Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 17, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BAKER HUGHES INC | |
Entity Central Index Key | 808362 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 443,225,722 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ||||
Sales | $1,936 | $1,847 | $5,554 | $5,387 |
Services | 3,851 | 3,508 | 10,950 | 10,649 |
Total revenue | 5,787 | 5,355 | 16,504 | 16,036 |
Costs and expenses: | ||||
Cost of sales | 1,490 | 1,486 | 4,341 | 4,258 |
Cost of services | 3,260 | 2,910 | 9,326 | 8,657 |
Research and engineering | 142 | 118 | 400 | 370 |
Marketing, general and administrative | 319 | 355 | 970 | 999 |
Total costs and expenses | 5,211 | 4,869 | 15,037 | 14,284 |
Operating income | 576 | 486 | 1,467 | 1,752 |
Interest expense, net | -58 | -49 | -173 | -153 |
Income before income taxes | 518 | 437 | 1,294 | 1,599 |
Income taxes | -178 | -153 | -441 | -497 |
Net income | 340 | 284 | 853 | 1,102 |
Net loss (income) attributable to noncontrolling interests | 1 | -5 | -5 | -5 |
Net income attributable to Baker Hughes | $341 | $279 | $848 | $1,097 |
Basic earnings per share attributable to Baker Hughes | $0.77 | $0.63 | $1.91 | $2.49 |
Diluted earnings per share attributable to Baker Hughes | $0.77 | $0.63 | $1.91 | $2.49 |
Cash dividends per share | $0.15 | $0.15 | $0.45 | $0.45 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $340 | $284 | $853 | $1,102 |
Other comprehensive income (loss): | ||||
Currency translation adjustments | 60 | 63 | -50 | 61 |
Pension and other postretirement benefits, net of tax | -4 | 0 | 9 | 19 |
Hedge transactions, net of tax | 2 | 0 | -1 | 1 |
Other comprehensive income (loss) | 58 | 63 | -42 | 81 |
Comprehensive income | 398 | 347 | 811 | 1,183 |
Comprehensive loss (income) attributable to noncontrolling interests | 1 | -5 | -5 | -5 |
Comprehensive income attributable to Baker Hughes | $399 | $342 | $806 | $1,178 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,368 | $1,015 |
Accounts receivable - less allowance for doubtful accounts (2013 - $310; 2012 - $308) | 5,343 | 4,815 |
Inventories, net | 3,960 | 3,781 |
Deferred income taxes | 373 | 266 |
Other current assets | 463 | 540 |
Total current assets | 11,507 | 10,417 |
Property, plant and equipment - less accumulated depreciation (2013 - $7,004; 2012 - $6,315) | 8,964 | 8,707 |
Goodwill | 5,967 | 5,958 |
Intangible assets, net | 915 | 993 |
Other assets | 721 | 614 |
Total assets | 28,074 | 26,689 |
Current liabilities: | ||
Accounts payable | 2,474 | 1,737 |
Short-term debt and current portion of long-term debt | 737 | 1,079 |
Accrued employee compensation | 717 | 646 |
Income taxes payable | 227 | 226 |
Other accrued liabilities | 544 | 436 |
Total current liabilities | 4,699 | 4,124 |
Long-term debt | 3,838 | 3,837 |
Deferred income taxes and other tax liabilities | 797 | 745 |
Liabilities for pensions and other postretirement benefits | 595 | 579 |
Other liabilities | 152 | 136 |
Commitments and contingencies | ||
Equity: | ||
Common stock | 443 | 441 |
Capital in excess of par value | 7,614 | 7,495 |
Retained earnings | 10,257 | 9,609 |
Accumulated other comprehensive loss | -518 | -476 |
Baker Hughes stockholders’ equity | 17,796 | 17,069 |
Noncontrolling interests | 197 | 199 |
Total equity | 17,993 | 17,268 |
Total liabilities and equity | $28,074 | $26,689 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $310 | $308 |
Accumulated depreciation | $7,004 | $6,315 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $15,964 | $437 | $7,303 | $8,561 | ($555) | $218 |
Comprehensive income: | ||||||
Net income | 1,102 | 1,097 | 5 | |||
Other comprehensive income (loss) | 81 | 81 | ||||
Activity related to stock plans | 30 | 2 | 28 | |||
Stock-based compensation | 94 | 94 | ||||
Cash dividends ($0.45 per share) | -197 | -197 | ||||
Net activity related to noncontrolling interests | -3 | 22 | -25 | |||
Balance at Sep. 30, 2012 | 17,071 | 439 | 7,447 | 9,461 | -474 | 198 |
Balance at Dec. 31, 2012 | 17,268 | 441 | 7,495 | 9,609 | -476 | 199 |
Comprehensive income: | ||||||
Net income | 853 | 848 | 5 | |||
Other comprehensive income (loss) | -42 | -42 | ||||
Activity related to stock plans | 28 | 2 | 26 | |||
Stock-based compensation | 93 | 93 | ||||
Cash dividends ($0.45 per share) | -200 | -200 | ||||
Net activity related to noncontrolling interests | -7 | -7 | ||||
Balance at Sep. 30, 2013 | $17,993 | $443 | $7,614 | $10,257 | ($518) | $197 |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statements of Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share | $0.15 | $0.15 | $0.45 | $0.45 |
Consolidated_Condensed_Stateme4
Consolidated Condensed Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $853 | $1,102 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 1,262 | 1,151 |
Other noncash items | -53 | -219 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -651 | -242 |
Inventories | -191 | -661 |
Accounts payable | 749 | 55 |
Other operating items, net | 189 | -239 |
Net cash flows provided by operating activities | 2,158 | 947 |
Cash flows from investing activities: | ||
Expenditures for capital assets | -1,552 | -2,183 |
Proceeds from disposal of assets | 276 | 287 |
Other investing items, net | -28 | 0 |
Net cash flows used in investing activities | -1,304 | -1,896 |
Cash flows from financing activities: | ||
Net (repayments) proceeds of commercial paper borrowings and other debt with three months or less original maturity | -391 | 1,075 |
Repayments of short-term debt with greater than three months original maturity | -119 | 0 |
Proceeds from short-term debt with greater than three months original maturity | 178 | 0 |
Dividends paid | -200 | -197 |
Other financing items, net | 33 | 24 |
Net cash flows (used in) provided by financing activities | -499 | 902 |
Effect of foreign exchange rate changes on cash and cash equivalents | -2 | 4 |
Increase (decrease) in cash and cash equivalents | 353 | -43 |
Cash and cash equivalents, beginning of period | 1,015 | 1,050 |
Cash and cash equivalents, end of period | 1,368 | 1,007 |
Supplemental cash flows disclosures: | ||
Income taxes paid, net of refunds | 498 | 811 |
Interest paid | 194 | 191 |
Supplemental disclosure of noncash investing activities: | ||
Capital expenditures included in accounts payable | $99 | $115 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of Operations | |
Baker Hughes Incorporated (“Baker Hughes,” “Company,” “we,” “our,” or “us,”) is a leading supplier of oilfield services, products, technology and systems used for drilling, formation evaluation, completion and production, pressure pumping, and reservoir development in the worldwide oil and natural gas industry. We also provide products and services for other businesses, including downstream refining, and process and pipeline services. | |
Basis of Presentation | |
Our unaudited consolidated condensed financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. These unaudited consolidated condensed financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012 (“2012 Annual Report”). We believe the unaudited consolidated condensed financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. Certain prior year amounts have been reclassified to present our Process and Pipelines Services business as continuing operations, consistent with the presentation in our 2012 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. In the notes to the unaudited consolidated condensed financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. | |
New Accounting Standards Updates | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires entities to present separately, among other items, the amount of the change that is due to reclassifications, and the amount that is due to current period other comprehensive income. We adopted the new presentation requirements in the notes to our financial statements in the first quarter of 2013. |
Venezuelan_Currency_Devaluatio
Venezuelan Currency Devaluation (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Foreign Currency [Abstract] | |
Venezuelan Currency Devaluation | VENEZUELAN CURRENCY DEVALUATION |
In February 2013, Venezuela's currency was devalued from the prior exchange rate of 4.3 Bolivars Fuertes per U.S. Dollar to 6.3 Bolivars Fuertes per U.S. Dollar, which applies to our local currency denominated balances. The impact of this devaluation was a loss of $23 million that was recorded in marketing, general and administrative expense in the first quarter of 2013. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||||||
A reconciliation of the number of shares used for the basic and diluted earnings per share (“EPS”) computations is as follows: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average common shares outstanding for basic EPS | 444 | 440 | 443 | 440 | ||||||||
Effect of dilutive securities - stock plans | 1 | 1 | 1 | 1 | ||||||||
Adjusted weighted average common shares outstanding for diluted EPS | 445 | 441 | 444 | 441 | ||||||||
Future potentially dilutive shares excluded from diluted EPS: | ||||||||||||
Options with an exercise price greater than the average market price for the period | 5 | 8 | 8 | 8 | ||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
Inventories, net of reserves, are comprised of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 3,500 | $ | 3,336 | ||||
Work in process | 240 | 228 | ||||||
Raw materials | 220 | 217 | ||||||
Total inventories | $ | 3,960 | $ | 3,781 | ||||
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS | |||||||||||||||||||||||
Intangible assets are comprised of the following: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Less: | Net | Gross | Less: | Net | |||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Definite lived intangibles: | ||||||||||||||||||||||||
Technology | $ | 816 | $ | 323 | $ | 493 | $ | 787 | $ | 282 | $ | 505 | ||||||||||||
Contract-based | 16 | 11 | 5 | 16 | 10 | 6 | ||||||||||||||||||
Trade names | 121 | 76 | 45 | 121 | 60 | 61 | ||||||||||||||||||
Customer relationships | 494 | 148 | 346 | 494 | 117 | 377 | ||||||||||||||||||
Subtotal | 1,447 | 558 | 889 | 1,418 | 469 | 949 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
In-process research and development | 26 | — | 26 | 44 | — | 44 | ||||||||||||||||||
Total intangible assets | $ | 1,473 | $ | 558 | $ | 915 | $ | 1,462 | $ | 469 | $ | 993 | ||||||||||||
Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 3 to 30 years. Amortization expense included in net income for the three months and nine months ended September 30, 2013 was $30 million and $89 million, respectively, as compared to $34 million and $97 million reported in 2012 for the same periods. | ||||||||||||||||||||||||
Amortization expense of these intangibles over the remainder of 2013 and for each of the subsequent five fiscal years is expected to be as follows: | ||||||||||||||||||||||||
Year | Estimated Amortization Expense | |||||||||||||||||||||||
Remainder of 2013 | $ | 30 | ||||||||||||||||||||||
2014 | 105 | |||||||||||||||||||||||
2015 | 97 | |||||||||||||||||||||||
2016 | 96 | |||||||||||||||||||||||
2017 | 92 | |||||||||||||||||||||||
2018 | 86 | |||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS |
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, debt and foreign currency forward contracts. Except as described below, the estimated fair value of such financial instruments at September 30, 2013 and December 31, 2012 approximates their carrying value as reflected in our unaudited consolidated condensed balance sheets. | |
The estimated fair value of total debt at September 30, 2013 and December 31, 2012 was $5,134 million and $5,829 million, respectively, which differs from the carrying amounts of $4,575 million and $4,916 million, respectively, included in our unaudited consolidated condensed balance sheets. The fair value was determined using quoted period-end market prices. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||||||||||
We conduct our business primarily through operating segments that are aligned with our geographic regions. We aggregate our operating segments within each reportable segment because they have similar economic characteristics and because the long-term financial performance of the operating segments is affected by similar economic conditions. The performance of our operating segments is evaluated based on profit before tax, which is defined as income before income taxes and before the following: net interest expense, corporate expenses and certain gains and losses not allocated to the operating segments. | ||||||||||||||||
Summarized financial information is shown in the following table: | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Segments | Revenue | Profit (Loss) Before Taxes | Revenue | Profit (Loss) Before Taxes | ||||||||||||
North America | $ | 2,854 | $ | 295 | $ | 2,742 | $ | 288 | ||||||||
Latin America | 557 | (23 | ) | 583 | 45 | |||||||||||
Europe/Africa/Russia Caspian | 984 | 170 | 866 | 104 | ||||||||||||
Middle East/Asia Pacific | 1,064 | 156 | 844 | 70 | ||||||||||||
Industrial Services and Other | 328 | 38 | 320 | 38 | ||||||||||||
Total Operations | 5,787 | 636 | 5,355 | 545 | ||||||||||||
Corporate and Other | — | (60 | ) | — | (59 | ) | ||||||||||
Interest expense, net | — | (58 | ) | — | (49 | ) | ||||||||||
Total | $ | 5,787 | $ | 518 | $ | 5,355 | $ | 437 | ||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Segments | Revenue | Profit (Loss) Before Taxes | Revenue | Profit (Loss) Before Taxes | ||||||||||||
North America | $ | 8,134 | $ | 741 | $ | 8,277 | $ | 1,046 | ||||||||
Latin America | 1,704 | 8 | 1,760 | 189 | ||||||||||||
Europe/Africa/Russia Caspian | 2,804 | 414 | 2,684 | 413 | ||||||||||||
Middle East/Asia Pacific | 2,929 | 387 | 2,393 | 232 | ||||||||||||
Industrial Services and Other | 933 | 101 | 922 | 104 | ||||||||||||
Total Operations | 16,504 | 1,651 | 16,036 | 1,984 | ||||||||||||
Corporate and Other | — | (184 | ) | — | (232 | ) | ||||||||||
Interest expense, net | — | (173 | ) | — | (153 | ) | ||||||||||
Total | $ | 16,504 | $ | 1,294 | $ | 16,036 | $ | 1,599 | ||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Abstract] | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||
We have both funded and unfunded noncontributory defined benefit pension plans covering certain employees primarily in the U.S., the U.K., Germany and Canada. We also provide certain postretirement health care benefits (“other postretirement benefits”), through an unfunded plan, to a closed group of U.S. employees who retire and have met certain age and service requirements. | ||||||||||||||||||||||||
The components of net periodic pension cost are as follows for the three months ended September 30: | ||||||||||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 16 | $ | 16 | $ | 4 | $ | 2 | $ | 1 | $ | 3 | ||||||||||||
Interest cost | 5 | 5 | 8 | 8 | 1 | 2 | ||||||||||||||||||
Expected return on plan assets | (9 | ) | (9 | ) | (9 | ) | (9 | ) | — | — | ||||||||||||||
Amortization of prior service benefit | — | — | — | — | (2 | ) | — | |||||||||||||||||
Amortization of net actuarial loss | 3 | 4 | 2 | 2 | 1 | — | ||||||||||||||||||
Net periodic pension cost | $ | 15 | $ | 16 | $ | 5 | $ | 3 | $ | 1 | $ | 5 | ||||||||||||
The components of net periodic pension cost are as follows for the nine months ended September 30: | ||||||||||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 48 | $ | 48 | $ | 12 | $ | 6 | $ | 5 | $ | 9 | ||||||||||||
Interest cost | 16 | 15 | 24 | 24 | 3 | 6 | ||||||||||||||||||
Expected return on plan assets | (29 | ) | (27 | ) | (29 | ) | (27 | ) | — | — | ||||||||||||||
Amortization of prior service benefit | — | — | — | — | (6 | ) | (2 | ) | ||||||||||||||||
Amortization of net actuarial loss | 10 | 12 | 6 | 5 | 3 | 1 | ||||||||||||||||||
Benefit settlement | — | — | — | 6 | — | — | ||||||||||||||||||
Net periodic pension cost | $ | 45 | $ | 48 | $ | 13 | $ | 14 | $ | 5 | $ | 14 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
LITIGATION | |
We are subject to a number of lawsuits and claims arising out of the conduct of our business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. We insure against these risks to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Most of these insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation. We record a liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, including accruals for self-insured losses which are calculated based on historical claim data, specific loss development factors and other information as necessary. | |
Based on a consideration of all relevant facts and circumstances, we do not expect the ultimate outcome of any currently pending lawsuits or claims against us will have a material adverse effect on our financial position, results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. | |
On May 30, 2013, we received a Civil Investigative Demand (“CID”) from the United States Department of Justice (“DOJ”) pursuant to the Antitrust Civil Process Act. The CID seeks documents and information from us for the period from May 29, 2011 through the date of the CID in connection with a DOJ investigation related to pressure pumping services in the United States. We are working with the DOJ to provide the requested documents and information. We are not able to predict what action, if any, might be taken in the future by the DOJ or other governmental authorities as a result of the investigation. | |
On September 19, 2012, our subsidiary, Baker Hughes Oilfield Operations, Inc. (“BHOO”) terminated a sand supply agreement it had entered into with Hi-Crush Operating, LLC (“Hi-Crush”) on October 28, 2011 (as amended by the First Amendment to Supply Agreement on May 10, 2012, collectively the “Supply Agreement”) as a result of Hi-Crush's breach of the Supply Agreement. On November 12, 2012, Hi-Crush filed a lawsuit against BHOO in the 129th Judicial District Court in Harris County, Texas, Cause No. 2012-67261; Hi-Crush Operating, LLC v. Baker Hughes Oilfield Operations, Inc. In its petition, Hi-Crush claimed that BHOO's termination was “invalid” constituting a breach and that BHOO “anticipatorily repudiated the Supply Agreement without just excuse.” Hi-Crush claimed that it was entitled to recover liquidated damages of $187 million based on the undelivered Minimum Purchase Requirement provision defined in the Supply Agreement; in the alternative, Hi-Crush sought an unspecified amount of actual damages. On December 17, 2012, BHOO filed a responsive pleading denying Hi-Crush's allegations and also filed a counter claim for breach of contract. On October 10, 2013, BHOO and Hi-Crush entered into a settlement agreement pursuant to which both parties agreed to jointly dismiss the above litigation. In connection with this settlement agreement, the parties have entered into a new supply agreement. The settlement agreement did not have a material impact on our financial position, results of operations or cash flows. | |
OTHER | |
In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, including surety bonds for performance, letters of credit and other bank guarantees, which totaled approximately $1.5 billion at September 30, 2013. It is not practicable to estimate the fair value of these financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect on our financial position, results of operations or cash flows. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||
Total accumulated other comprehensive loss consists of the following: | |||||||||||||||||||||
Pensions and Other Postretirement Benefits | Currency Translation Adjustments | Hedge Transactions | Accumulated Other Comprehensive Loss | ||||||||||||||||||
Balance at December 31, 2012 | $ | (250 | ) | $ | (226 | ) | $ | — | $ | (476 | ) | ||||||||||
Other comprehensive loss before reclassifications | — | (50 | ) | (1 | ) | (51 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 13 | — | — | 13 | |||||||||||||||||
Deferred taxes | (4 | ) | — | — | (4 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | (241 | ) | $ | (276 | ) | $ | (1 | ) | $ | (518 | ) | |||||||||
Pensions and Other Postretirement Benefits | Currency Translation Adjustments | Hedge Transactions | Accumulated Other Comprehensive Loss | ||||||||||||||||||
Balance at December 31, 2011 | $ | (251 | ) | $ | (304 | ) | $ | — | $ | (555 | ) | ||||||||||
Other comprehensive income before reclassifications | 9 | 61 | 1 | 71 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 16 | — | — | 16 | |||||||||||||||||
Deferred taxes | (6 | ) | — | — | (6 | ) | |||||||||||||||
Balance at September 30, 2012 | $ | (232 | ) | $ | (243 | ) | $ | 1 | $ | (474 | ) | ||||||||||
The amounts reclassified from accumulated other comprehensive loss during the nine months ended September 30, 2012 and 2013 represent the amortization of prior service benefit and net actuarial loss which are included in the computation of net periodic pension cost (see Note 8. Employee Benefit Plans for additional details). Net periodic pension cost is recorded in cost of sales and services, research and engineering, and marketing, general and administrative expenses. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations |
Baker Hughes Incorporated (“Baker Hughes,” “Company,” “we,” “our,” or “us,”) is a leading supplier of oilfield services, products, technology and systems used for drilling, formation evaluation, completion and production, pressure pumping, and reservoir development in the worldwide oil and natural gas industry. We also provide products and services for other businesses, including downstream refining, and process and pipeline services. | |
Basis of Presentation | Basis of Presentation |
Our unaudited consolidated condensed financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. These unaudited consolidated condensed financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012 (“2012 Annual Report”). We believe the unaudited consolidated condensed financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. Certain prior year amounts have been reclassified to present our Process and Pipelines Services business as continuing operations, consistent with the presentation in our 2012 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. In the notes to the unaudited consolidated condensed financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. | |
New Accounting Standards Updates | New Accounting Standards Updates |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires entities to present separately, among other items, the amount of the change that is due to reclassifications, and the amount that is due to current period other comprehensive income. We adopted the new presentation requirements in the notes to our financial statements in the first quarter of 2013. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share (Table) [Abstract] | ||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | A reconciliation of the number of shares used for the basic and diluted earnings per share (“EPS”) computations is as follows: | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted average common shares outstanding for basic EPS | 444 | 440 | 443 | 440 | ||||||||
Effect of dilutive securities - stock plans | 1 | 1 | 1 | 1 | ||||||||
Adjusted weighted average common shares outstanding for diluted EPS | 445 | 441 | 444 | 441 | ||||||||
Future potentially dilutive shares excluded from diluted EPS: | ||||||||||||
Options with an exercise price greater than the average market price for the period | 5 | 8 | 8 | 8 | ||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories, net of reserves | Inventories, net of reserves, are comprised of the following: | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 3,500 | $ | 3,336 | ||||
Work in process | 240 | 228 | ||||||
Raw materials | 220 | 217 | ||||||
Total inventories | $ | 3,960 | $ | 3,781 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||||||||||||||||||||||||
Schedule of Definite Lived and Indefinite Lived Intangible [Table Text Block] | Intangible assets are comprised of the following: | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Less: | Net | Gross | Less: | Net | |||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||
Definite lived intangibles: | ||||||||||||||||||||||||
Technology | $ | 816 | $ | 323 | $ | 493 | $ | 787 | $ | 282 | $ | 505 | ||||||||||||
Contract-based | 16 | 11 | 5 | 16 | 10 | 6 | ||||||||||||||||||
Trade names | 121 | 76 | 45 | 121 | 60 | 61 | ||||||||||||||||||
Customer relationships | 494 | 148 | 346 | 494 | 117 | 377 | ||||||||||||||||||
Subtotal | 1,447 | 558 | 889 | 1,418 | 469 | 949 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
In-process research and development | 26 | — | 26 | 44 | — | 44 | ||||||||||||||||||
Total intangible assets | $ | 1,473 | $ | 558 | $ | 915 | $ | 1,462 | $ | 469 | $ | 993 | ||||||||||||
Intangible_Assets_Amortization
Intangible Assets Amortization expense for the reminder of current year and subsequent five fiscal years (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Schedule of Finite-Lived Future Estimated Amortization Expense [Line Items] | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense of these intangibles over the remainder of 2013 and for each of the subsequent five fiscal years is expected to be as follows: | |||
Year | Estimated Amortization Expense | |||
Remainder of 2013 | $ | 30 | ||
2014 | 105 | |||
2015 | 97 | |||
2016 | 96 | |||
2017 | 92 | |||
2018 | 86 | |||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Summarized financial information | Summarized financial information is shown in the following table: | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Segments | Revenue | Profit (Loss) Before Taxes | Revenue | Profit (Loss) Before Taxes | ||||||||||||
North America | $ | 2,854 | $ | 295 | $ | 2,742 | $ | 288 | ||||||||
Latin America | 557 | (23 | ) | 583 | 45 | |||||||||||
Europe/Africa/Russia Caspian | 984 | 170 | 866 | 104 | ||||||||||||
Middle East/Asia Pacific | 1,064 | 156 | 844 | 70 | ||||||||||||
Industrial Services and Other | 328 | 38 | 320 | 38 | ||||||||||||
Total Operations | 5,787 | 636 | 5,355 | 545 | ||||||||||||
Corporate and Other | — | (60 | ) | — | (59 | ) | ||||||||||
Interest expense, net | — | (58 | ) | — | (49 | ) | ||||||||||
Total | $ | 5,787 | $ | 518 | $ | 5,355 | $ | 437 | ||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Segments | Revenue | Profit (Loss) Before Taxes | Revenue | Profit (Loss) Before Taxes | ||||||||||||
North America | $ | 8,134 | $ | 741 | $ | 8,277 | $ | 1,046 | ||||||||
Latin America | 1,704 | 8 | 1,760 | 189 | ||||||||||||
Europe/Africa/Russia Caspian | 2,804 | 414 | 2,684 | 413 | ||||||||||||
Middle East/Asia Pacific | 2,929 | 387 | 2,393 | 232 | ||||||||||||
Industrial Services and Other | 933 | 101 | 922 | 104 | ||||||||||||
Total Operations | 16,504 | 1,651 | 16,036 | 1,984 | ||||||||||||
Corporate and Other | — | (184 | ) | — | (232 | ) | ||||||||||
Interest expense, net | — | (173 | ) | — | (153 | ) | ||||||||||
Total | $ | 16,504 | $ | 1,294 | $ | 16,036 | $ | 1,599 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic pension cost are as follows for the three months ended September 30: | |||||||||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 16 | $ | 16 | $ | 4 | $ | 2 | $ | 1 | $ | 3 | ||||||||||||
Interest cost | 5 | 5 | 8 | 8 | 1 | 2 | ||||||||||||||||||
Expected return on plan assets | (9 | ) | (9 | ) | (9 | ) | (9 | ) | — | — | ||||||||||||||
Amortization of prior service benefit | — | — | — | — | (2 | ) | — | |||||||||||||||||
Amortization of net actuarial loss | 3 | 4 | 2 | 2 | 1 | — | ||||||||||||||||||
Net periodic pension cost | $ | 15 | $ | 16 | $ | 5 | $ | 3 | $ | 1 | $ | 5 | ||||||||||||
The components of net periodic pension cost are as follows for the nine months ended September 30: | ||||||||||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 48 | $ | 48 | $ | 12 | $ | 6 | $ | 5 | $ | 9 | ||||||||||||
Interest cost | 16 | 15 | 24 | 24 | 3 | 6 | ||||||||||||||||||
Expected return on plan assets | (29 | ) | (27 | ) | (29 | ) | (27 | ) | — | — | ||||||||||||||
Amortization of prior service benefit | — | — | — | — | (6 | ) | (2 | ) | ||||||||||||||||
Amortization of net actuarial loss | 10 | 12 | 6 | 5 | 3 | 1 | ||||||||||||||||||
Benefit settlement | — | — | — | 6 | — | — | ||||||||||||||||||
Net periodic pension cost | $ | 45 | $ | 48 | $ | 13 | $ | 14 | $ | 5 | $ | 14 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Total accumulated other comprehensive loss consists of the following: | |||||||||||||||||||||||||||||||||||||||||
Pensions and Other Postretirement Benefits | Currency Translation Adjustments | Hedge Transactions | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||
Pensions and Other Postretirement Benefits | Currency Translation Adjustments | Hedge Transactions | Accumulated Other Comprehensive Loss | Balance at December 31, 2011 | $ | (251 | ) | $ | (304 | ) | $ | — | $ | (555 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | (250 | ) | $ | (226 | ) | $ | — | $ | (476 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 9 | 61 | 1 | 71 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | — | (50 | ) | (1 | ) | (51 | ) | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 16 | — | — | 16 | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 13 | — | — | 13 | ||||||||||||||||||||||||||||||||||||||
Deferred taxes | (6 | ) | — | — | (6 | ) | ||||||||||||||||||||||||||||||||||||
Deferred taxes | (4 | ) | — | — | (4 | ) | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2012 | $ | (232 | ) | $ | (243 | ) | $ | 1 | $ | (474 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | (241 | ) | $ | (276 | ) | $ | (1 | ) | $ | (518 | ) | ||||||||||||||||||||||||||||||
Venezuelan_Currency_Devaluatio1
Venezuelan Currency Devaluation (Details) (Venezuela, Bolivars Fuertes, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Venezuela, Bolivars Fuertes | |
Prior Exchange Rate | 4.3 |
New Currency Exchange Rate | 6.3 |
Foreign Currency Transaction Loss, before Tax | $23 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding for basic EPS | 444 | 440 | 443 | 440 |
Effect of dilutive securities - stock plans | 1 | 1 | 1 | 1 |
Adjusted weighted average common shares outstanding for diluted EPS | 445 | 441 | 444 | 441 |
Future potentially dilutive shares excluded from diluted EPS: | ||||
Options with an exercise price greater than the average market price for the period | 5 | 8 | 8 | 8 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories, net of reserves [Abstract] | ||
Finished goods | $3,500 | $3,336 |
Work in process | 240 | 228 |
Raw materials | 220 | 217 |
Total inventories | $3,960 | $3,781 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $1,447 | $1,418 |
Intangible Assets, Gross (Excluding Goodwill) | 1,473 | 1,462 |
Finite-Lived Intangible Assets, Accumulated Amortization | 558 | 469 |
Intangible Assets, Net (Excluding Goodwill) | 915 | 993 |
Finite-Lived Intangible Assets, Net | 889 | 949 |
Technology-Based Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 816 | 787 |
Finite-Lived Intangible Assets, Accumulated Amortization | 323 | 282 |
Finite-Lived Intangible Assets, Net | 493 | 505 |
Contract-Based Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 16 | 16 |
Finite-Lived Intangible Assets, Accumulated Amortization | 11 | 10 |
Finite-Lived Intangible Assets, Net | 5 | 6 |
Trade Names [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 121 | 121 |
Finite-Lived Intangible Assets, Accumulated Amortization | 76 | 60 |
Finite-Lived Intangible Assets, Net | 45 | 61 |
Customer Relationships [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 494 | 494 |
Finite-Lived Intangible Assets, Accumulated Amortization | 148 | 117 |
Finite-Lived Intangible Assets, Net | 346 | 377 |
In Process Research and Development [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 26 | 44 |
Indefinite Lived Intangible Assets Accumulated Amortization | $0 | $0 |
Intangible_Assets_Schedule_of_
Intangible Assets Schedule of Finite-Lived Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense for intangible assets included in net income | $30 | $34 | $89 | $97 |
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 30 years |
Intangible_Assets_Amortization1
Intangible Assets Amortization expense for the reminder of current year and subsequent five fiscal years (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Schedule of Finite-Lived Future Estimated Amortization Expense [Line Items] | |
Reminder of 2013 | $30 |
2014 | 105 |
2015 | 97 |
2016 | 96 |
2017 | 92 |
2018 | $86 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments (Textual) [Abstract] | ||
Debt, fair value | $5,134 | $5,829 |
Debt, carrying amount | $4,575 | $4,916 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summarized financial information [Abstract] | ||||
Revenue | $5,787 | $5,355 | $16,504 | $16,036 |
Profit (Loss) Before Taxes | 518 | 437 | 1,294 | 1,599 |
Industrial Services and Other | ||||
Summarized financial information [Abstract] | ||||
Revenue | 328 | 320 | 933 | 922 |
Profit (Loss) Before Taxes | 38 | 38 | 101 | 104 |
Total Operations | ||||
Summarized financial information [Abstract] | ||||
Revenue | 5,787 | 5,355 | 16,504 | 16,036 |
Profit (Loss) Before Taxes | 636 | 545 | 1,651 | 1,984 |
Corporate and Other | ||||
Summarized financial information [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Profit (Loss) Before Taxes | -60 | -59 | -184 | -232 |
Interest expense, net | ||||
Summarized financial information [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Profit (Loss) Before Taxes | -58 | -49 | -173 | -153 |
North America | ||||
Summarized financial information [Abstract] | ||||
Revenue | 2,854 | 2,742 | 8,134 | 8,277 |
Profit (Loss) Before Taxes | 295 | 288 | 741 | 1,046 |
Latin America | ||||
Summarized financial information [Abstract] | ||||
Revenue | 557 | 583 | 1,704 | 1,760 |
Profit (Loss) Before Taxes | -23 | 45 | 8 | 189 |
Europe/Africa/Russia Caspian | ||||
Summarized financial information [Abstract] | ||||
Revenue | 984 | 866 | 2,804 | 2,684 |
Profit (Loss) Before Taxes | 170 | 104 | 414 | 413 |
Middle East/Asia Pacific | ||||
Summarized financial information [Abstract] | ||||
Revenue | 1,064 | 844 | 2,929 | 2,393 |
Profit (Loss) Before Taxes | $156 | $70 | $387 | $232 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
U.S. Pension Plans | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $16 | $16 | $48 | $48 |
Interest cost | 5 | 5 | 16 | 15 |
Expected return on plan assets | -9 | -9 | -29 | -27 |
Amortization of prior service benefit | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 3 | 4 | 10 | 12 |
Benefit settlement | 0 | 0 | ||
Net periodic pension cost | 15 | 16 | 45 | 48 |
Non-U.S. Pension Plans | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 4 | 2 | 12 | 6 |
Interest cost | 8 | 8 | 24 | 24 |
Expected return on plan assets | -9 | -9 | -29 | -27 |
Amortization of prior service benefit | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 2 | 2 | 6 | 5 |
Benefit settlement | 0 | 6 | ||
Net periodic pension cost | 5 | 3 | 13 | 14 |
Other Postretirement Benefits | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 1 | 3 | 5 | 9 |
Interest cost | 1 | 2 | 3 | 6 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service benefit | -2 | 0 | -6 | -2 |
Amortization of net actuarial loss | 1 | 0 | 3 | 1 |
Benefit settlement | 0 | 0 | ||
Net periodic pension cost | $1 | $5 | $5 | $14 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Liquidated Damages | $187,000,000 |
Off-balance sheet arrangements related to letters of credit and other bank issued guarantees, total | $1,500,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning Balance | ($476) | ($555) |
Other comprehensive loss before reclassifications | -51 | 71 |
Amounts reclassified from accumulated other comprehensive loss | 13 | 16 |
Deferred taxes | -4 | -6 |
Ending Balance | -518 | -474 |
Pensions and Other Postretirement Benefits | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning Balance | -250 | -251 |
Other comprehensive loss before reclassifications | 0 | 9 |
Amounts reclassified from accumulated other comprehensive loss | 13 | 16 |
Deferred taxes | -4 | -6 |
Ending Balance | -241 | -232 |
Currency Translation Adjustments | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning Balance | -226 | -304 |
Other comprehensive loss before reclassifications | -50 | 61 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Deferred taxes | 0 | 0 |
Ending Balance | -276 | -243 |
Hedge Transactions | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Beginning Balance | 0 | 0 |
Other comprehensive loss before reclassifications | -1 | 1 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Deferred taxes | 0 | 0 |
Ending Balance | ($1) | $1 |