Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document And Enity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Halliburton Company | ' | ' |
Entity Central Index Key | '0000045012 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $38,003,000,000 |
Entity Common Stock, Shares Outstanding | ' | 850,866,860 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' |
Services | $22,257 | $22,196 | $19,692 |
Product sales | 7,145 | 6,307 | 5,137 |
Total revenue | 29,402 | 28,503 | 24,829 |
Operating costs and expenses: | ' | ' | ' |
Cost of services | 18,959 | 18,447 | 15,432 |
Cost of sales | 5,972 | 5,322 | 4,379 |
Loss Contingency, Loss in Period | 1,000 | 300 | 0 |
General and administrative | 333 | 275 | 281 |
Total operating costs and expenses | 26,264 | 24,344 | 20,092 |
Operating income | 3,138 | 4,159 | 4,737 |
Interest expense, net of interest income of $8, $7, and $5 | -331 | -298 | -263 |
Other, net | -43 | -39 | -25 |
Income from continuing operations before income taxes | 2,764 | 3,822 | 4,449 |
Provision for income taxes | -648 | -1,235 | -1,439 |
Income from continuing operations | 2,116 | 2,587 | 3,010 |
Income (loss) from discontinued operations, net of income tax benefit (provision) of $1, $82, and $(18) | 19 | 58 | -166 |
Net income | 2,135 | 2,645 | 2,844 |
Noncontrolling interest in net income of subsidiaries | -10 | -10 | -5 |
Net income attributable to company | 2,125 | 2,635 | 2,839 |
Amounts attributable to company shareholders: | ' | ' | ' |
Income from continuing operations | 2,106 | 2,577 | 3,005 |
Income (loss) from discontinued operations, net | 19 | 58 | -166 |
Net income attributable to company | $2,125 | $2,635 | $2,839 |
Basic income per share attributable to company shareholders: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $2.35 | $2.78 | $3.27 |
Income (loss) from discontinued operations, net (in dollars per share) | $0.02 | $0.07 | ($0.18) |
Net income per share (in dollars per share) | $2.37 | $2.85 | $3.09 |
Diluted income per share attributable to company shareholders: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $2.33 | $2.78 | $3.26 |
Income (loss) from discontinued operations, net (in dollars per share) | $0.03 | $0.06 | ($0.18) |
Net income per share (in dollars per share) | $2.36 | $2.84 | $3.08 |
Basic weighted average common shares outstanding (in shares) | 898 | 926 | 918 |
Diluted weighted average common shares outstanding (in shares) | 902 | 928 | 922 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income | $8 | $7 | $5 |
Income (loss) from discontinued operations, income tax (provision) benefit | $1 | $82 | ($18) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $2,135 | $2,645 | $2,844 |
Other comprehensive income, net of income taxes: | ' | ' | ' |
Defined benefit and other postretirement plans adjustments | 0 | -33 | -34 |
Other | 2 | -3 | 0 |
Other comprehensive income (loss), net of income taxes | 2 | -36 | -34 |
Comprehensive income | 2,137 | 2,609 | 2,810 |
Comprehensive income attributable to noncontrolling interest | -10 | -10 | -4 |
Comprehensive income attributable to company shareholders | $2,127 | $2,599 | $2,806 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $2,356 | $2,484 |
Receivables (less allowance for bad debts of $117 and $92) | 6,181 | 5,787 |
Inventories | 3,305 | 3,186 |
Prepaid Expense, Current | 737 | 608 |
Current deferred income taxes | 388 | 351 |
Other current assets | 737 | 670 |
Total current assets | 13,704 | 13,086 |
Property, plant, and equipment, net of accumulated depreciation of $9,480 and $8,056 | 11,322 | 10,257 |
Goodwill | 2,168 | 2,135 |
Other assets | 2,029 | 1,932 |
Total assets | 29,223 | 27,410 |
Current liabilities: | ' | ' |
Accounts payable | 2,365 | 2,041 |
Accrued employee compensation and benefits | 1,029 | 930 |
Deferred revenue | 350 | 307 |
Other current liabilities | 1,004 | 1,474 |
Total current liabilities | 5,026 | 4,752 |
Loss Contingency, Accrual, Current | 278 | 0 |
Long-term debt | 7,816 | 4,820 |
Loss Contingency, Accrual Carrying Value, Noncurrent | 1,022 | 300 |
Employee compensation and benefits | 584 | 607 |
Other liabilities | 1,160 | 1,141 |
Total liabilities | 15,608 | 11,620 |
Shareholders’ equity: | ' | ' |
Common shares, par value $2.50 per share (authorized 2,000 shares, issued 1,072 and 1,073 shares) | 2,680 | 2,682 |
Paid-in capital in excess of par value | 415 | 486 |
Accumulated other comprehensive loss | -307 | -309 |
Retained earnings | 18,842 | 17,182 |
Treasury stock, at cost (223 and 144 shares) | -8,049 | -4,276 |
Company shareholders’ equity | 13,581 | 15,765 |
Noncontrolling interest in consolidated subsidiaries | 34 | 25 |
Total shareholders’ equity | 13,615 | 15,790 |
Total liabilities and shareholders’ equity | $29,223 | $27,410 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for bad debt | $117 | $92 |
Accumulated depreciation | $9,480 | $8,056 |
Shareholders’ equity: | ' | ' |
Common stock, par value (in dollars per share) | $2.50 | $2.50 |
Common stock, shares authorized (in shares) | 2,000 | 2,000 |
Common stock, shares issued (in shares) | 1,072 | 1,073 |
Treasury shares (in shares) | 223 | 144 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $2,135 | $2,645 | $2,844 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' | ' |
Depreciation, depletion, and amortization | 1,900 | 1,628 | 1,359 |
Loss contingency for Macondo well incident | 1,000 | 300 | 0 |
Provision (benefit) for deferred income taxes, continuing operations | -132 | 165 | -30 |
(Income) loss from discontinued operations, net | -19 | -58 | 166 |
Other changes: | ' | ' | ' |
Receivables | -449 | -682 | -1,218 |
Accounts payable | 327 | 200 | 649 |
Loss Contingency Accrual, Carrying Value, Payments | -219 | 0 | 0 |
Increase (Decrease) in Inventories | 107 | 611 | 564 |
Other | 11 | 67 | 478 |
Total cash flows from operating activities | 4,447 | 3,654 | 3,684 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -2,934 | -3,566 | -2,953 |
Proceeds from Sale and Maturity of Marketable Securities | 356 | 258 | 1,001 |
Purchases of investment securities | -329 | -506 | -501 |
Sales of property, plant, and equipment | 241 | 395 | 160 |
Acquisitions of business assets, net of cash acquired | -94 | -214 | -880 |
Other investing activities | -110 | -55 | -17 |
Total cash flows from investing activities | -2,870 | -3,688 | -3,190 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from exercises of stock options | -4,356 | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 2,968 | 0 | 978 |
Payments of Ordinary Dividends, Common Stock | 465 | 333 | 330 |
Proceeds from Stock Options Exercised | 277 | 107 | 160 |
Other financing activities | -178 | 54 | 25 |
Total cash flows from financing activities | -1,754 | -172 | 833 |
Effect of exchange rate changes on cash | 49 | -8 | -27 |
Increase (decrease) in cash and equivalents | -128 | -214 | 1,300 |
Cash and equivalents at beginning of year | 2,484 | 2,698 | 1,398 |
Cash and equivalents at end of year | 2,356 | 2,484 | 2,698 |
Cash payments during the period for: | ' | ' | ' |
Interest | 293 | 294 | 261 |
Income taxes | $913 | $1,098 | $1,285 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Shares | Paid-in Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling interest in Consolidated Subsidiaries |
In Millions, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2010 | ($10,387) | ($2,674) | ($339) | ($4,771) | ($12,371) | $240 | ($14) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 2,844 | 0 | 0 | 0 | 2,839 | 0 | 5 |
Other Comprehensive Income (Loss), Net of Tax | -34 | 0 | 0 | 0 | 0 | -33 | -1 |
Cash dividends | -330 | 0 | 0 | 0 | -330 | 0 | 0 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | -315 | -9 | -82 | -224 | 0 | 0 | 0 |
Other | 34 | 0 | 34 | 0 | 0 | 0 | 0 |
Ending balance at Dec. 31, 2011 | -13,216 | -2,683 | -455 | -4,547 | -14,880 | 273 | -18 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 2,645 | 0 | 0 | 0 | 2,635 | 0 | 10 |
Other Comprehensive Income (Loss), Net of Tax | -36 | 0 | 0 | 0 | 0 | -36 | 0 |
Cash dividends | -333 | 0 | 0 | 0 | -333 | 0 | 0 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | -295 | -1 | -25 | -271 | 0 | 0 | 0 |
Other | 3 | 0 | 6 | 0 | 0 | 0 | -3 |
Ending balance at Dec. 31, 2012 | -15,790 | -2,682 | -486 | -4,276 | -17,182 | 309 | -25 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 2,135 | 0 | 0 | 0 | 2,125 | 0 | 10 |
Other Comprehensive Income (Loss), Net of Tax | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
Treasury Stock, Value, Acquired, Cost Method | -4,356 | 0 | 0 | -4,356 | 0 | 0 | 0 |
Cash dividends | -465 | 0 | 0 | 0 | -465 | 0 | 0 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | -484 | -2 | -97 | -583 | 0 | 0 | 0 |
Other | -25 | 0 | 26 | 0 | 0 | 0 | -1 |
Ending balance at Dec. 31, 2013 | ($13,615) | ($2,680) | ($415) | ($8,049) | ($18,842) | $307 | ($34) |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends paid (in dollars per share) | $0.53 | $0.36 | $0.36 |
Description_of_Company_and_Sig
Description of Company and Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Description of Company and Significant Accounting Policies | ' | |||||||||
Description of Company and Significant Accounting Policies | ||||||||||
Description of Company | ||||||||||
Halliburton Company’s predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. We are one of the world’s largest oilfield services companies. Our two business segments are the Completion and Production segment and the Drilling and Evaluation segment. We provide a comprehensive range of services and products for the exploration, development, and production of oil and natural gas around the world. | ||||||||||
Use of estimates | ||||||||||
Our financial statements are prepared in conformity with United States generally accepted accounting principles, requiring us to make estimates and assumptions that affect: | ||||||||||
- | the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and | |||||||||
- | the reported amounts of revenue and expenses during the reporting period. | |||||||||
We believe the most significant estimates and assumptions are associated with the forecasting of our effective income tax rate and the valuation of deferred taxes, legal and environmental reserves, long-lived asset valuations, purchase price allocations, pensions, allowance for bad debts, and percentage-of-completion accounting for long-term contracts. Ultimate results could differ from our estimates. | ||||||||||
Basis of presentation | ||||||||||
The consolidated financial statements include the accounts of our company and all of our subsidiaries that we control or variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany accounts and transactions are eliminated. Investments in companies in which we have significant influence are accounted for using the equity method of accounting. If we do not have significant influence, we use the cost method of accounting. | ||||||||||
In 2013, we adopted the provisions of a new accounting standard. See Note 15 for further information. All periods presented reflect these changes. | ||||||||||
Revenue recognition | ||||||||||
Overall. Our services and products are generally sold based upon purchase orders or contracts with our customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. Our products are produced in a standard manufacturing operation, even if produced to our customer’s specifications. We recognize revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured, and delivery occurs as directed by our customer. Service revenue, including training and consulting services, is recognized when the services are rendered and collectability is reasonably assured. Rates for services are typically priced on a per day, per meter, per man-hour, or similar basis. | ||||||||||
Software sales. Sales of perpetual software licenses, net of any deferred maintenance and support fees, are recognized as revenue upon shipment. Sales of time-based licenses are recognized as revenue over the license period. Maintenance and support fees are recognized as revenue ratably over the contract period, usually a one-year duration. | ||||||||||
Percentage of completion. Revenue from certain long-term, integrated project management contracts to provide well construction and completion services is reported on the percentage-of-completion method of accounting. Progress is generally based upon physical progress related to contractually defined units of work. Physical percent complete is determined as a combination of input and output measures as deemed appropriate by the circumstances. All known or anticipated losses on contracts are provided for when they become evident. Cost adjustments that are in the process of being negotiated with customers for extra work or changes in the scope of work are included in revenue when collection is deemed probable. | ||||||||||
Research and development | ||||||||||
Research and development costs are expensed as incurred. Research and development costs were $588 million in 2013, $460 million in 2012, and $401 million in 2011. | ||||||||||
Cash equivalents | ||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||||||||||
Inventories | ||||||||||
Inventories are stated at the lower of cost or market. Cost represents invoice or production cost for new items and original cost less allowance for condition for used material returned to stock. Production cost includes material, labor, and manufacturing overhead. Some domestic manufacturing and field service finished products and parts inventories for drill bits, completion products, and bulk materials are recorded using the last-in, first-out method. The remaining inventory is recorded on the average cost method. We regularly review inventory quantities on hand and record provisions for excess or obsolete inventory based primarily on historical usage, estimated product demand, and technological developments. | ||||||||||
Allowance for bad debts | ||||||||||
We establish an allowance for bad debts through a review of several factors, including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. Our policy is to write off bad debts when the customer accounts are determined to be uncollectible. | ||||||||||
Property, plant, and equipment | ||||||||||
Other than those assets that have been written down to their fair values due to impairment, property, plant, and equipment are reported at cost less accumulated depreciation, which is generally provided on the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are used for tax purposes, wherever permitted. Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Planned major maintenance costs are generally expensed as incurred. Expenditures for additions, modifications, and conversions are capitalized when they increase the value or extend the useful life of the asset. | ||||||||||
Goodwill and other intangible assets | ||||||||||
We record as goodwill the excess purchase price over the fair value of the tangible and identifiable intangible assets acquired. Changes in the carrying amount of goodwill are detailed below by reportable segment. | ||||||||||
Millions of dollars | Completion and Production | Drilling and Evaluation | Total | |||||||
Balance at December 31, 2011: | $ | 1,215 | $ | 561 | $ | 1,776 | ||||
Current year acquisitions | 100 | 62 | 162 | |||||||
Purchase price adjustments for previous acquisitions | 196 | 1 | 197 | |||||||
Balance at December 31, 2012: | $ | 1,511 | $ | 624 | $ | 2,135 | ||||
Current year acquisitions | 43 | 10 | 53 | |||||||
Purchase price adjustments for previous acquisitions | (21 | ) | 1 | (20 | ) | |||||
Balance at December 31, 2013: | $ | 1,533 | $ | 635 | $ | 2,168 | ||||
The reported amounts of goodwill for each reporting unit are reviewed for impairment on an annual basis, during the third quarter, and more frequently should negative conditions such as significant current or projected operating losses exist. In 2012 and 2011, we elected to perform a qualitative assessment for our annual goodwill impairment test. If a qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we would be required to perform a quantitative impairment test for goodwill. In 2013, we elected to bypass the qualitative assessment and perform a quantitative impairment test. This two-step process involves comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired, and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test would be performed to measure the amount of impairment loss to be recorded, if any. Our goodwill impairment assessment for 2013 indicated the fair value of each of our reporting units exceeded its carrying amount by a significant margin. Based on our qualitative assessment of goodwill in 2012 and 2011, we concluded that it was more likely than not that the fair value of each of our reporting units was greater than their carrying amount, and therefore no further testing was required. In addition, there were no triggering events that occurred in 2013, 2012, or 2011 requiring us to perform additional impairment reviews. As such, there were no impairments of goodwill recorded in the three-year period ended December 31, 2013. | ||||||||||
We amortize other identifiable intangible assets with a finite life on a straight-line basis over the period which the asset is expected to contribute to our future cash flows, ranging from three to twenty years. The components of these other intangible assets generally consist of patents, license agreements, non-compete agreements, trademarks, and customer lists and contracts. | ||||||||||
Evaluating impairment of long-lived assets | ||||||||||
When events or changes in circumstances indicate that long-lived assets other than goodwill may be impaired, an evaluation is performed. For an asset classified as held for use, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if a write-down to fair value is required. When an asset is classified as held for sale, the asset’s book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. In addition, depreciation and amortization is ceased while it is classified as held for sale. | ||||||||||
Income taxes | ||||||||||
We recognize the amount of taxes payable or refundable for the year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. | ||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations. | ||||||||||
We generally do not provide income taxes on the undistributed earnings of non-United States subsidiaries because such earnings are intended to be reinvested indefinitely to finance foreign activities. These additional foreign earnings could be subject to additional tax if remitted, or deemed remitted, as a dividend; however, it is not practicable to estimate the additional amount, if any, of taxes payable. Taxes are provided as necessary with respect to earnings that are not permanently reinvested. | ||||||||||
Derivative instruments | ||||||||||
At times, we enter into derivative financial transactions to hedge existing or projected exposures to changing foreign currency exchange rates and interest rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value and reflected through the results of operations. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against: | ||||||||||
- | the change in fair value of the hedged assets, liabilities, or firm commitments through earnings; or | |||||||||
- | recognized in other comprehensive income until the hedged item is recognized in earnings. | |||||||||
The ineffective portion of a derivative’s change in fair value is recognized in earnings. Recognized gains or losses on derivatives entered into to manage foreign currency exchange risk are included in “Other, net” on the consolidated statements of operations. Gains or losses on interest rate derivatives are included in “Interest expense, net.” | ||||||||||
Foreign currency translation | ||||||||||
Foreign entities whose functional currency is the United States dollar translate monetary assets and liabilities at year-end exchange rates, and nonmonetary items are translated at historical rates. Income and expense accounts are translated at the average rates in effect during the year, except for depreciation, cost of product sales and revenue, and expenses associated with nonmonetary balance sheet accounts, which are translated at historical rates. Gains or losses from changes in exchange rates are recognized in our consolidated statements of operations in “Other, net” in the year of occurrence. | ||||||||||
Stock-based compensation | ||||||||||
Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award, and is recognized as expense over the employee’s service period, which is generally the vesting period of the equity grant. Additionally, compensation cost is recognized based on awards ultimately expected to vest, therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods to reflect actual forfeitures. See Note 11 for additional information related to stock-based compensation. |
Business_Segment_and_Geographi
Business Segment and Geographic Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Business Segment and Geographic Information | ' | |||||||||
Business Segment and Geographic Information | ||||||||||
We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. | ||||||||||
Completion and Production delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion services. The segment consists of Production Enhancement, Cementing, Completion Tools, Halliburton Boots & Coots, Multi-Chem, and Halliburton Artificial Lift. | ||||||||||
Production Enhancement services include stimulation services and sand control services. Stimulation services optimize oil and natural gas reservoir production through a variety of pressure pumping services, nitrogen services, and chemical processes, commonly known as hydraulic fracturing and acidizing. Sand control services include fluid and chemical systems and pumping services for the prevention of formation sand production. | ||||||||||
Cementing services involve bonding the well and well casing while isolating fluid zones and maximizing wellbore stability. Our cementing service line also provides casing equipment. | ||||||||||
Completion Tools provides downhole solutions and services to our customers to complete their wells, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, and service tools. | ||||||||||
Halliburton Boots & Coots includes well intervention services, pressure control, equipment rental tools and services, and pipeline and process services. | ||||||||||
Multi-Chem includes oilfield production and completion chemicals and services that address production, processing, and transportation challenges. | ||||||||||
Halliburton Artificial Lift offers electrical submersible pumps, including the associated surface package for power, control, and monitoring of the entire lift system, and provides installation, maintenance, repair, and testing services. The objective of these services is to maximize reservoir and wellbore recovery by applying lifting technology and intelligent field management solutions throughout the life of the well. | ||||||||||
Drilling and Evaluation provides field and reservoir modeling, drilling, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Drill Bits and Services, Wireline and Perforating, Testing and Subsea, Baroid, Sperry Drilling, Landmark Software and Services, and Consulting and Project Management. | ||||||||||
Drill Bits and Services provides roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services used in drilling oil and natural gas wells. In addition, coring equipment and services are provided to acquire cores of the formation drilled for evaluation. | ||||||||||
Wireline and Perforating services include open-hole logging services that provide information on formation evaluation and reservoir fluid analysis, including formation lithology, rock properties, and reservoir fluid properties. Also offered are cased-hole and slickline services, which provide perforating, pipe recovery services, through-casing formation evaluation and reservoir monitoring, casing and cement integrity measurements, and well intervention services. Borehole seismic services include downhole seismic operations check-shots and vertical seismic profiles, and provide the link between surface seismic and the wellbore. Finally, formation and reservoir solutions transform formation evaluation data into reservoir insight through geoscience solutions. | ||||||||||
Testing and Subsea services provide acquisition and analysis of dynamic reservoir information and reservoir optimization solutions to the oil and natural gas industry through a broad portfolio of test tools, data acquisition services, fluid sampling, surface well testing, and subsea safety systems. | ||||||||||
Baroid provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services for oil and natural gas drilling, completion, and workover operations. | ||||||||||
Sperry Drilling provides drilling systems and services. These services include directional and horizontal drilling, measurement-while-drilling, logging-while-drilling, surface data logging, multilateral systems, underbalanced applications, and rig site information systems. Our drilling systems offer directional control for precise wellbore placement while providing important measurements about the characteristics of the drill string and geological formations while drilling wells. Real-time operating capabilities enable the monitoring of well progress and aid decision-making processes. | ||||||||||
Landmark Software and Services is a supplier of integrated exploration, drilling and production software, and related professional and data management services for the upstream oil and natural gas industry. | ||||||||||
Consulting and Project Management provides oilfield project management and integrated solutions to independent, integrated, and national oil companies. These offerings make use of all of our oilfield services, products, technologies, and project management capabilities to assist our customers in optimizing the value of their oil and natural gas assets. | ||||||||||
Corporate and other includes expenses related to support functions and corporate executives and is primarily composed of cash and equivalents, deferred tax assets, and investment securities. Also included are certain gains, losses and costs not attributable to a particular business segment (such as the loss contingencies related to the Macondo well incident recorded during the first quarters of 2013 and 2012 and the $55 million charitable contribution expensed during the second quarter of 2013). | ||||||||||
Intersegment revenue and revenue between geographic areas are immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for under the equity method of accounting is included in revenue and operating income of the applicable segment. | ||||||||||
The following tables present information on our business segments. | ||||||||||
Operations by business segment | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Revenue: | ||||||||||
Completion and Production | $ | 17,506 | $ | 17,380 | $ | 15,143 | ||||
Drilling and Evaluation | 11,896 | 11,123 | 9,686 | |||||||
Total revenue | $ | 29,402 | $ | 28,503 | $ | 24,829 | ||||
Operating income: | ||||||||||
Completion and Production | $ | 2,875 | $ | 3,144 | $ | 3,733 | ||||
Drilling and Evaluation | 1,770 | 1,675 | 1,403 | |||||||
Total operations | 4,645 | 4,819 | 5,136 | |||||||
Corporate and other | (1,507 | ) | (660 | ) | (399 | ) | ||||
Total operating income | $ | 3,138 | $ | 4,159 | $ | 4,737 | ||||
Interest expense, net of interest income | $ | (331 | ) | $ | (298 | ) | $ | (263 | ) | |
Other, net | (43 | ) | (39 | ) | (25 | ) | ||||
Income from continuing operations before income taxes | $ | 2,764 | $ | 3,822 | $ | 4,449 | ||||
Capital expenditures: | ||||||||||
Completion and Production | $ | 1,676 | $ | 2,177 | $ | 1,669 | ||||
Drilling and Evaluation | 1,210 | 1,318 | 1,231 | |||||||
Corporate and other | 48 | 71 | 53 | |||||||
Total | $ | 2,934 | $ | 3,566 | $ | 2,953 | ||||
Depreciation, depletion, and amortization: | ||||||||||
Completion and Production | $ | 1,013 | $ | 843 | $ | 680 | ||||
Drilling and Evaluation | 873 | 783 | 676 | |||||||
Corporate and other | 14 | 2 | 3 | |||||||
Total | $ | 1,900 | $ | 1,628 | $ | 1,359 | ||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Total assets: | ||||||||||
Completion and Production | $ | 14,203 | $ | 13,313 | ||||||
Drilling and Evaluation | 10,010 | 9,290 | ||||||||
Shared assets | 1,351 | 1,376 | ||||||||
Corporate and other | 3,659 | 3,431 | ||||||||
Total | $ | 29,223 | $ | 27,410 | ||||||
Not all assets are associated with specific segments. Those assets specific to segments include receivables, inventories, certain identified property, plant, and equipment (including field service equipment), equity in and advances to related companies, and goodwill. The remaining assets, such as cash and equivalents, are considered to be shared among the segments. | ||||||||||
Revenue by country is determined based on the location of services provided and products sold. | ||||||||||
Operations by geographic area | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Revenue: | ||||||||||
United States | $ | 14,311 | $ | 15,057 | $ | 13,548 | ||||
Other countries | 15,091 | 13,446 | 11,281 | |||||||
Total | $ | 29,402 | $ | 28,503 | $ | 24,829 | ||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Net property, plant, and equipment: | ||||||||||
United States | $ | 5,368 | $ | 5,096 | ||||||
Other countries | 5,954 | 5,161 | ||||||||
Total | $ | 11,322 | $ | 10,257 | ||||||
Receivables
Receivables | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Receivables | ' | ||||||||||||
Receivables | |||||||||||||
Our trade receivables are generally not collateralized. At December 31, 2013 and December 31, 2012, 34% and 36% of our gross trade receivables were from customers in the United States. No other country or single customer accounted for more than 10% of our gross trade receivables at these dates. | |||||||||||||
We continue to experience delays in collecting payment on our receivables from our primary customer in Venezuela. These receivables are not disputed, and we have not historically had material write-offs relating to this customer. Our total outstanding trade receivables in Venezuela were $486 million, or approximately 8% of our gross trade receivables, as of December 31, 2013, compared to $491 million, or approximately 9% of our gross trade receivables, as of December 31, 2012. Of the $486 million receivables in Venezuela as of December 31, 2013, $183 million has been classified as long-term and included within “Other assets” on our consolidated balance sheets. Of the $491 million receivables in Venezuela as of December 31, 2012, $143 million has been classified as long-term and included within “Other assets” on our consolidated balance sheets. | |||||||||||||
The following table presents a rollforward of our allowance for bad debts for 2011, 2012, and 2013. | |||||||||||||
Millions of dollars | Balance at Beginning of Period | Charged to Costs and Expenses | Write-Offs | Balance at End of Period | |||||||||
Year ended December 31, 2011 | $ | 91 | $ | 53 | $ | (7 | ) | $ | 137 | ||||
Year ended December 31, 2012 | 137 | -40 | (5 | ) | 92 | ||||||||
Year ended December 31, 2013 | 92 | 39 | (14 | ) | 117 | ||||||||
Inventories
Inventories | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Inventories | ' | ||||||
Inventories | |||||||
Inventories are stated at the lower of cost or market. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method and totaled $157 million at December 31, 2013 and $139 million at December 31, 2012. If the average cost method had been used, total inventories would have been $35 million higher than reported at December 31, 2013 and $41 million higher than reported at December 31, 2012. The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following: | |||||||
December 31 | |||||||
Millions of dollars | 2013 | 2012 | |||||
Finished products and parts | $ | 2,445 | $ | 2,264 | |||
Raw materials and supplies | 720 | 793 | |||||
Work in process | 140 | 129 | |||||
Total | $ | 3,305 | $ | 3,186 | |||
Finished products and parts are reported net of obsolescence reserves of $130 million at December 31, 2013 and $114 million at December 31, 2012. |
Property_Plant_and_Equipment
Property, Plant, and Equipment | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant, and Equipment | ' | ||||||
Property, Plant, and Equipment | |||||||
Property, plant, and equipment were composed of the following: | |||||||
31-Dec | |||||||
Millions of dollars | 2013 | 2012 | |||||
Land | $ | 213 | $ | 145 | |||
Buildings and property improvements | 2,685 | 1,861 | |||||
Machinery, equipment, and other | 17,904 | 16,307 | |||||
Total | 20,802 | 18,313 | |||||
Less accumulated depreciation | 9,480 | 8,056 | |||||
Net property, plant, and equipment | $ | 11,322 | $ | 10,257 | |||
Classes of assets, excluding oil and natural gas investments, are depreciated over the following useful lives: | |||||||
Buildings and Property | |||||||
Improvements | |||||||
2013 | 2012 | ||||||
1 - 10 years | 13% | 14% | |||||
11 - 20 years | 43% | 46% | |||||
21 - 30 years | 20% | 14% | |||||
31 - 40 years | 24% | 26% | |||||
Machinery, Equipment, | |||||||
and Other | |||||||
2013 | 2012 | ||||||
1 - 5 years | 22% | 20% | |||||
6 - 10 years | 72% | 74% | |||||
11 - 20 years | 6% | 6% |
Debt
Debt | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Debt | ' | ||||||
Debt | |||||||
Long-term debt consisted of the following: | |||||||
December 31 | |||||||
Millions of dollars | 2013 | 2012 | |||||
3.5% senior notes due August 2023 | $ | 1,098 | $ | — | |||
6.15% senior notes due September 2019 | 997 | 997 | |||||
7.45% senior notes due September 2039 | 995 | 995 | |||||
4.75% senior notes due August 2043 | 898 | — | |||||
6.7% senior notes due September 2038 | 800 | 800 | |||||
1.0% senior notes due August 2016 | 600 | — | |||||
3.25% senior notes due November 2021 | 498 | 498 | |||||
4.5% senior notes due November 2041 | 498 | 498 | |||||
2.0% senior notes due August 2018 | 400 | — | |||||
5.9% senior notes due September 2018 | 400 | 400 | |||||
7.6% senior debentures due August 2096 | 293 | 293 | |||||
8.75% senior debentures due February 2021 | 184 | 184 | |||||
Other | 155 | 155 | |||||
Total long-term debt | $ | 7,816 | $ | 4,820 | |||
Senior debt | |||||||
All of our senior notes and debentures rank equally with our existing and future senior unsecured indebtedness, have semiannual interest payments, and have no sinking fund requirements. We may redeem all of our senior notes from time to time or all of the notes of each series at any time at the applicable redemption prices, plus accrued and unpaid interest. Our 7.6% and 8.75% senior debentures may not be redeemed prior to maturity. | |||||||
Revolving credit facilities | |||||||
We have an unsecured $3.0 billion revolving credit facility expiring in 2018. The purpose of the facility is to provide general working capital and credit for other corporate purposes. The full amount of the revolving credit facility was available as of December 31, 2013. | |||||||
Debt maturities | |||||||
Our long-term debt matures as follows: $600 million in 2016, $45 million in 2017, $800 million in 2018, and the remainder in 2019 and thereafter. |
KBR_Separation
KBR Separation | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
KBR Separation | ' |
KBR Separation | |
During 2007, we completed the separation of KBR, Inc. (KBR) from us by exchanging KBR common stock owned by us for our common stock. We entered into various agreements relating to the separation of KBR, including, among others, a Master Separation Agreement (MSA) and a Tax Sharing Agreement (TSA). We recorded a liability at that time reflecting the estimated fair value of the indemnities provided to KBR. Since the separation, we have recorded adjustments to reflect changes to our estimation of our remaining obligation. All such adjustments are recorded in “Income (loss) from discontinued operations, net of income tax (provision) benefit.” Amounts accrued relating to our KBR indemnity obligations were included in “Other liabilities” in our consolidated balance sheets and totaled $219 million as of December 31, 2012. In 2013, we paid $219 million to satisfy our obligation under a guarantee related to the Barracuda-Caratinga matter, a legacy KBR project. Accordingly, there were no amounts accrued for indemnities provided to KBR at December 31, 2013. | |
Tax sharing agreement | |
The TSA provides for the calculation and allocation of United States and certain other jurisdiction tax liabilities between KBR and us for the periods 2001 through the date of separation. The TSA is complex, and finalization of amounts owed between KBR and us under the TSA can occur only after income tax audits are completed by the taxing authorities and both parties have had time to analyze the results. | |
During the second quarter of 2012, we sent a notice under the TSA to KBR requesting the appointment of an arbitrator in accordance with the terms of the TSA. This request asked the arbitrator to find that KBR owed us a certain amount pursuant to the TSA. KBR denied that it owed us any amount and asserted instead that we owed KBR a certain amount under the TSA. KBR also asserted that it believes the MSA controls its defenses to our TSA claim and demanded arbitration of those defenses under the MSA. In July 2012, we filed suit in the District Court of Harris County, Texas, seeking to compel KBR to arbitrate the entire dispute in accordance with the provisions of the TSA, rather than the MSA. KBR filed a cross-motion seeking to compel arbitration of its defenses under the MSA. In September 2012, the court denied our motion and granted KBR's motion to compel arbitration under the MSA. We continue to believe that the TSA was intended to govern the entire matter and have appealed. The appeal is pending. | |
In May 2013, KBR's defenses were arbitrated before a panel appointed pursuant to the MSA. In June 2013, the panel issued its decision, finding it had jurisdiction to hear the dispute and that a portion of our claims made under the TSA were barred by the time limitation provision in the MSA. In September 2013, we filed a motion and an application to vacate the panel's decision with the District Court of Harris County, Texas. The court has not ruled on the motion or application. | |
The MSA panel also ordered the parties to return to the TSA arbitrator for determination of the parties' remaining claims under the TSA. On October 9, 2013, the TSA arbitrator issued a report regarding the claims made by each party. The report found that KBR owes us a net amount of approximately $105 million, plus interest, with each party bearing its own costs related to the matter. | |
On October 21, 2013, KBR submitted a request for clarification and reconsideration of the TSA arbitrator's report. In December 2013, the TSA arbitrator issued a supplemental report that reaffirmed the award. | |
In January 2014, KBR filed a motion with the MSA panel to enforce the panel's June 2013 decision. KBR's motion claimed, among other things, that certain of our claims submitted to the TSA arbitrator were time-barred under the MSA and that the TSA arbitrator misinterpreted the TSA. On February 3, 2014, we filed a response to KBR's motion and an application to confirm the TSA arbitrator's award with the District Court of Harris County, Texas. Due to the uncertainty surrounding the ultimate determination of the parties' claims under the TSA, no material anticipated recovery amounts or liabilities related to this matter have been recognized in the consolidated financial statements as of December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
Commitments and Contingencies | ||
Macondo well incident | ||
Overview. The semisubmersible drilling rig, Deepwater Horizon, sank on April 22, 2010 after an explosion and fire onboard the rig that began on April 20, 2010. The Deepwater Horizon was owned by Transocean Ltd. and had been drilling the Macondo exploration well in Mississippi Canyon Block 252 in the Gulf of Mexico for the lease operator, BP Exploration & Production, Inc. (BP Exploration), an indirect wholly owned subsidiary of BP p.l.c. We performed a variety of services for BP Exploration, including cementing, mud logging, directional drilling, measurement-while-drilling, and rig data acquisition services. Crude oil flowing from the well site spread across thousands of square miles of the Gulf of Mexico and reached the United States Gulf Coast. Efforts to contain the flow of hydrocarbons from the well were led by the United States government and by BP p.l.c., BP Exploration, and their affiliates (collectively, BP). There were eleven fatalities and a number of injuries as a result of the Macondo well incident. | ||
We are currently unable to fully estimate the impact the Macondo well incident will have on us. The multi-district litigation (MDL) proceeding referred to below is ongoing. We cannot predict the outcome of the many lawsuits and investigations relating to the Macondo well incident, including orders and rulings of the court that impact the MDL, the results of the MDL trial, the effect that the settlements between BP and the Plaintiffs' Steering Committee (PSC) in the MDL and other settlements may have on claims against us, or whether we might settle with one or more of the parties to any lawsuit or investigation. The first two phases of the MDL trial have concluded, and the MDL court could begin issuing rulings at any time. A determination that the performance of our services on the Deepwater Horizon constituted gross negligence could result in substantial liability to the numerous plaintiffs for punitive damages and potentially to BP with respect to its direct claims against us. | ||
As of December 31, 2013, our loss contingency reserve for the Macondo well incident, relating to the MDL, remained at $1.3 billion, consisting of a current portion of $278 million and a non-current portion of $1.0 billion. This reserve represents a loss contingency that is probable and for which a reasonable estimate of a loss can be made, although we continue to believe that we have substantial legal arguments and defenses against any liability and that BP's indemnity obligation protects us as described below. This loss contingency reserve does not include potential recoveries from our insurers. | ||
We have participated in intermittent discussions with the PSC regarding the potential for a settlement that would resolve a substantial portion of the claims pending in the MDL trial. BP, however, has not participated in any recent settlement discussions with us. Reaching a settlement involves a complex process, and there can be no assurance as to whether or when we may complete a settlement. In addition, the settlement discussions we have had to date do not cover all parties and claims relating to the Macondo well incident. Accordingly, there are additional loss contingencies relating to the Macondo well incident that are reasonably possible but for which we cannot make a reasonable estimate. Given the numerous potential developments relating to the MDL and other lawsuits and investigations, which could occur at any time, we may adjust our estimated loss contingency reserve in the future. Liabilities arising out of the Macondo well incident could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition. | ||
Investigations and Regulatory Action. Several regulatory agencies and others, including the specially constituted National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (National Commission), conducted investigations of the Macondo well incident, and reports issued as a result of those investigations have been critical of BP, Transocean, and us, among others. For example, one or more of those reports have concluded that primary cement failure was a direct cause of the blowout, that cement testing performed by an independent laboratory “strongly suggests” that the foam cement slurry used on the Macondo well was unstable, and that numerous other oversights and factors caused or contributed to the cause of the incident, including BP's failure to run a cement bond log, BP's and Transocean's failure to properly conduct and interpret a negative-pressure test, the failure of the drilling crew and our surface data logging specialist to recognize that an unplanned influx of oil, natural gas, or fluid into the well was occurring, communication failures among BP, Transocean, and us, and flawed decisions relating to the design, construction, and testing of barriers critical to the temporary abandonment of the well. The U.S. Chemical Safety and Hazard Investigation Board is also conducting an investigation of the incident. | ||
In October 2011, the Bureau of Safety and Environmental Enforcement (BSEE) issued a notification of Incidents of Noncompliance (INCs) to us for allegedly violating federal regulations relating to the failure to take measures to prevent the unauthorized release of hydrocarbons, the failure to take precautions to keep the Macondo well under control, the failure to cement the well in a manner that would, among other things, prevent the release of fluids into the Gulf of Mexico, and the failure to protect health, safety, property, and the environment as a result of a failure to perform operations in a safe and workmanlike manner. According to the BSEE's notice, we did not ensure an adequate barrier to hydrocarbon flow after cementing the production casing and did not detect the influx of hydrocarbons until they were above the blowout preventer stack. We understand that the regulations in effect at the time of the alleged violations provide for fines of up to $35,000 per day per violation. We have appealed the INCs to the Interior Board of Land Appeals (IBLA). In January 2012, the IBLA, in response to our and the BSEE's joint request, suspended the appeal pending certain proceedings in the MDL trial. Once the MDL court issues a final decision in the trial, we expect to file a proposal for further action in the appeal within | ||
60 days. The BSEE has announced that the INCs will be reviewed for possible imposition of civil penalties once the appeal has ended. The BSEE has stated that this is the first time the Department of the Interior has issued INCs directly to a contractor that was not the well's operator. | ||
The Cementing Job and Reaction to Reports. We disagree with the reports referred to above regarding many of their findings and characterizations with respect to our cementing and surface data logging services, as applicable, on the Deepwater Horizon. We have provided information to the National Commission, its staff, and representatives of other investigatory bodies that we believe has been overlooked or omitted from their reports, as applicable. We intend to continue to vigorously defend ourselves in any investigation relating to our involvement with the Macondo well that we believe inaccurately evaluates or depicts our services on the Deepwater Horizon. | ||
The cement slurry on the Deepwater Horizon was designed and prepared pursuant to well condition data provided by BP. Regardless of whether alleged weaknesses in cement design and testing are or are not ultimately established, and regardless of whether the cement slurry was utilized in similar applications or was prepared consistent with industry standards, we believe that had BP and Transocean properly interpreted a negative-pressure test, this test would have revealed any problems with the cement. In addition, had BP designed the Macondo well to allow a full cement bond log test or if BP had conducted even a partial cement bond log test, the test likely would have revealed any problems with the cement. BP, however, elected not to conduct any cement bond log tests, and with Transocean misinterpreted the negative-pressure test, both of which could have resulted in remedial action, if appropriate, with respect to the cementing services. Also, we believe that BP knew or should have known about a critical, additional hydrocarbon zone in the well that BP failed to disclose to us prior to the design of the cement program for the Macondo well. | ||
At this time we cannot predict the impact of the investigations or reports referred to above, or the conclusions or impact of future investigations or reports. We also cannot predict whether any investigations or reports will have an influence on or result in us being named as a party in any action alleging liability or violation of a statute or regulation. We intend to continue to cooperate fully with all hearings, investigations, and requests for information relating to the Macondo well incident. We cannot predict the outcome of, or the costs to be incurred in connection with, any of these hearings or investigations, and therefore we cannot predict the potential impact they may have on us. | ||
DOJ Investigations and Actions. On June 1, 2010, the United States Attorney General announced that the United States Department of Justice (DOJ) was launching civil and criminal investigations into the Macondo well incident to closely examine the actions of those involved, and that the DOJ was working with attorneys general of states affected by the Macondo well incident. The DOJ announced that it was reviewing, among other traditional criminal statutes, possible violations of and liabilities under The Clean Water Act (CWA), The Oil Pollution Act of 1990 (OPA), and the Endangered Species Act of 1973 (ESA). | ||
The CWA provides authority for civil penalties for discharges of oil into or upon navigable waters of the United States, adjoining shorelines, or in connection with the Outer Continental Shelf Lands Act (OCSLA) in quantities that are deemed harmful. A single discharge event may result in the assertion of numerous violations under the CWA. Civil proceedings under the CWA can be commenced against an “owner, operator, or person in charge of any vessel, onshore facility, or offshore facility from which oil or a hazardous substance is discharged” in violation of the CWA. The civil penalties that can be imposed against responsible parties range from up to $1,100 per barrel of oil discharged in the case of those found strictly liable to $4,300 per barrel of oil discharged in the case of those found to have been grossly negligent. | ||
The OPA establishes liability for discharges of oil from vessels, onshore facilities, and offshore facilities into or upon the navigable waters of the United States. Under the OPA, the “responsible party” for the discharging vessel or facility is liable for removal and response costs as well as for damages, including recovery costs to contain and remove discharged oil and damages for injury to natural resources and real or personal property, lost revenues, lost profits, and lost earning capacity. The cap on liability under the OPA is the full cost of removal of the discharged oil plus up to $75 million for damages, except that the $75 million cap does not apply in the event the damage was proximately caused by gross negligence or the violation of certain federal safety, construction or operating standards. The OPA defines the set of responsible parties differently depending on whether the source of the discharge is a vessel or an offshore facility. Liability for vessels is imposed on owners and operators; liability for offshore facilities is imposed on the holder of the permit or lessee of the area in which the facility is located. | ||
The ESA establishes liability for injury and death to wildlife. The ESA provides for civil penalties for knowing violations that can range up to $25,000 per violation. | ||
On December 15, 2010, the DOJ filed a civil action seeking damages and injunctive relief against BP Exploration, Anadarko Petroleum Corporation and Anadarko E&P Company LP (together, Anadarko), which had an approximate 25% interest in the Macondo well, certain subsidiaries of Transocean Ltd., and others for violations of the CWA and the OPA. The DOJ’s complaint seeks an action declaring that the defendants are strictly liable under the CWA as a result of harmful discharges of oil into the Gulf of Mexico and upon United States shorelines as a result of the Macondo well incident. The complaint also seeks an action declaring that the defendants are strictly liable under the OPA for the discharge of oil that has resulted in, among other things, injury to, loss of, loss of use of, or destruction of natural resources and resource services in and around the Gulf of Mexico and the adjoining United States shorelines and resulting in removal costs and damages to the United States far exceeding $75 million. BP Exploration has been designated, and has accepted the designation, as a responsible party for the pollution under the CWA and the OPA. Others have also been named as responsible parties, and all responsible parties may be held jointly and severally liable for any damages under the OPA. A responsible party may make a claim for contribution against any other responsible party or against third parties it alleges contributed to or caused the oil spill. In connection with the proceedings discussed below under “Litigation,” in April 2011 BP Exploration filed a claim against us for equitable contribution with respect to liabilities incurred by BP Exploration under the OPA or another law, which subsequent court filings have indicated may include the CWA, and requested a judgment that the DOJ assert its claims for OPA financial liability directly against us. We filed a motion to dismiss BP Exploration’s claim, and that motion is pending. In July 2013, we also filed a motion for summary judgment requesting a court order that we are not liable to BP or Transocean for equitable indemnification or contribution with regard to any CWA fines and penalties that have been assessed or may be assessed against BP or Transocean. That motion is also pending. | ||
We were not named as a responsible party under the CWA or the OPA in the DOJ civil action, and we do not believe we are a responsible party under the CWA or the OPA. While we were not included in the DOJ’s civil complaint, there can be no assurance that federal governmental authorities will not bring a civil action against us under the CWA, the OPA, and/or other statutes or regulations. | ||
In July 2013, we reached an agreement with the DOJ to conclude the federal government's criminal investigation of us in relation to the Macondo well incident. Pursuant to a cooperation guilty plea agreement, Halliburton Energy Services, Inc., our wholly owned subsidiary (HESI), agreed to plead guilty to one misdemeanor violation of federal law concerning the deletion of certain computer files created after the occurrence of the Macondo well incident. Pursuant to the plea agreement, HESI agreed to pay a criminal fine of $0.2 million within five days of sentencing and agreed to three years' probation. The DOJ has agreed that it will not pursue further criminal prosecution of us (including our subsidiaries) for any conduct relating to or arising out of the Macondo well incident. We have agreed to continue to cooperate with the DOJ in any ongoing investigation related to or arising from the incident. In September 2013, our guilty plea was entered and approved by a federal district court judge on the terms and conditions of the plea agreement, and the DOJ closed its criminal investigation of us in relation to the Macondo well incident. | ||
In November 2012, BP announced that it reached an agreement with the DOJ to resolve all federal criminal charges against it stemming from the Macondo well incident. BP agreed to plead guilty to 14 criminal charges, with 13 of those charges based on the negligent misinterpretation of the negative-pressure test conducted on the Deepwater Horizon. BP also agreed to pay $4.0 billion, including approximately $1.3 billion in criminal fines, to take actions to further enhance the safety of drilling operations in the Gulf of Mexico, to a term of five years' probation, and to the appointment of two monitors with four-year terms, one relating to process safety and risk management procedures concerning deepwater drilling in the Gulf of Mexico and one relating to the improvement, implementation, and enforcement of BP's code of conduct. | ||
In January 2013, Transocean announced that it reached an agreement with the DOJ to resolve certain claims for civil penalties and potential criminal claims against it arising from the Macondo well incident. Transocean agreed to plead guilty to one misdemeanor violation of the CWA for negligent discharge of oil into the Gulf of Mexico, to pay $1.0 billion in CWA penalties and $400 million in fines and recoveries, to implement certain measures to prevent a recurrence of an uncontrolled discharge of hydrocarbons, and to a term of five years' probation. | ||
Litigation. Since April 21, 2010, plaintiffs have been filing lawsuits relating to the Macondo well incident. Generally, those lawsuits allege either (1) damages arising from the oil spill pollution and contamination (e.g., diminution of property value, lost tax revenue, lost business revenue, lost tourist dollars, inability to engage in recreational or commercial activities) or (2) wrongful death or personal injuries. We are named along with other unaffiliated defendants in more than 1,800 complaints, most of which are alleged class actions, involving pollution damage claims and at least eight personal injury lawsuits involving four decedents and at least 10 allegedly injured persons who were on the drilling rig at the time of the incident. At least six additional lawsuits naming us and others relate to alleged personal injuries sustained by those responding to the explosion and oil spill. | ||
The pollution complaints generally allege, among other things, negligence and gross negligence, property damages, taking of protected species, and potential economic losses as a result of environmental pollution, and generally seek awards of unspecified economic, compensatory, and punitive damages, as well as injunctive relief. Plaintiffs in these pollution cases have brought suit under various legal provisions, including the OPA, the CWA, The Migratory Bird Treaty Act of 1918, the ESA, the OCSLA, the Longshoremen and Harbor Workers Compensation Act, general maritime law, state common law, and various state environmental and products liability statutes. Furthermore, the pollution complaints include suits brought against us by governmental entities, including all of the coastal states of the Gulf of Mexico, numerous local governmental entities, the Mexican State of Yucatan, and the United Mexican States. | ||
The wrongful death and other personal injury complaints generally allege negligence and gross negligence and seek awards of compensatory damages, including unspecified economic damages, and punitive damages. We have retained counsel and are investigating and evaluating the claims, the theories of recovery, damages asserted, and our respective defenses to all of these claims. | ||
Plaintiffs originally filed the lawsuits described above in federal and state courts throughout the United States. Except for a relatively small number of lawsuits not yet consolidated, the Judicial Panel on Multi-District Litigation ordered all of the lawsuits against us consolidated in the MDL proceeding before Judge Carl Barbier in the United States Eastern District of Louisiana. | ||
Judge Barbier is also presiding over a separate proceeding filed by Transocean under the Limitation of Liability Act (Limitation Action). In the Limitation Action, Transocean seeks to limit its liability for claims arising out of the Macondo well incident to the value of the rig and its freight. While the Limitation Action has been formally consolidated into the MDL, the court is nonetheless, in some respects, treating the Limitation Action as an associated but separate proceeding. In February 2011, Transocean tendered us, along with all other defendants, into the Limitation Action. As a result of the tender, we and all other defendants are being treated as direct defendants to the plaintiffs' claims as if the plaintiffs had sued us and the other defendants directly. In the Limitation Action, the judge intends to determine the allocation of liability among all defendants in the hundreds of lawsuits associated with the Macondo well incident, including those in the MDL proceeding that are pending in his court. Specifically, the judge intends to determine the liability, limitation, exoneration, and fault allocation with regard to all of the defendants in a trial, which to date has occurred in two phases. We do not believe that a single determination of liability in the Limitation Action is properly applied, particularly with respect to gross negligence and punitive damages, to the hundreds of lawsuits pending in the MDL proceeding. | ||
The defendants in the proceedings described above have filed numerous cross claims and third party claims against certain other defendants. Claims against us seek subrogation, contribution, indemnification, including with respect to liabilities under the OPA, and direct damages, and allege negligence, gross negligence, fraudulent conduct, willful misconduct, fraudulent concealment, comparative fault, and breach of warranty of workmanlike performance. Additional civil lawsuits may be filed against us. In addition to the claims against us, generally the defendants in the proceedings described above, including us, filed claims, including for liabilities under the OPA and other claims similar to those described above, against the other defendants. Our claims against the other defendants seek contribution and indemnification, and allege negligence, gross negligence and willful misconduct. Several of the parties have settled claims among themselves, and claims against some parties have been dismissed. We have also filed an answer to Transocean's Limitation petition denying Transocean's right to limit its liability, denying all claims and responsibility for the incident, seeking contribution and indemnification, and alleging negligence and gross negligence. | ||
Judge Barbier has issued an order, among others, clarifying certain aspects of law applicable to the lawsuits pending in his court. The court ruled that: (1) general maritime law will apply, and therefore all claims brought under state law causes of action were dismissed; (2) general maritime law claims may be brought directly against defendants who are non-“responsible parties” under the OPA with the exception of pure economic loss claims by plaintiffs other than commercial fishermen; (3) all claims for damages, including pure economic loss claims, may be brought under the OPA directly against responsible parties; and (4) punitive damage claims can be brought against both responsible and non-responsible parties under general maritime law. As discussed above, with respect to the ruling that claims for damages may be brought under the OPA against responsible parties, we have not been named as a responsible party under the OPA, but BP Exploration has filed a claim against us for contribution with respect to liabilities incurred by BP Exploration under the OPA. The rulings in the court's order remain subject to each applicable party's right to appeal. Certain parishes in Louisiana are currently appealing the dismissal of their state law claims under the order. | ||
In April 2012, BP announced that it had reached definitive settlement agreements with the PSC to resolve the substantial majority of eligible private economic loss and medical claims stemming from the Macondo well incident. The PSC acts on behalf of individuals and business plaintiffs in the MDL. According to BP, the settlements do not include claims against BP made by the DOJ or other federal agencies or by states and local governments. In addition, the settlements provide that, to the extent permitted by law, BP will assign to the settlement class certain of its claims, rights, and recoveries against Transocean and us for damages, including BP's alleged direct damages such as damages for clean-up expenses and damage to the well and reservoir. We do not believe that our contract with BP Exploration permits the assignment of certain claims to the settlement class without our consent. The MDL court has since confirmed certification of the classes for both settlements and granted final approval of the settlements. We objected to the settlements on the grounds set forth above, among other reasons. The MDL court held, however, that we, as a non-settling defendant, lacked standing to object to the settlements but noted that it did not express any opinion as to the validity of BP's assignment of certain claims to the settlement class and that the settlements do not affect any of our procedural or substantive rights in the MDL. BP has been challenging certain provisions of its settlement of economic loss claims in the MDL court and before the United States Fifth Circuit Court of Appeals. We are unable to predict at this time the effect that the settlements, or any challenge, modification, or overturning of the settlements, may have on claims against us. | ||
The MDL court has dismissed: (1) claims by or on behalf of owners, lessors, and lessees of real property that allege to have suffered a reduction in the value of real property even though the property was not physically touched by oil and the property was not sold; (2) claims for economic losses based solely on consumers' decisions not to purchase fuel or goods from BP fuel stations and stores based on consumer animosity toward BP; and (3) claims by or on behalf of recreational fishermen, divers, beachgoers, boaters and others that allege damages such as loss of enjoyment of life from their inability to use portions of the Gulf of Mexico for recreational and amusement purposes. In dismissing those claims, the MDL court also noted that we are not liable with respect to those claims under the OPA because we are not a “responsible party” under OPA. A group of plaintiffs appealed the order, but the Fifth Circuit dismissed the appeal. | ||
The first phase of the MDL trial, which concluded in April 2013, covered issues arising out of the conduct and degree of culpability of various parties allegedly relevant to the loss of well control, the ensuing fire and explosion on and sinking of the Deepwater Horizon, and the initiation of the release of hydrocarbons from the Macondo well. At the conclusion of the plaintiffs' case, we and the other defendants each submitted a motion requesting the MDL court to dismiss certain claims. In March 2013, the MDL court denied our motion and declined to dismiss any claims, including those alleging gross negligence, against BP, Transocean and us. In addition, the MDL court dismissed all claims against M-I Swaco and claims alleging gross negligence against Cameron International Corporation (Cameron). In April 2013, the MDL court dismissed all remaining claims against Cameron, leaving BP, Transocean, and us as the remaining defendants with respect to the matters addressed during the first phase of the trial. | ||
Also in March 2013, we advised the MDL court that we recently found a rig sample of dry cement blend collected at another well that was cemented before the Macondo well using the same dry cement blend as used on the Macondo production casing. In April 2013, we advised the MDL parties that we recently discovered some additional documents related to the Macondo well incident. BP and others have asked the court to impose sanctions and adverse findings against us because, according to their allegations, we should have identified the cement sample in 2010 and the additional documents by October 2011. BP also reasserted its previous allegations that we destroyed evidence relating to post-incident testing of the foam cement slurry on the Deepwater Horizon. The MDL court has not ruled on the requests for sanctions and adverse findings. We believe that the discoveries were the result of simple misunderstandings or mistakes and do not involve any material evidence, and that sanctions are not warranted. | ||
When our plea agreement with the DOJ was announced in July 2013, BP filed a motion requesting that the MDL court re-open the evidence for phase one of the MDL trial to take into account our guilty plea and re-urging their request for sanctions. After the plea was entered, the PSC and the States of Alabama and Louisiana (as coordinating counsel for the states involved in the MDL) filed a motion likewise seeking to admit the guilty plea agreement and other court filings into evidence and asking that the MDL court use that evidence as a basis for assessing punitive damages against us. We filed replies opposing both motions and setting forth our position that the deleted post-incident computer simulations were not evidence, were not relevant, and in any event were re-created. The MDL court has not ruled on the motions. | ||
The second phase of the MDL trial was split into two parts, with testimony presented in October 2013. The first part covered attempts to collect, control, or halt the flow of hydrocarbons from the well, while the second part covered the quantification of hydrocarbons discharged from the well. The parties submitted proposed findings of fact and conclusions of law, post-trial briefs and responses during December 2013 and January 2014. According to a stipulation and post-trial filings, BP contends that 2.45 million barrels of oil were released into the Gulf of Mexico and the DOJ contends that a total of 4.2 million barrels were released. The MDL court has not issued a ruling on the questions that were the subject of the first two phases of the trial, although those rulings could be issued at any time. | ||
Subsequent proceedings would be held to the extent triable issues remain unresolved by the first two phases of the trial, settlements, motion practice, or stipulation. Although the DOJ participated in the first two phases of the trial with regard to BP's conduct and the amount of hydrocarbons discharged from the well, the MDL court anticipates that the DOJ's civil action for the CWA violations, fines, and penalties will be addressed by the court in a third phase of the trial to the extent necessary. | ||
Damages for the cases tried in the MDL proceeding, including punitive damages, are expected to be tried following the issuance of the MDL court’s rulings regarding the phases of the trial described above. Under ordinary MDL procedures, such cases would, unless waived by the respective parties, be tried in the courts from which they were transferred into the MDL. It remains unclear, however, what impact the overlay of the Limitation Action will have on where these matters are tried. The judge has indicated that he intends for the State of Alabama’s OPA compensatory damages claims against BP be tried as a test case. | ||
We intend to vigorously defend any litigation, fines, and/or penalties relating to the Macondo well incident and to vigorously pursue any damages, remedies, or other rights available to us as a result of the Macondo well incident. We have incurred and expect to continue to incur significant legal fees and costs, some of which we expect to be covered by indemnity or insurance, as a result of the numerous investigations and lawsuits relating to the incident. | ||
Indemnification and Insurance. Our contract with BP Exploration relating to the Macondo well generally provides for our indemnification by BP Exploration for certain potential claims and expenses relating to the Macondo well incident, including those resulting from pollution or contamination (other than claims by our employees, loss or damage to our property, and any pollution emanating directly from our equipment). Also, under our contract with BP Exploration, we have, among other things, generally agreed to indemnify BP Exploration and other contractors performing work on the well for claims for personal injury of our employees and subcontractors, as well as for damage to our property. In turn, we believe that BP Exploration was obligated to obtain agreement by other contractors performing work on the well to indemnify us for claims for personal injury of their employees or subcontractors, as well as for damages to their property. We have entered into separate indemnity agreements with Transocean and M-I Swaco, under which we have agreed to indemnify those parties for claims for personal injury of our employees and subcontractors and they have agreed to indemnify us for claims for personal injury of their employees and subcontractors. | ||
In April 2011, we filed a lawsuit against BP Exploration in Harris County, Texas to enforce BP Exploration’s contractual indemnity and alleging BP Exploration breached certain terms of the contractual indemnity provision. BP Exploration removed that lawsuit to federal court in the Southern District of Texas, Houston Division. We filed a motion to remand the case to Harris County, Texas, and the lawsuit was transferred to the MDL. | ||
BP Exploration, in connection with filing its claims with respect to the MDL proceeding, asked that court to declare that it is not liable to us in contribution, indemnification, or otherwise with respect to liabilities arising from the Macondo well incident. Other defendants in the litigation discussed above have generally denied any obligation to contribute to any liabilities arising from the Macondo well incident. | ||
In January 2012, the court in the MDL proceeding entered an order in response to our and BP’s motions for summary judgment regarding certain indemnification matters. The court held that BP is required to indemnify us for third-party compensatory claims, or actual damages, that arise from pollution or contamination that did not originate from our property or equipment located above the surface of the land or water, even if we are found to be grossly negligent. The court did not express an opinion as to whether our conduct amounted to gross negligence, but we do not believe the performance of our services on the Deepwater Horizon constituted gross negligence. The court also held, however, that BP does not owe us indemnity for punitive damages or for civil penalties under the CWA, if any, and that fraud could void the indemnity on public policy grounds, although the court stated that it was mindful that mere failure to perform contractual obligations as promised does not constitute fraud. As discussed above, the DOJ is not seeking civil penalties from us under the CWA, but BP has filed a claim for equitable contribution against us with respect to its liabilities. The court in the MDL proceeding deferred ruling on whether our indemnification from BP covers penalties or fines under the OCSLA, whether our alleged breach of our contract with BP Exploration would invalidate the indemnity, and whether we committed an act that materially increased the risk to or prejudiced the rights of BP so as to invalidate the indemnity. We do not believe that we breached our contract with BP Exploration or committed an act that would otherwise invalidate the indemnity. The court’s rulings will be subject to appeal at the appropriate time. | ||
The rulings in the MDL proceeding regarding the indemnities are based on maritime law and may not bind the determination of similar issues in lawsuits not comprising a part of the MDL proceeding. Accordingly, it is possible that different conclusions with respect to indemnities will be reached by other courts. | ||
Indemnification for criminal fines or penalties, if any, may not be available if a court were to find such indemnification unenforceable as against public policy. In addition, certain state laws, if deemed to apply, would not allow for enforcement of indemnification for gross negligence, and may not allow for enforcement of indemnification of persons who are found to be negligent with respect to personal injury claims. | ||
In addition to the contractual indemnities discussed above, we have a general liability insurance program of $600 million. Our insurance is designed to cover claims by businesses and individuals made against us in the event of property damage, injury, or death and, among other things, claims relating to environmental damage, as well as legal fees incurred in defending against those claims. We have received and expect to continue to receive payments from our insurers with respect to covered legal fees incurred in connection with the Macondo well incident. Through December 31, 2013, we have incurred legal fees and related expenses of approximately $264 million, of which $235 million has been reimbursed under or is expected to be covered by our insurance program. To the extent we incur any losses beyond those covered by indemnification, there can be no assurance that our insurance policies will cover all potential claims and expenses relating to the Macondo well incident. In addition, we may not be insured with respect to civil or criminal fines or penalties, if any, pursuant to the terms of our insurance policies. Insurance coverage can be the subject of uncertainties and, particularly in the event of large claims, potential disputes with insurance carriers, as well as other potential parties claiming insured status under our insurance policies. | ||
BP’s public filings indicate that BP has recognized in excess of $40 billion in pre-tax charges, excluding offsets for settlement payments received from certain defendants in the proceedings described above under “Litigation,” as a result of the Macondo well incident. BP’s public filings also indicate that the amount of, among other things, certain natural resource damages with respect to certain OPA claims, some of which may be included in such charges, cannot be reliably estimated as of the dates of those filings. | ||
Securities and related litigation | ||
In June 2002, a class action lawsuit was filed against us in federal court alleging violations of the federal securities laws after the Securities and Exchange Commission (SEC) initiated an investigation in connection with our change in accounting for revenue on long-term construction projects and related disclosures. In the weeks that followed, approximately twenty similar class actions were filed against us. Several of those lawsuits also named as defendants several of our present or former officers and directors. The class action cases were later consolidated, and the amended consolidated class action complaint, styled Richard Moore, et al. v. Halliburton Company, et al., was filed and served upon us in April 2003. As a result of a substitution of lead plaintiffs, the case was styled Archdiocese of Milwaukee Supporting Fund (AMSF) v. Halliburton Company, et al. AMSF has changed its name to Erica P. John Fund, Inc. (the Fund). We settled with the SEC in the second quarter of 2004. | ||
In June 2003, the lead plaintiffs filed a motion for leave to file a second amended consolidated complaint, which was granted by the court. In addition to restating the original accounting and disclosure claims, the second amended consolidated complaint included claims arising out of our 1998 acquisition of Dresser Industries, Inc., including that we failed to timely disclose the resulting asbestos liability exposure. | ||
In April 2005, the court appointed new co-lead counsel and named the Fund the new lead plaintiff, directing that it file a third consolidated amended complaint and that we file our motion to dismiss. The court held oral arguments on that motion in August 2005. In March 2006, the court entered an order in which it granted the motion to dismiss with respect to claims arising prior to June 1999 and granted the motion with respect to certain other claims while permitting the Fund to re-plead some of those claims to correct deficiencies in its earlier complaint. In April 2006, the Fund filed its fourth amended consolidated complaint. We filed a motion to dismiss those portions of the complaint that had been re-pled. A hearing was held on that motion in July 2006, and in March 2007 the court ordered dismissal of the claims against all individual defendants other than our Chief Executive Officer (CEO). The court ordered that the case proceed against our CEO and us. | ||
In September 2007, the Fund filed a motion for class certification, and our response was filed in November 2007. The district court held a hearing in March 2008, and issued an order November 3, 2008 denying the motion for class certification. The Fund appealed the district court’s order to the Fifth Circuit Court of Appeals. The Fifth Circuit affirmed the district court’s order denying class certification. On May 13, 2010, the Fund filed a writ of certiorari in the United States Supreme Court. In January 2011, the Supreme Court granted the writ of certiorari and accepted the appeal. The Court heard oral arguments in April 2011 and issued its decision in June 2011, reversing the Fifth Circuit ruling that the Fund needed to prove loss causation in order to obtain class certification. The Court’s ruling was limited to the Fifth Circuit’s loss causation requirement, and the case was returned to the Fifth Circuit for further consideration of our other arguments for denying class certification. The Fifth Circuit returned the case to the district court, and in January 2012 the court issued an order certifying the class. We filed a Petition for Leave to Appeal with the Fifth Circuit, which was granted. In April 2013, the Fifth Circuit issued an order affirming the District Court's order certifying the class. | ||
We filed a writ of certiorari with the United States Supreme Court seeking an appeal of the Fifth Circuit decision. In November 2013, the Supreme Court granted our writ. Oral argument is scheduled to be held before the Supreme Court on March 5, 2014. Fact discovery in this case has resumed. We cannot predict the outcome or consequences of this case, which we intend to vigorously defend. | ||
Investigations | ||
We are conducting internal investigations of certain areas of our operations in Angola and Iraq, focusing on compliance with certain company policies, including our Code of Business Conduct (COBC), and the FCPA and other applicable laws. | ||
In December 2010, we received an anonymous e-mail alleging that certain current and former personnel violated our COBC and the FCPA, principally through the use of an Angolan vendor. The e-mail also alleges conflicts of interest, self-dealing, and the failure to act on alleged violations of our COBC and the FCPA. We contacted the DOJ to advise them that we were initiating an internal investigation. | ||
During the second quarter of 2012, in connection with a meeting with the DOJ and the SEC regarding the above investigation, we advised the DOJ and the SEC that we were initiating unrelated, internal investigations into payments made to a third-party agent relating to certain customs matters in Angola and to third-party agents relating to certain customs and visa matters in Iraq. | ||
Since the initiation of the investigations described above, we have participated in meetings with the DOJ and the SEC to brief them on the status of the investigations and have been producing documents to them both voluntarily and as a result of SEC subpoenas to us and certain of our current and former officers and employees. | ||
We expect to continue to have discussions with the DOJ and the SEC regarding the Angola and Iraq matters described above and have indicated that we would further update them as our investigations progress. We have engaged outside counsel and independent forensic accountants to assist us with these investigations. | ||
During the second quarter of 2013, we received a civil investigative demand from the Antitrust Division of the DOJ regarding pressure pumping services. We have engaged in discussions with the DOJ on this matter and have provided responses to the DOJ's information requests. We understand there have been others in our industry who have received similar correspondence from the DOJ, and we do not believe that we are being singled out for any particular scrutiny. | ||
We intend to continue to cooperate with the DOJ's and the SEC's inquiries and requests in these investigations. Because these investigations are ongoing, we cannot predict their outcome or the consequences thereof. | ||
Environmental | ||
We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others: | ||
- | the Comprehensive Environmental Response, Compensation, and Liability Act; | |
- | the Resource Conservation and Recovery Act; | |
- | the Clean Air Act; | |
- | the Federal Water Pollution Control Act; | |
- | the Toxic Substances Control Act; and | |
- | the Oil Pollution Act. | |
In addition to the federal laws and regulations, states and other countries where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with environmental, legal, and regulatory requirements. Our Health, Safety, and Environment group has several programs in place to maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion, in addition to the matters relating to the Macondo well incident described above, we are involved in other environmental litigation and claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect on our liquidity, consolidated results of operations, or consolidated financial position. Excluding our loss contingency for the Macondo well incident, our accrued liabilities for environmental matters were $66 million as of December 31, 2013 and $72 million as of December 31, 2012. Because our estimated liability is typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous properties. | ||
In November 2012, we received an Enforcement Notice from the Pennsylvania Department of Environmental Protection (PADEP) regarding an alleged improper disposal of oil field acid in or around Homer City, Pennsylvania between 1999 and 2011. In February 2014, we agreed to resolve this matter for $2 million to settle the PADEP's claim for civil penalties. | ||
Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for nine federal and state Superfund sites for which we have established reserves. As of December 31, 2013, those nine sites accounted for approximately $5 million of our $66 million total environmental reserve. Despite attempts to resolve these Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims with respect to environmental matters for which we have been named as a potentially responsible party. | ||
Guarantee arrangements | ||
In the normal course of business, we have agreements with financial institutions under which approximately $2.1 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2013, including $192 million of surety bond guarantees related to our Venezuelan operations. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. | ||
Leases | ||
We are party to numerous operating leases, principally for the use of land, offices, equipment, manufacturing and field facilities, and warehouses. Total rentals on our operating leases, net of sublease rentals, were $958 million in 2013, $850 million in 2012, and $735 million in 2011. | ||
Future total rentals on our noncancellable operating leases are $946 million in the aggregate, which includes the following: $282 million in 2014; $215 million in 2015; $156 million in 2016; $83 million in 2017; $56 million in 2018; and $154 million thereafter. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Income Taxes | ' | |||||||||
Income Taxes | ||||||||||
The components of the (provision)/benefit for income taxes on continuing operations were: | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Current income taxes: | ||||||||||
Federal | $ | (245 | ) | $ | (695 | ) | $ | (1,026 | ) | |
Foreign | (485 | ) | (328 | ) | (334 | ) | ||||
State | (49 | ) | (47 | ) | (109 | ) | ||||
Total current | (779 | ) | (1,070 | ) | (1,469 | ) | ||||
Deferred income taxes: | ||||||||||
Federal | 4 | (168 | ) | (28 | ) | |||||
Foreign | 125 | 15 | 57 | |||||||
State | 2 | (12 | ) | 1 | ||||||
Total deferred | 131 | (165 | ) | 30 | ||||||
Provision for income taxes | $ | (648 | ) | $ | (1,235 | ) | $ | (1,439 | ) | |
The United States and foreign components of income from continuing operations before income taxes were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
United States | $ | 1,070 | $ | 2,826 | $ | 4,040 | ||||
Foreign | 1,694 | 996 | 409 | |||||||
Total | $ | 2,764 | $ | 3,822 | $ | 4,449 | ||||
Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income from continuing operations before income taxes were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States statutory rate | 35 | % | 35 | % | 35 | % | ||||
Impact of foreign income taxed at different rates | (9.3 | ) | (2.5 | ) | (0.5 | ) | ||||
Domestic manufacturing deduction | (2.0 | ) | (2.2 | ) | (2.1 | ) | ||||
State income taxes | 1.7 | 1.6 | 1.6 | |||||||
Adjustments of prior year taxes | (1.3 | ) | (0.6 | ) | (1.5 | ) | ||||
Other impact of foreign operations | (0.2 | ) | (0.5 | ) | (0.4 | ) | ||||
Other items, net | (0.4 | ) | 1.5 | 0.2 | ||||||
Total effective tax rate on continuing operations | 23.5 | % | 32.3 | % | 32.3 | % | ||||
Our effective tax rate on continuing operations was 23.5% for 2013 and 32.3% for 2012 and 2011. The 2013 effective tax rate on continuing operations was positively impacted by several items during the year, including federal tax benefits of approximately $50 million due to the reinstatement of certain tax benefits and credits related to the first quarter enactment of the American Taxpayer Relief Act of 2012. Also contributing to the lower tax rate in 2013 was a $1.0 billion loss contingency related to the Macondo well incident, which was tax-effected at the United States statutory rate, as well as some favorable tax items in Latin America in the fourth quarter. Additionally, our effective tax rate was positively impacted by lower tax rates in certain foreign jurisdictions, as we continue to reposition our technology, supply chain, and manufacturing infrastructure to more effectively serve our customers internationally. | ||||||||||
We have not provided United States income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2013 because we intend to permanently reinvest such earnings outside the United States. If these foreign earnings were to be repatriated in the future, the related United States tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2013, the cumulative amount of earnings upon which United States income taxes have not been provided is approximately $6.1 billion. It is not practicable to estimate the amount of unrecognized deferred tax liability related to these earnings at this time. | ||||||||||
The primary components of our deferred tax assets and liabilities were as follows: | ||||||||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Gross deferred tax assets: | ||||||||||
Net operating loss carryforwards | $ | 481 | $ | 474 | ||||||
Accrued liabilities | 600 | 329 | ||||||||
Employee compensation and benefits | 351 | 375 | ||||||||
Other | 162 | 160 | ||||||||
Total gross deferred tax assets | 1,594 | 1,338 | ||||||||
Gross deferred tax liabilities: | ||||||||||
Depreciation and amortization | 1,185 | 859 | ||||||||
Other | 81 | 137 | ||||||||
Total gross deferred tax liabilities | 1,266 | 996 | ||||||||
Valuation allowances – net operating loss carryforwards | 374 | 395 | ||||||||
Net deferred income tax asset (liability) | $ | (46 | ) | $ | (53 | ) | ||||
At December 31, 2013, we had $1.6 billion of net operating loss carryforwards, of which $161 million will expire from 2014 through 2017, $295 million will expire from 2018 through 2022, and $53 million will expire from 2023 through 2033. The remaining balance will not expire. | ||||||||||
The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties. | ||||||||||
Millions of dollars | Unrecognized Tax Benefits | Interest | ||||||||
and Penalties | ||||||||||
Balance at January 1, 2011 | $ | 177 | $ | 32 | ||||||
Change in prior year tax positions | 38 | 41 | ||||||||
Change in current year tax positions | 5 | 1 | ||||||||
Cash settlements with taxing authorities | (12 | ) | (3 | ) | ||||||
Lapse of statute of limitations | (3 | ) | (2 | ) | ||||||
Balance at December 31, 2011 | $ | 205 | $ | 69 | ||||||
Change in prior year tax positions | 16 | (1 | ) | |||||||
Change in current year tax positions | 14 | 1 | ||||||||
Cash settlements with taxing authorities | (3 | ) | — | |||||||
Lapse of statute of limitations | (4 | ) | (1 | ) | ||||||
Balance at December 31, 2012 | $ | 228 | (a) | $ | 68 | |||||
Change in prior year tax positions | (53 | ) | (9 | ) | ||||||
Change in current year tax positions | 30 | 1 | ||||||||
Cash settlements with taxing authorities | (21 | ) | (17 | ) | ||||||
Lapse of statute of limitations | (9 | ) | (9 | ) | ||||||
Balance at December 31, 2013 | $ | 175 | (a)(b) | $ | 34 | |||||
(a) | Includes $27 million as of December 31, 2013 and $59 million as of December 31, 2012 in foreign unrecognized tax benefits that would give rise to a United States tax credit. The remaining balance of $138 million, which excludes $10 million of unrecognized tax benefits covered by an indemnification asset, as of December 31, 2013 and $169 million as of December 31, 2012, if resolved in our favor, would positively impact the effective tax rate and, therefore, be recognized as additional tax benefits in our statement of operations. | |||||||||
(b) | Includes $3 million that could be resolved within the next 12 months. | |||||||||
We file income tax returns in the United States federal jurisdiction and in various states and foreign jurisdictions. In most cases, we are no longer subject to state, local, or non-United States income tax examination by tax authorities for years before 2005. Tax filings of our subsidiaries, unconsolidated affiliates, and related entities are routinely examined in the normal course of business by tax authorities. Currently, our United States federal tax filings for the tax year 2012 is open for review, 2003 through 2009 are under appeal for tax items not agreed, and 2010 through 2011 are under examination by the Internal Revenue Service. During 2013, the Congressional Joint Committee on Taxation approved a $135 million income tax refund, excluding interest, to us for tax items agreed upon for the tax years 2003 through 2009. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Shareholders' Equity | ' | ||||||
Shareholders’ Equity | |||||||
Shares of common stock | |||||||
The following table summarizes total shares of common stock outstanding: | |||||||
31-Dec | |||||||
Millions of shares | 2013 | 2012 | |||||
Issued | 1,072 | 1,073 | |||||
In treasury | (223 | ) | (144 | ) | |||
Total shares of common stock outstanding | 849 | 929 | |||||
In July 2013, our Board of Directors increased the authorization to purchase Halliburton common stock under our stock repurchase program by $4.3 billion, to a new total repurchase capacity of $5.0 billion. In August 2013, we repurchased approximately 68 million shares of our common stock for an aggregate cost of $3.3 billion at a purchase price of $48.50 per share, excluding fees and expenses, pursuant to a modified Dutch auction cash tender offer. Including the shares purchased pursuant to the tender offer, during the year ended December 31, 2013, we repurchased approximately 93 million shares of our common stock for a total cost of approximately $4.4 billion at an average price of $47.02 per share. | |||||||
As of December 31, 2013, approximately $1.7 billion of purchase authorization remained available under the stock repurchase program. The program does not require a specific number of shares to be purchased and the program may be effected through solicited or unsolicited transactions in the market or in privately negotiated transactions. The program may be terminated or suspended at any time. From the inception of this program in February 2006 through December 31, 2013, we repurchased approximately 188 million shares of our common stock for approximately $7.6 billion at an average price per share of $40.52. | |||||||
Preferred stock | |||||||
Our preferred stock consists of five million total authorized shares at December 31, 2013, of which none are issued. | |||||||
Accumulated other comprehensive loss | |||||||
Accumulated other comprehensive loss consisted of the following: | |||||||
31-Dec | |||||||
Millions of dollars | 2013 | 2012 | |||||
Defined benefit and other postretirement liability adjustments (a) | $ | (241 | ) | $ | (241 | ) | |
Cumulative translation adjustment | (69 | ) | (69 | ) | |||
Other | 3 | 1 | |||||
Total accumulated other comprehensive loss | $ | (307 | ) | $ | (309 | ) | |
(a) Included net actuarial losses for our international pension plans of $222 million at | |||||||
December 31, 2013 and $208 million at December 31, 2012. | |||||||
Amounts reclassified out of accumulated other comprehensive loss and the tax effects allocated to each component of other comprehensive income were not material for the year ended December 31, 2013 or 2012. |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Stock-Based Compensation | ' | |||||||||
. Stock-based Compensation | ||||||||||
The following table summarizes stock-based compensation costs for the years ended December 31, 2013, 2012, and 2011. | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Stock-based compensation cost | $ | 264 | $ | 217 | $ | 198 | ||||
Tax benefit | (81 | ) | (67 | ) | (61 | ) | ||||
Stock-based compensation cost, net of tax | $ | 183 | $ | 150 | $ | 137 | ||||
Our Stock and Incentive Plan, as amended (Stock Plan), provides for the grant of any or all of the following types of stock-based awards: | ||||||||||
- | stock options, including incentive stock options and nonqualified stock options; | |||||||||
- | restricted stock awards; | |||||||||
- | restricted stock unit awards; | |||||||||
- | stock appreciation rights; and | |||||||||
- | stock value equivalent awards. | |||||||||
There are currently no stock appreciation rights, stock value equivalent awards, or incentive stock options outstanding. | ||||||||||
Under the terms of the Stock Plan, approximately 172 million shares of common stock have been reserved for issuance to employees and non-employee directors. At December 31, 2013, approximately 28 million shares were available for future grants under the Stock Plan. The stock to be offered pursuant to the grant of an award under the Stock Plan may be authorized but unissued common shares or treasury shares. | ||||||||||
In addition to the provisions of the Stock Plan, we also have stock-based compensation provisions under our Restricted Stock Plan for Non-Employee Directors and our Employee Stock Purchase Plan (ESPP). | ||||||||||
Each of the active stock-based compensation arrangements is discussed below. | ||||||||||
Stock options | ||||||||||
The majority of our options are generally issued during the second quarter of the year. All stock options under the Stock Plan are granted at the fair market value of our common stock at the grant date. Employee stock options vest ratably over a three- or four-year period and generally expire 10 years from the grant date. Compensation expense for stock options is generally recognized on a straight line basis over the entire vesting period. No further stock option grants are being made under the stock plans of acquired companies. | ||||||||||
The following table represents our stock options activity during 2013. | ||||||||||
Number | Weighted | Weighted | Aggregate | |||||||
of Shares | Average | Average | Intrinsic | |||||||
(in millions) | Exercise | Remaining | Value | |||||||
Price | Contractual Term (years) | (in millions) | ||||||||
per Share | ||||||||||
Outstanding at January 1, 2013 | 18.1 | $ | 32.23 | |||||||
Granted | 5.4 | 43.06 | ||||||||
Exercised | (4.7 | ) | 27.35 | |||||||
Forfeited/expired | (0.7 | ) | 37.37 | |||||||
Outstanding at December 31, 2013 | 18.1 | $ | 36.57 | 7.1 | $ | 256 | ||||
Exercisable at December 31, 2013 | 9 | $ | 33.48 | 5.3 | $ | 156 | ||||
The total intrinsic value of options exercised was $93 million in 2013, $12 million in 2012, and $102 million in 2011. As of December 31, 2013, there was $83 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately two years. | ||||||||||
Cash received from option exercises was $277 million during 2013, $107 million during 2012, and $160 million during 2011. | ||||||||||
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. The expected volatility of options granted was a blended rate based upon implied volatility calculated on actively traded options on our common stock and upon the historical volatility of our common stock. The expected term of options granted was based upon historical observation of actual time elapsed between date of grant and exercise of options for all employees. The assumptions and resulting fair values of options granted were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected term (in years) | 5.27 | 5.21 | 5.2 | |||||||
Expected volatility | 40% | 46% | 40% | |||||||
Expected dividend yield | 0.94 - 1.33% | 0.99 – 1.24% | 0.69 – 1.01% | |||||||
Risk-free interest rate | 0.77 - 1.73% | 0.65 – 1.15% | 0.93 – 2.29% | |||||||
Weighted average grant-date fair value per share | $14.34 | $11.99 | $15.61 | |||||||
Restricted stock | ||||||||||
Restricted shares issued under the Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically over an extended period of time not exceeding 10 years. Restrictions may also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have not lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to income on a straight-line basis over the requisite service period for the entire award. | ||||||||||
Our Restricted Stock Plan for Non-Employee Directors (Directors Plan) allows for each non-employee director to receive an annual award of 800 restricted shares of common stock or, beginning in 2012, an annual award of 800 restricted stock units representing the right to receive shares of common stock as a part of their compensation. These awards have a minimum restriction period of six months, and, with respect to the restricted share awards, the restrictions lapse upon the earlier of mandatory director retirement at age 72 or early retirement from the Board after four years of service. With respect to the restricted stock unit awards, the restrictions lapse 25% annually over four years of service. If the non-employee director has made a timely election to defer receipt of the shares upon vesting, then the shares are distributed at the end of January in the year following the year of the non-employee director's mandatory retirement at age 72 or early retirement from the Board after four years of service in a single distribution or in annual installments over a 5- or 10-year period as elected by the director. | ||||||||||
The fair market value of the stock on the date of grant is amortized over the lesser of the time from the grant date to age 72 or the time from the grant date to completion of four years of service on the Board. We reserved 200,000 shares of common stock for issuance to non-employee directors, which may be authorized but unissued common shares or treasury shares. At December 31, 2013, 39,200 restricted shares and 13,506 restricted stock units were issued and outstanding under the Directors Plan. In addition, during 2013, our non-employee directors were awarded 29,797 restricted stock units under the Stock Plan with the same terms and conditions as those described above for the Directors Plan. | ||||||||||
The following table represents our Stock Plan and Directors Plan restricted stock awards and restricted stock units granted, vested, and forfeited during 2013. | ||||||||||
Number of Shares | Weighted Average | |||||||||
(in millions) | Grant-Date Fair | |||||||||
Value per Share | ||||||||||
Nonvested shares at January 1, 2013 | 14.8 | $ | 33.17 | |||||||
Granted | 6.6 | 42.93 | ||||||||
Vested | (4.7 | ) | 32.14 | |||||||
Forfeited | (1.0 | ) | 35.65 | |||||||
Nonvested shares at December 31, 2013 | 15.7 | $ | 37.43 | |||||||
The weighted average grant-date fair value of shares granted during 2012 was $32.17 and during 2011 was $43.35. The total fair value of shares vested during 2013 was $208 million, during 2012 was $126 million, and during 2011 was $165 million. As of December 31, 2013, there was $420 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock, which is expected to be recognized over a weighted average period of four years. | ||||||||||
Employee Stock Purchase Plan | ||||||||||
Under the ESPP, eligible employees may have up to 10% of their earnings withheld, subject to some limitations, to be used to purchase shares of our common stock. For the years ended December 31, 2012 and 2011, the ESPP contained two six-month offering periods commencing on January 1 and July 1. Beginning in 2013, the ESPP contained four three-month offering periods commencing on January 1, April 1, July 1, and October 1 of each year. The price at which common stock may be purchased under the ESPP is equal to 85% of the lower of the fair market value of the common stock on the commencement date or last trading day of each offering period. Under this plan, 44 million shares of common stock have been reserved for issuance. The stock to be offered may be authorized but unissued common shares or treasury shares. As of December 31, 2013, 33 million shares have been sold through the ESPP and 11 million shares are available for future issuance. | ||||||||||
The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. The expected volatility was a one-year historical volatility of our common stock. The assumptions and resulting fair values were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected volatility | 27 | % | 49 | % | 38 | % | ||||
Expected dividend yield | 1.12 | % | 1.16 | % | 0.78 | % | ||||
Risk-free interest rate | 0.06 | % | 0.11 | % | 0.14 | % | ||||
Weighted average grant-date fair value per share | $ | 8.4 | $ | 8.93 | $ | 11.88 | ||||
Income_per_Share
Income per Share | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Income per Share | ' |
Income per Share | |
Basic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Differences between basic and diluted weighted average common shares outstanding for all periods presented resulted from the dilutive effect of awards granted under our stock incentive plans. | |
Excluded from the computation of diluted income per share are options to purchase three million shares of common stock that were outstanding in 2013, seven million shares of common stock that were outstanding in 2012, and three million shares of common stock that were outstanding in 2011. These options were outstanding during these years but were excluded because they were antidilutive, as the option exercise price was greater than the average market price of the common shares. |
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Financial Instruments and Risk Management | ' | |||||||||||||||||||||||||
Financial Instruments and Risk Management | ||||||||||||||||||||||||||
At December 31, 2013, we held $373 million of investments in fixed income securities with maturities that extend through November 2016 compared to $398 million of investments in fixed income securities held at December 31, 2012. These securities are accounted for as available-for-sale and recorded at fair value as follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Millions of dollars | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||
U.S. treasuries (a) | $ | 100 | — | $ | 100 | $ | 150 | $ | — | $ | 150 | |||||||||||||||
Other (b) | — | 273 | 273 | — | 248 | 248 | ||||||||||||||||||||
Total | $ | 100 | $ | 273 | $ | 373 | $ | 150 | $ | 248 | $ | 398 | ||||||||||||||
(a) | These securities are classified as "Other current assets" in our consolidated balance sheets. | |||||||||||||||||||||||||
(b) | Of these securities, $139 million are classified as “Other current assets” and $134 million are classified as “Other assets” on our consolidated balance sheets as of December 31, 2013, compared to $120 million classified as "Other current assets" and $128 million classified as "Other assets" as of December 31, 2012. These securities consist primarily of municipal bonds, corporate bonds, and other debt instruments. | |||||||||||||||||||||||||
Our Level 1 asset fair values are based on quoted prices in active markets and our Level 2 asset fair values are based on quoted prices for identical assets in less active markets. We have no financial instruments measured at fair value using unobservable inputs (Level 3). The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the consolidated balance sheets, approximates fair value due to the short maturities of these instruments. | ||||||||||||||||||||||||||
The carrying amount and fair value of our long-term debt is as follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Millions of dollars | Level 1 | Level 2 | Total fair value | Carrying value | Level 1 | Level 2 | Total fair value | Carrying value | ||||||||||||||||||
Long-term debt | $ | 8,405 | $ | 292 | $ | 8,697 | $ | 7,816 | $ | 1,112 | $ | 5,272 | $ | 6,384 | $ | 4,820 | ||||||||||
Our Level 1 debt fair values are calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of year-end. Our Level 2 debt fair values are calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from year-end and adjusting for changes in market conditions. We have no debt measured at fair value using unobservable inputs (Level 3). | ||||||||||||||||||||||||||
We are exposed to market risk from changes in foreign currency exchange rates and interest rates. We selectively manage these exposures through the use of derivative instruments, including forward foreign exchange contracts, foreign exchange options, and interest rate swaps. The objective of our risk management strategy is to minimize the volatility from fluctuations in foreign currency and interest rates. We do not use derivative instruments for trading purposes. The fair value of our forward contracts, options, and interest rate swaps was not material as of December 31, 2013 or December 31, 2012. The counterparties to our derivatives are global commercial and investment banks. | ||||||||||||||||||||||||||
Foreign currency exchange risk | ||||||||||||||||||||||||||
We have operations in many international locations and are involved in transactions denominated in currencies other than the United States dollar, our functional currency, which exposes us to foreign currency exchange rate risk. Techniques in managing foreign currency exchange risk include, but are not limited to, foreign currency borrowing and investing and the use of currency exchange instruments, some of which are designed to mitigate the impact of foreign currency risks related to the Venezuelan bolívar. We attempt to selectively manage significant exposures to potential foreign currency exchange losses based on current market conditions, future operating activities, and the associated cost in relation to the perceived risk of loss. The purpose of our foreign currency risk management activities is to minimize the risk that our cash flows from the sale and purchase of services and products in foreign currencies will be adversely affected by changes in exchange rates. | ||||||||||||||||||||||||||
We use forward contracts and options to manage our exposure to fluctuations in the currencies of the countries in which we do the majority of our international business. These instruments are not treated as hedges for accounting purposes, generally have an expiration date of one year or less, and are not exchange traded. While these instruments are subject to fluctuations in value, the fluctuations are generally offset by the value of the underlying exposures being managed. The use of some of these instruments may limit our ability to benefit from favorable fluctuations in foreign currency exchange rates. | ||||||||||||||||||||||||||
Derivatives are not utilized to manage exposures in some currencies due primarily to the lack of available markets or cost considerations (non-traded currencies). We attempt to manage our working capital position to minimize foreign currency exposure in non-traded currencies and recognize that pricing for the services and products offered in these countries should account for the cost of exchange rate devaluations. We have historically incurred transaction losses in non-traded currencies. | ||||||||||||||||||||||||||
The notional amounts of open foreign exchange derivatives were $769 million at December 31, 2013 and $324 million at December 31, 2012. The notional amounts of these instruments do not generally represent amounts exchanged by the parties, and thus are not a measure of our exposure or of the cash requirements related to these contracts. As such, cash flows related to these contracts are typically not material. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the contracts, such as exchange rates. | ||||||||||||||||||||||||||
Interest rate risk | ||||||||||||||||||||||||||
We are subject to interest rate risk on our long-term debt and some of our long-term investments in fixed income securities. Our short-term borrowings and short-term investments in fixed income securities do not give rise to significant interest rate risk due to their short-term nature. We had fixed rate long-term debt totaling $7.8 billion at December 31, 2013 and $4.8 billion at December 31, 2012, with none maturing before 2016. We also had $134 million of long-term investments in fixed income securities at December 31, 2013 with maturities that extend through November 2016. | ||||||||||||||||||||||||||
We maintain an interest rate management strategy that is intended to mitigate the exposure to changes in interest rates in the aggregate for our investment portfolio. We hold a series of interest rate swaps relating to three of our debt instruments with a total notional amount of $1.5 billion at a weighted-average, LIBOR-based, floating rate of 3.8% as of December 31, 2013. We utilize interest rate swaps to effectively convert a portion of our fixed rate debt to floating rates. These interest rate swaps, which expire when the underlying debt matures, are designated as fair value hedges of the underlying debt and are determined to be highly effective. The fair value of our interest rate swaps is included in “Other assets” in our consolidated balance sheets as of December 31, 2013 and December 31, 2012. The fair value of our interest rate swaps was determined using an income approach model with inputs, such as the notional amount, LIBOR rate spread, and settlement terms that are observable in the market or can be derived from or corroborated by observable data (Level 2). These derivative instruments are marked to market with gains and losses recognized currently in interest expense to offset the respective gains and losses recognized on changes in the fair value of the hedged debt. At December 31, 2013, we had fixed rate debt aggregating $6.3 billion and variable rate debt aggregating $1.5 billion, after taking into account the effects of the interest rate swaps. | ||||||||||||||||||||||||||
Credit risk | ||||||||||||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents, investments in fixed income securities, and trade receivables. It is our practice to place our cash equivalents and investments in fixed income securities in high quality investments with various institutions. We derive the majority of our revenue from selling products and providing services to the energy industry. Within the energy industry, our trade receivables are generated from a broad and diverse group of customers. As of December 31, 2013, 34% of our gross trade receivables were in the United States and 8% were in Venezuela, compared to 36% in the United States and 9% in Venezuela at December 31, 2012. We maintain an allowance for losses based upon the expected collectability of all trade accounts receivable. | ||||||||||||||||||||||||||
We do not have any significant concentrations of credit risk with any individual counterparty to our derivative contracts. We select counterparties to those contracts based on our belief that each counterparty’s profitability, balance sheet, and capacity for timely payment of financial commitments is unlikely to be materially adversely affected by foreseeable events. |
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Retirement Plans | ' | ||||||||||||
Retirement Plans | |||||||||||||
Our company and subsidiaries have various plans that cover a significant number of our employees. These plans include defined contribution plans, defined benefit plans, and other postretirement plans: | |||||||||||||
- | our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of pension benefits the participant is to receive. Contributions to these plans are based on pretax income and/or discretionary amounts determined on an annual basis. Our expense for the defined contribution plans for continuing operations totaled $313 million in 2013, $293 million in 2012, and $245 million in 2011; | ||||||||||||
- | our defined benefit plans, which include both funded and unfunded pension plans, define an amount of pension benefit to be provided, usually as a function of age, years of service, and/or compensation. The unfunded obligations and net periodic benefit cost of our United States defined benefit plans were not material for the periods presented; and | ||||||||||||
- | our postretirement plans other than pensions are offered to specific eligible employees. The accumulated benefit obligations and net periodic benefit cost for these plans were not material for the periods presented. | ||||||||||||
Funded status | |||||||||||||
For our international pension plans, at December 31, 2013, the projected benefit obligation was $1.2 billion and the fair value of plan assets was $887 million, which resulted in an unfunded obligation of $268 million. At December 31, 2012, the projected benefit obligation was $1.0 billion and the fair value of plan assets was $754 million, which resulted in an unfunded obligation of $276 million. The accumulated benefit obligation for our international plans was $1.1 billion at December 31, 2013 and $961 million at December 31, 2012. | |||||||||||||
The following table presents additional information about our international pension plans. | |||||||||||||
31-Dec | |||||||||||||
Millions of dollars | 2013 | 2012 | |||||||||||
Amounts recognized on the Consolidated Balance Sheets | |||||||||||||
Accrued employee compensation and benefits | $ | 17 | $ | 10 | |||||||||
Employee compensation and benefits | 251 | 266 | |||||||||||
Pension plans in which projected benefit obligation exceeded plan assets | |||||||||||||
Projected benefit obligation | $ | 1,123 | $ | 1,004 | |||||||||
Fair value of plan assets | 854 | 727 | |||||||||||
Pension plans in which accumulated benefit obligation exceeded plan assets | |||||||||||||
Accumulated benefit obligation | $ | 1,046 | $ | 935 | |||||||||
Fair value of plan assets | 854 | 726 | |||||||||||
Fair value measurements of plan assets | |||||||||||||
The following table sets forth by level within the fair value hierarchy the fair value of assets held by our international pension plans. | |||||||||||||
Millions of dollars | Level 1 | Level 2 | Level 3 | Total | |||||||||
Common/collective trust funds (a) | |||||||||||||
Equity funds | $ | — | $ | 247 | $ | — | $ | 247 | |||||
Bond funds | — | 118 | — | 118 | |||||||||
Balanced funds | — | 13 | — | 13 | |||||||||
Non-United States equity securities | 165 | — | — | 165 | |||||||||
United States equity securities | 139 | — | — | 139 | |||||||||
Corporate bonds | — | 110 | — | 110 | |||||||||
Other assets | 2 | 59 | 34 | 95 | |||||||||
Fair value of plan assets at December 31, 2013 | $ | 306 | $ | 547 | $ | 34 | $ | 887 | |||||
Common/collective trust funds (a) | |||||||||||||
Equity funds | $ | — | $ | 204 | $ | — | $ | 204 | |||||
Bond funds | — | 112 | — | 112 | |||||||||
Balanced funds | — | 13 | — | 13 | |||||||||
Non-United States equity securities | 130 | — | — | 130 | |||||||||
United States equity securities | 110 | — | — | 110 | |||||||||
Corporate bonds | — | 107 | — | 107 | |||||||||
Other assets | 27 | 16 | 35 | 78 | |||||||||
Fair value of plan assets at December 31, 2012 | $ | 267 | $ | 452 | $ | 35 | $ | 754 | |||||
(a) | Strategies are generally to invest in equity or debt securities, or a combination thereof, that match or outperform certain predefined indices. | ||||||||||||
Our Level 1 plan asset fair values are based on quoted prices in active markets for identical assets, our Level 2 plan asset fair values are based on significant observable inputs for similar assets, and our Level 3 plan asset fair values are based on significant unobservable inputs. | |||||||||||||
Equity securities are traded in active markets and valued based on their quoted fair value by independent pricing vendors. Corporate bonds are valued using quotes from independent pricing vendors based on recent trading activity and other relevant information, including other observable inputs such as market interest rate curves, referenced credit spreads, and estimated prepayment rates. Common/collective trust funds are valued at the net asset value of units held by the plans at year-end. | |||||||||||||
Our investment strategy varies by country depending on the circumstances of the underlying plan. Typically, less mature plan benefit obligations are funded by using more equity securities, as they are expected to achieve long-term growth while exceeding inflation. More mature plan benefit obligations are funded using more fixed income securities, as they are expected to produce current income with limited volatility. The fixed income allocation is generally invested with a similar maturity profile to that of the benefit obligations to ensure that changes in interest rates are adequately reflected in the assets of the plan. Risk management practices include diversification by issuer, industry, and geography, as well as the use of multiple asset classes and investment managers within each asset class. | |||||||||||||
For our United Kingdom pension plan, which constituted 81% of our international pension plans’ projected benefit obligation at December 31, 2013, the target asset allocation during 2013 and 2012 was 65% equity securities and 35% fixed income securities. Beginning in 2014, we are implementing a de-risking program intended to improve the funded status, with the plan's assets increasingly invested over time in low-risk fixed income securities. | |||||||||||||
Net periodic benefit cost | |||||||||||||
Net periodic benefit cost for our international pension plans was $32 million in 2013, $26 million in 2012, and $27 million in 2011. | |||||||||||||
Actuarial assumptions | |||||||||||||
Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension plans at December 31 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.80% | 4.80% | |||||||||||
Rate of compensation increase | 5.50% | 5.50% | |||||||||||
Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international pension plans for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 4.80% | 5.20% | 7.10% | ||||||||||
Expected long-term return on plan assets | 6.40% | 6.50% | 5.70% | ||||||||||
Rate of compensation increase | 5.50% | 5.40% | 6.20% | ||||||||||
Assumed long-term rates of return on plan assets, discount rates for estimating benefit obligations, and rates of compensation increases vary by plan according to local economic conditions. Discount rates were determined based on the prevailing market rates of a portfolio of high-quality debt instruments with maturities matching the expected timing of the payment of the benefit obligations. Expected long-term rates of return on plan assets were determined based upon an evaluation of our plan assets and historical trends and experience, taking into account current and expected market conditions. | |||||||||||||
Other information | |||||||||||||
Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In certain countries the funding requirements are mandatory, while in other countries they are discretionary. We currently expect to contribute $17 million to our international pension plans in 2014. | |||||||||||||
Benefit payments. Expected benefit payments over the next 10 years are approximately $40 million annually for our international pension plans. |
Accounting_Standards_Recently_
Accounting Standards Recently Adopted | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Accounting Standards Recently Adopted | ' |
Accounting Standards Recently Adopted | |
In February 2013, the Financial Accounting Standards Board issued an update to existing guidance on the presentation of comprehensive income. This update requires companies to report the effect of significant reclassifications out of accumulated other comprehensive income (AOCI) by component. For significant items reclassified out of AOCI to net income in their entirety during the reporting period, companies must report the effect on the line items in the statement where net income is presented. For significant items not reclassified to net income in their entirety during the period, companies must provide cross-references in the notes to other disclosures that already provide information about those amounts. We adopted this update effective January 1, 2013, and it did not have a material impact on our consolidated financial statements. |
Description_of_Company_and_Sig1
Description of Company and Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Use of estimates | ' | |||||||||
Use of estimates | ||||||||||
Our financial statements are prepared in conformity with United States generally accepted accounting principles, requiring us to make estimates and assumptions that affect: | ||||||||||
- | the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and | |||||||||
- | the reported amounts of revenue and expenses during the reporting period. | |||||||||
We believe the most significant estimates and assumptions are associated with the forecasting of our effective income tax rate and the valuation of deferred taxes, legal and environmental reserves, long-lived asset valuations, purchase price allocations, pensions, allowance for bad debts, and percentage-of-completion accounting for long-term contracts. Ultimate results could differ from our estimates. | ||||||||||
Basis of presentation | ' | |||||||||
Basis of presentation | ||||||||||
The consolidated financial statements include the accounts of our company and all of our subsidiaries that we control or variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany accounts and transactions are eliminated. Investments in companies in which we have significant influence are accounted for using the equity method of accounting. If we do not have significant influence, we use the cost method of accounting. | ||||||||||
In 2013, we adopted the provisions of a new accounting standard. See Note 15 for further information. All periods presented reflect these changes. | ||||||||||
Revenue recognition | ' | |||||||||
Revenue recognition | ||||||||||
Overall. Our services and products are generally sold based upon purchase orders or contracts with our customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. Our products are produced in a standard manufacturing operation, even if produced to our customer’s specifications. We recognize revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured, and delivery occurs as directed by our customer. Service revenue, including training and consulting services, is recognized when the services are rendered and collectability is reasonably assured. Rates for services are typically priced on a per day, per meter, per man-hour, or similar basis. | ||||||||||
Software sales. Sales of perpetual software licenses, net of any deferred maintenance and support fees, are recognized as revenue upon shipment. Sales of time-based licenses are recognized as revenue over the license period. Maintenance and support fees are recognized as revenue ratably over the contract period, usually a one-year duration. | ||||||||||
Percentage of completion. Revenue from certain long-term, integrated project management contracts to provide well construction and completion services is reported on the percentage-of-completion method of accounting. Progress is generally based upon physical progress related to contractually defined units of work. Physical percent complete is determined as a combination of input and output measures as deemed appropriate by the circumstances. All known or anticipated losses on contracts are provided for when they become evident. Cost adjustments that are in the process of being negotiated with customers for extra work or changes in the scope of work are included in revenue when collection is deemed probable. | ||||||||||
Research and development | ' | |||||||||
Research and development | ||||||||||
Research and development costs are expensed as incurred. Research and development costs were $588 million in 2013, $460 million in 2012, and $401 million in 2011. | ||||||||||
Cash equivalents | ' | |||||||||
Cash equivalents | ||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||||||||||
Inventories | ' | |||||||||
Inventories | ||||||||||
Inventories are stated at the lower of cost or market. Cost represents invoice or production cost for new items and original cost less allowance for condition for used material returned to stock. Production cost includes material, labor, and manufacturing overhead. Some domestic manufacturing and field service finished products and parts inventories for drill bits, completion products, and bulk materials are recorded using the last-in, first-out method. The remaining inventory is recorded on the average cost method. We regularly review inventory quantities on hand and record provisions for excess or obsolete inventory based primarily on historical usage, estimated product demand, and technological developments. | ||||||||||
Inventories are stated at the lower of cost or market. | ||||||||||
Allowance for bad debts | ' | |||||||||
Allowance for bad debts | ||||||||||
We establish an allowance for bad debts through a review of several factors, including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. Our policy is to write off bad debts when the customer accounts are determined to be uncollectible. | ||||||||||
Property, plant and equipment | ' | |||||||||
Property, plant, and equipment | ||||||||||
Other than those assets that have been written down to their fair values due to impairment, property, plant, and equipment are reported at cost less accumulated depreciation, which is generally provided on the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are used for tax purposes, wherever permitted. Upon sale or retirement of an asset, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is recognized. Planned major maintenance costs are generally expensed as incurred. Expenditures for additions, modifications, and conversions are capitalized when they increase the value or extend the useful life of the asset. | ||||||||||
Goodwill and other intangible assets | ' | |||||||||
Goodwill and other intangible assets | ||||||||||
We record as goodwill the excess purchase price over the fair value of the tangible and identifiable intangible assets acquired. Changes in the carrying amount of goodwill are detailed below by reportable segment. | ||||||||||
Millions of dollars | Completion and Production | Drilling and Evaluation | Total | |||||||
Balance at December 31, 2011: | $ | 1,215 | $ | 561 | $ | 1,776 | ||||
Current year acquisitions | 100 | 62 | 162 | |||||||
Purchase price adjustments for previous acquisitions | 196 | 1 | 197 | |||||||
Balance at December 31, 2012: | $ | 1,511 | $ | 624 | $ | 2,135 | ||||
Current year acquisitions | 43 | 10 | 53 | |||||||
Purchase price adjustments for previous acquisitions | (21 | ) | 1 | (20 | ) | |||||
Balance at December 31, 2013: | $ | 1,533 | $ | 635 | $ | 2,168 | ||||
The reported amounts of goodwill for each reporting unit are reviewed for impairment on an annual basis, during the third quarter, and more frequently should negative conditions such as significant current or projected operating losses exist. In 2012 and 2011, we elected to perform a qualitative assessment for our annual goodwill impairment test. If a qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we would be required to perform a quantitative impairment test for goodwill. In 2013, we elected to bypass the qualitative assessment and perform a quantitative impairment test. This two-step process involves comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired, and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test would be performed to measure the amount of impairment loss to be recorded, if any. Our goodwill impairment assessment for 2013 indicated the fair value of each of our reporting units exceeded its carrying amount by a significant margin. Based on our qualitative assessment of goodwill in 2012 and 2011, we concluded that it was more likely than not that the fair value of each of our reporting units was greater than their carrying amount, and therefore no further testing was required. In addition, there were no triggering events that occurred in 2013, 2012, or 2011 requiring us to perform additional impairment reviews. As such, there were no impairments of goodwill recorded in the three-year period ended December 31, 2013. | ||||||||||
Finite-lived intangible assets | ' | |||||||||
We amortize other identifiable intangible assets with a finite life on a straight-line basis over the period which the asset is expected to contribute to our future cash flows, ranging from three to twenty years. The components of these other intangible assets generally consist of patents, license agreements, non-compete agreements, trademarks, and customer lists and contracts. | ||||||||||
Impairment of long-lived assets | ' | |||||||||
Evaluating impairment of long-lived assets | ||||||||||
When events or changes in circumstances indicate that long-lived assets other than goodwill may be impaired, an evaluation is performed. For an asset classified as held for use, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if a write-down to fair value is required. When an asset is classified as held for sale, the asset’s book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. In addition, depreciation and amortization is ceased while it is classified as held for sale. | ||||||||||
Income taxes | ' | |||||||||
Income taxes | ||||||||||
We recognize the amount of taxes payable or refundable for the year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. | ||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes on continuing operations in our consolidated statements of operations. | ||||||||||
Undistributed earnings of non-United States subsidiaries | ' | |||||||||
We generally do not provide income taxes on the undistributed earnings of non-United States subsidiaries because such earnings are intended to be reinvested indefinitely to finance foreign activities. These additional foreign earnings could be subject to additional tax if remitted, or deemed remitted, as a dividend; however, it is not practicable to estimate the additional amount, if any, of taxes payable. Taxes are provided as necessary with respect to earnings that are not permanently reinvested. | ||||||||||
Derivative instruments | ' | |||||||||
Derivative instruments | ||||||||||
At times, we enter into derivative financial transactions to hedge existing or projected exposures to changing foreign currency exchange rates and interest rates. We do not enter into derivative transactions for speculative or trading purposes. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value and reflected through the results of operations. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against: | ||||||||||
- | the change in fair value of the hedged assets, liabilities, or firm commitments through earnings; or | |||||||||
- | recognized in other comprehensive income until the hedged item is recognized in earnings. | |||||||||
The ineffective portion of a derivative’s change in fair value is recognized in earnings. Recognized gains or losses on derivatives entered into to manage foreign currency exchange risk are included in “Other, net” on the consolidated statements of operations. Gains or losses on interest rate derivatives are included in “Interest expense, net.” | ||||||||||
Foreign currency translations | ' | |||||||||
Foreign currency translation | ||||||||||
Foreign entities whose functional currency is the United States dollar translate monetary assets and liabilities at year-end exchange rates, and nonmonetary items are translated at historical rates. Income and expense accounts are translated at the average rates in effect during the year, except for depreciation, cost of product sales and revenue, and expenses associated with nonmonetary balance sheet accounts, which are translated at historical rates. Gains or losses from changes in exchange rates are recognized in our consolidated statements of operations in “Other, net” in the year of occurrence. | ||||||||||
Stock-based compensation | ' | |||||||||
Stock-based compensation | ||||||||||
Stock-based compensation cost is measured at the date of grant, based on the calculated fair value of the award, and is recognized as expense over the employee’s service period, which is generally the vesting period of the equity grant. Additionally, compensation cost is recognized based on awards ultimately expected to vest, therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods to reflect actual forfeitures. See Note 11 for additional information related to stock-based compensation. |
Inventories_Policies
Inventories (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | ' |
Inventory, Policy | ' |
Inventories | |
Inventories are stated at the lower of cost or market. Cost represents invoice or production cost for new items and original cost less allowance for condition for used material returned to stock. Production cost includes material, labor, and manufacturing overhead. Some domestic manufacturing and field service finished products and parts inventories for drill bits, completion products, and bulk materials are recorded using the last-in, first-out method. The remaining inventory is recorded on the average cost method. We regularly review inventory quantities on hand and record provisions for excess or obsolete inventory based primarily on historical usage, estimated product demand, and technological developments. | |
Inventories are stated at the lower of cost or market. |
Description_of_Company_and_Sig2
Description of Company and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Schedule of Goodwill | ' | |||||||||
Changes in the carrying amount of goodwill are detailed below by reportable segment. | ||||||||||
Millions of dollars | Completion and Production | Drilling and Evaluation | Total | |||||||
Balance at December 31, 2011: | $ | 1,215 | $ | 561 | $ | 1,776 | ||||
Current year acquisitions | 100 | 62 | 162 | |||||||
Purchase price adjustments for previous acquisitions | 196 | 1 | 197 | |||||||
Balance at December 31, 2012: | $ | 1,511 | $ | 624 | $ | 2,135 | ||||
Current year acquisitions | 43 | 10 | 53 | |||||||
Purchase price adjustments for previous acquisitions | (21 | ) | 1 | (20 | ) | |||||
Balance at December 31, 2013: | $ | 1,533 | $ | 635 | $ | 2,168 | ||||
Business_Segment_and_Geographi1
Business Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Information on business segments | ' | |||||||||
The following tables present information on our business segments. | ||||||||||
Operations by business segment | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Revenue: | ||||||||||
Completion and Production | $ | 17,506 | $ | 17,380 | $ | 15,143 | ||||
Drilling and Evaluation | 11,896 | 11,123 | 9,686 | |||||||
Total revenue | $ | 29,402 | $ | 28,503 | $ | 24,829 | ||||
Operating income: | ||||||||||
Completion and Production | $ | 2,875 | $ | 3,144 | $ | 3,733 | ||||
Drilling and Evaluation | 1,770 | 1,675 | 1,403 | |||||||
Total operations | 4,645 | 4,819 | 5,136 | |||||||
Corporate and other | (1,507 | ) | (660 | ) | (399 | ) | ||||
Total operating income | $ | 3,138 | $ | 4,159 | $ | 4,737 | ||||
Interest expense, net of interest income | $ | (331 | ) | $ | (298 | ) | $ | (263 | ) | |
Other, net | (43 | ) | (39 | ) | (25 | ) | ||||
Income from continuing operations before income taxes | $ | 2,764 | $ | 3,822 | $ | 4,449 | ||||
Capital expenditures: | ||||||||||
Completion and Production | $ | 1,676 | $ | 2,177 | $ | 1,669 | ||||
Drilling and Evaluation | 1,210 | 1,318 | 1,231 | |||||||
Corporate and other | 48 | 71 | 53 | |||||||
Total | $ | 2,934 | $ | 3,566 | $ | 2,953 | ||||
Depreciation, depletion, and amortization: | ||||||||||
Completion and Production | $ | 1,013 | $ | 843 | $ | 680 | ||||
Drilling and Evaluation | 873 | 783 | 676 | |||||||
Corporate and other | 14 | 2 | 3 | |||||||
Total | $ | 1,900 | $ | 1,628 | $ | 1,359 | ||||
Reconciliation of assets from segment to consolidated | ' | |||||||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Total assets: | ||||||||||
Completion and Production | $ | 14,203 | $ | 13,313 | ||||||
Drilling and Evaluation | 10,010 | 9,290 | ||||||||
Shared assets | 1,351 | 1,376 | ||||||||
Corporate and other | 3,659 | 3,431 | ||||||||
Total | $ | 29,223 | $ | 27,410 | ||||||
Schedule of revenue from external customers and long-lived assets, by geographical areas | ' | |||||||||
Operations by geographic area | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Revenue: | ||||||||||
United States | $ | 14,311 | $ | 15,057 | $ | 13,548 | ||||
Other countries | 15,091 | 13,446 | 11,281 | |||||||
Total | $ | 29,402 | $ | 28,503 | $ | 24,829 | ||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Net property, plant, and equipment: | ||||||||||
United States | $ | 5,368 | $ | 5,096 | ||||||
Other countries | 5,954 | 5,161 | ||||||||
Total | $ | 11,322 | $ | 10,257 | ||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Allowance for bad debts | ' | ||||||||||||
The following table presents a rollforward of our allowance for bad debts for 2011, 2012, and 2013. | |||||||||||||
Millions of dollars | Balance at Beginning of Period | Charged to Costs and Expenses | Write-Offs | Balance at End of Period | |||||||||
Year ended December 31, 2011 | $ | 91 | $ | 53 | $ | (7 | ) | $ | 137 | ||||
Year ended December 31, 2012 | 137 | -40 | (5 | ) | 92 | ||||||||
Year ended December 31, 2013 | 92 | 39 | (14 | ) | 117 | ||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Inventories | ' | ||||||
The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following: | |||||||
December 31 | |||||||
Millions of dollars | 2013 | 2012 | |||||
Finished products and parts | $ | 2,445 | $ | 2,264 | |||
Raw materials and supplies | 720 | 793 | |||||
Work in process | 140 | 129 | |||||
Total | $ | 3,305 | $ | 3,186 | |||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, plant, and equipment | ' | ||||||
Property, plant, and equipment were composed of the following: | |||||||
31-Dec | |||||||
Millions of dollars | 2013 | 2012 | |||||
Land | $ | 213 | $ | 145 | |||
Buildings and property improvements | 2,685 | 1,861 | |||||
Machinery, equipment, and other | 17,904 | 16,307 | |||||
Total | 20,802 | 18,313 | |||||
Less accumulated depreciation | 9,480 | 8,056 | |||||
Net property, plant, and equipment | $ | 11,322 | $ | 10,257 | |||
Percentages of building and property improvements, and total machinery, and equipment and other, excluding oil and natural gas investments, depreciated over useful lives | ' | ||||||
Classes of assets, excluding oil and natural gas investments, are depreciated over the following useful lives: | |||||||
Buildings and Property | |||||||
Improvements | |||||||
2013 | 2012 | ||||||
1 - 10 years | 13% | 14% | |||||
11 - 20 years | 43% | 46% | |||||
21 - 30 years | 20% | 14% | |||||
31 - 40 years | 24% | 26% | |||||
Machinery, Equipment, | |||||||
and Other | |||||||
2013 | 2012 | ||||||
1 - 5 years | 22% | 20% | |||||
6 - 10 years | 72% | 74% | |||||
11 - 20 years | 6% | 6% |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Schedule of long-term debt | ' | ||||||
Long-term debt consisted of the following: | |||||||
December 31 | |||||||
Millions of dollars | 2013 | 2012 | |||||
3.5% senior notes due August 2023 | $ | 1,098 | $ | — | |||
6.15% senior notes due September 2019 | 997 | 997 | |||||
7.45% senior notes due September 2039 | 995 | 995 | |||||
4.75% senior notes due August 2043 | 898 | — | |||||
6.7% senior notes due September 2038 | 800 | 800 | |||||
1.0% senior notes due August 2016 | 600 | — | |||||
3.25% senior notes due November 2021 | 498 | 498 | |||||
4.5% senior notes due November 2041 | 498 | 498 | |||||
2.0% senior notes due August 2018 | 400 | — | |||||
5.9% senior notes due September 2018 | 400 | 400 | |||||
7.6% senior debentures due August 2096 | 293 | 293 | |||||
8.75% senior debentures due February 2021 | 184 | 184 | |||||
Other | 155 | 155 | |||||
Total long-term debt | $ | 7,816 | $ | 4,820 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Components of the (provision)/benefit for income taxes on continuing operations | ' | |||||||||
The components of the (provision)/benefit for income taxes on continuing operations were: | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Current income taxes: | ||||||||||
Federal | $ | (245 | ) | $ | (695 | ) | $ | (1,026 | ) | |
Foreign | (485 | ) | (328 | ) | (334 | ) | ||||
State | (49 | ) | (47 | ) | (109 | ) | ||||
Total current | (779 | ) | (1,070 | ) | (1,469 | ) | ||||
Deferred income taxes: | ||||||||||
Federal | 4 | (168 | ) | (28 | ) | |||||
Foreign | 125 | 15 | 57 | |||||||
State | 2 | (12 | ) | 1 | ||||||
Total deferred | 131 | (165 | ) | 30 | ||||||
Provision for income taxes | $ | (648 | ) | $ | (1,235 | ) | $ | (1,439 | ) | |
United States and foreign components of income from continuing operations before income taxes | ' | |||||||||
The United States and foreign components of income from continuing operations before income taxes were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
United States | $ | 1,070 | $ | 2,826 | $ | 4,040 | ||||
Foreign | 1,694 | 996 | 409 | |||||||
Total | $ | 2,764 | $ | 3,822 | $ | 4,449 | ||||
Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the US statutory rate to income from continuing operations before income taxes | ' | |||||||||
Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income from continuing operations before income taxes were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States statutory rate | 35 | % | 35 | % | 35 | % | ||||
Impact of foreign income taxed at different rates | (9.3 | ) | (2.5 | ) | (0.5 | ) | ||||
Domestic manufacturing deduction | (2.0 | ) | (2.2 | ) | (2.1 | ) | ||||
State income taxes | 1.7 | 1.6 | 1.6 | |||||||
Adjustments of prior year taxes | (1.3 | ) | (0.6 | ) | (1.5 | ) | ||||
Other impact of foreign operations | (0.2 | ) | (0.5 | ) | (0.4 | ) | ||||
Other items, net | (0.4 | ) | 1.5 | 0.2 | ||||||
Total effective tax rate on continuing operations | 23.5 | % | 32.3 | % | 32.3 | % | ||||
Primary components of deferred tax assets and liabilities | ' | |||||||||
The primary components of our deferred tax assets and liabilities were as follows: | ||||||||||
31-Dec | ||||||||||
Millions of dollars | 2013 | 2012 | ||||||||
Gross deferred tax assets: | ||||||||||
Net operating loss carryforwards | $ | 481 | $ | 474 | ||||||
Accrued liabilities | 600 | 329 | ||||||||
Employee compensation and benefits | 351 | 375 | ||||||||
Other | 162 | 160 | ||||||||
Total gross deferred tax assets | 1,594 | 1,338 | ||||||||
Gross deferred tax liabilities: | ||||||||||
Depreciation and amortization | 1,185 | 859 | ||||||||
Other | 81 | 137 | ||||||||
Total gross deferred tax liabilities | 1,266 | 996 | ||||||||
Valuation allowances – net operating loss carryforwards | 374 | 395 | ||||||||
Net deferred income tax asset (liability) | $ | (46 | ) | $ | (53 | ) | ||||
Rollforward of unrecognized tax benefits and associated interest and penalties | ' | |||||||||
The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties. | ||||||||||
Millions of dollars | Unrecognized Tax Benefits | Interest | ||||||||
and Penalties | ||||||||||
Balance at January 1, 2011 | $ | 177 | $ | 32 | ||||||
Change in prior year tax positions | 38 | 41 | ||||||||
Change in current year tax positions | 5 | 1 | ||||||||
Cash settlements with taxing authorities | (12 | ) | (3 | ) | ||||||
Lapse of statute of limitations | (3 | ) | (2 | ) | ||||||
Balance at December 31, 2011 | $ | 205 | $ | 69 | ||||||
Change in prior year tax positions | 16 | (1 | ) | |||||||
Change in current year tax positions | 14 | 1 | ||||||||
Cash settlements with taxing authorities | (3 | ) | — | |||||||
Lapse of statute of limitations | (4 | ) | (1 | ) | ||||||
Balance at December 31, 2012 | $ | 228 | (a) | $ | 68 | |||||
Change in prior year tax positions | (53 | ) | (9 | ) | ||||||
Change in current year tax positions | 30 | 1 | ||||||||
Cash settlements with taxing authorities | (21 | ) | (17 | ) | ||||||
Lapse of statute of limitations | (9 | ) | (9 | ) | ||||||
Balance at December 31, 2013 | $ | 175 | (a)(b) | $ | 34 | |||||
(a) | Includes $27 million as of December 31, 2013 and $59 million as of December 31, 2012 in foreign unrecognized tax benefits that would give rise to a United States tax credit. The remaining balance of $138 million, which excludes $10 million of unrecognized tax benefits covered by an indemnification asset, as of December 31, 2013 and $169 million as of December 31, 2012, if resolved in our favor, would positively impact the effective tax rate and, therefore, be recognized as additional tax benefits in our statement of operations. | |||||||||
(b) | Includes $3 million that could be resolved within the next 12 months. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Schedule of shares of common stock | ' | ||||||
The following table summarizes total shares of common stock outstanding: | |||||||
31-Dec | |||||||
Millions of shares | 2013 | 2012 | |||||
Issued | 1,072 | 1,073 | |||||
In treasury | (223 | ) | (144 | ) | |||
Total shares of common stock outstanding | 849 | 929 | |||||
Schedule of comprehensive income (loss) | ' | ||||||
Accumulated other comprehensive loss consisted of the following: | |||||||
31-Dec | |||||||
Millions of dollars | 2013 | 2012 | |||||
Defined benefit and other postretirement liability adjustments (a) | $ | (241 | ) | $ | (241 | ) | |
Cumulative translation adjustment | (69 | ) | (69 | ) | |||
Other | 3 | 1 | |||||
Total accumulated other comprehensive loss | $ | (307 | ) | $ | (309 | ) | |
(a) Included net actuarial losses for our international pension plans of $222 million at | |||||||
December 31, 2013 and $208 million at December 31, 2012 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||
Stock-based compensation costs | ' | |||||||||
The following table summarizes stock-based compensation costs for the years ended December 31, 2013, 2012, and 2011. | ||||||||||
Year Ended December 31 | ||||||||||
Millions of dollars | 2013 | 2012 | 2011 | |||||||
Stock-based compensation cost | $ | 264 | $ | 217 | $ | 198 | ||||
Tax benefit | (81 | ) | (67 | ) | (61 | ) | ||||
Stock-based compensation cost, net of tax | $ | 183 | $ | 150 | $ | 137 | ||||
Assumptions and fair values of options granted | ' | |||||||||
The assumptions and resulting fair values of options granted were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected term (in years) | 5.27 | 5.21 | 5.2 | |||||||
Expected volatility | 40% | 46% | 40% | |||||||
Expected dividend yield | 0.94 - 1.33% | 0.99 – 1.24% | 0.69 – 1.01% | |||||||
Risk-free interest rate | 0.77 - 1.73% | 0.65 – 1.15% | 0.93 – 2.29% | |||||||
Weighted average grant-date fair value per share | $14.34 | $11.99 | $15.61 | |||||||
Restricted stock awards activity | ' | |||||||||
The following table represents our Stock Plan and Directors Plan restricted stock awards and restricted stock units granted, vested, and forfeited during 2013. | ||||||||||
Number of Shares | Weighted Average | |||||||||
(in millions) | Grant-Date Fair | |||||||||
Value per Share | ||||||||||
Nonvested shares at January 1, 2013 | 14.8 | $ | 33.17 | |||||||
Granted | 6.6 | 42.93 | ||||||||
Vested | (4.7 | ) | 32.14 | |||||||
Forfeited | (1.0 | ) | 35.65 | |||||||
Nonvested shares at December 31, 2013 | 15.7 | $ | 37.43 | |||||||
Stock Options | ' | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||
Stock options activity | ' | |||||||||
The following table represents our stock options activity during 2013. | ||||||||||
Number | Weighted | Weighted | Aggregate | |||||||
of Shares | Average | Average | Intrinsic | |||||||
(in millions) | Exercise | Remaining | Value | |||||||
Price | Contractual Term (years) | (in millions) | ||||||||
per Share | ||||||||||
Outstanding at January 1, 2013 | 18.1 | $ | 32.23 | |||||||
Granted | 5.4 | 43.06 | ||||||||
Exercised | (4.7 | ) | 27.35 | |||||||
Forfeited/expired | (0.7 | ) | 37.37 | |||||||
Outstanding at December 31, 2013 | 18.1 | $ | 36.57 | 7.1 | $ | 256 | ||||
Exercisable at December 31, 2013 | 9 | $ | 33.48 | 5.3 | $ | 156 | ||||
Employee Stock Purchase Plan | ' | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||
Assumptions and fair values of options granted | ' | |||||||||
The assumptions and resulting fair values were as follows: | ||||||||||
Year Ended December 31 | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected volatility | 27 | % | 49 | % | 38 | % | ||||
Expected dividend yield | 1.12 | % | 1.16 | % | 0.78 | % | ||||
Risk-free interest rate | 0.06 | % | 0.11 | % | 0.14 | % | ||||
Weighted average grant-date fair value per share | $ | 8.4 | $ | 8.93 | $ | 11.88 | ||||
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||||
These securities are accounted for as available-for-sale and recorded at fair value as follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Millions of dollars | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||
U.S. treasuries (a) | $ | 100 | — | $ | 100 | $ | 150 | $ | — | $ | 150 | |||||||||||||||
Other (b) | — | 273 | 273 | — | 248 | 248 | ||||||||||||||||||||
Total | $ | 100 | $ | 273 | $ | 373 | $ | 150 | $ | 248 | $ | 398 | ||||||||||||||
(a) | These securities are classified as "Other current assets" in our consolidated balance sheets. | |||||||||||||||||||||||||
(b) | Of these securities, $139 million are classified as “Other current assets” and $134 million are classified as “Other assets” on our consolidated balance sheets as of December 31, 2013, compared to $120 million classified as "Other current assets" and $128 million classified as "Other assets" as of December 31, 2012. These securities consist primarily of municipal bonds, corporate bonds, and other debt instruments. | |||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | ' | |||||||||||||||||||||||||
The carrying amount and fair value of our long-term debt is as follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Millions of dollars | Level 1 | Level 2 | Total fair value | Carrying value | Level 1 | Level 2 | Total fair value | Carrying value | ||||||||||||||||||
Long-term debt | $ | 8,405 | $ | 292 | $ | 8,697 | $ | 7,816 | $ | 1,112 | $ | 5,272 | $ | 6,384 | $ | 4,820 | ||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Fair value of pension plan assets by category | ' | ||||||||||||
The following table sets forth by level within the fair value hierarchy the fair value of assets held by our international pension plans. | |||||||||||||
Millions of dollars | Level 1 | Level 2 | Level 3 | Total | |||||||||
Common/collective trust funds (a) | |||||||||||||
Equity funds | $ | — | $ | 247 | $ | — | $ | 247 | |||||
Bond funds | — | 118 | — | 118 | |||||||||
Balanced funds | — | 13 | — | 13 | |||||||||
Non-United States equity securities | 165 | — | — | 165 | |||||||||
United States equity securities | 139 | — | — | 139 | |||||||||
Corporate bonds | — | 110 | — | 110 | |||||||||
Other assets | 2 | 59 | 34 | 95 | |||||||||
Fair value of plan assets at December 31, 2013 | $ | 306 | $ | 547 | $ | 34 | $ | 887 | |||||
Common/collective trust funds (a) | |||||||||||||
Equity funds | $ | — | $ | 204 | $ | — | $ | 204 | |||||
Bond funds | — | 112 | — | 112 | |||||||||
Balanced funds | — | 13 | — | 13 | |||||||||
Non-United States equity securities | 130 | — | — | 130 | |||||||||
United States equity securities | 110 | — | — | 110 | |||||||||
Corporate bonds | — | 107 | — | 107 | |||||||||
Other assets | 27 | 16 | 35 | 78 | |||||||||
Fair value of plan assets at December 31, 2012 | $ | 267 | $ | 452 | $ | 35 | $ | 754 | |||||
(a) | Strategies are generally to invest in equity or debt securities, or a combination thereof, that match or outperform certain predefined indices. | ||||||||||||
Weighted-average assumptions for principal retirement and other postretirement benefit plans | ' | ||||||||||||
Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension plans at December 31 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.80% | 4.80% | |||||||||||
Rate of compensation increase | 5.50% | 5.50% | |||||||||||
Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international pension plans for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 4.80% | 5.20% | 7.10% | ||||||||||
Expected long-term return on plan assets | 6.40% | 6.50% | 5.70% | ||||||||||
Rate of compensation increase | 5.50% | 5.40% | 6.20% | ||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | ||||||||||||
The following table presents additional information about our international pension plans. | |||||||||||||
31-Dec | |||||||||||||
Millions of dollars | 2013 | 2012 | |||||||||||
Amounts recognized on the Consolidated Balance Sheets | |||||||||||||
Accrued employee compensation and benefits | $ | 17 | $ | 10 | |||||||||
Employee compensation and benefits | 251 | 266 | |||||||||||
Pension plans in which projected benefit obligation exceeded plan assets | |||||||||||||
Projected benefit obligation | $ | 1,123 | $ | 1,004 | |||||||||
Fair value of plan assets | 854 | 727 | |||||||||||
Pension plans in which accumulated benefit obligation exceeded plan assets | |||||||||||||
Accumulated benefit obligation | $ | 1,046 | $ | 935 | |||||||||
Fair value of plan assets | 854 | 726 | |||||||||||
Description_of_Company_and_Sig3
Description of Company and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Division | Division | |||
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, Impairment Loss | $0 | $0 | $0 | ' |
Number of business segments | 2 | ' | ' | 2 |
Goodwill impairment assessment period | ' | ' | ' | '3 years |
Revenue Recognition [Abstract] | ' | ' | ' | ' |
Standard contract period for revenue recognition of maintenance and support fees | '1 year | ' | ' | ' |
Research and Development [Abstract] | ' | ' | ' | ' |
Research and development costs | 588,000,000 | 460,000,000 | 401,000,000 | ' |
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' |
Cash equivalents, maximum maturity (in months) | '3 months | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' |
Goodwill | 2,135,000,000 | 1,776,000,000 | ' | ' |
Current year acquisitions | 53,000,000 | 162,000,000 | ' | ' |
Purchase price adjustments for previous acquisitions | -20,000,000 | 197,000,000 | ' | ' |
Goodwill | 2,168,000,000 | 2,135,000,000 | 1,776,000,000 | 2,168,000,000 |
Minimum | ' | ' | ' | ' |
Finite-lived intangible assets [Abstract] | ' | ' | ' | ' |
Useful life of finite-lived intangible assets (in years) | '3 years | ' | ' | ' |
Maximum | ' | ' | ' | ' |
Finite-lived intangible assets [Abstract] | ' | ' | ' | ' |
Useful life of finite-lived intangible assets (in years) | '20 years | ' | ' | ' |
Completion and Production | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' |
Goodwill | 1,511,000,000 | 1,215,000,000 | ' | ' |
Current year acquisitions | 43,000,000 | 100,000,000 | ' | ' |
Purchase price adjustments for previous acquisitions | -21,000,000 | 196,000,000 | ' | ' |
Goodwill | 1,533,000,000 | 1,511,000,000 | ' | 1,533,000,000 |
Drilling and Evaluation | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' |
Goodwill | 624,000,000 | 561,000,000 | ' | ' |
Current year acquisitions | 10,000,000 | 62,000,000 | ' | ' |
Purchase price adjustments for previous acquisitions | 1,000,000 | 1,000,000 | ' | ' |
Goodwill | $635,000,000 | $624,000,000 | ' | $635,000,000 |
Business_Segment_and_Geographi2
Business Segment and Geographic Information (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Division | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | ' | $29,223 | $27,410 |
Number of business segments | ' | 2 | ' |
Charitable Contribution Tax Deductible | 55 | ' | ' |
Shared assets | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | ' | $1,351 | $1,376 |
Business_Segment_and_Geographi3
Business Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | $11,322 | $10,257 | ' |
Charitable Contribution Tax Deductible | 55 | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 29,402 | 28,503 | 24,829 |
Operating income: | ' | ' | ' | ' |
Total operating income | ' | 3,138 | 4,159 | 4,737 |
Interest expense, net of interest income | ' | -331 | -298 | -263 |
Other, net | ' | -43 | -39 | -25 |
Income from continuing operations before income taxes | ' | 2,764 | 3,822 | 4,449 |
Capital expenditures: | ' | ' | ' | ' |
Total capital expenditures | ' | 2,934 | 3,566 | 2,953 |
Depreciation, depletion, and amortization: | ' | ' | ' | ' |
Total depreciation, depletion and amortization | ' | 1,900 | 1,628 | 1,359 |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 29,402 | 28,503 | 24,829 |
Total assets: | ' | ' | ' | ' |
Total assets | ' | 29,223 | 27,410 | ' |
Completion and Production | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 17,506 | 17,380 | 15,143 |
Operating income: | ' | ' | ' | ' |
Total operating income | ' | 2,875 | 3,144 | 3,733 |
Capital expenditures: | ' | ' | ' | ' |
Total capital expenditures | ' | 1,676 | 2,177 | 1,669 |
Depreciation, depletion, and amortization: | ' | ' | ' | ' |
Total depreciation, depletion and amortization | ' | 1,013 | 843 | 680 |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 17,506 | 17,380 | 15,143 |
Total assets: | ' | ' | ' | ' |
Total assets | ' | 14,203 | 13,313 | ' |
Drilling and Evaluation | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 11,896 | 11,123 | 9,686 |
Operating income: | ' | ' | ' | ' |
Total operating income | ' | 1,770 | 1,675 | 1,403 |
Capital expenditures: | ' | ' | ' | ' |
Total capital expenditures | ' | 1,210 | 1,318 | 1,231 |
Depreciation, depletion, and amortization: | ' | ' | ' | ' |
Total depreciation, depletion and amortization | ' | 873 | 783 | 676 |
Revenue: | ' | ' | ' | ' |
Total revenue | ' | 11,896 | 11,123 | 9,686 |
Total assets: | ' | ' | ' | ' |
Total assets | ' | 10,010 | 9,290 | ' |
Shared assets | ' | ' | ' | ' |
Total assets: | ' | ' | ' | ' |
Total assets | ' | 1,351 | 1,376 | ' |
Total operations | ' | ' | ' | ' |
Operating income: | ' | ' | ' | ' |
Total operating income | ' | 4,645 | 4,819 | 5,136 |
Corporate and other | ' | ' | ' | ' |
Operating income: | ' | ' | ' | ' |
Total operating income | ' | -1,507 | -660 | -399 |
Capital expenditures: | ' | ' | ' | ' |
Total capital expenditures | ' | 48 | 71 | 53 |
Depreciation, depletion, and amortization: | ' | ' | ' | ' |
Total depreciation, depletion and amortization | ' | 14 | 2 | 3 |
Total assets: | ' | ' | ' | ' |
Total assets | ' | 3,659 | 3,431 | ' |
All Other Countries [Domain] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | 5,954 | 5,161 | ' |
Revenue: | ' | ' | ' | ' |
United States | ' | 15,091 | 13,446 | 11,281 |
UNITED STATES | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | 5,368 | 5,096 | ' |
Revenue: | ' | ' | ' | ' |
United States | ' | $14,311 | $15,057 | $13,548 |
Receivables_Details
Receivables (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customers | Customers | ||
Countries | Countries | ||
Concentration Risk [Line Items] | ' | ' | ' |
Maximum Percentage Gross Trade Receivables From One Geographic Segment | 10.00% | 10.00% | ' |
Maximum Percentage Gross Trade Receivables From One Customer | 10.00% | 10.00% | ' |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance at Beginning of Period | $92 | $137 | $91 |
Charged to Costs and Expenses | 39 | -40 | 53 |
Write-Offs | -14 | -5 | -7 |
Balance at End of Period | 117 | 92 | 137 |
NumberOfCountriesExceedReceivablesThreshold | 0 | 0 | ' |
NumberOfCustomersExceedReceivablesThreshold | 0 | 0 | ' |
Geographic Concentration Risk | UNITED STATES | Accounts Receivable | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration Risk, Percentage (in hundredths) | ' | 36.00% | ' |
UNITED STATES | Accounts Receivable | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration Risk, Percentage (in hundredths) | 34.00% | ' | ' |
VENEZUELA | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Accounts Receivable, Gross | 486 | 491 | ' |
Accounts Receivable, Gross, Noncurrent | $183 | $143 | ' |
VENEZUELA | Accounts Receivable | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration Risk, Percentage (in hundredths) | 8.00% | 9.00% | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
LIFO method related items [Abstract] | ' | ' |
LIFO inventory amount | $157 | $139 |
Inventory, LIFO reserve | 35 | 41 |
Inventory, net [Abstract] | ' | ' |
Finished products and parts | 2,445 | 2,264 |
Raw materials and supplies | 720 | 793 |
Work in process | 140 | 129 |
Total | 3,305 | 3,186 |
Obsolescence reserves | $130 | $114 |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Land | Land | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Machinery, equipment, and other | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | ||
1 - 10 years | 1 - 10 years | 11 - 20 years | 11 - 20 years | 21 - 30 years | 21 - 30 years | 31 - 40 years | 31 - 40 years | 1 - 5 years | 1 - 5 years | 6 - 10 years | 6 - 10 years | 11 - 20 years | 11 - 20 years | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | Buildings and property improvements | |||||||||
1 - 5 years | 6 - 10 years | 1 - 10 years | 11 - 20 years | 21 - 30 years | 31 - 40 years | 1 - 5 years | 6 - 10 years | 1 - 10 years | 11 - 20 years | 21 - 30 years | 31 - 40 years | |||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross property, plant and equipment | $20,802 | $18,313 | $213 | $145 | $2,685 | $1,861 | ' | ' | ' | ' | ' | ' | ' | ' | $17,904 | $16,307 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated depreciation | 9,480 | 8,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net property, plant, and equipment | $11,322 | $10,257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '6 years | '1 year | '11 years | '21 years | '31 years | '5 years | '10 years | '10 years | '20 years | '30 years | '40 years |
Property Plant Equipment Useful Lives Total Depreciated Percentages [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of depreciation by useful asset life over total depreciation of asset (in hundredths) | ' | ' | ' | ' | ' | ' | 13.00% | 14.00% | 43.00% | 46.00% | 20.00% | 14.00% | 24.00% | 26.00% | ' | ' | 22.00% | 20.00% | 72.00% | 74.00% | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Apr. 23, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revolving Credit Facility | Senior notes due August 2023 | Senior notes due August 2023 | Senior notes due September 2019 | Senior notes due September 2019 | Senior notes due September 2039 | Senior notes due September 2039 | Senior notes due August 2043 | Senior notes due August 2043 | Senior notes due September 2038 | Senior notes due September 2038 | Senior notes due August 2016 | Senior notes due August 2016 | Senior notes due November 2021 | Senior notes due November 2021 | Senior notes due November 2041 | Senior notes due November 2041 | Senior notes due August 2018 | Senior notes due August 2018 | Senior notes due September 2018 | Senior notes due September 2018 | Senior debentures due August 2096 | Senior debentures due August 2096 | Senior debentures due February 2021 | Senior debentures due February 2021 | Other Debt Obligations [Member] | Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Amount | $7,800,000,000 | $4,820,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 7,816,000,000 | 4,820,000,000 | ' | 1,098,000,000 | 0 | 997,000,000 | 997,000,000 | 995,000,000 | 995,000,000 | 898,000,000 | 0 | 800,000,000 | 800,000,000 | 600,000,000 | 0 | 498,000,000 | 498,000,000 | 498,000,000 | 498,000,000 | 400,000,000 | 0 | 400,000,000 | 400,000,000 | 293,000,000 | 293,000,000 | 184,000,000 | 184,000,000 | 155,000,000 | 155,000,000 |
Maturity date | ' | ' | ' | 'August 2023 | ' | ' | 'September 2019 | ' | 'September 2039 | 'August 2043 | ' | ' | 'September 2038 | 'August 2016 | ' | ' | 'November 2021 | ' | 'November 2041 | 'August 2018 | ' | ' | 'September 2018 | ' | 'August 2096 | ' | 'February 2021 | ' | ' |
Interest rate (in hundredths) | ' | ' | ' | 3.50% | ' | ' | 6.15% | ' | 7.45% | 4.75% | ' | ' | 6.70% | 1.00% | ' | ' | 3.25% | ' | 4.50% | 2.00% | ' | ' | 5.90% | 7.60% | 7.60% | 8.75% | 8.75% | ' | ' |
Debt instrument call feature description | 'We may redeem all of our senior notes from time to time or all of the notes of each series at any time at the applicable redemption prices, plus accrued and unpaid interest. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instruments non-call feature description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'may not be redeemed prior to maturity | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | 23-Apr-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt due in 2017 | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | $3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
KBR_Separation_Details
KBR Separation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' |
KBR indemnities and guarantees | $0 | ' | ' |
Payment made for KBR obligation | 219 | 0 | 0 |
Tax Sharing Agreement Settlement And Foreign Unrecognized Tax Benefits | 105 | ' | ' |
Barracuda-Caratinga arbitration | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Loss Contingency Accrual | ' | 219 | ' |
Payment made for KBR obligation | $219 | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Feb. 28, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 22, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2010 | Nov. 30, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | |
Fatalities | Macondo well incident | Macondo well incident | Macondo well incident | Macondo well incident | Macondo well incident | Securities and related litigation | |||||
Complaints | BP Exploration | Transocean | Class_Actions | ||||||||
Decendents | Criminal_Charge | ||||||||||
Personal_Injury_Lawsuits | |||||||||||
Allegedly_Injured_Persons | |||||||||||
Phases | |||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Site Contigency Penalty | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of fatalities | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' |
Loss Contingency, Accrual Carrying Value, Current | ' | ' | 278,000,000 | 0 | ' | ' | 278,000,000 | ' | ' | ' | ' |
Loss Contingency, Accrual, Noncurrent | ' | ' | 1,022,000,000 | 300,000,000 | ' | ' | 1,000,000,000 | ' | ' | ' | ' |
Maximum per barrel civil penalty for strict liability under the CWA | ' | ' | ' | ' | ' | 1,100 | ' | ' | ' | ' | ' |
Maximum per barrel civil penalty for gross negligence under the CWA | ' | ' | ' | ' | ' | 4,300 | ' | ' | ' | ' | ' |
Liability cap under the OPA in addition to the full cost of removal of the discharged oil | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' |
Maximum civil penalty per violation under the ESA | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' |
Anadarko interest in Macondo well | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
DOJ minimum estimate of removal costs and damages to the United Sates due to discharges of oil into the Gulf of Mexico | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' |
Criminal Fines, DOJ Macondo Settlement | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Days to Pay Criminal Fine | ' | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of criminal charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Number of criminal charges from negligent misinterpretation of negative- pressure test | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Amount agreed to pay related to legal matter | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000,000 | 1,000,000,000 | ' |
Criminal fines | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | 400,000,000 | ' |
Probation term | ' | '3 years | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' |
Number of monitors | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Monitor term | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' |
Number of misdemeanor violations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Maximum per day fine for violating federal regulations related to INCs | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' |
Number of days to appeal INCs issued by the BSEE (in days) | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' |
Litigation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of environmental class-action complaints | ' | ' | ' | ' | ' | ' | 1,800 | ' | ' | ' | ' |
Minimum number of wrongful death and personal injury multiple plaintiff lawsuits | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' |
Number of decedents in personal injury lawsuits | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' |
Number of allegedly injured persons in personal injury lawsuits | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' |
Minimum number of lawsuits naming the company | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' |
Number of phases involved in limitation action trial | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Number of similar class action lawsuits that were later consolidated into one suit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 |
Loss Contingency Accrual | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' | ' |
Accrual for Environmental Loss Contingencies | ' | ' | 66,000,000 | 72,000,000 | ' | ' | ' | ' | ' | ' | ' |
Indemnification and insurance [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of general liability insurance program | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' |
Legal fees | ' | ' | ' | ' | ' | ' | 264,000,000 | ' | ' | ' | ' |
Legal fees and related expenses covered by insurance | ' | ' | ' | ' | ' | ' | 235,000,000 | ' | ' | ' | ' |
Pre-tax charge recognized by BP as a result of the Macondo well incident | ' | ' | ' | ' | ' | $40,000,000,000 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Environmental) (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Site Contingency [Line Items] | ' | ' | ' |
Penalty in excess of $100,000 | $2 | ' | ' |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ' | ' | ' |
Accrued liabilities for environmental matters | ' | 66 | 72 |
Superfund Sites [Member] | ' | ' | ' |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ' | ' | ' |
Number of superfund sites | ' | 9 | ' |
Accrual for site contingency | ' | $5 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Guarantee Arrangements) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Financial agreements | ' |
Guarantee arrangements [Abstract] | ' |
Guarantee arrangements outstanding | $2,100 |
Venezuela surety bonds | ' |
Guarantee arrangements [Abstract] | ' |
Guarantee arrangements outstanding | $192 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Leases) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Total rentals, net of sublease rentals | $958 | $850 | $735 |
Future total rentals on noncancellable operating leases | 946 | ' | ' |
2014 | 282 | ' | ' |
2015 | 215 | ' | ' |
2016 | 156 | ' | ' |
2017 | 83 | ' | ' |
2018 | 56 | ' | ' |
Thereafter | $154 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Current income taxes: | ' | ' | ' | ||
Current Federal Tax Expense (Benefit) | $245,000,000 | $695,000,000 | $1,026,000,000 | ||
Current Foreign Tax Expense (Benefit) | -485,000,000 | -328,000,000 | -334,000,000 | ||
Current State Tax Expense (Benefit) | -49,000,000 | -47,000,000 | -109,000,000 | ||
Total current | 779,000,000 | 1,070,000,000 | 1,469,000,000 | ||
Deferred income taxes: | ' | ' | ' | ||
Federal | 4,000,000 | -168,000,000 | -28,000,000 | ||
Foreign | 125,000,000 | 15,000,000 | 57,000,000 | ||
State | 2,000,000 | -12,000,000 | 1,000,000 | ||
Total deferreds | 131,000,000 | ' | ' | ||
Total deferred | 132,000,000 | -165,000,000 | 30,000,000 | ||
Provision for income taxes | -648,000,000 | -1,235,000,000 | -1,439,000,000 | ||
The United States and foreign components of income from continuing operations before income taxes [Abstract] | ' | ' | ' | ||
United States | 1,070,000,000 | 2,826,000,000 | 4,040,000,000 | ||
Foreign | 1,694,000,000 | 996,000,000 | 409,000,000 | ||
Income from continuing operations before income taxes | 2,764,000,000 | 3,822,000,000 | 4,449,000,000 | ||
Reconciliations between the actual provision for income taxes on continuing operations [Abstract] | ' | ' | ' | ||
United States statutory rate | 35.00% | 35.00% | 35.00% | ||
Impact of foreign income taxed at different rates | -9.30% | -2.50% | -0.50% | ||
Domestic manufacturing deduction | -2.00% | -2.20% | -2.10% | ||
State income taxes | 1.70% | 1.60% | 1.60% | ||
Adjustments of prior year taxes | -1.30% | -0.60% | -1.50% | ||
Other impact of foreign operations | -0.20% | -0.50% | -0.40% | ||
Other items, net | -0.40% | 1.50% | 0.20% | ||
Total effective tax rate on continuing operations | 23.50% | 32.30% | 32.30% | ||
Loss Contingency, Accrual, Noncurrent | 1,022,000,000 | 300,000,000 | ' | ||
Gross deferred tax assets: | ' | ' | ' | ||
Net operating loss carryforwards | 481,000,000 | 474,000,000 | ' | ||
Accrued Liabilities | 600,000,000 | 329,000,000 | ' | ||
Employee compensation and benefits | 351,000,000 | 375,000,000 | ' | ||
Other | 162,000,000 | 160,000,000 | ' | ||
Total gross deferred tax assets | 1,594,000,000 | 1,338,000,000 | ' | ||
Gross deferred tax liabilities: | ' | ' | ' | ||
Depreciation and amortization | 1,185,000,000 | 859,000,000 | ' | ||
Other | 81,000,000 | 137,000,000 | ' | ||
Total gross deferred tax liabilities | 1,266,000,000 | 996,000,000 | ' | ||
Valuation allowances – net operating loss carryforwards | 374,000,000 | 395,000,000 | ' | ||
Net deferred income tax asset (liability) | -46,000,000 | -53,000,000 | ' | ||
Unrecognized Tax Benefits | ' | ' | ' | ||
Beginning balance | 228,000,000 | [1] | 205,000,000 | 177,000,000 | |
Change in prior year tax positions | 53,000,000 | 16,000,000 | 38,000,000 | ||
Change in current year tax positions | 30,000,000 | 14,000,000 | 5,000,000 | ||
Cash settlements with taxing authorities | -21,000,000 | -3,000,000 | -12,000,000 | ||
Lapse of statute of limitations | -9,000,000 | -4,000,000 | -3,000,000 | ||
Ending balance | 175,000,000 | [1],[2] | 228,000,000 | [1] | 205,000,000 |
Interest and Penalties | ' | ' | ' | ||
Beginning balance | 68,000,000 | [1] | 69,000,000 | 32,000,000 | |
Change in prior year tax positions | -9,000,000 | -1,000,000 | 41,000,000 | ||
Change in current year tax positions | 1,000,000 | 1,000,000 | 1,000,000 | ||
Cash settlements with taxing authorities | -17,000,000 | 0 | -3,000,000 | ||
Lapse of statute of limitations | -9,000,000 | -1,000,000 | -2,000,000 | ||
Ending balance | 34,000,000 | [1],[2] | 68,000,000 | [1] | 69,000,000 |
Deferred tax liability not recognized, cumulative amount of temporary difference | 6,100,000,000 | ' | ' | ||
Remaining balance if resolved in our favor would positively impact the effective tax rate | 138,000,000 | 169,000,000 | ' | ||
Portion of unrecognized tax benefits that could be resolved within the next 12 months | 3,000,000 | ' | ' | ||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 135,000,000 | ' | ' | ||
Federal | -50,000,000 | ' | ' | ||
Foreign Country | ' | ' | ' | ||
Interest and Penalties | ' | ' | ' | ||
Operating loss carryforwards that will expire | 1,600,000,000 | ' | ' | ||
Years 2014-2017 [Domain] | ' | ' | ' | ||
Interest and Penalties | ' | ' | ' | ||
Operating loss carryforwards that will expire | 161,000,000 | ' | ' | ||
Years 2018-2022 [Domain] | ' | ' | ' | ||
Interest and Penalties | ' | ' | ' | ||
Operating loss carryforwards that will expire | 295,000,000 | ' | ' | ||
Years 2023-2033 [Domain] | ' | ' | ' | ||
Interest and Penalties | ' | ' | ' | ||
Operating loss carryforwards that will expire | 53,000,000 | ' | ' | ||
Damage from Fire, Explosion or Other Hazard [Member] | ' | ' | ' | ||
Reconciliations between the actual provision for income taxes on continuing operations [Abstract] | ' | ' | ' | ||
Loss Contingency, Accrual, Noncurrent | 1,000,000,000 | ' | ' | ||
All Other Countries [Domain] | ' | ' | ' | ||
Interest and Penalties | ' | ' | ' | ||
Remaining balance if resolved in our favor would positively impact the effective tax rate | $27,000,000 | $59,000,000 | ' | ||
[1] | Includes $27 million as of December 31, 2013 and $59 million as of December 31, 2012 in foreign unrecognized tax benefits that would give rise to a United States tax credit. The remaining balance of $138 million, which excludes $10 million of unrecognized tax benefits covered by an indemnification asset, as of December 31, 2013 and $169 million as of December 31, 2012, if resolved in our favor, would positively impact the effective tax rate and, therefore, be recognized as additional tax benefits in our statement of operations. | ||||
[2] | Includes $3 million that could be resolved within the next 12 months. |
Shareholders_Equity_Shareholde
Shareholders' Equity (Shareholders' Equity, Accumulated Other Comprehensive Loss, Common Stock, and Preferred Stock) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 18, 2013 | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ||
Stock Repurchase Program, Authorization Amount Increase | ' | ' | ' | ' | $4,300,000,000 | ||
Issued | ' | 1,072,000,000 | 1,073,000,000 | ' | ' | ||
In treasury | ' | -223,000,000 | -144,000,000 | ' | ' | ||
Total shares of common stock outstanding | ' | 849,000,000 | 929,000,000 | ' | ' | ||
Defined benefit and other postretirement liability adjustments | ' | -241,000,000 | [1] | -241,000,000 | [1] | ' | ' |
Cumulative translation adjustment | ' | -69,000,000 | -69,000,000 | ' | ' | ||
Other | ' | 3,000,000 | 1,000,000 | ' | ' | ||
Total accumulated other comprehensive loss | ' | -307,000,000 | -309,000,000 | ' | ' | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Stock authorized to repurchase | ' | 5,000,000,000 | ' | ' | ' | ||
Treasury Stock, Value, Acquired, Cost Method | -3,300,000,000 | -4,356,000,000 | ' | ' | ' | ||
Treasury Stock Acquired, Average Cost Per Share | $48.50 | $47.02 | ' | ' | ' | ||
Stock remaining available for repurchase at period end | ' | 1,700,000,000 | ' | ' | ' | ||
Number of shares of common stock repurchased from inception (in shares) | ' | 188,000,000 | ' | ' | ' | ||
Approximate value of shares of common stock repurchased from inception | ' | 7,600,000,000 | ' | ' | ' | ||
Average price per share of common stock that has been repurchased from inception (in dollars per share) | ' | $40.52 | ' | ' | ' | ||
Repurchase of shares during the period (in shares) | 68,000,000 | 93,000,000 | ' | ' | ' | ||
Common Stock, Dividends, Per Share, Declared | ' | $0.53 | $0.36 | $0.36 | ' | ||
Payments of Ordinary Dividends, Common Stock | ' | 465,000,000 | 333,000,000 | 330,000,000 | ' | ||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Number of shares of preferred stock that are authorized for issuance (in shares) | ' | 5,000,000 | ' | ' | ' | ||
Number of shares preferred stock that are issued at period end (in shares) | ' | 0 | ' | ' | ' | ||
Foreign Pension Plans, Defined Benefit | ' | ' | ' | ' | ' | ||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ||
Net actuarial losses | ' | $222,000,000 | $208,000,000 | ' | ' | ||
[1] | Included net actuarial losses for our international pension plans of $222 million at December 31, 2013 and $208 million at December 31, 2012.Amounts reclassified out of accumulated other comprehensive loss and the tax effects allocated to each component of other comprehensive income were not material for the year ended December 31, 2013 or 2012. |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Incentive Plans | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation cost | $264 | $217 | $198 |
Tax benefit | -81 | -67 | -61 |
Stock-based compensation cost, net of tax | 183 | 150 | 137 |
Number of shares reserved for issuance to recipient (in shares) | 172 | ' | ' |
Number of shares available for future grant (in shares) | 28 | ' | ' |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiration from date of award (in years) | '10 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Outstanding at beginning of period | 18.1 | ' | ' |
Granted | 5.4 | ' | ' |
Exercised | -4.7 | ' | ' |
Forfeited/expired | -0.7 | ' | ' |
Outstanding at end of period | 18.1 | 18.1 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Outstanding- weighted average exercise price at beginning of period (in dollars per share) | $32.23 | ' | ' |
Granted | $43.06 | ' | ' |
Exercised | $27.35 | ' | ' |
Forfeited/expired | $37.37 | ' | ' |
Outstanding- weighted average price per share end of period (in dollars per share) | $36.57 | $32.23 | ' |
Weighted Average Remaining Contractual Term (years) | '7 years 37 days | ' | ' |
Aggregate Intrinsic Value | 256 | ' | ' |
Number of shares exercisable at the end of the period | 9 | ' | ' |
Weighted Average Exercise Price per Share, Exercisable at the end of the period | $33.48 | ' | ' |
Weighted Average Remaining Contractual Term (years), Exercisable at the end of the period | '5 years 110 days | ' | ' |
Aggregate Intrinsic Value, Exercisable at the end of the Period | 156 | ' | ' |
Intrinsic value of stock options exercised during the period | 93 | 12 | 102 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' | ' |
Unrecognized compensation cost, non vested awards at period end | 83 | ' | ' |
Weighted average period unrecognized compensation costs to be recognized (in years) | '2 years | ' | ' |
Cash received from option exercises | 277 | 107 | 160 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected term | '5 years 99 days | '5 years 77 days | '5 years 72 days |
Expected volatility | 40.00% | 46.00% | 40.00% |
Weighted average grant-date fair value per share | $14.34 | $11.99 | $15.61 |
Stock Options | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected dividend yield | 0.94% | 0.99% | 0.69% |
Risk-free interest rate | 0.77% | 0.65% | 0.93% |
Stock Options | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '4 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected dividend yield | 1.33% | 1.24% | 1.01% |
Risk-free interest rate | 1.73% | 1.15% | 2.29% |
Restricted Stock and Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Nonvested shares at the beginning of the period | 14.8 | ' | ' |
Granted | 6.6 | ' | ' |
Vested | -4.7 | ' | ' |
Forfeited | -1 | ' | ' |
Non vested shares at the end of the period | 15.7 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Weighted Average Grant-Date Fair Value per Share, Non vested shares at the beginning of the period | $33.17 | ' | ' |
Granted | $42.93 | ' | ' |
Vested | $32.14 | ' | ' |
Forfeited | $35.65 | ' | ' |
Weighted Average Grant-Date Fair Value Per Share, Nonvested shares at the end of the period | $37.43 | ' | ' |
Total fair value of shares vested during the period | 208 | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares reserved for issuance to recipient (in shares) | 44 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected volatility | 27.00% | 49.00% | 38.00% |
Expected dividend yield | 1.12% | 1.16% | 0.78% |
Risk-free interest rate | 0.06% | 0.11% | 0.14% |
Weighted average grant-date fair value per share | $8.40 | $8.93 | $11.88 |
Employee Stock Purchase Plan [Abstract] | ' | ' | ' |
Percentage of earnings eligible employees may have withheld under the employee stock purchase plan | 10.00% | ' | ' |
Number of offering periods | 2 | ' | ' |
Number of months each offering period lasts beginning January 1 and July 1 each year (in months) | '6 months | ' | ' |
Percentage of the lower of fair market value of the unit on the commencement date or the fair market value of unit on the last trading day of the offering period | 85.00% | ' | ' |
Number of shares sold through the plan (in shares) | 33 | ' | ' |
Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiration from date of award (in years) | '10 years | ' | ' |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' | ' |
Unrecognized compensation cost, non vested awards at period end | 420 | ' | ' |
Weighted average period unrecognized compensation costs to be recognized (in years) | '4 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Granted | ' | $32.17 | $43.35 |
Total fair value of shares vested during the period | ' | $126 | $165 |
Scenario, Forecast [Member] | Employee Stock Purchase Plan | ' | ' | ' |
Employee Stock Purchase Plan [Abstract] | ' | ' | ' |
Number of offering periods | 4 | ' | ' |
Number of months each offering period lasts beginning January 1 and July 1 each year (in months) | '3 months | ' | ' |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule of Share-based Goods and Nonemployee Services Transaction) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock [Member] | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Shares available for future issuance through the plan | 11,000,000 | ' | ' |
Expected volatility | 27.00% | 49.00% | 38.00% |
Expected dividend yield | 1.12% | 1.16% | 0.78% |
Risk-free interest rate | 0.06% | 0.11% | 0.14% |
Weighted average grant-date fair value per share | $8.40 | $8.93 | $11.88 |
Restricted Stock | Non-Employee Director | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Number of units the plan allows for each non-employee director to receive an annual award | 800 | ' | ' |
Number of months each offering period lasts beginning on January 1 and July 1 each year (in months) | '6 months | ' | ' |
Mandatory director retirement age | '72 years | ' | ' |
Years of service on the Board | '4 years | ' | ' |
Percentage of annual restriction lapse | 25.00% | ' | ' |
Number of shares reserved for non-employee issuance (in shares) | 200,000 | ' | ' |
Number of shares issued to non-employee directors, inception to date (in shares) | 39,200 | ' | ' |
Restricted Stock Units (RSUs) | Non-Employee Director | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Number of units the plan allows for each non-employee director to receive an annual award | 800 | ' | ' |
Number of shares issued to non-employee directors during the period (in shares) | 13,506 | ' | ' |
Number of shares of restricted stock issued to non-employee directors (in shares) | 29,797 | ' | ' |
Minimum | Restricted Stock | Non-Employee Director | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Annual installment period | '5 years | ' | ' |
Maximum | Restricted Stock | Non-Employee Director | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ' | ' | ' |
Annual installment period | '10 years | ' | ' |
Income_per_Share_Details
Income per Share (Details) (Stock Options) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Options | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from the computation of diluted income per share (shares) | 3 | 7 | 3 |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt_Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | $373,000,000 | $398,000,000 | ||
Foreign Currency Derivatives [Abstract] | ' | ' | ' | ||
Maximum term of currency derivative instruments (in years) | ' | '1 year | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ' | ||
Number of debt instruments with related interest rate swaps | ' | 3 | ' | ||
Floating rate basis | 'LIBOR-based | ' | ' | ||
Weighted average floating rate (percentage) | ' | 3.80% | ' | ||
Aggregate fixed rate debt after effect of interest rate swaps | ' | 6,300,000,000 | ' | ||
Aggregate floating rate debt after effect of interest rate swaps | ' | 1,500,000,000 | ' | ||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | ' | 7,800,000,000 | 4,820,000,000 | ||
Available-for-sale Securities, Debt Maturities, Date | 30-Nov-16 | ' | ' | ||
Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 100,000,000 | 150,000,000 | ||
Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 273,000,000 | 248,000,000 | ||
Estimate of Fair Value, Fair Value Disclosure | ' | ' | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ' | ||
Long-term debt | ' | 8,697,000,000 | 6,384,000,000 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 1 | ' | ' | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ' | ||
Long-term debt | ' | 8,405,000,000 | 1,112,000,000 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ' | ' | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ' | ||
Long-term debt | ' | 292,000,000 | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' | ' | ||
Interest Rate Derivatives [Abstract] | ' | ' | ' | ||
Long-term debt | ' | 7,816,000,000 | 4,820,000,000 | ||
Other current assets | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Available-for-sale securities, current | ' | 139,000,000 | 120,000,000 | ||
Other assets | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Available-for-sale securities, noncurrent | ' | 134,000,000 | 128,000,000 | ||
US treasuries | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 100,000,000 | [1] | 150,000,000 | [1] |
US treasuries | Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 100,000,000 | 150,000,000 | ||
US treasuries | Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 0 | 0 | ||
Other | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 273,000,000 | [2] | 248,000,000 | [2] |
Other | Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 0 | 0 | ||
Other | Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ||
Fair value of marketable securities | ' | 273,000,000 | 248,000,000 | ||
Interest Rate Swap [Member] | ' | ' | ' | ||
Foreign Currency Derivatives [Abstract] | ' | ' | ' | ||
Derivative, Notional Amount | ' | 1,500,000,000 | ' | ||
Foreign Exchange Contract [Member] | ' | ' | ' | ||
Foreign Currency Derivatives [Abstract] | ' | ' | ' | ||
Derivative, Notional Amount | ' | $769,000,000 | $324,000,000 | ||
[1] | These securities are classified as "Other current assets" in our consolidated balance sheets. | ||||
[2] | Of these securities, $139 million are classified as “Other current assets†and $134 million are classified as “Other assets†on our consolidated balance sheets as of December 31, 2013, compared to $120 million classified as "Other current assets" and $128 million classified as "Other assets" as of December 31, 2012. These securities consist primarily of municipal bonds, corporate bonds, and other debt instruments. |
Financial_Instruments_and_Risk3
Financial Instruments and Risk Management (Credit Risk) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' |
Number of debt instruments with related interest rate swaps | 3 | ' |
Longterm Debt Percentage Bearing Fixed Interest Amount After Swaps | 6,300,000,000 | ' |
Maximum term of currency derivative instruments (in years) | '1 year | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Amount | 7,800,000,000 | 4,820,000,000 |
Geographic Concentration Risk | Accounts Receivable | United States | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage (in hundredths) | ' | 36.00% |
United States | Accounts Receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage (in hundredths) | 34.00% | ' |
VENEZUELA | Accounts Receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage (in hundredths) | 8.00% | 9.00% |
Retirement_Plans_Retirement_Pl
Retirement Plans (Retirement Plans, Funded Status) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Expense for the defined contribution plans for continuing operations | $313,000,000 | $293,000,000 | $245,000,000 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Benefit obligation at end of period | 1,200,000,000 | 1,000,000,000 | ' | ||
Fair value of plan assets at end of period | 887,000,000 | 754,000,000 | ' | ||
Funded status at end of period | 268,000,000 | 276,000,000 | ' | ||
Accumulated benefit obligation at end of period | 1,100,000,000 | 961,000,000 | ' | ||
Amounts recognized on the Consolidated Balance Sheets | ' | ' | ' | ||
Accrued employee compensation and benefits | 17,000,000 | 10,000,000 | ' | ||
Employee compensation and benefits | 251,000,000 | 266,000,000 | ' | ||
Pension plans in which projected benefit obligation exceeded plan assets | ' | ' | ' | ||
Projected benefit obligation | 1,123,000,000 | 1,004,000,000 | ' | ||
Fair value of plan assets | 854,000,000 | 727,000,000 | ' | ||
Pension plans in which accumulated benefit obligation exceeded plan assets | ' | ' | ' | ||
Accumulated benefit obligation | 1,046,000,000 | 935,000,000 | ' | ||
Fair value of plan assets | 854,000,000 | 726,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 887,000,000 | 754,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Equity funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 247,000,000 | [1] | 204,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Bond funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 118,000,000 | [1] | 112,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Balanced funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 13,000,000 | [1] | 13,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 110,000,000 | 107,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 139,000,000 | 110,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Non-United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 165,000,000 | 130,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Other assets | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 95,000,000 | 78,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 1 | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 306,000,000 | 267,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 1 | Equity funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 1 | Bond funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 1 | Balanced funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 1 | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 1 | United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 139,000,000 | 110,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 1 | Non-United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 165,000,000 | 130,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 1 | Other assets | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 2,000,000 | 27,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 2 | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 547,000,000 | 452,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 2 | Equity funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 247,000,000 | [1] | 204,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 2 | Bond funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 118,000,000 | [1] | 112,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 2 | Balanced funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 13,000,000 | [1] | 13,000,000 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 2 | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 110,000,000 | 107,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 2 | United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 2 | Non-United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 2 | Other assets | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 59,000,000 | 16,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 3 | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 34,000,000 | 35,000,000 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 3 | Equity funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 3 | Bond funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 3 | Balanced funds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | [1] | 0 | [1] | ' |
Foreign Pension Plans, Defined Benefit | Level 3 | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 3 | United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 3 | Non-United States equity securities | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | 0 | 0 | ' | ||
Foreign Pension Plans, Defined Benefit | Level 3 | Other assets | ' | ' | ' | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at end of period | $34,000,000 | $35,000,000 | ' | ||
United Kingdom Pension Plan | ' | ' | ' | ||
Pension plans in which accumulated benefit obligation exceeded plan assets | ' | ' | ' | ||
United Kingdom pension plan percentage of international pension plans' projected benefit obligations | 81.00% | ' | ' | ||
United Kingdom Pension Plan | Equity securities | ' | ' | ' | ||
Pension plans in which accumulated benefit obligation exceeded plan assets | ' | ' | ' | ||
Target asset allocation percentage | 65.00% | ' | ' | ||
United Kingdom Pension Plan | Fixed income securities | ' | ' | ' | ||
Pension plans in which accumulated benefit obligation exceeded plan assets | ' | ' | ' | ||
Target asset allocation percentage | 35.00% | ' | ' | ||
[1] | Strategies are generally to invest in equity or debt securities, or a combination thereof, that match or outperform certain predefined indices. |
Retirement_Plans_Retirement_Pl1
Retirement Plans (Retirement Plans, Net Periodic Benefit Cost, Assumptions, and Expected Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $17 | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 32 | 26 | 27 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' | ' | ' |
Number of years annual benefit payments | '10 years | ' | ' |
Expected future annual benefit payments for the next 10 years | $40 | ' | ' |
Foreign Pension Plans, Defined Benefit | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 4.80% | 4.80% | ' |
Rate of compensation increase | 5.50% | 5.50% | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Discount rate | 4.80% | 5.20% | 7.10% |
Expected long-term return on plan assets | 6.40% | 6.50% | 5.70% |
Rate of compensation increase | 5.50% | 5.40% | 6.20% |