Halliburton (HAL) 10-Q 26 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 19, 2019
Entity Information [Line Items]
Document Period End Date	Mar. 31, 2019
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Registrant Name	HALLIBURTON COMPANY
Entity Central Index Key	0000045012
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		873,978,485
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenue:
Revenue		$ 5,737	$ 5,740
Operating costs and expenses:
Impairments and other charges	[1]	61	265
General and administrative		59	58
Total operating costs and expenses		5,372	5,386
Operating income		365	354
Interest expense, net of interest income		(143)	(140)
Other, net		(30)	(25)
Income (loss) from continuing operations before income taxes		192	189
Income tax (provision) benefit		(40)	(142)
Net income (loss)		152	47
Net income attributable to noncontrolling interest		0	(1)
Net income (loss) attributable to company		$ 152	$ 46
Basic and diluted net income per share		$ 0.17	$ 0.05
Basic weighted average common shares outstanding (in shares)		873	875
Diluted weighted average common shares outstanding (in shares)		873	878
Services [Member]
Revenue:
Revenue		$ 4,352	$ 4,388
Operating costs and expenses:
Cost of services and sales		4,156	4,007
Product sales [Member]
Revenue:
Revenue		1,385	1,352
Operating costs and expenses:
Cost of services and sales		$ 1,096	$ 1,056
[1]	During the three months ended March 31, 2019, we recorded $61 million of impairments and other charges, primarily relating to an impairment of fixed assets. See Note 2 for further information. During the three months ended March 31, 2018, we recognized a pre-tax charge of $265 million

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income	$ 8	$ 10

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income (loss)	$ 152	$ 47
Other comprehensive income (loss), net of income taxes	1	(2)
Comprehensive income (loss)	153	45
Comprehensive (income) loss attributable to noncontrolling interest	0	(1)
Comprehensive income (loss) attributable to company shareholders	$ 153	$ 44

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and equivalents		$ 2,008
Cash and equivalents	$ 1,380
Receivables net of allowances for bad debts	5,622	5,234
Inventories	3,264	3,028
Other current assets	922	881
Total current assets	11,188	11,151
Property, plant, and equipment, net of accumulated depreciation	8,853	8,873
Goodwill	2,824	2,825
Deferred income taxes	1,348	1,384
Operating lease right-of-use assets	1,019	0
Other assets	1,757	1,749
Total assets	26,989	25,982
Current liabilities:
Accounts payable	3,080	3,018
Accrued employee compensation and benefits	683	714
Current portion of operating lease liabilities	255	0
Other current liabilities	1,029	1,070
Total current liabilities	5,047	4,802
Long-term debt	10,307	10,312
Operating lease liabilities	758	0
Employee compensation and benefits	454	483
Other liabilities	798	841
Total liabilities	17,364	16,438
Shareholders' equity:
Common shares, par value $2.50 per share	2,671	2,671
Paid-in capital in excess of par value	224	211
Accumulated other comprehensive loss	(354)	(355)
Retained earnings	13,734	13,739
Treasury stock, at cost	(6,670)	(6,744)
Company shareholders' equity	9,605	9,522
Noncontrolling interest in consolidated subsidiaries	20	22
Total shareholders' equity	9,625	9,544
Total liabilities and shareholders' equity	$ 26,989	$ 25,982

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Allowance for bad debts	$ 746	$ 738
Accumulated depreciation	$ 13,311	$ 13,182
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)	1,068	1,069
Treasury shares (in shares)	196	198

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 152	$ 47
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation, depletion and amortization	416	394
Impairments and other charges	61	265
Changes in assets and liabilities:
Receivables	(339)	(245)
Inventories	(236)	(119)
Accounts payable	60	276
Other	(158)	(46)
Total cash flows provided by operating activities	(44)	572
Cash flows from investing activities:
Capital expenditures	(437)	(501)
Proceeds from sales of property, plant and equipment	43	47
Other investing activities	(17)	80
Total cash flows used in investing activities	(411)	(374)
Cash flows from financing activities:
Dividends to shareholders	(157)	(158)
Other financing activities	2	(21)
Total cash flows used in financing activities	(155)	(179)
Effect of exchange rate changes on cash	(18)	(24)
Decrease in cash and equivalents	(628)	(5)
Cash and equivalents at beginning of period	2,008	2,337
Cash and equivalents at end of period	1,380	2,332
Cash payments during the period for:
Interest	128	144
Income taxes	$ 81	$ 85

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2018 Annual Report on Form 10-K. Our accounting policies are in accordance with United States generally accepted accounting principles. The preparation of financial statements in conformity with these accounting principles requires 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. Ultimate results could differ from our estimates. In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of March 31, 2019 and the results of our operations and cash flows for the three months ended March 31, 2019 and 2018 . Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. In conjunction with our adoption of the new lease accounting standard, capital leases, which are now referred to as finance leases, have been reclassified on our balance sheet as of December 31, 2018. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. See Note 5 and Note 12 for further information on the new lease standard. The results of our operations for the three months ended March 31, 2019

Impairments and Other Charges

Impairments and Other Charges	3 Months Ended
	Mar. 31, 2019
Impairments and Other Charges [Abstract]
Restructuring, Impairment, and Other Activities Disclosure	Impairments and Other Charges During the first quarter of 2019, we recorded $61 million

Business Segment and Geographic

Business Segment and Geographic Information	3 Months Ended
	Mar. 31, 2019
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. Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment. The following table presents information on our business segments. Three Months Ended Millions of dollars 2019 2018 Revenue: Completion and Production $ 3,662 $ 3,807 Drilling and Evaluation 2,075 1,933 Total revenue $ 5,737 $ 5,740 Operating income: Completion and Production $ 368 $ 500 Drilling and Evaluation 123 188 Total operations 491 688 Corporate and other (a) (65 ) (69 ) Impairments and other charges (b) (61 ) (265 ) Total operating income $ 365 $ 354 Interest expense, net of interest income (143 ) (140 ) Other, net (30 ) (25 ) Income from continuing operations before income taxes $ 192 $ 189 (a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives. (b) During the three months ended March 31, 2019, we recorded $61 million of impairments and other charges, primarily relating to an impairment of fixed assets. See Note 2 for further information. During the three months ended March 31, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela. Receivables As of both March 31, 2019 and December 31, 2018 , 43%

Revenue

Revenue	3 Months Ended
	Mar. 31, 2019
Revenue [Abstract]
Revenue	Revenue Revenue is recognized based on the transfer of control or our customer’s ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. Determining the transaction price may require significant judgment, which includes identifying performance obligations in the contract, determining whether promised services can be distinguished in the context of the contract, and estimating the amount of variable consideration to include in the transaction price. We also assess our customer’s ability and intention to pay, which is based on a variety of factors, including our customer’s historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize. Disaggregation of revenue We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 55% and 58% of our consolidated revenue was from the United States for the three months ended March 31, 2019 and 2018, respectively. No other country accounted for more than 10% of our revenue. The following table presents information on our disaggregated revenue. Millions of dollars Three Months Ended Revenue by segment: 2019 2018 Completion and Production $ 3,662 $ 3,807 Drilling and Evaluation 2,075 1,933 Total revenue $ 5,737 $ 5,740 Revenue by geographic region: North America $ 3,275 $ 3,517 Latin America 587 457 Europe/Africa/CIS 748 716 Middle East/Asia 1,127 1,050 Total revenue $ 5,737 $ 5,740 Contract balances We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our condensed consolidated financial statements. Transaction price allocated to remaining performance obligations Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases of Lessee Disclosure	Leases We adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. We adopted the standard using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the three months ending March 31, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our condensed consolidated balance sheet as of January 1, 2019. The adoption of this standard did not materially impact our condensed consolidated results of operations for the three months ended March 31, 2019. See Note 12 for additional information about the new accounting standard. Beginning January 1, 2019, for all leases with a term in excess of 12 months, we recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. We recognize lease expense for these short-term leases on a straight-line basis over the lease term. We are a lessee for numerous operating leases, primarily related to real estate, transportation and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of our leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We also have some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment leases, such as offshore vessels and drilling rigs, we account for the lease and non-lease components separately. The following tables illustrate the financial impact of our leases as of and for the three months ended March 31, 2019, along with other supplemental information about our existing leases: Millions of dollars Three Months Ended March 31, 2019 Components of lease expense: Finance lease cost: Amortization of right-of-use assets $ 5 Interest on lease liabilities 15 Operating lease cost 96 Short-term lease cost 6 Sublease income (1 ) Total lease cost $ 121 Millions of dollars As of March 31, 2019 Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) $ 1,019 Current portion of operating lease liabilities 255 Operating lease liabilities (non-current) 758 Finance leases: Other assets (non-current) $ 142 Other current liabilities 12 Other liabilities (non-current) 139 Millions of dollars except years and percentages Three Months Ended March 31, 2019 Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88 Operating cash flows from finance leases 15 Financing cash flows from finance leases 10 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 1,098 Finance leases 58 Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 6.1 years Weighted-average discount rate for operating leases 4.7 % (a) Represents operating lease right-of-use assets exchanged for lease obligations upon implementation of the new lease accounting standard on January 1, 2019. The following table summarizes the maturity of our operating and finance leases as of March 31, 2019: Millions of dollars Operating Leases Finance Leases 2019 $ 238 $ 48 2020 191 66 2021 147 65 2022 122 65 2023 97 65 Thereafter 507 151 Total lease payments 1,302 460 Less imputed interest (289 ) (309 ) Total $ 1,013 $ 151 As of December 31, 2018, future total rentals on our noncancellable operating leases were $975 million in the aggregate, which consisted of the following: $275 million in 2019 ; $146 million in 2020 ; $122 million in 2021 ; $100 million in 2022 ; $78 million in 2023 ; and $254 million

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are stated at the lower of cost and net realizable value. 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, which totaled $189 million as of March 31, 2019 and $186 million as of December 31, 2018 . If the average cost method had been used, total inventories would have been $24 million higher than reported as of March 31, 2019 and December 31, 2018 . The cost of the remaining inventory was recorded using the average cost method. Inventories consisted of the following: Millions of dollars March 31, December 31, Finished products and parts $ 2,063 $ 1,947 Raw materials and supplies 1,047 934 Work in process 154 147 Total $ 3,264 $ 3,028 All amounts in the table above are reported net of obsolescence reserves of $207 million as of March 31, 2019 and $219 million as of December 31, 2018

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	Mar. 31, 2019
Revolving Credit Facility [Abstract]
Long-term Debt	Revolving Credit Facility On March 5, 2019, we entered into a new $3.5 billion five-year revolving credit facility which replaced our $3.0 billion revolving credit facility established in July 2015. The revolving credit facility is for general working capital purposes and expires on March 5, 2024. The full amount of the revolving credit facility was available as of March 31, 2019

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Shareholders’ Equity The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2019 and March 31, 2018 , respectively: Millions of dollars Common Shares Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2018 $ 2,671 $ 211 $ (6,744 ) $ 13,739 $ (355 ) $ 22 $ 9,544 Comprehensive income (loss): Net income — — — 152 — — 152 Other comprehensive income — — — — 1 — 1 Cash dividends ($0.18 per share) — — — (157 ) — — (157 ) Stock plans — 13 74 — — — 87 Other — — — — — (2 ) (2 ) Balance at March 31, 2019 $ 2,671 $ 224 $ (6,670 ) $ 13,734 $ (354 ) $ 20 $ 9,625 Millions of dollars Common Shares Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2017 $ 2,673 $ 207 $ (6,757 ) $ 12,668 $ (469 ) $ 27 $ 8,349 Comprehensive income (loss): Net Income — — — 46 — 1 47 Other comprehensive income — — — — (2 ) — (2 ) Cash dividends ($0.18 per share) — — — (158 ) — — (158 ) Stock plans (1 ) 15 113 — — — 127 Other — — — 30 — (2 ) 28 Balance at March 31, 2018 $ 2,672 $ 222 $ (6,644 ) $ 12,586 $ (471 ) $ 26 $ 8,391 Accumulated other comprehensive loss consisted of the following: Millions of dollars March 31, December 31, Defined benefit and other postretirement liability adjustments $ (203 ) $ (203 ) Cumulative translation adjustments (82 ) (82 ) Other (69 ) (70 ) Total accumulated other comprehensive loss $ (354 ) $ (355 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Securities and related litigation Commencing in June 2002, a number of class action lawsuits were filed against us in federal court alleging violations of the federal securities laws arising out of our change in accounting for revenue on long-term construction projects, our 1998 acquisition of Dresser Industries, Inc. and our reserves for asbestos liability exposure. In December 2016, we reached an agreement to settle these lawsuits and in July 2017, the district court issued final approval of the settlement. The above settlement resolved all pending cases other than Magruder v. Halliburton Co., et. al. (the Magruder case). The allegations in the Magruder case arise out of the same general events described above, but for a later class period, December 8, 2001 to May 28, 2002. Several dismissal motions have been filed in the Magruder case. On March 12, 2019, the case was dismissed with prejudice. The Magruder plaintiff did not appeal and the matter has been concluded. 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, we are involved in 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. Our accrued liabilities for environmental matters were $49 million as of March 31, 2019 and $42 million as of December 31, 2018 . 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. Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for six federal and state Superfund sites for which we have established reserves. As of March 31, 2019 , those six sites accounted for approximately $14 million of our $49 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 March 31, 2019

Income (Loss) per Share

Income (Loss) per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Income (Loss) 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. Antidilutive shares represent potential common shares which are excluded from the computation of diluted income per share as their impact would be antidilutive. A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows: Three Months Ended Millions of shares 2019 2018 Basic weighted average common shares outstanding 873 875 Dilutive effect of awards granted under our stock incentive plans — 3 Diluted weighted average common shares outstanding 873 878 Antidilutive shares: Options with exercise price greater than the average market price 20 7 Total antidilutive shares 20 7

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amount of cash and equivalents, receivables and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows: March 31, 2019 December 31, 2018 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 8,769 $ 2,621 $ 11,390 $ 10,332 $ 6,726 $ 4,041 $ 10,767 $ 10,348 Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is 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 period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third party market transactions on our debt are executed. We have no

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles	New Accounting Pronouncements Leases Effective January 1, 2019, we adopted an accounting standard update issued by the Financial Accounting Standards Board (FASB) related to accounting for leases, which requires lessees to record assets and liabilities that arise for all leases on their balance sheet and expanded financial statement disclosures for both lessees and lessors. Previously, only capital leases were recorded on the balance sheet. This update requires lessees to recognize a lease liability equal to the present value of its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and instead recognize lease expense for such leases generally on a straight-line basis over the lease term. Leases with a term of longer than 12 months will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted this standard using the optional modified retrospective transition method. As such, the comparative financial information has not been restated and continues to be reported under the lease standard in effect during those periods. We also elected other practical expedients provided by the new standard, including the package of practical expedients, the short-term lease recognition practical expedient in which leases with a term of 12 months or less are not recognized on the balance sheet, and the practical expedient to not separate lease and non-lease components for the majority of our leases. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our balance sheet as of January 1, 2019. Additionally, capital leases have been reclassified on our condensed consolidated balance sheet as of December 31, 2018 to conform to current period presentation. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. The adoption of this standard did not materially impact our condensed consolidated statements of operations for the three months ended March 31, 2019. See Note 5

Revenue (Policies)

Revenue (Policies)	3 Months Ended
	Mar. 31, 2019
Revenue [Abstract]
Revenue Recognition, Policy	The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. Determining the transaction price may require significant judgment, which includes identifying performance obligations in the contract, determining whether promised services can be distinguished in the context of the contract, and estimating the amount of variable consideration to include in the transaction price. We also assess our customer’s ability and intention to pay, which is based on a variety of factors, including our customer’s historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60

Inventories (Policies)

Inventories (Policies)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventory, Policy	Inventories are stated at the lower of cost and net realizable value.

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Information on business segments	The following table presents information on our business segments. Three Months Ended Millions of dollars 2019 2018 Revenue: Completion and Production $ 3,662 $ 3,807 Drilling and Evaluation 2,075 1,933 Total revenue $ 5,737 $ 5,740 Operating income: Completion and Production $ 368 $ 500 Drilling and Evaluation 123 188 Total operations 491 688 Corporate and other (a) (65 ) (69 ) Impairments and other charges (b) (61 ) (265 ) Total operating income $ 365 $ 354 Interest expense, net of interest income (143 ) (140 ) Other, net (30 ) (25 ) Income from continuing operations before income taxes $ 192 $ 189 (a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives. (b) During the three months ended March 31, 2019, we recorded $61 million of impairments and other charges, primarily relating to an impairment of fixed assets. See Note 2 for further information. During the three months ended March 31, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue [Abstract]
Disaggregation of Revenue	The following table presents information on our disaggregated revenue. Millions of dollars Three Months Ended Revenue by segment: 2019 2018 Completion and Production $ 3,662 $ 3,807 Drilling and Evaluation 2,075 1,933 Total revenue $ 5,737 $ 5,740 Revenue by geographic region: North America $ 3,275 $ 3,517 Latin America 587 457 Europe/Africa/CIS 748 716 Middle East/Asia 1,127 1,050 Total revenue $ 5,737 $ 5,740

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease, Cost	The following tables illustrate the financial impact of our leases as of and for the three months ended March 31, 2019, along with other supplemental information about our existing leases: Millions of dollars Three Months Ended March 31, 2019 Components of lease expense: Finance lease cost: Amortization of right-of-use assets $ 5 Interest on lease liabilities 15 Operating lease cost 96 Short-term lease cost 6 Sublease income (1 ) Total lease cost $ 121
Lease supplemental disclosure	Millions of dollars As of March 31, 2019 Components of balance sheet: Operating leases: Operating lease right-of-use assets (non-current) $ 1,019 Current portion of operating lease liabilities 255 Operating lease liabilities (non-current) 758 Finance leases: Other assets (non-current) $ 142 Other current liabilities 12 Other liabilities (non-current) 139 Millions of dollars except years and percentages Three Months Ended March 31, 2019 Other supplemental information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88 Operating cash flows from finance leases 15 Financing cash flows from finance leases 10 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 1,098 Finance leases 58 Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 6.1 years Weighted-average discount rate for operating leases 4.7 %
Lessee, Operating and Finance Leases, Liability Maturity Table	The following table summarizes the maturity of our operating and finance leases as of March 31, 2019: Millions of dollars Operating Leases Finance Leases 2019 $ 238 $ 48 2020 191 66 2021 147 65 2022 122 65 2023 97 65 Thereafter 507 151 Total lease payments 1,302 460 Less imputed interest (289 ) (309 ) Total $ 1,013 $ 151

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: Millions of dollars March 31, December 31, Finished products and parts $ 2,063 $ 1,947 Raw materials and supplies 1,047 934 Work in process 154 147 Total $ 3,264 $ 3,028

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
Summary of shareholders' equity activity	The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2019 and March 31, 2018 , respectively: Millions of dollars Common Shares Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2018 $ 2,671 $ 211 $ (6,744 ) $ 13,739 $ (355 ) $ 22 $ 9,544 Comprehensive income (loss): Net income — — — 152 — — 152 Other comprehensive income — — — — 1 — 1 Cash dividends ($0.18 per share) — — — (157 ) — — (157 ) Stock plans — 13 74 — — — 87 Other — — — — — (2 ) (2 ) Balance at March 31, 2019 $ 2,671 $ 224 $ (6,670 ) $ 13,734 $ (354 ) $ 20 $ 9,625 Millions of dollars Common Shares Paid-in Capital in Excess of Par Value Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest in Consolidated Subsidiaries Total Balance at December 31, 2017 $ 2,673 $ 207 $ (6,757 ) $ 12,668 $ (469 ) $ 27 $ 8,349 Comprehensive income (loss): Net Income — — — 46 — 1 47 Other comprehensive income — — — — (2 ) — (2 ) Cash dividends ($0.18 per share) — — — (158 ) — — (158 ) Stock plans (1 ) 15 113 — — — 127 Other — — — 30 — (2 ) 28 Balance at March 31, 2018 $ 2,672 $ 222 $ (6,644 ) $ 12,586 $ (471 ) $ 26 $ 8,391
Schedule of comprehensive income (loss)	Accumulated other comprehensive loss consisted of the following: Millions of dollars March 31, December 31, Defined benefit and other postretirement liability adjustments $ (203 ) $ (203 ) Cumulative translation adjustments (82 ) (82 ) Other (69 ) (70 ) Total accumulated other comprehensive loss $ (354 ) $ (355 )

Income (Loss) per Share (Tables

Income (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Weighted average shares outstanding and antidilutive shares	A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows: Three Months Ended Millions of shares 2019 2018 Basic weighted average common shares outstanding 873 875 Dilutive effect of awards granted under our stock incentive plans — 3 Diluted weighted average common shares outstanding 873 878 Antidilutive shares: Options with exercise price greater than the average market price 20 7 Total antidilutive shares 20 7

Fair value by balance sheet gro

Fair value by balance sheet grouping table (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows: March 31, 2019 December 31, 2018 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 8,769 $ 2,621 $ 11,390 $ 10,332 $ 6,726 $ 4,041 $ 10,767 $ 10,348

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions	Dec. 31, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of Capital Leases to Other Assets	$ 88
Reclassification of Capital Leases to Other Liabilities	$ 109

Impairments and Other Charges (

Impairments and Other Charges (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Impairments and Other Charges [Abstract]
Impairments and other charges	[1]	$ 61	$ 265
[1]	During the three months ended March 31, 2019, we recorded $61 million of impairments and other charges, primarily relating to an impairment of fixed assets. See Note 2 for further information. During the three months ended March 31, 2018, we recognized a pre-tax charge of $265 million

Business Segment and Geograph_3

Business Segment and Geographic Information (Narrative) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019DivisionCountriesCustomers	Dec. 31, 2018CountriesCustomers
Concentration Risk [Line Items]
Number of business segments | Division	2
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%
Number of Countries Exceed Receivables Threshold | Countries	1	1
Number of Customers Exceed Receivables Threshold | Customers	0	0
Geographic Concentration Risk [Member] | Accounts Receivable [Member] | UNITED STATES
Concentration Risk [Line Items]
Concentration Risk, Percentage	43.00%	43.00%

Business Segment and Geograph_4

Business Segment and Geographic Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenue:
Revenue		$ 5,737	$ 5,740
Operating income (loss):
Impairments and other charges	[1]	61	265
Operating income		365	354
Interest expense, net of interest income		(143)	(140)
Other, net		(30)	(25)
Income (loss) from continuing operations before income taxes		192	189
Impairments and other charges, net of tax		61	265
Completion and Production
Revenue:
Revenue		3,662	3,807
Operating income (loss):
Operating income		368	500
Drilling and Evaluation
Revenue:
Revenue		2,075	1,933
Operating income (loss):
Operating income		123	188
Total operations
Revenue:
Revenue		5,737	5,740
Operating income (loss):
Operating income		491	688
Corporate and other
Operating income (loss):
Operating income	[2]	$ (65)	$ (69)
[1]	During the three months ended March 31, 2019, we recorded $61 million of impairments and other charges, primarily relating to an impairment of fixed assets. See Note 2 for further information. During the three months ended March 31, 2018, we recognized a pre-tax charge of $265 million
[2]	Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives.

Revenue (Details)

Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)DivisionCountries	Mar. 31, 2018USD ($)Countries
Disaggregation of Revenue [Line Items]
Number of business segments | Division	2
Maximum Percentage Revenue from One Geographic Segment	10.00%	10.00%
Number of Countries Exceed Revenue Threshold | Countries	1	1
Revenue	$ 5,737	$ 5,740
Revenue, Performance Obligation, Description of Timing	one year
North America [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 3,275	3,517
Latin America [Member]
Disaggregation of Revenue [Line Items]
Revenue	587	457
Europe/Africa/CIS [Member]
Disaggregation of Revenue [Line Items]
Revenue	748	716
Middle East/Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,127	1,050
Completion And Production [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,662	3,807
Drilling And Evaluation [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 2,075	$ 1,933
Minimum [Member]
Disaggregation of Revenue [Line Items]
Revenue, Performance Obligation, Description of Payment Terms	20
Maximum [Member]
Disaggregation of Revenue [Line Items]
Revenue, Performance Obligation, Description of Payment Terms	60
Sales Revenue, Net [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	55.00%	58.00%

Leases (Details)

Leases (Details) - USD ($) $ in Billions	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		$ 1.1
Lessee, Operating Lease, Term of Contract	10 years

Components of lease expense (De

Components of lease expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Finance lease cost - Amortization of right-of-use assets	$ 5
Finance lease cost - Interest on lease liabilities	15
Operating lease cost	96
Short-term lease cost	6
Sublease income	(1)
Total lease cost	$ 121

Leases - Components of balance

Leases - Components of balance sheet (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Operating lease right-of-use assets	$ 1,019	$ 0
Current portion of operating lease liabilities	255	0
Operating lease liabilities	758	$ 0
Other Assets [Member]
Finance Lease, Right-of-Use Asset	142
Other Current Liabilities [Member]
Finance Lease, Liability, Current	12
Other Liabilities [Member]
Finance Lease, Liability, Noncurrent	$ 139

Leases - Other supplemental inf

Leases - Other supplemental information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 88
Operating cash flows from finance leases	15
Financing cash flows from finance leases	10
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	1,098	[1]
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	$ 58
Operating Lease, Weighted Average Remaining Lease Term	9 years 2 months 12 days
Finance Lease, Weighted Average Remaining Lease Term	6 years 1 month 6 days
Operating Lease, Weighted Average Discount Rate, Percent	4.70%
[1]	Represents operating lease right-of-use assets exchanged for lease obligations upon implementation of the new lease accounting standard on January 1, 2019.

Lease maturity (Details)

Lease maturity (Details) $ in Millions	Mar. 31, 2019USD ($)
Leases [Abstract]
2019 - Operating Leases	$ 238
2019 - Financing Leases	48
2020 - Operating Leases	191
2020 - Financing Leases	66
2021 - Operating Leases	147
2021 - Financing Leases	65
2022 - Operating Leases	122
2022 - Financing Leases	65
2023 - Operating Leases	97
2023 - Financing Leases	65
Thereafter - Operating Leases	507
Thereafter - Financing Leases	151
Total lease payments - Operating Leases	1,302
Total lease payments - Financing Leases	460
Imputed interest - Operating Leases	(289)
Imputed interest - Financing Leases	(309)
Total - Operating Leases	1,013
Total - Financing Leases	$ 151

Leases - Future minimum payment

Leases - Future minimum payments on noncancellable operating leases (Details) $ in Millions	Dec. 31, 2018USD ($)
Leases [Abstract]
Operating Leases, Future Minimum Payments Due	$ 975
2019	275
2020	146
2021	122
2022	100
2023	78
Thereafter	$ 254

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
LIFO Method Related Items [Abstract]
LIFO Inventory Amount	$ 189	$ 186
Average Cost Method, Difference	24	24
Inventory, Net [Abstract]
Finished products and parts	2,063	1,947
Raw materials and supplies	1,047	934
Work in process	154	147
Inventory, net	3,264	3,028
Obsolescence reserves	$ 207	$ 219

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2019	Mar. 05, 2019	Jun. 30, 2015
Revolving Credit Facility [Abstract]
Long-term Line of Credit		$ 3.5	$ 3
Line of Credit Facility, Expiration Period	5 years

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Shareholders' equity activity [Roll Forward]
Beginning Balance	$ 9,544	$ 8,349
Net income (loss)	152	47
Other comprehensive income (loss)	1	(2)
Cash dividends	(157)	(158)
Stock plans	87	127
Other	2	(28)
Ending Balance	$ 9,625	$ 8,391
Common Stock, Dividends, Per Share, Declared	$ 0.18	$ 0.18
Common Shares
Shareholders' equity activity [Roll Forward]
Beginning Balance	$ 2,671	$ 2,673
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock plans	0	(1)
Other	0	0
Ending Balance	2,671	2,672
Paid-in Capital in Excess of Par Value
Shareholders' equity activity [Roll Forward]
Beginning Balance	211	207
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock plans	13	15
Other	0	0
Ending Balance	224	222
Treasury Stock
Shareholders' equity activity [Roll Forward]
Beginning Balance	(6,744)	(6,757)
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock plans	74	113
Other	0	0
Ending Balance	(6,670)	(6,644)
Retained Earnings
Shareholders' equity activity [Roll Forward]
Beginning Balance	13,739	12,668
Net income (loss)	152	46
Other comprehensive income (loss)	0	0
Cash dividends	(157)	(158)
Stock plans	0	0
Other	0	(30)
Ending Balance	13,734	12,586
Accumulated Other Comprehensive Income (Loss)
Shareholders' equity activity [Roll Forward]
Beginning Balance	(355)	(469)
Net income (loss)	0	0
Other comprehensive income (loss)	1	(2)
Cash dividends	0	0
Stock plans	0	0
Other	0	0
Ending Balance	(354)	(471)
Noncontrolling Interest in Consolidated Subsidiaries
Shareholders' equity activity [Roll Forward]
Beginning Balance	22	27
Net income (loss)	0	1
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock plans	0	0
Other	2	2
Ending Balance	$ 20	$ 26

Shareholders' Equity (Schedule

Shareholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Defined benefit and other postretirement liability adjustments	$ (203)	$ (203)
Cumulative translation adjustments	(82)	(82)
Other	(69)	(70)
Total accumulated other comprehensive loss	$ (354)	$ (355)

Commitments and Contingencies (

Commitments and Contingencies (Environmental) (Details) $ in Millions	Mar. 31, 2019USD ($)Superfund_Sites	Dec. 31, 2018USD ($)
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Accrual for Environmental Loss Contingencies	$ 49	$ 42
Superfund Sites [Member]
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Number Of Superfund Sites | Superfund_Sites	6
Accrual for Environmental Loss Contingencies, Gross	$ 14

Commitments and Contingencies_2

Commitments and Contingencies (Guarantee Arrangements) (Details) $ in Billions	Mar. 31, 2019USD ($)
Financial agreements
Guarantee arrangements [Abstract]
Guarantee arrangements outstanding	$ 2.1

Income (Loss) per Share (Detail

Income (Loss) per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average common shares outstanding (in shares)	873	875
Dilutive effect of awards granted under our stock incentive plans	0	3
Diluted weighted average common shares outstanding (in shares)	873	878
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options with exercise price greater than the average market price	20	7
Total antidilutive shares	20	7

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of days from period end	2 days
Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 11,390	$ 10,767
Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, Long-term and Short-term, Combined Amount	10,332	10,348
Level 1 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	8,769	6,726
Level 2 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	2,621	4,041
Level 3 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 0	$ 0

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - USD ($) $ in Millions	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 1,100
Reclassification of Capital Leases to Other Assets		$ 88
Reclassification of Capital Leases to Other Liabilities		$ 109