Senior Notes, 4.50% due 2022 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 4.50% | 4.50% | ||
Senior Notes, 5.95% due 2042 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 5.95% | 5.95% | ||
Exchangeable Senior Notes, 5.875 Percent due 2021 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 5.875% | 5.875% | ||
Senior Notes, 7.75 Percent due 2021 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 7.75% | 7.75% | ||
Senior Notes, 8.25 Percent due 2023 | Weatherford Bermuda | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 8.25% | 8.25% | ||
Senior Notes, 9.875 Percent due 2024 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 9.875% | |||
Senior Notes, 9.875 Percent due 2024 | Weatherford Delaware | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate on debt | 9.875% | 9.875% |
Condensed Consolidating Finan72
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 1,460 | $ 1,356 | $ 4,209 | $ 4,343 |
Costs and Expenses | (1,524) | (2,301) | (4,596) | (6,195) |
Operating Income (Loss) | (64) | (945) | (387) | (1,852) |
Other Income (Expense): | ||||
Interest Expense, Net | (148) | (129) | (427) | (363) |
Intercompany Charges, Net | 0 | 0 | 0 | 0 |
Equity in Subsidiary Income (Loss) | 0 | 0 | 0 | 0 |
Other, Net | (14) | (10) | 30 | (125) |
Loss Before Income Taxes | (226) | (1,084) | (784) | (2,340) |
(Provision) Benefit for Income Taxes | (25) | (692) | (75) | (489) |
Net Loss | (251) | (1,776) | (859) | (2,829) |
Noncontrolling Interests | 5 | 4 | 16 | 14 |
Net Income (Loss) Attributable to Weatherford | (256) | (1,780) | (875) | (2,843) |
Comprehensive Income (Loss) Attributable to Weatherford | (168) | (1,822) | (754) | (2,751) |
Other Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,460 | 1,356 | 4,209 | 4,343 |
Costs and Expenses | (1,528) | (2,291) | (4,632) | (6,043) |
Operating Income (Loss) | (68) | (935) | (423) | (1,700) |
Other Income (Expense): | ||||
Interest Expense, Net | 6 | 7 | 21 | 0 |
Intercompany Charges, Net | 60 | 42 | (189) | (223) |
Equity in Subsidiary Income (Loss) | 0 | 0 | 0 | 0 |
Other, Net | 48 | 60 | (2) | 48 |
Loss Before Income Taxes | 46 | (826) | (215) | (1,875) |
(Provision) Benefit for Income Taxes | (25) | (554) | (75) | (375) |
Net Loss | 21 | (1,380) | (290) | (2,250) |
Noncontrolling Interests | 5 | 4 | 16 | 14 |
Net Income (Loss) Attributable to Weatherford | 16 | (1,384) | (306) | (2,264) |
Comprehensive Income (Loss) Attributable to Weatherford | 104 | (1,427) | (184) | (2,173) |
Weatherford Ireland | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and Expenses | (3) | (3) | (11) | (150) |
Operating Income (Loss) | (3) | (3) | (11) | (150) |
Other Income (Expense): | ||||
Interest Expense, Net | 0 | 0 | 0 | 0 |
Intercompany Charges, Net | (2) | (3) | (2) | 9 |
Equity in Subsidiary Income (Loss) | (244) | (1,774) | (924) | (2,702) |
Other, Net | (7) | 0 | 58 | 0 |
Loss Before Income Taxes | (256) | (1,780) | (875) | (2,843) |
(Provision) Benefit for Income Taxes | 0 | 0 | 0 | 0 |
Net Loss | (256) | (1,780) | (875) | (2,843) |
Noncontrolling Interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Weatherford | (256) | (1,780) | (875) | (2,843) |
Comprehensive Income (Loss) Attributable to Weatherford | (168) | (1,822) | (754) | (2,751) |
Weatherford Bermuda | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and Expenses | 6 | (6) | 45 | (6) |
Operating Income (Loss) | 6 | (6) | 45 | (6) |
Other Income (Expense): | ||||
Interest Expense, Net | (149) | (127) | (432) | (331) |
Intercompany Charges, Net | 1 | 11 | 89 | (30) |
Equity in Subsidiary Income (Loss) | (518) | (1,662) | (650) | (1,922) |
Other, Net | (54) | (62) | (23) | (148) |
Loss Before Income Taxes | (714) | (1,846) | (1,149) | (2,437) |
(Provision) Benefit for Income Taxes | 0 | 0 | 0 | 0 |
Net Loss | (714) | (1,846) | (1,149) | (2,437) |
Noncontrolling Interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Weatherford | (714) | (1,846) | (1,149) | (2,437) |
Comprehensive Income (Loss) Attributable to Weatherford | (687) | (1,861) | (1,153) | (2,501) |
Weatherford Delaware | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and Expenses | 1 | (1) | 2 | 4 |
Operating Income (Loss) | 1 | (1) | 2 | 4 |
Other Income (Expense): | ||||
Interest Expense, Net | (10) | (13) | (30) | (39) |
Intercompany Charges, Net | (59) | (50) | 102 | (96) |
Equity in Subsidiary Income (Loss) | (445) | (1,291) | (265) | (1,479) |
Other, Net | (53) | (49) | (1) | (76) |
Loss Before Income Taxes | (566) | (1,404) | (396) | (1,686) |
(Provision) Benefit for Income Taxes | 0 | (138) | 0 | (114) |
Net Loss | (566) | (1,542) | (396) | (1,800) |
Noncontrolling Interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Weatherford | (566) | (1,542) | (396) | (1,800) |
Comprehensive Income (Loss) Attributable to Weatherford | (538) | (1,554) | (436) | (1,840) |
Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and Expenses | 0 | 0 | 0 | 0 |
Operating Income (Loss) | 0 | 0 | 0 | 0 |
Other Income (Expense): | ||||
Interest Expense, Net | 5 | 4 | 14 | 7 |
Intercompany Charges, Net | 0 | 0 | 0 | 340 |
Equity in Subsidiary Income (Loss) | 1,207 | 4,727 | 1,839 | 6,103 |
Other, Net | 52 | 41 | (2) | 51 |
Loss Before Income Taxes | 1,264 | 4,772 | 1,851 | 6,501 |
(Provision) Benefit for Income Taxes | 0 | 0 | 0 | 0 |
Net Loss | 1,264 | 4,772 | 1,851 | 6,501 |
Noncontrolling Interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Weatherford | 1,264 | 4,772 | 1,851 | 6,501 |
Comprehensive Income (Loss) Attributable to Weatherford | $ 1,121 | $ 4,842 | $ 1,773 | $ 6,514 |
Condensed Consolidating Finan73
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||||
Cash and Cash Equivalents | $ 445 | $ 1,037 | $ 440 | $ 467 |
Other Current Assets | 4,598 | 3,873 | ||
Total Current Assets | 5,043 | 4,910 | ||
Equity Investments in Affiliates | 0 | 0 | ||
Intercompany Receivables, Net | 0 | 0 | ||
Other Assets | 6,970 | 7,754 | ||
Total Assets | 12,013 | 12,664 | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 391 | 179 | ||
Accounts Payable and Other Current Liabilities | 2,079 | 2,249 | ||
Total Current Liabilities | 2,470 | 2,428 | ||
Long-term Debt | 7,530 | 7,403 | ||
Intercompany Payables, Net | 0 | 0 | ||
Other Long-term Liabilities | 629 | 765 | ||
Total Liabilities | 10,629 | 10,596 | ||
Weatherford Shareholders’ Equity | 1,328 | 2,012 | ||
Noncontrolling Interests | 56 | 56 | ||
Total Liabilities and Shareholders’ Equity | 12,013 | 12,664 | ||
Other Subsidiaries | ||||
Current Assets | ||||
Cash and Cash Equivalents | 388 | 447 | 419 | 443 |
Other Current Assets | 4,628 | 3,891 | ||
Total Current Assets | 5,016 | 4,338 | ||
Equity Investments in Affiliates | 1,028 | 1,037 | ||
Intercompany Receivables, Net | 3,571 | 3,762 | ||
Other Assets | 6,956 | 7,751 | ||
Total Assets | 16,571 | 16,888 | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 47 | 32 | ||
Accounts Payable and Other Current Liabilities | 2,478 | 2,488 | ||
Total Current Liabilities | 2,525 | 2,520 | ||
Long-term Debt | 148 | 204 | ||
Intercompany Payables, Net | 0 | 0 | ||
Other Long-term Liabilities | 382 | 457 | ||
Total Liabilities | 3,055 | 3,181 | ||
Weatherford Shareholders’ Equity | 13,460 | 13,651 | ||
Noncontrolling Interests | 56 | 56 | ||
Total Liabilities and Shareholders’ Equity | 16,571 | 16,888 | ||
Weatherford Ireland | ||||
Current Assets | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Other Current Assets | 1 | 1 | ||
Total Current Assets | 1 | 1 | ||
Equity Investments in Affiliates | 1,662 | 2,415 | ||
Intercompany Receivables, Net | 0 | 0 | ||
Other Assets | 0 | 2 | ||
Total Assets | 1,663 | 2,418 | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 0 | 0 | ||
Accounts Payable and Other Current Liabilities | 6 | 105 | ||
Total Current Liabilities | 6 | 105 | ||
Long-term Debt | 0 | 0 | ||
Intercompany Payables, Net | 232 | 145 | ||
Other Long-term Liabilities | 97 | 156 | ||
Total Liabilities | 335 | 406 | ||
Weatherford Shareholders’ Equity | 1,328 | 2,012 | ||
Noncontrolling Interests | 0 | 0 | ||
Total Liabilities and Shareholders’ Equity | 1,663 | 2,418 | ||
Weatherford Bermuda | ||||
Current Assets | ||||
Cash and Cash Equivalents | 57 | 586 | 21 | 2 |
Other Current Assets | 0 | 0 | ||
Total Current Assets | 57 | 586 | ||
Equity Investments in Affiliates | 7,979 | 8,669 | ||
Intercompany Receivables, Net | 219 | 0 | ||
Other Assets | 10 | 13 | ||
Total Assets | 8,265 | 9,268 | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 344 | 53 | ||
Accounts Payable and Other Current Liabilities | 138 | 198 | ||
Total Current Liabilities | 482 | 251 | ||
Long-term Debt | 7,127 | 6,944 | ||
Intercompany Payables, Net | 0 | 224 | ||
Other Long-term Liabilities | 150 | 152 | ||
Total Liabilities | 7,759 | 7,571 | ||
Weatherford Shareholders’ Equity | 506 | 1,697 | ||
Noncontrolling Interests | 0 | 0 | ||
Total Liabilities and Shareholders’ Equity | 8,265 | 9,268 | ||
Weatherford Delaware | ||||
Current Assets | ||||
Cash and Cash Equivalents | 0 | 4 | 0 | 22 |
Other Current Assets | 512 | 512 | ||
Total Current Assets | 512 | 516 | ||
Equity Investments in Affiliates | 8,025 | 8,301 | ||
Intercompany Receivables, Net | 0 | 0 | ||
Other Assets | 4 | 0 | ||
Total Assets | 8,541 | 8,817 | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 0 | 94 | ||
Accounts Payable and Other Current Liabilities | 0 | 0 | ||
Total Current Liabilities | 0 | 94 | ||
Long-term Debt | 161 | 148 | ||
Intercompany Payables, Net | 3,559 | 3,393 | ||
Other Long-term Liabilities | 143 | 146 | ||
Total Liabilities | 3,863 | 3,781 | ||
Weatherford Shareholders’ Equity | 4,678 | 5,036 | ||
Noncontrolling Interests | 0 | 0 | ||
Total Liabilities and Shareholders’ Equity | 8,541 | 8,817 | ||
Eliminations | ||||
Current Assets | ||||
Cash and Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Other Current Assets | (543) | (531) | ||
Total Current Assets | (543) | (531) | ||
Equity Investments in Affiliates | (18,694) | (20,422) | ||
Intercompany Receivables, Net | (3,790) | (3,762) | ||
Other Assets | 0 | (12) | ||
Total Assets | (23,027) | (24,727) | ||
Current Liabilities | ||||
Short-term Borrowings and Current Portion of Long-Term Debt | 0 | 0 | ||
Accounts Payable and Other Current Liabilities | (543) | (542) | ||
Total Current Liabilities | (543) | (542) | ||
Long-term Debt | 94 | 107 | ||
Intercompany Payables, Net | (3,791) | (3,762) | ||
Other Long-term Liabilities | (143) | (146) | ||
Total Liabilities | (4,383) | (4,343) | ||
Weatherford Shareholders’ Equity | (18,644) | (20,384) | ||
Noncontrolling Interests | 0 | 0 | ||
Total Liabilities and Shareholders’ Equity | $ (23,027) | $ (24,727) |
Condensed Consolidating Finan74
Condensed Consolidating Financial Statements (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | $ (251) | $ (1,776) | $ (859) | $ (2,829) |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | 0 | 0 | ||
Equity in (Earnings) Loss of Affiliates | 0 | 0 | ||
Deferred Income Tax Provision (Benefit) | (7) | 426 | ||
Other Adjustments | 382 | 1,959 | ||
Net Cash Used in Operating Activities | (484) | (444) | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | (147) | (136) | ||
Payments to Acquire Businesses, Net of Cash Acquired | 7 | 5 | ||
Acquisition of Assets Held for Sale | (244) | 0 | ||
Acquisition of Intellectual Property | (13) | (10) | ||
Insurance Proceeds Related to Asset Casualty Loss | 0 | 39 | ||
Proceeds from Sale of Assets | 36 | 28 | ||
Other Investing Activities | (25) | 0 | ||
Payment Related to Sale of Businesses, Net | (1) | (20) | ||
Net Cash Used in Investing Activities | (401) | (104) | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | 118 | (1,138) | ||
Borrowings (Repayments) Long-term Debt, Net | 197 | 1,258 | ||
Borrowings (Repayments) Between Subsidiaries, Net | 0 | 0 | ||
Proceeds from Capital Contributions | 623 | |||
Other, Net | (28) | (186) | ||
Net Cash Provided by Financing Activities | 287 | 557 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 6 | (36) | ||
Net Decrease in Cash and Cash Equivalents | (592) | (27) | ||
Cash and Cash Equivalents at Beginning of Period | 1,037 | 467 | ||
Cash and Cash Equivalents at End of Period | 445 | 440 | 445 | 440 |
Other Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | 21 | (1,380) | (290) | (2,250) |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | (189) | 223 | ||
Equity in (Earnings) Loss of Affiliates | 0 | 0 | ||
Deferred Income Tax Provision (Benefit) | (7) | 312 | ||
Other Adjustments | 230 | 633 | ||
Net Cash Used in Operating Activities | (256) | (1,082) | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | (147) | (136) | ||
Payments to Acquire Businesses, Net of Cash Acquired | 7 | 5 | ||
Acquisition of Assets Held for Sale | (244) | |||
Acquisition of Intellectual Property | (13) | (10) | ||
Insurance Proceeds Related to Asset Casualty Loss | 39 | |||
Proceeds from Sale of Assets | 36 | 28 | ||
Other Investing Activities | 25 | |||
Payment Related to Sale of Businesses, Net | (1) | (20) | ||
Net Cash Used in Investing Activities | (401) | (104) | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | (107) | 29 | ||
Borrowings (Repayments) Long-term Debt, Net | 79 | (61) | ||
Borrowings (Repayments) Between Subsidiaries, Net | 648 | 793 | ||
Proceeds from Capital Contributions | 623 | |||
Other, Net | (28) | (186) | ||
Net Cash Provided by Financing Activities | 592 | 1,198 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 6 | (36) | ||
Net Decrease in Cash and Cash Equivalents | (59) | (24) | ||
Cash and Cash Equivalents at Beginning of Period | 447 | 443 | ||
Cash and Cash Equivalents at End of Period | 388 | 419 | 388 | 419 |
Parent Company [Member] | ||||
Cash Flows From Investing Activities: | ||||
Payment Related to Sale of Businesses, Net | 0 | |||
Weatherford Ireland | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | (256) | (1,780) | (875) | (2,843) |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | (2) | (9) | ||
Equity in (Earnings) Loss of Affiliates | 924 | 2,702 | ||
Deferred Income Tax Provision (Benefit) | 0 | 0 | ||
Other Adjustments | (129) | 877 | ||
Net Cash Used in Operating Activities | (82) | 727 | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Acquisition of Assets Held for Sale | 0 | |||
Acquisition of Intellectual Property | 0 | 0 | ||
Insurance Proceeds Related to Asset Casualty Loss | 0 | |||
Proceeds from Sale of Assets | 0 | 0 | ||
Other Investing Activities | 0 | |||
Payment Related to Sale of Businesses, Net | 0 | |||
Net Cash Used in Investing Activities | 0 | 0 | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | 0 | 0 | ||
Borrowings (Repayments) Long-term Debt, Net | 0 | 0 | ||
Borrowings (Repayments) Between Subsidiaries, Net | 82 | (727) | ||
Proceeds from Capital Contributions | 0 | |||
Other, Net | 0 | 0 | ||
Net Cash Provided by Financing Activities | 82 | (727) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Decrease in Cash and Cash Equivalents | 0 | 0 | ||
Cash and Cash Equivalents at Beginning of Period | 0 | 0 | ||
Cash and Cash Equivalents at End of Period | 0 | 0 | 0 | 0 |
Weatherford Bermuda | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | (714) | (1,846) | (1,149) | (2,437) |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | 89 | 30 | ||
Equity in (Earnings) Loss of Affiliates | 650 | 1,922 | ||
Deferred Income Tax Provision (Benefit) | 0 | 0 | ||
Other Adjustments | 241 | 180 | ||
Net Cash Used in Operating Activities | (169) | (305) | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Acquisition of Assets Held for Sale | 0 | |||
Acquisition of Intellectual Property | 0 | 0 | ||
Insurance Proceeds Related to Asset Casualty Loss | 0 | |||
Proceeds from Sale of Assets | 0 | 0 | ||
Other Investing Activities | 0 | |||
Payment Related to Sale of Businesses, Net | 0 | 0 | ||
Net Cash Used in Investing Activities | 0 | 0 | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | 225 | (1,167) | ||
Borrowings (Repayments) Long-term Debt, Net | 212 | 1,834 | ||
Borrowings (Repayments) Between Subsidiaries, Net | (797) | (343) | ||
Proceeds from Capital Contributions | 0 | |||
Other, Net | 0 | 0 | ||
Net Cash Provided by Financing Activities | (360) | 324 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Decrease in Cash and Cash Equivalents | (529) | 19 | ||
Cash and Cash Equivalents at Beginning of Period | 586 | 2 | ||
Cash and Cash Equivalents at End of Period | 57 | 21 | 57 | 21 |
Weatherford Delaware | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | (566) | (1,542) | (396) | (1,800) |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | 102 | 96 | ||
Equity in (Earnings) Loss of Affiliates | 265 | 1,479 | ||
Deferred Income Tax Provision (Benefit) | 0 | 114 | ||
Other Adjustments | 52 | 327 | ||
Net Cash Used in Operating Activities | 23 | 216 | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Acquisition of Assets Held for Sale | 0 | |||
Acquisition of Intellectual Property | 0 | 0 | ||
Insurance Proceeds Related to Asset Casualty Loss | 0 | |||
Proceeds from Sale of Assets | 0 | 0 | ||
Other Investing Activities | 0 | |||
Payment Related to Sale of Businesses, Net | 0 | 0 | ||
Net Cash Used in Investing Activities | 0 | 0 | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | 0 | 0 | ||
Borrowings (Repayments) Long-term Debt, Net | (94) | (515) | ||
Borrowings (Repayments) Between Subsidiaries, Net | 67 | 277 | ||
Proceeds from Capital Contributions | 0 | |||
Other, Net | 0 | 0 | ||
Net Cash Provided by Financing Activities | (27) | (238) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Decrease in Cash and Cash Equivalents | (4) | (22) | ||
Cash and Cash Equivalents at Beginning of Period | 4 | 22 | ||
Cash and Cash Equivalents at End of Period | 0 | 0 | 0 | 0 |
Eliminations | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net Income (Loss) | 1,264 | 4,772 | 1,851 | 6,501 |
Cash Flows from Operating Activities: | ||||
Charges from Parent or Subsidiary | 0 | (340) | ||
Equity in (Earnings) Loss of Affiliates | (1,839) | (6,103) | ||
Deferred Income Tax Provision (Benefit) | 0 | |||
Other Adjustments | (12) | (58) | ||
Net Cash Used in Operating Activities | 0 | 0 | ||
Cash Flows From Investing Activities: | ||||
Capital Expenditures for Property, Plant and Equipment | 0 | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||
Acquisition of Assets Held for Sale | 0 | |||
Acquisition of Intellectual Property | 0 | 0 | ||
Insurance Proceeds Related to Asset Casualty Loss | 0 | |||
Proceeds from Sale of Assets | 0 | 0 | ||
Other Investing Activities | 0 | |||
Payment Related to Sale of Businesses, Net | 0 | 0 | ||
Net Cash Used in Investing Activities | 0 | 0 | ||
Cash Flows From Financing Activities: | ||||
Borrowings (Repayments) of Short-term Debt, Net | 0 | 0 | ||
Borrowings (Repayments) Long-term Debt, Net | 0 | 0 | ||
Borrowings (Repayments) Between Subsidiaries, Net | 0 | 0 | ||
Proceeds from Capital Contributions | 0 | |||
Other, Net | 0 | 0 | ||
Net Cash Provided by Financing Activities | 0 | 0 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | ||
Net Decrease in Cash and Cash Equivalents | 0 | 0 | ||
Cash and Cash Equivalents at Beginning of Period | 0 | 0 | ||
Cash and Cash Equivalents at End of Period | $ 0 | $ 0 | $ 0 | $ 0 |