Halliburton (HAL) 10-Q 24 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 17, 2020
Document And Enity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
Entity File Number	001-03492
Entity Registrant Name	HALLIBURTON COMPANY
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2677995
Entity Address, Address Line One	3000 North Sam Houston Parkway East
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77032
City Area Code	281
Local Phone Number	871-2699
Title of 12(b) Security	Common Stock, par value $2.50 per share
Trading Symbol	HAL
Security Exchange Name	NYSE
Entity Central Index Key	0000045012
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		877,277,670
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 31, 2020		Mar. 31, 2019
Revenue:
Revenue		$ 5,037		$ 5,737
Operating costs and expenses:
Impairments and other charges	[1]	1,073		61
General and administrative		54		59
Total operating costs and expenses		5,608		5,372
Operating income		(571)		365
Interest expense, net of interest income		(134)		(143)
Interest income		10		8
Loss on early extinguishment of debt		(168)	[2]	0
Other, net		(23)		(30)
Income (loss) from continuing operations before income taxes		(896)		192
Income tax (provision) benefit		(119)		(40)
Net income (loss)		(1,015)		152
Net (income) loss attributable to noncontrolling interest		(2)		0
Net income (loss) attributable to company		$ (1,017)		$ 152
Basic and diluted net income per share		$ (1.16)		$ 0.17
Weighted Average Number of Shares Outstanding, Basic and Diluted		878		873
Services [Member]
Revenue:
Revenue		$ 3,684		$ 4,352
Operating costs and expenses:
Cost of services and sales		3,393		4,156
Product sales [Member]
Revenue:
Revenue		1,353		1,385
Operating costs and expenses:
Cost of services and sales		$ 1,088		$ 1,096
[1]	For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges.
[2]	During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net income (loss)	$ (1,015)	$ 152
Other comprehensive income (loss), net of income taxes	11	1
Comprehensive income (loss)	(1,004)	153
Comprehensive (income) loss attributable to noncontrolling interest	(2)	0
Comprehensive income (loss) attributable to company shareholders	$ (1,006)	$ 153

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and equivalents		$ 2,268
Cash and equivalents	$ 1,385
Receivables net of allowances for bad debts	4,850	4,577
Allowance for bad debts	769	776
Inventories	3,220	3,139
Other current assets	1,200	1,228
Total current assets	10,655	11,212
Property, plant, and equipment, net of accumulated depreciation	6,223	7,310
Accumulated depreciation	12,978	12,630
Goodwill	2,812	2,812
Deferred income taxes	1,595	1,683
Operating lease right-of-use assets	897	931
Other assets	1,440	1,429
Total assets	23,622	25,377
Current liabilities:
Accounts payable	2,640	2,432
Accrued employee compensation and benefits	547	604
Current portion of operating lease liabilities	222	208
Current maturities of long-term debt	193	11
Other current liabilities	1,451	1,623
Total current liabilities	5,053	4,878
Long-term debt	9,633	10,316
Operating lease liabilities	803	825
Employee compensation and benefits	477	525
Other liabilities	813	808
Total liabilities	16,779	17,352
Shareholders' equity:
Common stock, par value $2.50 per share	$ 2,669	$ 2,669
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	1,068
Paid-in capital in excess of par value	$ 110	$ 143
Accumulated other comprehensive loss	(351)	(362)
Retained earnings	10,814	11,989
Treasury stock, at cost	$ (6,412)	$ (6,427)
Treasury shares (in shares)	194	190
Company shareholders' equity	$ 6,830	$ 8,012
Noncontrolling interest in consolidated subsidiaries	13	13
Total shareholders' equity	6,843	8,025
Total liabilities and shareholders' equity	$ 23,622	$ 25,377

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (1,015)	$ 152
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation, depletion and amortization	348	416
Impairments and other charges	1,073	61
Changes in assets and liabilities:
Receivables	(371)	(339)
Accounts payable	250	60
Inventories	(79)	(236)
Other operating activities	19	(158)
Total cash flows provided by operating activities	225	(44)
Cash flows from investing activities:
Capital expenditures	(213)	(437)
Proceeds from sales of property, plant and equipment	69	43
Other investing activities	(21)	(17)
Total cash flows used in investing activities	(165)	(411)
Cash flows from financing activities:
Payments on long-term borrowings	(1,651)	(8)
Proceeds from issuance of long-term debt, net	994	0
Dividends to shareholders	(158)	(157)
Stock repurchase program	(100)	0
Other financing activities	12	10
Total cash flows used in financing activities	(903)	(155)
Effect of exchange rate changes on cash	(40)	(18)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total	(883)	(628)
Cash and equivalents at beginning of period	2,268	2,008
Cash and equivalents at end of period	1,385	1,380
Cash payments during the period for:
Interest	144	128
Income taxes	$ 116	$ 81

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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 2019 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, 2020 and the results of our operations and cash flows for the three months ended March 31, 2020 and 2019. 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. The results of our operations for the three months ended March 31, 2020 may not be indicative of results for the full year.

Impairments and Other Charges

Impairments and Other Charges	3 Months Ended
	Mar. 31, 2020
Impairments and Other Charges [Abstract]
Impairments and Other Charges	Impairments and Other Charges The oil and gas industry experienced an unprecedented disruption during the first quarter of 2020 as a result of a combination of factors, including the substantial decline in global demand for oil caused by the COVID-19 pandemic and subsequent mitigation efforts, and disagreements between the Organization of Petroleum Exporting Countries and other oil producing nations (OPEC+) in February 2020 regarding limits on production of oil. These events created a substantial surplus in the supply of oil. WTI oil spot prices decreased from a high of $63 per barrel in early January to a low of $14 per barrel in late March, a level which had not been experienced since March 1999, with physical markets showing signs of distress as spot prices were negatively impacted by the lack of available storage capacity. Activity declined in the face of depressed crude oil pricing, with the average U.S. land rig count dropping 25% in the first quarter of 2020 as compared to the first quarter of 2019. The global rig count has continued to decline into April 2020. These market conditions have significantly impacted our business and our outlook globally, with a more severe impact to our North America business in the near-term. Customers continue to revise their capital budgets in order to adjust spending levels in response to the lower commodity prices, and we have experienced significant activity reductions and pricing pressure for our products and services, which we expect to continue. In line with these rapidly changing market conditions, our market capitalization also deteriorated during the first quarter of 2020. We determined these recent events constituted a triggering event that required us to review the recoverability of our long-lived assets and perform an interim goodwill impairment assessment as of March 31, 2020. We determined the fair value of our long-lived assets based on a discounted cash flow analysis, and we determined the fair value for each reporting unit in our goodwill impairment assessment using both a discounted cash flow analysis and a multiples-based market approach for comparable companies. Given the current volatile market environment, we utilized third-party valuation advisors to assist us with these valuations. These analyses included significant judgment, including management’s short-term and long-term forecast of operating performance, discount rates based on our weighted average cost of capital, revenue growth rates, profitability margins, capital expenditures, the timing of future cash flows based on an eventual recovery of the oil and gas industry, and in the case of long-lived assets, the remaining useful life and service potential of the asset. These impairment assessments incorporate inherent uncertainties, including projected commodity pricing, supply and demand for our services and future market conditions, which are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in our forecasts. Based upon our impairment assessments, we determined the carrying amount of some of our long-lived assets exceeded their respective fair values. Therefore, we recorded impairments and other charges of approximately $1.1 billion during the three months ended March 31, 2020 relating to these assets. As a result of our goodwill impairment assessment, we determined that the fair value of each reporting unit exceeded its net book value and, therefore, no goodwill impairments were deemed necessary. We will continue to evaluate these reporting units for potential goodwill impairment in the second quarter of 2020 as market conditions evolve. The following table presents various pre-tax charges we recorded during the three months ended March 31, 2020 and 2019, which are reflected within "Impairments and other charges" on our condensed consolidated statements of operations. Three Months Ended Millions of dollars 2020 2019 Long-lived asset impairments $ 1,016 $ 42 Severance costs 32 19 Other 25 — Total impairments and other charges $ 1,073 $ 61 Of the $1.1 billion of impairments and other charges recorded during the three months ended March 31, 2020, approximately $780 million was attributable to our Completion and Production segment and approximately $277 million was attributable to our Drilling and Evaluation segment. The $1.0 billion of long-lived asset impairments consists of the following: $588 million attributable to hydraulic fracturing equipment, the majority of which was located in North America, $151 million related to drilling equipment, and the remaining amount is primarily associated with other fixed asset impairments.

Business Segment and Geographic

Business Segment and Geographic Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Business Segment and Geographic Information	Business Segment and Geographic InformationWe 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. 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 2020 2019 Revenue: Completion and Production $ 2,962 $ 3,662 Drilling and Evaluation 2,075 2,075 Total revenue $ 5,037 $ 5,737 Operating income (loss): Completion and Production $ 345 $ 368 Drilling and Evaluation 217 123 Total operations 562 491 Corporate and other (a) (60) (65) Impairments and other charges (b) (1,073) (61) Total operating income (loss) $ (571) $ 365 Interest expense, net of interest income (134) (143) Loss on early extinguishment of debt (c) (168) — Other, net (23) (30) Income (loss) before income taxes $ (896) $ 192 (a) Includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions. (b) For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges. (c) During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge. Receivables

Revenue

Revenue	3 Months Ended
	Mar. 31, 2020
Revenue [Abstract]
Revenue	Revenue Revenue is recognized based on the transfer of control or our customers' 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. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' 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, 47% and 55% of our consolidated revenue was from the United States for the three months ended March 31, 2020 and 2019, 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: 2020 2019 Completion and Production $ 2,962 $ 3,662 Drilling and Evaluation 2,075 2,075 Total revenue $ 5,037 $ 5,737 Revenue by geographic region: North America $ 2,460 $ 3,275 Latin America 516 587 Europe/Africa/CIS 831 748 Middle East/Asia 1,230 1,127 Total revenue $ 5,037 $ 5,737 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 or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following: Millions of dollars March 31, December 31, Finished products and parts $ 1,895 $ 1,865 Raw materials and supplies 1,176 1,147 Work in process 149 127 Total $ 3,220 $ 3,139 All amounts in the table above are reported net of obsolescence reserves of $139 million as of March 31, 2020 and $149 million as of December 31, 2019.

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	DebtOn March 3, 2020, we issued $1.0 billion aggregate principal amount of 2.92% senior notes due March 2030. Subsequently, on March 5, 2020, we completed a tender offer to purchase $1.5 billion aggregate principal amount of senior notes using proceeds from the debt issuance and cash on hand. The tender offer consisted of $500 million of 3.50% senior notes due August 2023 and $1.0 billion of 3.80% senior notes due November 2025. This early debt repurchase resulted in a $168 million loss on extinguishment, which included a tender premium, unamortized discounts and costs on the retired notes, and other tender fees. These costs were included in "Loss on early extinguishment of debt" on our condensed consolidated statements of operations for the three months ended March 31, 2020.The $1.0 billion senior notes issued in March rank equally with our existing and future senior unsecured indebtedness, have semiannual interest payments, and have no sinking fund requirements. We may redeem some or all of the notes at any time at the applicable redemption prices, plus accrued and unpaid interest.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesDuring the three months ended March 31, 2020, we recorded a total income tax provision of $119 million on a pre-tax loss of $896 million, resulting in an effective tax rate of -13.3%. The effective tax rate for this period was primarily impacted by the COVID-19 pandemic and OPEC+ disagreements which created an unprecedented disruption in the oil and gas industry. After evaluating the negative impact that these events are expected to have on our business outlook, we determined that it was more likely than not that certain foreign tax credits would not be realized. Accordingly, we recognized a valuation allowance on our deferred tax assets in the amount of $310 million. Additionally, we recorded $1.1 billion of impairments and other charges and a $168 million loss on extinguishment of debt during the three months ended March 31, 2020, resulting in a $268 million tax benefit recognized during the period. See Note 2 for further information on these adverse market conditions and impairments and other charges recognized during the first quarter of 2020.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Shareholders’ Equity The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2020 and March 31, 2019, respectively: Millions of dollars Common Stock 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, 2019 $ 2,669 $ 143 $ (6,427) $ 11,989 $ (362) $ 13 $ 8,025 Comprehensive income (loss): Net Income (loss) — — — (1,017) — 2 (1,015) Other comprehensive income — — — — 11 — 11 Cash dividends ($0.18 per share) — — — (158) — — (158) Stock repurchase program — — (100) — — — (100) Stock plans — (33) 115 — — — 82 Other — — — — — (2) (2) Balance at March 31, 2020 $ 2,669 $ 110 $ (6,412) $ 10,814 $ (351) $ 13 $ 6,843 Millions of dollars Common Stock 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 Our Board of Directors has authorized a program to repurchase our common stock from time to time. During the three months ended March 31, 2020, under that program we repurchased approximately 7.4 million shares of our common stock for a total cost of $100 million. Approximately $5.1 billion remained authorized for repurchases as of March 31, 2020. From the inception of this program in February 2006 through March 31, 2020, we repurchased approximately 224 million shares of our common stock for a total cost of approximately $9.0 billion. Accumulated other comprehensive loss consisted of the following: Millions of dollars March 31, December 31, Defined benefit and other postretirement liability adjustments $ (214) $ (214) Cumulative translation adjustments (82) (82) Other (55) (66) Total accumulated other comprehensive loss $ (351) $ (362)

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental and tax-related matters, arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any litigation, claim or investigation, and no assurance can be given as to the outcome of these proceedings. Guarantee arrangements In the normal course of business, we have agreements with financial institutions under which approximately $2.0 billion of letters of credit, bank guarantees or surety bonds were outstanding as of March 31, 2020. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.

Income (Loss) per Share

Income (Loss) per Share	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Basic weighted average common shares outstanding 878 873 Dilutive effect of awards granted under our stock incentive plans — — Diluted weighted average common shares outstanding 878 873 Antidilutive shares: Options with exercise price greater than the average market price 27 20 Shares which are antidilutive due to net loss position 3 — Total antidilutive shares 30 20

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2020
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, 2020 December 31, 2019 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 7,719 $ 608 $ 8,327 $ 9,826 $ 11,093 $ 868 $ 11,961 $ 10,327 The total fair value of our debt decreased significantly during the first quarter of 2020, primarily due to the negative impact on our business and industry associated with the COVID-19 pandemic and OPEC+ disagreements as described in Note 2. These events have collectively increased the credit spreads for all of our publicly traded bonds, thus reducing the associated fair value. Additionally, the fair value and carrying value of our debt decreased in the first quarter of 2020 due to an early repurchase of senior notes. See Note 6 for further information. 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 debt categorized within level 3 on the fair value hierarchy.

Revenue (Policies)

Revenue (Policies)	3 Months Ended
	Mar. 31, 2020
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. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' 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.

Impairments and Other Charges (

Impairments and Other Charges (Tables)	3 Months Ended
	Mar. 31, 2020
Impairments and Other Charges [Abstract]
Impairments and Other Charges	The following table presents various pre-tax charges we recorded during the three months ended March 31, 2020 and 2019, which are reflected within "Impairments and other charges" on our condensed consolidated statements of operations. Three Months Ended Millions of dollars 2020 2019 Long-lived asset impairments $ 1,016 $ 42 Severance costs 32 19 Other 25 — Total impairments and other charges $ 1,073 $ 61

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Information on business segments	The following table presents information on our business segments. Three Months Ended Millions of dollars 2020 2019 Revenue: Completion and Production $ 2,962 $ 3,662 Drilling and Evaluation 2,075 2,075 Total revenue $ 5,037 $ 5,737 Operating income (loss): Completion and Production $ 345 $ 368 Drilling and Evaluation 217 123 Total operations 562 491 Corporate and other (a) (60) (65) Impairments and other charges (b) (1,073) (61) Total operating income (loss) $ (571) $ 365 Interest expense, net of interest income (134) (143) Loss on early extinguishment of debt (c) (168) — Other, net (23) (30) Income (loss) before income taxes $ (896) $ 192 (a) Includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions. (b) For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges. (c) During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue [Abstract]
Disaggregation of Revenue	The following table presents information on our disaggregated revenue. Millions of dollars Three Months Ended Revenue by segment: 2020 2019 Completion and Production $ 2,962 $ 3,662 Drilling and Evaluation 2,075 2,075 Total revenue $ 5,037 $ 5,737 Revenue by geographic region: North America $ 2,460 $ 3,275 Latin America 516 587 Europe/Africa/CIS 831 748 Middle East/Asia 1,230 1,127 Total revenue $ 5,037 $ 5,737

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: Millions of dollars March 31, December 31, Finished products and parts $ 1,895 $ 1,865 Raw materials and supplies 1,176 1,147 Work in process 149 127 Total $ 3,220 $ 3,139

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Summary of shareholders' equity activity	The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2020 and March 31, 2019, respectively: Millions of dollars Common Stock 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, 2019 $ 2,669 $ 143 $ (6,427) $ 11,989 $ (362) $ 13 $ 8,025 Comprehensive income (loss): Net Income (loss) — — — (1,017) — 2 (1,015) Other comprehensive income — — — — 11 — 11 Cash dividends ($0.18 per share) — — — (158) — — (158) Stock repurchase program — — (100) — — — (100) Stock plans — (33) 115 — — — 82 Other — — — — — (2) (2) Balance at March 31, 2020 $ 2,669 $ 110 $ (6,412) $ 10,814 $ (351) $ 13 $ 6,843 Millions of dollars Common Stock 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
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 $ (214) $ (214) Cumulative translation adjustments (82) (82) Other (55) (66) Total accumulated other comprehensive loss $ (351) $ (362)

Income (Loss) per Share (Tables

Income (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Basic weighted average common shares outstanding 878 873 Dilutive effect of awards granted under our stock incentive plans — — Diluted weighted average common shares outstanding 878 873 Antidilutive shares: Options with exercise price greater than the average market price 27 20 Shares which are antidilutive due to net loss position 3 — Total antidilutive shares 30 20

Fair value by balance sheet gro

Fair value by balance sheet grouping table (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 December 31, 2019 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Total debt $ 7,719 $ 608 $ 8,327 $ 9,826 $ 11,093 $ 868 $ 11,961 $ 10,327

Impairments and Other Charges_2

Impairments and Other Charges (Details) - USD ($)		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost and Reserve [Line Items]
Decline in US land rig count		25.00%
Long-lived asset impairments		$ 1,016,000,000	$ 42,000,000
Severance costs		32,000,000	19,000,000
Other		25,000,000	0
Impairments and other charges	[1]	1,073,000,000	$ 61,000,000
Impairment of hydraulic fracturing equipment		588,000,000
Impairment of drilling equipment		151,000,000
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
WTI oil spot price		63
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
WTI oil spot price		$ 14
[1]	For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges.

Business Segment and Geograph_3

Business Segment and Geographic Information (Narrative) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020DivisionCountriesCustomers	Dec. 31, 2019CountriesCustomers
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	40.00%	36.00%

Business Segment and Geograph_4

Business Segment and Geographic Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020		Mar. 31, 2019
Revenue:
Revenue		$ 5,037		$ 5,737
Operating income (loss):
Impairments and other charges	[1]	(1,073)		(61)
Operating income		(571)		365
Interest expense, net of interest income		(134)		(143)
Other, net		(23)		(30)
Income (loss) from continuing operations before income taxes		(896)		192
Loss on early extinguishment of debt		(168)	[2]	0
Long-term Debt, Excluding Current Maturities		1,500
Completion and Production
Revenue:
Revenue		2,962		3,662
Operating income (loss):
Impairments and other charges		(780)
Operating income		345		368
Drilling and Evaluation
Revenue:
Revenue		2,075		2,075
Operating income (loss):
Impairments and other charges		(277)
Operating income		217		123
Total operations
Revenue:
Revenue		5,037		5,737
Operating income (loss):
Operating income		562		491
Corporate and other
Operating income (loss):
Operating income	[3]	$ (60)		$ (65)
[1]	For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges.
[2]	During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge.
[3]	Includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.

Revenue (Details)

Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)DivisionCountries	Mar. 31, 2019USD ($)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	$ 5,037	$ 5,737
Revenue, Performance Obligation, Description of Timing	one year
North America [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 2,460	3,275
Latin America [Member]
Disaggregation of Revenue [Line Items]
Revenue	516	587
Europe/Africa/CIS [Member]
Disaggregation of Revenue [Line Items]
Revenue	831	748
Middle East/Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,230	1,127
Completion And Production [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,962	3,662
Drilling And Evaluation [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 2,075	$ 2,075
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
Revenue Benchmark [Member] | UNITED STATES
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	47.00%	55.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Inventory, Net [Abstract]
Finished products and parts	$ 1,895	$ 1,865
Raw materials and supplies	1,176	1,147
Work in process	149	127
Inventory, net	3,220	3,139
Obsolescence reserves	$ 139	$ 149

Debt (Details)

Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020		Mar. 31, 2019
Debt Disclosure [Abstract]
Loss on early extinguishment of debt	$ (168)	[1]	$ 0
Long-term Debt, Excluding Current Maturities	1,500
Debt Instrument [Line Items]
Long-term Debt, Excluding Current Maturities	1,500
Senior Notes due March 2030 [Member]
Debt Disclosure [Abstract]
Long-term Debt, Excluding Current Maturities	$ 1,000
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.92%
Long-term Debt, Excluding Current Maturities	$ 1,000
Senior notes due August 2023 [Member]
Debt Disclosure [Abstract]
Long-term Debt, Excluding Current Maturities	$ 500
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Long-term Debt, Excluding Current Maturities	$ 500
Senior Notes due November 2025 [Member]
Debt Disclosure [Abstract]
Long-term Debt, Excluding Current Maturities	$ 1,000
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.80%
Long-term Debt, Excluding Current Maturities	$ 1,000
[1]	During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)		$ 119	$ 40
Income (loss) from continuing operations before income taxes		$ (896)	192
Effective tax rate		(13.30%)
Impairments and other charges	[1]	$ 1,073	$ 61
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount		268
Deferred Tax Assets, Valuation Allowance		$ 310
[1]	For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges.

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Shareholders' equity activity [Roll Forward]
Beginning Balance	$ 8,025	$ 9,544
Net income (loss)	(1,015)	152
Other comprehensive income (loss)	11	1
Cash dividends	(158)	(157)
Stock repurchase program	(100)
Stock plans	(82)	(87)
Other	(2)	(2)
Ending Balance	$ 6,843	$ 9,625
Common Stock, Dividends, Per Share, Declared	$ 0.18	$ 0.18
Common Shares
Shareholders' equity activity [Roll Forward]
Beginning Balance	$ 2,669	$ 2,671
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock repurchase program	0
Stock plans	0	0
Other	0	0
Ending Balance	2,669	2,671
Paid-in Capital in Excess of Par Value
Shareholders' equity activity [Roll Forward]
Beginning Balance	143	211
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock repurchase program	0
Stock plans	(33)	(13)
Other	0	0
Ending Balance	110	224
Treasury Stock
Shareholders' equity activity [Roll Forward]
Beginning Balance	(6,427)	(6,744)
Net income (loss)	0	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock repurchase program	100
Stock plans	(115)	(74)
Other	0	0
Ending Balance	(6,412)	(6,670)
Retained Earnings
Shareholders' equity activity [Roll Forward]
Beginning Balance	11,989	13,739
Net income (loss)	(1,017)	152
Other comprehensive income (loss)	0	0
Cash dividends	(158)	(157)
Stock repurchase program	0
Stock plans	0	0
Other	0	0
Ending Balance	10,814	13,734
Accumulated Other Comprehensive Income (Loss)
Shareholders' equity activity [Roll Forward]
Beginning Balance	(362)	(355)
Net income (loss)	0	0
Other comprehensive income (loss)	11	1
Cash dividends	0	0
Stock repurchase program	0
Stock plans	0	0
Other	0	0
Ending Balance	(351)	(354)
Noncontrolling Interest in Consolidated Subsidiaries
Shareholders' equity activity [Roll Forward]
Beginning Balance	13	22
Net income (loss)	2	0
Other comprehensive income (loss)	0	0
Cash dividends	0	0
Stock repurchase program	0
Stock plans	0	0
Other	(2)	(2)
Ending Balance	$ 13	$ 20

Shareholders' Equity (Schedule

Shareholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Defined benefit and other postretirement liability adjustments	$ (214)	$ (214)
Cumulative translation adjustments	(82)	(82)
Other	(55)	(66)
Total accumulated other comprehensive loss	$ (351)	$ (362)

Shareholders' Equity Repurchase

Shareholders' Equity Repurchase Activity (Details) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)shares
Repurchase Activity [Abstract]
Stock Repurchased During Period, Shares | shares	7.4
Stock Repurchased During Period, Value	$ 100
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	$ 5,100
Treasury Stock Shares Acquired From Inception | shares	224
Treasury Stock Value Acquired Cost Method From Inception	$ 9,000

Commitments and Contingencies (

Commitments and Contingencies (Guarantee Arrangements) (Details) $ in Billions	Mar. 31, 2020USD ($)
Financial agreements
Guarantee arrangements [Abstract]
Guarantee arrangements outstanding	$ 2

Income (Loss) per Share (Detail

Income (Loss) per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average common shares outstanding (in shares)	878	873
Dilutive effect of awards granted under our stock incentive plans	0	0
Diluted weighted average common shares outstanding (in shares)	878	873
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options with exercise price greater than the average market price	27	20
Shares which are antidilutive due to net loss position	3	0
Total antidilutive shares	30	20

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
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	$ 8,327	$ 11,961
Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, Long-term and Short-term, Combined Amount	9,826	10,327
Level 1 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	7,719	11,093
Level 2 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	608	868
Level 3 | Long-term debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 0	$ 0