Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 15, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CAMERON INTERNATIONAL CORP | ||
Entity Central Index Key | 941,548 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 8,048,562,581 | ||
Document Fiscal Year Focus | 191,599,032 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
Consolidated Results of Operati
Consolidated Results of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 8,782 | $ 10,381 | $ 9,138 |
Costs and expenses: | |||
Cost of sales (exclusive of depreciation and amortization shown separately below) | 6,126 | 7,464 | 6,518 |
Selling and administrative expenses | 1,082 | 1,287 | 1,275 |
Depreciation and amortization | 342 | 348 | 298 |
Interest, net | 138 | 129 | 100 |
Asset charges (see Note 4) | 639 | 44 | 0 |
Other costs (see Note 4) | 134 | 29 | 92 |
Total costs and expenses | 8,461 | 9,301 | 8,283 |
Income from continuing operations before income taxes | 321 | 1,080 | 855 |
Income tax provision | (184) | (258) | (196) |
Income from continuing operations | 137 | 822 | 659 |
Income from discontinued operations, net of income taxes | 431 | 26 | 65 |
Net income | 568 | 848 | 724 |
Less: Net income attributable to noncontrolling interests | 67 | 37 | 25 |
Net income attributable to Cameron stockholders | 501 | 811 | 699 |
Amounts attributable to Cameron stockholders: | |||
Income from continuing operations | 70 | 785 | 634 |
Income from discontinued operations | 431 | 26 | 65 |
Net income attributable to Cameron stockholders | $ 501 | $ 811 | $ 699 |
Basic - | |||
Continuing operations (in dollars per share) | $ 0.36 | $ 3.85 | $ 2.62 |
Discontinued operations (in dollars per share) | 2.25 | 0.13 | 0.27 |
Basic earnings per share (in dollars per share) | 2.61 | 3.98 | 2.89 |
Diluted - | |||
Continuing operations (in dollars per share) | 0.36 | 3.83 | 2.60 |
Discontinued operations (in dollars per share) | 2.24 | 0.13 | 0.27 |
Diluted earnings per share (in dollars per share) | $ 2.60 | $ 3.96 | $ 2.87 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 568 | $ 848 | $ 724 |
Foreign currency translation losses | (469) | (526) | (70) |
Gains (losses) on derivatives recognized in other comprehensive income: | |||
Pre-tax | (80) | (109) | 19 |
Tax effect | 15 | 33 | (5) |
(Gains) losses on derivatives reclassified from accumulated other comprehensive income to: | |||
Revenues | 59 | 7 | (2) |
Cost of sales | 40 | 6 | (5) |
Tax effect | (29) | (5) | 2 |
Actuarial gains (losses) recognized in other comprehensive income: | |||
Pre-tax | 10 | (43) | 25 |
Tax effect | (2) | 8 | (12) |
Curtailment and settlement (gains) losses recognized: | |||
Pre-tax | 2 | (11) | 0 |
Tax effect | (1) | 3 | 0 |
Amortization to selling and administrative expenses of: | |||
Prior service credits | (3) | (2) | (3) |
Net actuarial losses | 8 | 6 | 7 |
Tax effect | (1) | (1) | 0 |
Comprehensive income | 117 | 214 | 680 |
Comprehensive income attributable to noncontrolling interest: | |||
Net income | 67 | 37 | 25 |
Foreign currency translation gains (losses) | (111) | (147) | 24 |
Gains (losses) on derivatives recognized in other comprehensive income, net of tax | (11) | (24) | 7 |
(Gains) losses on derivatives reclassified from accumulated other comprehensive income, net of tax | 11 | 4 | (1) |
Actuarial gains recognized in other comprehensive income, net of tax | (4) | (4) | (26) |
Curtailment and settlement losses recognized in other comprehensive income, net of tax | 0 | (5) | 0 |
Amortization to selling and administrative expenses, net of tax | 1 | 2 | 2 |
Comprehensive income (loss) attributable to noncontrolling interest | (47) | (137) | 31 |
Comprehensive income attributable to Cameron | $ 164 | $ 351 | $ 649 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and cash equivalents | $ 1,775 | $ 1,513 |
Short-term investments | 584 | 113 |
Receivables, net | 1,964 | 2,389 |
Inventories, net | 2,360 | 2,929 |
Other current assets | 333 | 391 |
Assets held for sale | 102 | 217 |
Total current assets | 7,118 | 7,552 |
Plant and equipment, net | 1,717 | 1,964 |
Goodwill | 1,764 | 2,461 |
Intangibles, net | 582 | 728 |
Other assets | 319 | 187 |
Total assets | 11,500 | 12,892 |
Liabilities and stockholders’ equity: | ||
Short-term debt | 284 | 263 |
Accounts payable and accrued liabilities | 2,793 | 3,748 |
Accrued income taxes | 127 | 168 |
Liabilities held for sale | 2 | 90 |
Total current liabilities | 3,206 | 4,269 |
Long-term debt | 2,542 | 2,819 |
Deferred income taxes | 212 | 193 |
Other long-term liabilities | 150 | 167 |
Total liabilities | $ 6,110 | $ 7,448 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at December 31, 2015 and 2014 | $ 3 | $ 3 |
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Capital in excess of par value | 3,265 | 3,255 |
Retained earnings | 6,132 | 5,631 |
Accumulated other elements of comprehensive income (loss) | (877) | (540) |
Less: Treasury stock at cost, 71,931,558 shares at December 31, 2015 and 68,139,027 shares at December 31, 2014 | (3,969) | (3,794) |
Total Cameron stockholders’ equity | 4,554 | 4,555 |
Noncontrolling interests | 836 | 889 |
Total equity | 5,390 | 5,444 |
Total liabilities and stockholders’ equity | $ 11,500 | $ 12,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 263,111,472 | 263,111,472 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury common stock at cost (in shares) | 71,931,558 | 68,139,027 |
Consolidated Cash Flows
Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 568 | $ 848 | $ 724 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Asset charges | 639 | 44 | 0 |
Loss on disposal of non-core assets | 15 | 10 | 0 |
Pre-tax gain on sale of compression businesses | (681) | (95) | 0 |
Depreciation | 293 | 296 | 246 |
Amortization | 49 | 64 | 69 |
Non-cash stock compensation expense | 49 | 54 | 54 |
Gain from remeasurement of prior interest in equity method investment | 0 | (8) | 0 |
Deferred income taxes and tax benefit of stock compensation plan transactions | (50) | (48) | 11 |
Changes in assets and liabilities, net of translation, acquisitions and non-cash items: | |||
Receivables | 390 | 166 | (470) |
Inventories | 362 | (144) | (367) |
Accounts payable and accrued liabilities | (913) | (17) | 556 |
Other assets and liabilities, net | (13) | 23 | 15 |
Net cash provided by operating activities | 708 | 1,193 | 838 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of short-term investments | 923 | 65 | 1,559 |
Purchases of short-term investments | (1,394) | (137) | (1,082) |
Capital expenditures | (285) | (385) | (520) |
Net proceeds received from sale of compression businesses, net | 831 | 547 | 0 |
Other dispositions (acquisitions), net of cash acquired | 0 | (7) | (11) |
Proceeds received and cash acquired from formation of OneSubsea™, net of taxes paid of $80 | 0 | 0 | 523 |
Proceeds from sales of plant and equipment | 14 | 13 | 13 |
Net cash provided by investing activities | 89 | 96 | 482 |
Cash flows from financing activities: | |||
Issuance of senior debt | 0 | 500 | 747 |
Debt issuance costs | 0 | (4) | (6) |
Early retirement of senior notes | 0 | (253) | 0 |
Short-term loan borrowings (repayments), net | (222) | (34) | 46 |
Purchase of treasury stock | (240) | (1,747) | (1,531) |
Contributions from (distributions to) noncontrolling interest owners | (3) | (42) | 62 |
Purchases of noncontrolling ownership interests | 0 | 0 | (7) |
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions | 20 | 40 | 31 |
Excess tax benefits from stock compensation plan transactions | 2 | 6 | 9 |
Principal payments on capital leases | (18) | (20) | (18) |
Net cash used for financing activities | (461) | (1,554) | (667) |
Effect of translation on cash | (74) | (35) | (26) |
Increase (decrease) in cash and cash equivalents | 262 | (300) | 627 |
Cash and cash equivalents, beginning of year | 1,513 | 1,813 | 1,186 |
Cash and cash equivalents, end of year | $ 1,775 | $ 1,513 | $ 1,813 |
Consolidated Cash Flows (Parent
Consolidated Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Cash flows from investing activities: | |
Proceeds received and cash acquired from formation of OneSubsea, taxes paid | $ 80 |
Consolidated Changes in Stockho
Consolidated Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par value | Retained Earnings | Accumulated Other Elements of Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests |
Beginning Balance at Dec. 31, 2012 | $ 5,566 | $ 3 | $ 2,094 | $ 4,121 | $ (30) | $ (622) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Formation of OneSubsea, net of tax effects of $90 | 2,010 | 1,083 | 927 | ||||
Net income | 724 | 699 | 25 | ||||
Other comprehensive income (loss) | (44) | (50) | 6 | ||||
Non-cash stock compensation expense | 54 | 54 | |||||
Net change in treasury shares owned by participants in nonqualified deferred compensation plans | (2) | (2) | |||||
Purchase of treasury stock | (1,533) | (1,533) | |||||
Treasury stock issued under stock compensation plans | 31 | (28) | 59 | ||||
Tax benefit of stock compensation plan transactions | 10 | 10 | |||||
Contributions from noncontrolling interest owners | 75 | 75 | |||||
Purchases of noncontrolling ownership interests | (7) | (7) | |||||
Other noncontrolling interests | 38 | 38 | |||||
Other | (6) | (6) | |||||
Ending Balance at Dec. 31, 2013 | 6,916 | 3 | 3,207 | 4,820 | (80) | (2,098) | 1,064 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 848 | 811 | 37 | ||||
Other comprehensive income (loss) | (634) | (460) | (174) | ||||
Non-cash stock compensation expense | 54 | 54 | |||||
Purchase of treasury stock | (1,750) | (1,750) | |||||
Treasury stock issued under stock compensation plans | 42 | (12) | 54 | ||||
Tax benefit of stock compensation plan transactions | 6 | 6 | |||||
Purchases of noncontrolling ownership interests | 4 | 4 | |||||
Distributions to noncontrolling interest owners | (42) | (42) | |||||
Ending Balance at Dec. 31, 2014 | 5,444 | 3 | 3,255 | 5,631 | (540) | (3,794) | 889 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 568 | 501 | 67 | ||||
Other comprehensive income (loss) | (451) | (337) | (114) | ||||
Non-cash stock compensation expense | 49 | 49 | |||||
Purchase of treasury stock | (236) | (236) | |||||
Treasury stock issued under stock compensation plans | 20 | (41) | 61 | ||||
Tax benefit of stock compensation plan transactions | 2 | 2 | |||||
Purchases of noncontrolling ownership interests | 18 | 18 | |||||
Distributions to noncontrolling interest owners | (21) | (21) | |||||
Other | (3) | (3) | |||||
Ending Balance at Dec. 31, 2015 | $ 5,390 | $ 3 | $ 3,265 | $ 6,132 | $ (877) | $ (3,969) | $ 836 |
Consolidated Changes in Stockh9
Consolidated Changes in Stockholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Formation of OneSubsea, tax effects | $ 90 |
Summary of Major Accounting Pol
Summary of Major Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Major Accounting Policies | Summary of Major Accounting Policies Company Operations — Cameron International Corporation (Cameron or the Company) provides flow equipment products, systems and services to worldwide oil, gas and process industries through four business segments, Subsea, Surface, Drilling and Valves & Measurement (V&M). Prior to the fourth quarter of 2014, the Company reported its business segments as being Drilling & Production Systems (DPS), which included the Subsea, Drilling and Surface businesses, V&M and Process and Compression Systems, which included the Reciprocating and Centrifugal Compression businesses, both of which are now reported as discontinued operations (See Note 3 of the Notes to Consolidated Financial Statements) and the Processing Systems business. Additional information regarding each segment may be found in Note 16 of the Notes to Consolidated Financial Statements. Principles of Consolidation — These consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. Investments in affiliated companies are accounted for using the equity method when we are able to exert significant influence over the operations of the investee. Estimates in Financial Statements — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management 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 revenues and expenses during the reporting period. Such estimates include, but are not limited to, estimates of total contract profit or loss on certain long-term production contracts, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, contingencies (including tax contingencies, estimated liabilities for litigation exposures and liquidated damages), estimated warranty costs, estimates related to pension accounting, estimates used to determine fair values in purchase accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ materially from these estimates. Revenue Recognition — The Company generally recognizes revenue, net of sales taxes, related to products, services or rental arrangements once the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery of the equipment has occurred or the customer has taken title and risk of loss or services have been rendered, (iii) the price of the equipment or service is fixed and determinable and (iv) collectibility is reasonably assured. For engineering, procurement and construction-type contracts, revenue is generally reported on the percentage-of-completion method of accounting. Progress is primarily measured by the completion of milestones; however, progress for specific types of subsea and drilling systems contracts, which differ from our other contracts, is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. Both methods require the Company to make estimates regarding the total costs of the project, which impacts the amount of gross margin the Company recognizes in each reporting period. Under the percentage-of-completion method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in accounting for contracts. All known or anticipated losses on contracts are provided for in the period they become evident. Revenues and gross profit on contracts can be significantly affected by change orders that may be approved subsequent to completion of related work. If it is not probable that costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. If it is probable that costs will be recovered through a change order, the costs are treated as contract costs and contract revenue is recognized to the extent of the lesser of the amounts management expects to recover or the costs expected to be incurred. Approximately 32% , 31% and 31% of the Company’s revenues for the years ended December 31, 2015 , 2014 and 2013 , respectively, were recognized under the percentage-of-completion method. Shipping and Handling Costs — Shipping and handling costs are reflected in the caption entitled “Cost of sales (exclusive of depreciation and amortization shown separately below)” in the accompanying Consolidated Results of Operations statements. Cash Equivalents and Short-Term Investments — Cash equivalents consist of highly liquid investments which are readily convertible to cash and have maturities of three months or less at the time of purchase. Short-term investments consist primarily of commercial paper, U.S. Treasury securities, U.S. non-governmental agency asset-backed securities and corporate debt obligations that have maturities of more than three months but less than one year. All of our short-term investments are classified as available-for-sale and recorded at fair value, with unrealized holding gains and losses recorded as a component of accumulated other comprehensive income (loss). Allowance for Doubtful Accounts — The Company maintains allowances for doubtful accounts for estimated losses expected to result from the inability of its customers to make required payments. Such allowances are based upon several factors including, but not limited to, historical experience, the length of time an invoice has been outstanding, responses from customers relating to demands for payment and the current and projected financial condition of specific customers. Inventories — Aggregate inventories are carried at the lower of cost or market. On the basis of current costs less accumulated depreciation and impairment charges, 54% of inventories at December 31, 2015 and 54% at December 31, 2014 are carried on the last-in, first-out (LIFO) method. For these locations, the use of LIFO results in a better matching of costs and revenues. The remaining inventories, which are generally located outside the United States and Canada, are carried on the first-in, first-out (FIFO) method. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference between the cost of the inventory and its estimated realizable value. Plant and Equipment — Property, plant and equipment, both owned and under capital lease, are carried at cost. Maintenance and repair costs are expensed as incurred. The cost of renewals, replacements and betterments is capitalized. The Company capitalizes software developed or obtained for internal use. Accordingly, the cost of third-party software, as well as the cost of third-party and internal personnel that are directly involved in application development activities, are capitalized during the application development phase of new software systems projects. Costs during the preliminary project stage and post-implementation stage of new software systems projects, including data conversion and training costs, are expensed as incurred. Depreciation and amortization is provided over the estimated useful lives of the related assets, or in the case of assets under capital leases, over the related lease term, if less, using the straight-line method. The estimated useful lives of the major classes of property, plant and equipment are as follows: Estimated Useful Lives Buildings and leasehold improvements 10-40 years Machinery, equipment and tooling 3-18 years Office furniture, software and other 3-10 years Goodwill and Intangible Assets — Cameron allocates the purchase price of acquired businesses to their identifiable tangible assets and liabilities, such as accounts receivable, inventory, property, plant and equipment, accounts payable and accrued liabilities, based on their estimated fair values. The Company also typically allocates a portion of the purchase price to identifiable intangible assets, such as noncompete agreements, trademarks, trade names, patents, technology, customer relationships and backlog using various widely accepted valuation techniques such as discounted future cash flows and the relief-from-royalty and excess earnings methods. Each of these methods involves level 3 unobservable market inputs. Any remaining excess of cost over allocated fair values is recorded as goodwill. On larger acquisitions, Cameron will typically engage third-party valuation experts to assist in determining the fair values for both the identifiable tangible and intangible assets. Certain estimates and judgments are required in the application of the fair value techniques, including estimates of future cash flows, selling prices, replacement costs, royalty rates for use of assets, economic lives and the selection of a discount rate. The Company reviews the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required. The estimated fair value of each reporting unit is primarily determined using discounted future expected cash flows (level 3 unobservable inputs) consistent with the accounting guidance for fair-value measurements. Certain estimates and judgments are required in the application of the fair value models, including, but not limited to, estimates of future cash flows and the selection of a discount rate. At December 31, 2015 , the Company’s reporting units for goodwill impairment evaluation purposes were the OneSubsea, Process Systems, Surface, Drilling, Valves and Measurement businesses. Prior to the fourth quarter of 2014, there were five reporting units within the V&M segment (now combined into two reporting units based on changes in management’s reporting structure during the fourth quarter of 2014). In connection with our annual goodwill impairment test as of March 31, 2015, we tested the goodwill for each of our six reporting units. With the exception of the Process Systems reporting unit, no goodwill impairments were indicated. With respect to the Process Systems reporting unit, our determination of fair value as of March 31, 2015 considered events that occurred in the first quarter, as well as our updated long-term outlook for this reporting unit. Those events included ongoing changes in the energy industry during the first quarter of 2015, a reduction in North American rig count, numerous industry-wide deepwater project deferrals and idling of deepwater drilling rigs, as well as significant capital spending cuts announced by a number of oil and gas exploration companies since December 31, 2014. Consistent with these industry-wide market changes, the Company also experienced the loss or indefinite deferral of several major project awards that we previously anticipated receiving. Accordingly, when determining the fair value of the Process Systems reporting unit as of March 31, 2015, our projections considered these factors as well as the negative impact of the low commodity price environment on the long-term outlook for revenue growth and profitability in this business. Based on these considerations, we concluded the fair value (estimated using Level 3 unobservable inputs) of the Process Systems reporting unit was less than its carrying value as of March 31, 2015. We conducted a Step 2 analysis, which included a hypothetical purchase price allocation, and recorded a goodwill impairment charge of $ 517 million . As of December 31, 2015 , following the impairment, the Process Systems reporting unit had $ 52 million of goodwill remaining. With the continued decline in commodity prices and activity levels since our annual goodwill impairment test, we performed a qualitative assessment of current market conditions and our future long-term expectations of oil and gas markets as of December 31, 2015 to conclude as to whether it was more likely than not that the fair values of our reporting units continued to be higher than each respective reporting unit's carrying value at December 31, 2015. Our assessment took into consideration, among other things, the valuation of Cameron that was implied in the August 2015 announcement of the merger with Schlumberger, as well as changes in commodity prices and activity levels and financial performance during 2015 by each of our reporting units, against expectations that were considered as part of the annual goodwill impairment test as of March 31, 2015. As a result of our analysis, no further impairment of goodwill was required as of December 31, 2015. The Company’s intangible assets, excluding goodwill, represent purchased patents, trademarks, customer relationships and other identifiable intangible assets. The majority of intangible assets are amortized on a straight-line basis over the years expected to be benefited, generally ranging from 5 to 28 years. Such intangibles are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. As many areas of the Company’s business rely on patents and proprietary technology, it has followed a policy of seeking patent protection both inside and outside the United States for products and methods that appear to have commercial significance. The costs of developing any intangibles internally, as well as costs of defending such intangibles, are expensed as incurred. Long-Lived Assets — In accordance with accounting rules for the impairment or disposal of long-lived assets, such assets, excluding goodwill and indefinite-lived intangibles, to be held and used by the Company are reviewed, at least quarterly, to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that its remaining useful life may be shorter than previously expected. For long-lived assets to be held and used, the Company bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, the Company determines whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset, which in most cases is estimated based upon Level 3 unobservable inputs. If the asset is determined to have a remaining useful life shorter than previously expected, an adjustment for the shorter remaining life will be made for purposes of recognizing future depreciation expense. Assets are classified as held for sale when the Company has a plan, approved by the appropriate levels of management, for disposal of such assets and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. During the years ended December 31, 2015 and 2014 , the Company identified various instances of assets whose carrying values were impaired or had shorter remaining useful lives than previously anticipated due to current and expected future market conditions. The impairment charges and accelerated depreciation amounts associated with these items are discussed further in Note 4 of the Notes to Consolidated Financial Statements. Product Warranty — Estimated warranty costs are accrued either at the time of sale based upon historical experience or, in some cases, when specific warranty problems are encountered. Adjustments to the recorded liability are made periodically to reflect actual experience. Contingencies — The Company accrues for costs relating to litigation when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties, amounts specified by contract, amounts designated by legal statute or management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. Income Taxes — The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Income tax expense includes U.S. and foreign income taxes, including U.S. federal taxes on undistributed earnings of foreign subsidiaries to the extent such earnings are planned to be remitted. Taxes are not provided on the translation component of comprehensive income since the effect of translation is not considered to modify the amount of the earnings that are planned to be remitted. A valuation allowance is provided to offset any net deferred tax asset, if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest related to accruals for uncertain tax positions is reflected as a component of interest expense in the Consolidated Results of Operations statement. Penalties on a tax position taken by the Company are reflected as a component of income tax expense in the Consolidated Results of Operations statement. See Note 13 of the Notes to Consolidated Financial Statements for further discussion of the Company’s income taxes. Environmental Remediation and Compliance — Environmental remediation and postremediation monitoring costs are accrued when such obligations become probable and reasonably estimable. Such future expenditures are not discounted to their present value. Pension and Postretirement Benefits Accounting — The Company recognizes the funded status of its defined benefit pension and other postretirement benefit plans in its Consolidated Balance Sheets. The measurement date for all of the Company’s plans was December 31, 2015 . See Note 9 of the Notes to Consolidated Financial Statements for further information. Stock-Based Compensation — At December 31, 2015 , the Company had grants outstanding under various stock-based employee compensation plans, which are described in further detail in Note 10 of the Notes to Consolidated Financial Statements. Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by accounting rules on stock compensation. Under this guidance, the fair value of stock option grants and restricted stock unit awards is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. Derivative Financial Instruments — The Company recognizes all derivative financial instruments as assets and liabilities on a gross basis and measures them at fair value. Hedge accounting is only applied when the derivative is deemed highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other elements of comprehensive income (loss) until the underlying transactions are recognized in earnings, at which time any deferred hedging gains or losses are reclassified to earnings in the same income statement caption as impacted by the hedged item. Any ineffective portion of the change in the fair value of a derivative used as a cash flow hedge is recorded in earnings as incurred. The amounts recorded in earnings from ineffectiveness for the years ended December 31, 2015 , 2014 and 2013 have not been material. The Company may at times also use forward or option contracts to hedge certain other foreign currency exposures. These contracts are not designated as hedges under the accounting guidance described above. Therefore, the changes in fair value of these contracts are recognized in earnings as they occur and offset gains or losses on the related exposures. Foreign Currency — For most subsidiaries and branches outside the U.S., the local currency is the functional currency. The financial statements of these subsidiaries and branches are translated into U.S. dollars as follows: (i) assets and liabilities at year-end exchange rates; (ii) income and expenses at monthly average exchange rates or exchange rates in effect on the date of the transaction; and (iii) stockholders’ equity at historical exchange rates. For those subsidiaries where the local currency is the functional currency, the resulting translation adjustment is recorded as a component of accumulated other elements of comprehensive income (loss) in the accompanying Consolidated Balance Sheets. For certain other subsidiaries and branches, operations are conducted primarily in currencies other than the local currencies, which are therefore the functional currency. Non-functional currency monetary assets and liabilities are remeasured at ending exchange rates. Revenue, expense and gain and loss accounts of these foreign subsidiaries and branches are remeasured at average exchange rates or exchange rates in effect on the date of the transaction. Non-functional currency non-monetary assets and liabilities, and the related revenue, expense, gain and loss accounts are remeasured at historical rates. Foreign currency gains and losses arising from monetary transactions denominated in a currency other than the functional currency of the entity involved are included in income. The effects of foreign currency transactions were a pre-tax loss of approximately $16 million for the year ended December 31, 2015 , a gain of approximately $22 million for the year ended December 31, 2014 and a loss of approximately $1 million for the year ended December 31, 2013 . Consequently, the remeasurement of deferred income tax assets were $ 10 million , $ 3 million , and nil , for the year ended December 31, 2015, 2014, and 2013, respectively. Reclassifications — Certain prior year amounts have been reclassified to conform to the current year presentation. |
Merger of Cameron with Schlumbe
Merger of Cameron with Schlumberger | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Merger of Cameron with Schlumberger | Merger of Cameron with Schlumberger On August 26, 2015, Cameron and Schlumberger Limited "Schlumberger" announced that the companies had entered into an Agreement and Plan of Merger (the “Merger Agreement”) whereby a U.S. subsidiary of Schlumberger would acquire all of the issued and outstanding stock of Cameron. Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $ 14.44 in exchange for each Cameron common share. The Merger Agreement was unanimously approved by the board of directors of both companies and has been approved by Cameron's stockholders. The Merger will be consummated upon receipt of required regulatory consents and approvals, currently expected to occur during the first quarter of 2016. Schlumberger stockholders are not required to vote on the Merger Agreement. Should Cameron terminate the Merger Agreement in specified circumstances, the Company would be required to pay Schlumberger a termination fee equal to $ 321 million . |
Business Dispositions and Combi
Business Dispositions and Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Dispositions and Combinations | Business Dispositions and Combinations Business Dispositions The Company completed the sale of its Reciprocating Compression business to General Electric, effective June 1, 2014, and the sale of its Centrifugal Compression business to Ingersoll Rand on January 1, 2015. The gross cash consideration from the sale of both businesses was $ 1.4 billion , subject to pending closing adjustments. The Company’s historical consolidated Results of Operations statement has been retrospectively revised to reflect the results of operations for both businesses as discontinued operations for all periods presented. Summarized financial information relating to these businesses is shown below: Year Ended December 31, (dollars in millions) 2015 2014 2013 Revenues $ — $ 428 $ 701 Cost of sales (excluding depreciation and amortization) — (306 ) (498 ) All other costs (2 ) (94 ) (105 ) Gain on sale of the compression businesses, before tax 681 95 — Income before income taxes 679 123 98 Income tax provision (248 ) (97 ) (33 ) Income from discontinued operations, net of income taxes $ 431 $ 26 $ 65 Gains on the sale of the Compression businesses were determined as follows (dollars in millions): (dollars in millions) Sale of Centrifugal Compression Sale of Reciprocating Compression Sales price $ 850 $ 550 Net assets sold (160 ) (442 ) Transaction and other costs associated with the sale (9 ) (13 ) Pre-tax gain 681 95 Tax provision (1) (248 ) (85 ) Gain on sale $ 433 $ 10 (1) The tax provision associated with the pre-tax gain on the Reciprocating Compression business was impacted by nondeductible goodwill of approximately $ 192 million included in the total net assets sold. As described further in Note 4 of the Notes to Consolidated Financial Statements, on August 27, 2015, Cameron entered into an agreement to sell the LeTourneau Offshore Products business within the Drilling Systems division to Keppel Offshore & Marine USA, Inc. for $100 million . This business is currently reflected as held for sale at December 31, 2015. Assets and liabilities of all businesses held for sale in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows: (dollars in millions) December 31, 2015 December 31, 2014 Receivables, net $ 4 $ 37 Inventories, net 62 86 Other current assets — 14 Plant and equipment, net 7 45 Intangibles, net 15 — Goodwill 14 35 Assets held for sale 102 217 Accounts payable, accrued and other current liabilities $ 2 $ 89 Other long-term liabilities — 1 Liabilities held for sale $ 2 $ 90 Business Combinations Douglas Chero — During the third quarter of 2013, the Company’s V&M segment acquired Douglas Chero, an Italian valve manufacturer, for approximately $20 million , net of cash acquired. The acquisition was made to support the Company’s international growth strategy by expanding its downstream industrial valve offerings. Douglas Chero’s results of operations have been included in the V&M segment since the date of acquisition. OneSubsea — On June 30, 2013, Cameron and Schlumberger Limited completed the formation of OneSubsea, a venture established to manufacture and develop products, systems and services for the subsea oil and gas market. Cameron contributed its existing subsea business unit and received $600 million from Schlumberger, while Schlumberger contributed its Framo, Surveillance, Flow Assurance and Power and Controls businesses, which included an additional $3 million of cash. As 60% owner, Cameron manages the venture and reflects a noncontrolling interest in its financial statements for Schlumberger’s 40% interest in the venture. Under the purchase method of accounting, the assets and liabilities of the Schlumberger businesses contributed to OneSubsea were reflected at their estimated fair values at June 30, 2013. The excess of the fair value of the businesses contributed by Schlumberger over the net tangible and identifiable intangible assets of those businesses was recorded as goodwill. The OneSubsea goodwill, totaling approximately $1 billion , is not deductible for tax purposes. Due to Cameron maintaining control of OneSubsea, the contribution of Cameron’s existing subsea business unit into the venture was recorded at historical cost and the issuance of a 40% interest in the venture to Schlumberger was reflected as an adjustment to Cameron’s paid in capital in accordance with accounting rules governing decreases in a parent’s ownership interest in a subsidiary without loss of control. Accordingly, the direct income tax consequences were also reflected as an adjustment to paid in capital. During the fourth quarter of 2013, the Company paid approximately $80 million in taxes associated with this transaction. |
Asset Charges and Other Costs
Asset Charges and Other Costs | 12 Months Ended |
Dec. 31, 2015 | |
Other Nonrecurring (Income) Expense [Abstract] | |
Asset Charges and Other Costs | Asset Charges and Other Costs Asset charges and other costs, net of gains, consisted of the following: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Asset charges - Goodwill impairment $ 517 $ 40 $ — Other long-lived asset impairments 78 4 — Accelerated depreciation on underutilized assets 44 — — Total asset charges 639 44 — Other costs (gains) - Facility closures and severance 88 15 13 Loss on disposal of non-core assets 15 10 — Mark-to-market impact on currency derivatives not designated as accounting hedges 11 8 1 Merger costs 8 — — Gain from remeasurement of prior interest in equity method investment — (8 ) — All other costs, net 12 4 78 Total other costs (gains), net 134 29 92 Total asset charges and other costs (gains), net $ 773 $ 73 $ 92 Asset charges The Company tests the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required. In connection with our annual goodwill impairment test as of March 31, 2015, we tested the goodwill for each of our six reporting units. With the exception of the Process Systems reporting unit, no goodwill impairments were indicated. We recorded a goodwill impairment charge of $ 517 million at March 31, 2015 for the Process Systems reporting unit, leaving a remaining balance of goodwill in this reporting unit at December 31, 2015 of $ 52 million . During the first quarter of 2014, goodwill totaling $ 40 million relating to the Company’s Process Systems and Equipment (PSE) reporting unit was considered to be fully impaired during the annual goodwill impairment test. The Company also recognized impairment charges of $ 78 million during 2015 relating to certain facilities resulting from weak market conditions including an $ 18 million write-down of assets that will be retained following the sell of LeTourneau Offshore Products business (see further discussion below). Charges of $ 4 million were recognized during 2014 for impairment of certain intangible assets. Loss on disposal of non-core assets On August 27, 2015, Cameron entered into an agreement to sell the LeTourneau Offshore Products business within the Drilling Systems division to Keppel Offshore & Marine USA, Inc. for $100 million . In connection with this transaction, the Company recorded an estimated pre-tax loss of $ 15 million during 2015 to write-down the remaining carrying value of the business to its fair value including certain other accrued liabilities associated with the sale. This was in addition to the write-down of retained assets discussed above. The sale is currently expected to close during the second quarter of 2016. All other costs (gains) As a result of current market conditions and the impact on the Company’s operations, charges of $ 132 million were recognized during 2015 related to the impact of accelerated depreciation on underutilized assets, facility closures and severance due to workforce reductions. Merger costs includes costs related directly to activities to support and facilitate Cameron's merger with Schlumberger. In May 2014, the Company increased its ownership interest in Cameron Services Middle East LLC from 49% to 90% , for approximately $18 million . The Company recognized a pre-tax gain of nearly $ 8 million as a result of remeasuring its prior interest, which had been accounted for under the equity method, to fair value upon obtaining control of this entity. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: December 31, ( dollars in millions ) 2015 2014 Trade receivables $ 1,167 $ 1,678 Costs and estimated earnings in excess of billings on uncompleted contracts 736 621 Other receivables 118 122 Allowance for doubtful accounts (57 ) (32 ) Total receivables $ 1,964 $ 2,389 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, ( dollars in millions ) 2015 2014 Raw materials $ 106 $ 159 Work-in-process 562 827 Finished goods, including parts and subassemblies 1,871 2,150 Other 20 24 2,559 3,160 Excess of current costs over LIFO costs (73 ) (86 ) Allowance for obsolete and excess inventory (126 ) (145 ) Total inventories $ 2,360 $ 2,929 |
Plant and Equipment, Goodwill a
Plant and Equipment, Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Plant and Equipment, Goodwill and Intangibles [Abstract] | |
Plant and Equipment, Goodwill and Intangibles | Plant and Equipment, Goodwill and Intangibles Plant and equipment consisted of the following: December 31, ( dollars in millions ) 2015 2014 Land and land improvements $ 118 $ 130 Buildings 702 726 Machinery and equipment 1,586 1,682 Tooling, dies, patterns, etc. 185 179 Office furniture & equipment 213 212 Capitalized software 370 370 Assets under capital leases 108 120 Construction in progress 162 127 All other 17 34 3,461 3,580 Accumulated depreciation (1,744 ) (1,616 ) Total plant and equipment, net $ 1,717 $ 1,964 Changes in goodwill during 2015 were as follows: ( dollars in millions ) Subsea Surface Drilling Valves & Measurement Total Balance at December 31, 2014 $ 1,476 $ 173 $ 501 $ 311 $ 2,461 Impairment (See Note 4) (517 ) — — — (517 ) Goodwill associated with assets held for sale — — (14 ) — (14 ) Adjustments to the purchase price allocation for prior year acquisitions (8 ) (4 ) — — (12 ) Translation effect of currency changes and other (134 ) (4 ) (4 ) (12 ) (154 ) Balance at December 31, 2015 $ 817 $ 165 $ 483 $ 299 $ 1,764 Intangibles consisted of the following: December 31, ( dollars in millions ) 2015 2014 Customer relationships $ 398 $ 459 Patents and technology 345 382 Trademarks 54 68 Noncompete agreements, engineering drawings and other 61 80 858 989 Accumulated amortization (276 ) (261 ) Total intangibles, net $ 582 $ 728 Amortization expense associated with the Company’s amortizable intangibles recorded as of December 31, 2015 is expected to approximate $41 million , $40 million , $39 million , $36 million , and $ 34 million for the year ending December 31, 2016 , 2017 , 2018 , 2019 , and 2020 , respectively. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following: December 31, ( dollars in millions ) 2015 2014 Trade accounts payable and accruals $ 650 $ 1,084 Advances from customers 1,082 1,576 Salaries, wages, and related fringe 373 355 Other accruals 688 733 Total accounts payable and accrued liabilities $ 2,793 $ 3,748 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans As of December 31, 2015 , the Company sponsored separate defined benefit pension plans for employees of certain of its international subsidiaries, as well as several unfunded defined benefit arrangements for various other employee groups. The defined benefit pension plan covering employees in the United Kingdom was frozen to new entrants effective June 14, 1996. Certain of the Company’s employees also participate in various employee welfare benefit plans, including medical, dental and prescriptions. Additionally, certain retirees based in the United States receive retiree medical, prescription and life insurance benefits. All of the welfare benefit plans, including those providing postretirement benefits, are unfunded. During 2014, the Company communicated to employees and beneficiaries of three of its international retirement plans that it had elected to terminate the respective defined benefit plans and replace them with defined contribution plans. In connection with this, the Company recorded a pre-tax curtailment gain, net of settlement losses, of approximately $8 million during 2014 related to the termination of these plans. The final settlement payments were made in 2015. Total net benefit plan expense (income) associated with the Company’s defined benefit pension and postretirement benefit plans consisted of the following: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2013 2015 2014 2013 Service cost $ 8 $ 18 $ 10 $ — $ — $ — Interest cost 15 20 17 — — — Expected return on plan assets (23 ) (27 ) (21 ) — — — Amortization of prior service credits (2 ) (2 ) (2 ) (1 ) (1 ) (1 ) Amortization of losses (gains) 9 9 8 (1 ) (1 ) (1 ) Curtailment gain — (12 ) — — — — Settlement loss 1 4 — — — — Total net benefit plan expense (income) $ 8 $ 10 $ 12 $ (2 ) $ (2 ) $ (2 ) Included in accumulated other elements of comprehensive income (loss) at December 31, 2015 and 2014 are the following amounts that have not yet been recognized in net periodic benefit plan cost, as well as the amounts that are expected to be recognized in net periodic benefit plan cost during the year ending December 31, 2016 : December 31, 2015 December 31, 2014 Year ending December 31, 2016 ( dollars in millions ) Before Tax After Tax Before Tax After Tax Expected Amortization Pension benefits : Prior service credits $ 15 $ 14 $ 19 $ 15 $ (2 ) Actuarial losses, net (131 ) (116 ) (164 ) (132 ) 9 Postretirement benefits : Prior service credits 2 1 3 2 (1 ) Actuarial gains 7 4 8 5 (1 ) $ (107 ) $ (97 ) $ (134 ) $ (110 ) $ 5 The change in the projected benefit obligation associated with the Company’s defined benefit pension plans and the change in the accumulated benefit obligation associated with the Company’s postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2015 2014 Benefit obligation at beginning of year $ 509 $ 489 $ 9 $ 11 Service cost 8 18 — — Interest cost 15 20 — — Plan participants’ contributions 1 1 — — Actuarial losses (gains) 3 78 1 (1 ) Exchange rate changes (29 ) (52 ) — — Benefit payments (12 ) (14 ) (1 ) (1 ) Curtailments — (23 ) — — Settlements (59 ) (8 ) — — Benefit obligation at end of year $ 436 $ 509 $ 9 $ 9 The total accumulated benefit obligation for the Company’s defined benefit pension plans was $392 million and $469 million at December 31, 2015 and 2014 , respectively. The change in the plan assets associated with the Company’s defined benefit pension and postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2015 2014 Fair value of plan assets at beginning of year $ 455 $ 432 $ — $ — Actual return on plan assets 11 53 — — Company contributions 14 27 1 1 Plan participants’ contributions 1 1 — — Exchange rate changes (24 ) (40 ) — — Benefit payments (12 ) (14 ) (1 ) (1 ) Settlements (59 ) (8 ) — — Other (2 ) 4 — — Fair value of plan assets at end of year $ 384 $ 455 $ — $ — The status of the Company’s underfunded defined benefit pension and postretirement benefit plans was as follows: Pension Benefits December 31, Postretirement Benefits December 31, ( dollars in millions ) 2015 2014 2015 2014 Noncurrent assets $ 20 $ — $ — $ — Current liabilities (1 ) (1 ) (2 ) (1 ) Non-current liabilities (71 ) (53 ) (7 ) (8 ) Underfunded status at end of year $ (52 ) $ (54 ) $ (9 ) $ (9 ) Actual asset investment allocations for the Company’s main defined benefit pension plan in the United Kingdom, which accounts for approximately 89% of total plan assets, were as follows: 2015 2014 2013 U.K. plan : Equity securities 33 % 55 % 60 % Fixed income debt securities, cash and other 67 % 45 % 40 % In each jurisdiction, the investment of plan assets is overseen by a plan asset committee whose members act as trustees of the plan and set investment policy. For the years ended December 31, 2015 and 2014 and 2013 , the investment strategy has been designed to approximate the performance of market indexes. The Company’s targeted allocation for the U.K. plan for 2016 and beyond is approximately 33% in equities, 8% in fixed income debt securities and 59% in real estate and other. During 2015 , the Company made contributions totaling approximately $14 million to the assets of its various defined benefit pension plans. Contributions to plan assets for 2016 are currently expected to approximate $9 million assuming no change in the current discount rate or expected investment earnings. The assets of the Company’s pension plans are generally invested in debt and equity securities or mutual funds, which are valued based on quoted market prices for an individual asset (level 1 market inputs) or mutual fund unit values, which are based on the fair values of the individual securities that the fund has invested in (level 2 observable market inputs). A certain portion of the assets are invested in insurance contracts, real estate and other investments, which are valued based on level 3 unobservable inputs. The fair values of the Company’s pension plan assets by asset category at December 31, 2015 and 2014 were as follows: Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) Fair Value Based on Significant Other Observable Inputs (Level 2) Fair Value Based on Significant Unobservable Inputs (Level 3) Total ( dollars in millions ) 2015 2014 2015 2014 2015 2014 2015 2014 Cash and cash equivalents $ 1 $ 1 $ — $ — $ — $ — $ 1 $ 1 Equity securities : U.S. equities — — 78 83 — — 78 83 Non-U.S. equities — — 120 120 — — 120 120 Bonds : Non-U.S. government bonds — — 114 117 — — 114 117 Non-U.S. corporate bonds — — 29 30 — — 29 30 Alternative investments : Insurance contracts — — — — 28 89 28 89 Real estate and other — — — — 14 15 14 15 Total assets $ 1 $ 1 $ 341 $ 350 $ 42 $ 104 $ 384 $ 455 Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 Balance at beginning of the year $ 104 $ 105 Purchases/sales, net (56 ) 10 Actual return on plan assets (2 ) 4 Currency impact (4 ) (15 ) Balance at end of the year $ 42 $ 104 The weighted-average assumptions associated with the Company’s defined benefit pension and postretirement benefit plans were as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Assumptions related to net benefit costs : U.S. plans: Discount rate 3.25 % 3.75 % 3.25 % 3.75 % Measurement date 1/1/2015 1/1/2014 1/1/2015 1/1/2014 Foreign plans: Discount rate 2.25-4.25% 3.5-5.25% — — Expected return on plan assets 2.25-6.25% 2.25-6.75% — — Rate of compensation increase 2.25-5.00% 2.25-4.50% — — Measurement date 1/1/2015 1/1/2014 — — Assumptions related to end-of-period benefit obligations : U.S. plans : Discount rate 3.50 % 3.25 % 3.50 % 3.25 % Health care cost trend rate — — 7.00 % 7.00 % Measurement date 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Foreign plans : Discount rate 2.25-4.25% 2.25-4.25% — — Rate of compensation increase 2.25-4.00% 2.25-5.00% — — Measurement date 12/31/2015 12/31/2014 — — The Company’s discount rate assumptions for its U.S. postretirement benefits plan and its international defined benefit pension plans are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plans. The assumptions for expected long-term rates of return on assets are based on historical experience and estimated future investment returns, taking into consideration anticipated asset allocations, investment strategies and the views of various investment professionals. The rate of compensation increase assumption for international plans reflects local economic conditions and the Company’s compensation strategy in those locations. The health care cost trend rate is assumed to decrease gradually from 7% to 5% by 2021 and remain at that level thereafter. A one-percentage-point increase or decrease in the assumed health care cost trend rate would not have a material impact on the service and interest cost components in 2015 or the postretirement benefit obligation as of December 31, 2015 . Amounts applicable to the Company’s pension plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets were as follows: Projected Benefit Obligation in Excess of Plan Assets at December 31, Accumulated Benefit Obligation in Excess of Plan Assets at December 31, ( dollars in millions ) 2015 2014 2015 2014 Fair value of applicable plan assets $ 41 $ 101 $ 41 $ 101 Projected benefit obligation of applicable plans $ 113 $ 171 — — Accumulated benefit obligation of applicable plans — — $ 86 $ 149 Future expected benefit payments are as follows: ( dollars in millions ) Pension Benefits Postretirement Benefits Year ending December 31 : 2016 $ 11 $ 1 2017 $ 11 $ 1 2018 $ 12 $ 1 2019 $ 13 $ 1 2020 $ 13 $ 1 2021 - 2025 $ 71 $ 3 The Company’s United States-based employees who are not covered by a bargaining unit and certain others are also eligible to participate in the Cameron International Corporation Retirement Savings Plan or the OneSubsea LLC Retirement Savings Plan (the Retirement Savings Plans). Under these plans, employees’ savings deferrals are partially matched in cash and invested at the employees’ discretion. The Company provides nondiscretionary retirement contributions to the Retirement Savings Plans on behalf of each eligible employee equal to 3% of their defined pay. Eligible employees vest in the 3% retirement contributions plus any earnings after completing three years of service. In addition, the Company provides an immediately vested matching contribution of up to 100% of the first 6% of pay contributed by each eligible employee. Employees may contribute amounts in excess of 6% of their pay to the Retirement Savings Plans, subject to certain United States Internal Revenue Service limitations. The Company’s expense for the matching and retirement contribution for the years ended December 31, 2015 , 2014 and 2013 amounted to $67 million , $77 million and $77 million , respectively. In addition, the Company provides savings or other benefit plans for employees under collective bargaining agreements and, in the case of certain international employees, as required by government mandate, which provide for, among other things, Company funding in cash based on specified formulas. Expense with respect to these various defined contribution and government-mandated plans for the years ended December 31, 2015 , 2014 and 2013 amounted to $57 million , $73 million and $83 million , respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Company has grants outstanding under various equity compensation plans, only one of which, the Equity Incentive Plan (EQIP), is currently available for future grants of equity compensation awards to employees and non-employee directors. Options granted under the Company’s equity compensation plans had an exercise price equal to the market value of the underlying common stock on the date of grant and all terms were fixed. Stock-based compensation expense recognized was as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Outstanding restricted and deferred stock units and awards $ 40 $ 44 $ 40 Unvested outstanding stock options 9 10 14 Total stock-based compensation expense $ 49 $ 54 $ 54 The total income statement tax benefit recognized from stock-based compensation arrangements during the years ended December 31, 2015 , 2014 and 2013 totaled approximately $18 million , $20 million and $20 million , respectively. Stock options Options with terms of seven or ten years have been granted to officers and other key employees of the Company under the EQIP plan at a fixed exercise price equal to the fair value of the Company’s common stock on the date of grant. The options generally vest in one-third increments each year on the anniversary date following the date of grant, based on continued employment. A summary of option activity under the Company’s stock compensation plans as of and for the year ended December 31, 2015 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (dollars in millions) Outstanding at January 1, 2015 3,912,488 $ 51.89 Granted 620,968 65.20 Exercised (771,707 ) 40.39 Forfeited and expired (37,603 ) 59.09 Outstanding at December 31, 2015 3,724,146 $ 56.42 6.77 $ 28 Vested at December 31, 2015 or expected to vest in the future 3,710,191 $ 56.40 6.76 $ 28 Exercisable at December 31, 2015 2,377,609 $ 53.07 5.49 $ 25 At Stock-based compensation cost not yet recognized under the straight-line method ( dollars in millions ) $ 15 Weighted-average remaining expense recognition period (in years ) 2.21 The fair values per share of option grants for the years ended December 31, 2015 , 2014 and 2013 were estimated using the Black-Scholes-Merton option pricing formula with the following weighted-average assumptions: Year Ended December 31, 2015 2014 2013 Expected life ( in years ) 3.5 3.3 3.2 Risk-free interest rate 0.95 % 0.86 % 0.67 % Volatility 27.9 % 33.8 % 34.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % The Company determined the assumptions involving the expected life of its options and volatility rates based primarily on historical data and consideration of expectations for the future. The above assumptions and market prices of the Company’s common stock at the date of option exercises resulted in the following values: Year Ended December 31, 2015 2014 2013 Grant-date fair value per option $ 14.47 $ 14.51 $ 16.19 Intrinsic value of options exercised ( dollars in millions ) $ 16 $ 26 $ 31 Average intrinsic value per share of options exercised $ 21.31 $ 24.17 $ 26.30 Restricted and deferred stock units and awards Grants of restricted stock units are made to officers and other key employees. Restricted stock grants are made in two different forms: performance units and time-based units. The performance restricted stock units must be earned by performance against established return on invested capital and total shareholder return goals. Time-based restricted stock units require continued employment for three years. Both types of restricted stock units granted generally provide for vesting in one-third increments each year or three -year 100% cliff vesting on the third anniversary of the date of grant, based on continued employment. Non-employee directors are entitled to receive an annual number of deferred stock units equal to a value of $250,000 determined on the day following the Company’s annual meeting of stockholders or, if a director’s election to the Board occurs between annual meetings of stockholders, the initial grant of deferred stock units is based on a pro-rata portion of the annual grant amount equal to the remaining number of months in the board year until the next annual meeting of stockholders. These units, which have no exercise price and no expiration date, vest in one-fourth increments quarterly over the following year but cannot be converted into common stock until the earlier of termination of Board service or three years , although Board members have the ability to voluntarily defer conversion for a longer period of time. A summary of restricted and deferred stock unit award activity under the Company’s stock compensation plans as of and for the year ended December 31, 2015 is presented below: Restricted and Deferred Stock Units Number Weighted-Average Grant Date Fair Value Nonvested at January 1, 2015 1,848,682 $ 56.85 Granted 1,183,828 54.95 Vested (780,163 ) 54.79 Forfeited (86,910 ) 54.25 Nonvested at December 31, 2015 2,165,437 $ 56.66 At Stock-based compensation cost not yet recognized under the straight-line method ( dollars in millions ) $ 64 Weighted-average remaining expense recognition period ( in years ) 1.80 Information on restricted and deferred stock units granted and vesting during the three years ended December 31, 2015 follows: Year Ended December 31, 2015 2014 2013 Number of units granted with performance conditions 214,072 174,697 185,992 Intrinsic value of units vesting ( dollars in millions ) $ 39 $ 34 $ 46 Total number of units granted 1,183,828 826,329 838,207 Weighted average grant date fair value per unit $ 54.95 $ 59.63 $ 57.95 The fair value of restricted and deferred stock units is determined based on the closing trading price of the Company’s common stock on the grant date. At December 31, 2015 , 9,236,764 shares were reserved for future grants of options, deferred stock units, restricted stock units and other awards. The Company may issue either treasury shares or newly issued shares of its common stock in satisfaction of these awards. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt obligations were as follows: December 31, ( dollars in millions ) 2015 2014 Commercial paper (0.49% weighted average rate at December 31, 2014) $ — $ 201 Senior notes : 1.15% notes due December 15, 2016 250 250 1.4% notes due June 15, 2017 250 250 6.375% notes due July 15, 2018 450 450 4.5% notes due June 1, 2021 250 250 3.6% notes due April 30, 2022 250 250 4.0% notes due December 15, 2023 250 250 3.7% notes due June 15, 2024 250 250 7.0% notes due July 15, 2038 300 300 5.95% notes due June 1, 2041 250 250 5.125% notes due December 15, 2043 250 250 Unamortized original issue discount (6 ) (7 ) Other debt 22 67 Obligations under capital leases 60 71 2,826 3,082 Current maturities (284 ) (263 ) Long-term maturities $ 2,542 $ 2,819 Commercial paper program The Company has in place a commercial paper program for general corporate purposes which allows for issuances of up to $ 500 million of commercial paper with maturities of no more than 364 days. Credit agreements and revolving credit facilities In order to extend the length of its currently available credit facilities, the Company, including certain of its subsidiaries, entered into an amended and restated multi-currency credit agreement (the “Credit Agreement”) with various banks and other financial institutions on May 14, 2015 . The Credit Agreement is for $ 750 million , has a term of five years , expiring on May 14, 2020 , and replaces a previously existing $ 835 million multi-currency credit agreement due to expire in June 2016. The Credit Agreement will be used to finance working capital needs and for other general corporate purposes, including acquisitions, capital expenditures, repurchases of common stock, repayment of debt and issuances of letters of credit. Up to $200 million of this facility may be used for letters of credit. At December 31, 2015 , The Company issued no letters of credit, leaving the full leaving the full $ 750 million available for future use. The Company also has a $ 750 million multi-currency syndicated Revolving Credit Facility expiring April 11, 2017 . Up to $ 200 million of this facility may be used for letters of credit. The Company has issued letters of credit totaling $ 34 million under the Revolving Credit Facility, leaving $ 716 million available for future use at December 31, 2015 . Other Other debt, some of which is held by entities located in countries with high rates of inflation, has a weighted-average interest rate of 15.6% at December 31, 2015 ( 6.5% at December 31, 2014 ). Future maturities of the Company’s debt (excluding the remaining amount of unamortized discount and capital leases) are approximately $ 272 million in 2016 , $ 250 million in 2017 , $ 450 million in 2018 , no amounts in 2019 and $ 1.8 billion thereafter. In addition to the above, the Company also has other unsecured and uncommitted credit facilities available to its foreign subsidiaries to fund ongoing operating activities. Certain of these facilities also include annual facility fees. Information on interest expensed and paid during the three years ended December 31, 2015 was as follows: Year Ended December 31 ( dollars in millions ) 2015 2014 2013 Interest expensed $ 160 $ 149 $ 115 Interest paid $ 154 $ 142 $ 105 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain facilities, office space, vehicles, data processing and other equipment under capital and operating leases. Rental expenses for the years ended December 31, 2015 , 2014 and 2013 were $100 million , $115 million and $111 million , respectively. Future minimum lease payments with respect to capital leases and operating leases with noncancelable terms in excess of one year were as follows: Capital Operating ( dollars in millions ) Lease Payments Lease Payments Year ending December 31: 2016 $ 18 $ 109 2017 15 81 2018 10 62 2019 5 54 2020 4 50 Thereafter 47 139 Future minimum lease payments 99 495 Less: amount representing interest (39 ) — Lease obligations at December 31, 2015 $ 60 $ 495 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income from continuing operations before income taxes were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 U.S. operations $ (423 ) $ 294 $ 219 Foreign operations 744 786 636 Income from continuing operations before income taxes $ 321 $ 1,080 $ 855 The provisions for income taxes were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Current : U.S. federal $ 35 $ 70 $ — U.S. state and local (1 ) 4 11 Foreign 198 231 166 232 305 177 Deferred : U.S. federal (55 ) — 31 U.S. state and local — (3 ) 2 Foreign 7 (44 ) (14 ) (48 ) (47 ) 19 Income tax provision $ 184 $ 258 $ 196 The reasons for the differences between the provision for income taxes and income taxes using the U.S. federal income tax rate were as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes (0.1 )% — % 1.0 % Foreign statutory rate differential (34.7 )% (9.7 )% (10.6 )% Change in valuation allowance on deferred tax assets 5.4 % 3.4 % (1.7 )% Nondeductible expenses (1.1 )% (0.1 )% 1.1 % Goodwill impairments 56.4 % 1.0 % — % Net U.S. tax on foreign source income (5.8 )% (2.9 )% (3.2 )% All other 2.2 % (2.8 )% 1.3 % Total 57.3 % 23.9 % 22.9 % Total income taxes paid ( dollars in millions ) $ 548 $ 353 $ 329 Components of deferred tax assets (liabilities) were as follows: December 31, ( dollars in millions ) 2015 2014 Deferred tax liabilities : Plant and equipment $ (117 ) $ (190 ) Intangible assets (181 ) (221 ) Other (9 ) (9 ) Total deferred tax liabilities (307 ) (420 ) Deferred tax assets : Inventory 22 48 Postretirement benefits other than pensions — 3 Reserves and accruals 199 160 Net operating losses and tax credits 149 259 Pensions 28 38 Other 26 27 Total deferred tax assets 424 535 Valuation allowance (93 ) (79 ) Net deferred tax assets $ 24 $ 36 Changes in the Company’s accruals for unrecognized tax benefits were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Balance at beginning of year $ 97 $ 103 $ 121 Increases in estimates of tax positions related to prior fiscal year 1 — — Increases due to tax positions taken during the current year — 6 3 Decreases relating to settlements with tax authorities (5 ) (10 ) (19 ) Decreases resulting from the lapse of applicable statutes of limitation — — — Net increases (decreases) due to translation and interest 2 (2 ) (2 ) Balance at end of year $ 95 $ 97 $ 103 The Company has a $95 million accrual for unrecognized tax benefits at December 31, 2015 , of which, approximately $ 85 million are expected to be settled during the next twelve-month period as a result of the conclusion of various income tax audits or due to the expiration of the applicable statute of limitations. The Company is not currently aware of any material amounts included as unrecognized tax benefits at December 31, 2015 that, if recognized, would not impact the Company’s future effective income tax rate. There were no material payments for interest or penalties for the years ended December 31, 2015 , 2014 or 2013 . Also, there were no material accruals for unpaid interest or penalties at December 31, 2015 or 2014 . The Company and its subsidiaries file income tax returns in the United States, various domestic states and localities and in many foreign jurisdictions. The earliest years’ tax returns filed by the Company that are still subject to examination by authorities in the major tax jurisdictions are as follows: United States United Kingdom Canada France Germany Norway Singapore Italy 2011 2012 2010 2013 2012 2013 2012 2011 At December 31, 2015 , the Company had net operating loss and credit carryforwards in numerous jurisdictions with various expiration periods, including certain jurisdictions which have no expiration period. Changes in the Company’s valuation allowances against these net operating loss and credit carryforwards and other deferred tax assets were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Balance at beginning of year $ 79 $ 59 $ 84 Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year 45 25 11 Change in valuation allowances related to prior years (20 ) (2 ) (16 ) Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized — — (19 ) Effect of translation (11 ) (3 ) (1 ) Balance at end of year $ 93 $ 79 $ 59 The Company has considered all available evidence in assessing the need for the valuation allowance, including future taxable income, future foreign source income, and ongoing prudent and feasible tax planning strategies. In the event the Company were to determine that it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the net deferred tax assets would be charged to income in the period such determination was made. Tax attribute carryforwards which are available for use on future income tax returns at December 31, 2015 are as follows: ( dollars in millions ) Domestic Foreign Expiration Net operating losses - regular income tax $ — $ 316 2018 - Indefinite Net operating losses – state income tax $ 32 $ — 2018 – 2035 Foreign tax credits $ 26 $ — 2025 The tax benefit that the Company receives with respect to certain stock compensation plan transactions is credited to capital in excess of par value and does not reduce income tax expense. This benefit amounted to $2 million , $6 million and $10 million in 2015 , 2014 and 2013 , respectively. As of December 31, 2015, the Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences of approximately $8.3 billion resulting primarily from earnings of certain non-U.S. subsidiaries which are permanently reinvested outside of the U.S. A determination of the amount of any unrecognized U.S. deferred income tax liability is not practicable due to the complexities associated with the underlying hypothetical calculations. The Company operates in jurisdictions, primarily Singapore and Malaysia, in which it has been granted tax holidays. The benefit of these holidays for 2015 , 2014 and 2013 was approximately $16 million , $11 million and $3 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The Company’s Board of Directors has given management the authority to purchase approximately $3.8 billion of the Company’s common stock. The Company, under this authorization, may purchase shares directly or indirectly by way of open market transactions or structured programs, including the use of derivatives, for the Company’s own account or through commercial banks or financial institutions. At December 31, 2015 , the Company had remaining authority for future stock purchases totaling approximately $240 million . However, such stock purchases are currently prohibited under the Merger Agreement (see Note 2 of the Notes to Consolidated Condensed Financial Statements for further information). Changes in the number of shares of the Company’s outstanding stock for the last three years were as follows: Common Stock Treasury Stock Shares Outstanding Balance - December 31, 2012 263,111,472 (16,415,336 ) 246,696,136 Purchase of treasury stock — (26,955,623 ) (26,955,623 ) Stock issued under stock compensation plans — 1,687,795 1,687,795 Balance - December 31, 2013 263,111,472 (41,683,164 ) 221,428,308 Purchase of treasury stock — (27,970,492 ) (27,970,492 ) Stock issued under stock compensation plans — 1,514,629 1,514,629 Balance - December 31, 2014 263,111,472 (68,139,027 ) 194,972,445 Purchase of treasury stock — (5,130,334 ) (5,130,334 ) Stock issued under stock compensation plans — 1,337,803 1,337,803 Balance - December 31, 2015 263,111,472 (71,931,558 ) (191,179,914 ) At December 31, 2015 , 15,126,347 shares of unissued common stock or treasury stock were reserved for future issuance relating to previous grants of options, deferred stock units, restricted stock units and other awards under various stock compensation plans that were still outstanding at December 31, 2015 , and for future available grants under those plans. Preferred Stock The Company is authorized to issue up to 10 million shares of preferred stock, par value of $0.01 per share. Shares of preferred stock may be issued in one or more series of classes, each of which series or class shall have such distinctive designation or title and terms as shall be fixed by the Board of Directors of the Company prior to issuance of any shares. Retained Earnings Delaware law, under which the Company is incorporated, provides that dividends may be declared by the Company’s Board of Directors from a current year’s earnings as well as from the total of capital in excess of par value plus the retained earnings, which amounted to approximately $ 9 billion at December 31, 2015 . In addition, dividends to be paid by OneSubsea to the venture partners require approval by the Board of Directors of OneSubsea. |
Accumulated Other Elements of C
Accumulated Other Elements of Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Elements of Comprehensive Income (Loss) | Accumulated Other Elements of Comprehensive Income (Loss) Accumulated other elements of comprehensive income (loss) comprised the following ( dollars in millions ) Accumulated Foreign Currency Translation Gain (Loss) Prior Service Credits and Net Actuarial Losses Accumulated Gain (Loss) on Cash Flow Hedges Total Other Comprehensive Income (Loss) Balance at December 31, 2012 $ 46 $ (87 ) $ 11 $ (30 ) Foreign currency translation gain (loss) (95 ) — — (95 ) $ (95 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — 40 — 40 40 Amortization of actuarial (gains) losses, net of tax — 2 — 2 2 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — 6 6 6 (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax (3 ) (3 ) (3 ) Balance at December 31, 2013 (49 ) (45 ) 14 (80 ) $ (50 ) Foreign currency translation gain (loss) (379 ) — — (379 ) $ (379 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — (31 ) — (31 ) (31 ) Curtailment and settlement gains (losses) — (3 ) — (3 ) (3 ) Amortization of actuarial (gains) losses, net of tax — 1 — 1 1 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — (52 ) (52 ) (52 ) (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax — — 4 4 4 Balance at December 31, 2014 (428 ) (78 ) (34 ) (540 ) $ (460 ) Foreign currency translation gain (loss) (358 ) — — (358 ) $ (358 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — 12 — 12 12 Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax — 1 — 1 1 Amortization of actuarial (gains) losses, net of tax — 3 — 3 3 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — (54 ) (54 ) (54 ) (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax — — 59 59 59 Balance of December 31, 2015 $ (786 ) $ (62 ) $ (29 ) $ (877 ) $ (337 ) |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments In the fourth quarter of 2014, following the divestiture of our compression businesses, the Company’s operations were reorganized into four reportable segments: Subsea, Surface, Drilling, and Valves & Measurement (V&M), based on the guidelines of ASC 280, Segment Reporting (ASC 280). Within our four reportable segments, Surface, Drilling, and V&M are comprised of a single operating segment and the fourth reportable segment, Subsea, is an aggregation of two operating segments, OneSubsea and Custom Process Systems (CPS). We determined our operating segments based on how our chief executive officer (who is our chief operating decision maker) evaluates financial information, allocates resources and assesses the performance of each operating segment. In addition, each operating segment is managed by a segment president. With respect to the OneSubsea and CPS operating segments, we determined that aggregation of these two operating segments into the Subsea reportable segment was appropriate because aggregation was consistent with the objectives and basic principles of ASC 280 and these operating segments met all of the criteria for aggregation set forth in ASC 280. On a long-term basis, these segments are expected to demonstrate similar economic characteristics, in terms of gross margin and income before interest, income taxes and depreciation and amortization. Both segments perform construction projects and offer similar or complementary products and services for the same or similar customers active in subsea oil and gas production. In some instances, OneSubsea and CPS work together to provide complementary or an integrated offering of products and services to the same customer for the same project. The CPS operating segment’s revenues were approximately five percent of the Company’s consolidated revenues for the years ended December 31, 2015 and 2014. The Subsea segment includes the operations of OneSubsea, a business jointly owned by Cameron ( 60% ) and Schlumberger ( 40% ). The Subsea segment delivers integrated solutions, products, systems and services to the subsea oil and gas market, including integrated subsea production systems involving wellheads, subsea trees, manifolds and flowline connectors, subsea processing systems for the enhanced recovery of hydrocarbons, control systems, connectors and services designed to maximize reservoir recovery and extend the life of each field. The Surface segment provides onshore and offshore platform wellhead systems and processing solutions, including valves, chokes, actuators, Christmas trees and aftermarket services to oil and gas operators. Rental equipment and artificial lift technologies are also provided, as well as products and services involving shale gas production. One of the major services provided by the Surface segment is CAMSHALE™ Production Solutions, which specializes in shale gas production. In this process, intense pressure from fracing fluid (usually a mixture of water and sand) is used to crack surrounding shale. Once the fractures are made, the water is removed from the well bore and the sand is left behind to hold the fractures open. Oil and natural gas then moves out of the fractures, into the well bore, and up to the surface. The Drilling segment provides drilling equipment and aftermarket services to shipyards, drilling contractors, exploration & production operators and rental tool companies. Products fall into two broad categories: pressure control equipment and rotary drilling equipment and are designed for either onshore or offshore applications. Such products include drilling equipment packages, blowout preventers (BOPs), BOP control systems, connectors, riser systems, valve and choke manifold systems, top drives, mud pumps, pipe handling equipment, rig designs and rig kits. The V&M segment businesses serve portions of the upstream, midstream and downstream markets. These businesses provide valves and measurement systems that are primarily used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. Products include gate valves, butterfly valves, Orbit® brand rising stem ball valves, double block and bleed valves, plug valves, globe valves, check valves, actuators, chokes and aftermarket parts and services as well as measurement equipment products such as totalizers, turbine meters, flow computers, chart recorders, ultrasonic flow meters and sampling systems. The Company’s primary customers are oil and gas majors, national oil companies, independent producers, engineering and construction companies, drilling contractors, rental companies, geothermal energy and independent power producers, pipeline operators, major chemical, petrochemical and refining companies, natural gas processing and transmission companies, compression leasing companies, durable goods manufacturers, utilities and air separation companies. The Company markets its equipment through a worldwide network of sales and marketing employees supported by agents and distributors in selected international locations. Due to the extremely technical nature of many of the products, the marketing effort is further supported by a staff of engineering employees. The Company expenses all research and product development and enhancement costs as incurred, or if incurred in connection with a product ordered by a customer, when the revenue associated with the product is recognized. For the years ended December 31, 2015 , 2014 and 2013 , research and product development expenditures, including amounts incurred on projects designed to enhance or add to its existing product offerings, totaled approximately $140 million , $128 million and $83 million , respectively. The Subsea segment accounted for 52% , 58% and 44% of each respective year’s total costs. Summary financial data by segment follows: Year Ended December 31, ( dollars in millions) 2015 2014 2013 Revenues: Subsea $ 2,753 $ 3,067 $ 2,813 Surface 1,957 2,411 2,077 Drilling 2,708 3,049 2,327 V&M 1,548 2,125 2,105 Elimination of intersegment revenues (184 ) (271 ) (184 ) Consolidated revenues $ 8,782 $ 10,381 $ 9,138 Depreciation and amortization: Subsea $ 87 $ 113 $ 85 Surface 135 126 106 Drilling 67 60 60 V&M 53 49 47 Consolidated depreciation and amortization $ 342 $ 348 $ 298 Segment operating income before interest and income taxes: Subsea $ 407 $ 207 $ 152 Surface 264 427 367 Drilling 528 474 311 V&M 177 393 414 Elimination of intersegment earnings (36 ) (74 ) (35 ) Segment operating income before interest and income taxes 1,340 1,427 1,209 Corporate items: Corporate expenses (108 ) (145 ) (162 ) Interest, net (138 ) (129 ) (100 ) Other costs (773 ) (73 ) (92 ) Consolidated income from continuing operations before income taxes $ 321 $ 1,080 $ 855 Capital expenditures: Subsea $ 60 $ 70 $ 80 Surface 109 125 156 Drilling 44 38 111 V&M 36 49 58 Corporate 36 96 102 Discontinued operations — 7 13 Consolidated capital expenditures $ 285 $ 385 $ 520 Total assets: Subsea $ 4,735 $ 5,571 $ 5,897 Surface 2,667 2,756 2,705 Drilling 2,394 3,011 3,076 V&M 1,540 1,633 1,765 Corporate 1,025 581 844 Discontinued operations — 217 616 Elimination of intersegment investments (861 ) (877 ) (654 ) Consolidated total assets $ 11,500 $ 12,892 $ 14,249 For internal management reporting, and therefore in the above segment information, “Corporate items” include governance expenses associated with the Company’s corporate office, as well as all of the Company’s interest income, interest expense, certain litigation expense managed by the Company’s General Counsel, foreign currency gains and losses from certain derivative and intercompany lending activities managed by the Company’s centralized Treasury function, all of the Company’s pension settlement costs, asset impairment and restructuring expenses, acquisition-related costs and various other unusual or one-time costs that are not considered a component of segment operating income. Consolidated interest income and expense are treated as a corporate item because cash equivalents, short-term investments and debt, including location, type, currency, etc., are managed on a worldwide basis by the Corporate Treasury Department. Customer revenue by shipping location and long-lived assets by country were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Revenues : United States $ 4,609 $ 4,689 $ 4,311 United Kingdom 1,200 964 822 Norway 776 952 684 Other foreign countries 2,197 3,776 3,321 Total revenues $ 8,782 $ 10,381 $ 9,138 December 31, ( dollars in millions ) 2015 2014 2013 Long-lived assets : United States $ 1,703 $ 2,367 $ 2,670 United Kingdom 221 219 197 Norway 1,314 1,627 1,953 Other foreign countries 825 940 1,046 Total long-lived assets $ 4,063 $ 5,153 $ 5,866 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The calculation of basic and diluted earnings per share for each period presented was as follows: Year Ended December 31, ( amounts in millions, except per share data ) 2015 2014 2013 Net income attributable to Cameron $ 501 $ 811 $ 699 Average shares outstanding (basic) 192 204 242 Common stock equivalents 1 1 2 Shares utilized in diluted earnings per share calculation 193 205 244 Earnings per share attributable to Cameron stockholders : Basic $ 2.61 $ 3.98 $ 2.89 Diluted $ 2.60 $ 3.96 $ 2.87 |
Summary of Non-cash Operating,
Summary of Non-cash Operating, Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Non-cash Operating, Investing and Financing Activities | Summary of Non-cash Operating, Investing and Financing Activities The effect on net assets of non-cash operating, investing and financing activities was as follows: ( dollars in millions ) 2015 2014 2013 Tax benefit of stock compensation plan transactions $ 2 $ 6 $ 10 Change in fair value of derivatives accounted for as cash flow hedges, net of tax $ (65 ) $ (76 ) $ 14 Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans $ 8 $ (35 ) $ 13 |
Off-Balance Sheet Risk and Guar
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments Off-Balance Sheet Risk and Guarantees At December 31, 2015 , the Company was contingently liable with respect to approximately $1.1 billion of bank guarantees and standby letters of credit issued on its behalf by major domestic and international financial institutions in connection with the delivery, installation and performance of the Company’s products under contract with customers throughout the world. The Company was also liable to these financial institutions for financial letters of credit and other guarantees issued on its behalf totaling nearly $36 million , which provide security to third parties relating to the Company’s ability to meet specified financial obligations, including payment of leases, customs duties, insurance and other matters. Additionally, the Company was liable for approximately $36 million of insurance bonds at December 31, 2015 relating to the requirements in certain foreign jurisdictions where the Company does business that the Company hold insurance bonds rather than bank guarantees. The Company’s other off-balance sheet risks were not material at December 31, 2015 . Concentrations of Credit Risk and Major Customers Apart from its normal exposure to its customers, who are predominantly in the energy industry, the Company had no significant concentrations of credit risk at December 31, 2015 . The Company typically does not require collateral for its customer trade receivables but does often obtain letters of credit from third-party banks as security for future payment on certain large product shipments. Allowances for doubtful accounts are recorded for estimated losses that may result from the inability of customers to make required payments. See Note 5 of the Notes to Consolidated Financial Statements for additional information. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, trade receivables, trade payables, derivative instruments and debt instruments. The book values of trade receivables, trade payables and floating-rate debt instruments are considered to be representative of their respective fair values. Following is a summary of the Company’s financial instruments which have been valued at fair value in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 : Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) Fair Value Based on Significant Other Observable Inputs (Level 2) Total ( dollars in millions ) 2015 2014 2015 2014 2015 2014 Cash and cash equivalents : Cash $ 562 $ 616 $ — $ — $ 562 $ 616 Money market funds 1,024 842 — — 1,024 842 Commercial paper — — 105 13 105 13 U.S. treasury securities — 5 — — — 5 U.S. corporate obligations 25 4 — — 25 4 Non-U.S. bank and other obligations 59 33 — — 59 33 Short-term investments : Commercial paper — — 223 11 223 11 U.S. Treasury securities 84 51 — — 84 51 U.S. corporate obligations 202 51 — — 202 51 U.S. non-governmental agency asset-backed securities — — 75 — 75 — Non-qualified plan assets : Money market funds 1 1 — — 1 1 Domestic bond funds 3 3 — — 3 3 Domestic equity funds 6 5 — — 6 5 International equity funds 3 3 — — 3 3 Blended equity funds 6 5 — — 6 5 Common stock 1 2 — — 1 2 Derivatives, net asset (liability) : Foreign currency contracts — — (34 ) (99 ) (34 ) (99 ) Total financial instruments $ 1,976 $ 1,621 $ 369 $ (75 ) $ 2,345 $ 1,546 Fair values for financial instruments utilizing level 2 inputs were determined from information obtained from third-party pricing sources, broker quotes, calculations involving the use of market indices or mutual fund unit values determined based upon the valuation of the funds’ underlying assets. At December 31, 2015 and December 31, 2014 , the fair value of the Company’s fixed-rate debt (based on Level 1 quoted market rates) was approximately $ 2.9 billion as compared to the $ 2.7 billion face value of the debt recorded, net of original issue discounts, in the Company’s Consolidated Balance Sheet. Derivative Contracts In order to mitigate the effect of exchange rate changes, the Company will often attempt to structure sales contracts to provide for collections from customers in the currency in which the Company incurs its manufacturing costs. In certain instances, the Company will enter into foreign currency forward contracts to hedge specific large anticipated receipts or disbursements in currencies for which the Company does not have fully offsetting local currency expenditures or receipts. The Company was party to a number of long-term foreign currency forward contracts at December 31, 2015 . The purpose of the majority of these contracts was to hedge large anticipated non-functional currency cash flows on major subsea, drilling, valve or other equipment contracts. Many of these contracts have been designated as and are accounted for as cash flow hedges with changes in the fair value of those contracts recorded in accumulated other elements of comprehensive income (loss) in the period such change occurs. Certain other contracts, many of which are centrally managed, are intended to offset other foreign currency exposures but have not been designated as hedges for accounting purposes and, therefore, any change in the fair value of those contracts are reflected in earnings in the period such change occurs. The Company determines the fair value of its outstanding foreign currency forward contracts based on quoted exchange rates for the respective currencies applicable to similar instruments. Total gross volume bought (sold) by notional currency and maturity date on open foreign currency forward contracts at December 31, 2015 was as follows: Notional Amount - Buy Notional Amount - Sell ( in millions ) 2016 2017 Total 2016 2017 2018 Total Foreign exchange forward contracts - Notional currency in : Euro 89 37 126 (11 ) — — (11 ) Malaysian ringgit 175 — 175 (9 ) — — (9 ) Norwegian krone 604 31 635 (132 ) (4 ) — (136 ) Pound Sterling 113 2 115 (5 ) — — (5 ) U.S. dollar 212 4 216 (440 ) (101 ) (1 ) (542 ) While the Company and its counterparties have the right to offset gains and losses on different derivative contracts under certain circumstances, the Company’s policy is to record its derivative contracts on a gross basis. The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows: December 31, 2015 2014 ( dollars in millions ) Assets Liabilities Assets Liabilities Derivatives designated as hedges : Foreign exchange contracts – Current $ 7 $ 38 $ 8 $ 83 Non-current 1 2 1 12 Total derivatives designated as hedges 8 40 9 95 Derivatives not designated as hedges : Foreign exchange contracts – Current 1 3 1 14 Non-current — — — — Total derivatives not designated as hedges 1 3 1 14 Total derivatives $ 9 $ 43 $ 10 $ 109 The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Derivatives designated as hedging instruments : Foreign currency contracts – Cost of sales $ 6 $ (7 ) $ 1 Derivatives not designated as hedging instruments : Foreign currency contracts – Cost of sales (24 ) (11 ) 7 Other costs (11 ) (8 ) (1 ) Total pre-tax gain (loss) $ (29 ) $ (26 ) $ 7 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is subject to a number of contingencies, including litigation, tax contingencies and environmental matters. Litigation The Company has been and continues to be named as a defendant in a number of multi-defendant, multi-plaintiff tort lawsuits. At December 31, 2015 , the Company’s Consolidated Balance Sheet included a liability of approximately $21 million for such cases. The Company believes, based on its review of the facts and law, that the potential exposure from these suits will not have a material adverse effect on its consolidated results of operations, financial condition or liquidity. Tax and Other Contingencies The Company has legal entities in over 50 countries. As a result, the Company is subject to various tax filing requirements in these countries. The Company prepares its tax filings in a manner which it believes is consistent with such filing requirements. However, some of the tax laws and regulations to which the Company is subject require interpretation and/or judgment. Although the Company believes that adequate provisions for the tax liabilities for periods ending on or before the balance sheet date have been made in the financial statements; to the extent a taxing authority believes the Company has not prepared its tax filings in accordance with the authority’s interpretation of the tax laws and regulations, the Company could be exposed to additional taxes. The Company has been assessed customs duties and penalties by the government of Brazil totaling approximately $34 million at December 31, 2015 , including interest accrued at local country rates, following a customs audit for the years 2003-2010. The Company filed an administrative appeal and believes a majority of this assessment will ultimately be proven to be incorrect because of numerous errors in the assessment, and because the government has not provided appropriate supporting documentation for the assessment. As a result, the Company currently expects no material adverse impact on its results of operations or cash flows as a result of the ultimate resolution of this matter. No amounts have been accrued for this assessment as of December 31, 2015 as no loss is currently considered probable. Environmental Matters The Company is currently identified as a potentially responsible party (PRP) for one site designated for cleanup under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA). The Osborne site is a landfill into which a predecessor of the Reciprocating Compression operation in Grove City, Pennsylvania deposited waste. Remediation was completed in 2011 and remaining costs relate to ongoing ground water monitoring. The Company is also a party with de minimis exposure at other sites covered by CERCLA or similar state laws. The Company is engaged in site cleanup under the Voluntary Cleanup Plan of the Texas Commission on Environmental Quality ("TCEQ") at a former manufacturing site in Houston, Texas. In 2001, the Company discovered that contaminated underground water had migrated under an adjacent residential area. Pursuant to applicable state regulations, the Company notified the affected homeowners. Concerns over the impact on property values of the underground water contamination and its public disclosure led to a number of claims by homeowners. The Company has settled these claims, primarily as a result of the settlement of a class action lawsuit, and is obligated to reimburse certain homeowners for any diminution in value of their property due to concerns over contamination at the time of the property's sale. As required, the Company has and will continue to notify surrounding property owners of testing and monitoring results, including concentration levels and migration patterns. The Company continues to monitor the situation to determine whether additional remedial measures would be appropriate. The Company believes, based on its review of the facts and law, that any potential exposure from existing agreements as well as any possible new claims that may be filed with respect to this underground water contamination will not have a material adverse effect on its financial position or results of operations. The Company's Consolidated Balance Sheet included a noncurrent liability of approximately $7 million for these matters as of December 31, 2015 . Additionally, the Company has discontinued operations at a number of other sites which had been active for many years and which may have yet undiscovered contamination. The Company does not believe, based upon information currently available, that there are any material environmental liabilities existing at these locations. At December 31, 2015 , the Company's Consolidated Balance Sheet included a noncurrent liability of approximately $5 million for these environmental matters. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue In May 2014, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (IFRS). The core principle of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09) , is that a company will recognize revenue when it transfers promised goods and services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In order to comply with this new standard, companies will need to: • identify performance obligations in each contract, • estimate the amount of variable consideration to include in the transaction price, and • allocate the transaction price to each separate performance obligation. In October 2015, the FASB further voted to amend this standard with regard to accounting for licenses of intellectual property and identifying performance obligations and in December 2015, the FASB and IASB unanimously voted to finalize clarifying amendments to the principal versus agent guidance in the new revenue standard. The FASB has also indicated they are planning to issue other proposed amendments that would clarify the collectibility criterion and provide practical expedients to ease transition, among other things. ASU 2014-09, as amended in 2015, will be effective for Cameron beginning in the first quarter of 2018. The Company is currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact, if any, they would have on our consolidated financial statements upon adoption of this standard. We have not yet determined if we will select the full retrospective or the modified retrospective implementation method upon adoption. Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements- Going Concern (Subtopic 205-40). ASU 2015-11 provides guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the Company beginning January 1, 2017. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized liability in the balance sheet be presented as a direct deduction to that liability rather than as an asset. This will align the presentation of debt issuance costs with that of debt discounts and premiums. Final guidance on this standard, issued as ASU 2015-15 in August 2015, includes an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The original standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. The Company will adopt this new standard beginning January 1, 2016, with the guidance applied retrospectively to all prior periods presented in financial statements issued after that date. The Company does not anticipate a material impact on its Consolidated Balance Sheet at the time of adoption of this new standard. Inventory In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires companies to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for the Company’s FIFO inventories beginning January 1, 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Business Combinations In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). This new standard specifies that an acquirer should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, eliminating the current requirement to retrospectively account for these adjustments. Additionally, the full effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts should be recognized in the same period as the adjustments to the provisional amounts. The Company will adopt this new standard beginning January 1, 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Deferred taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17). This new standard requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. ASU 2015-17 is effective for the Company beginning January 1, 2017. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This new standard requires, among other things, that entities measure equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value, with changes in fair value recognized in net income. Under ASU 2016-01, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available for sale in other comprehensive income and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. This new standard does not change the guidance for classifying and measuring investments in debt securities and loans. ASU 2016-01 is effective for the Company January 1, 2018. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. |
Unaudited Quarterly Operating R
Unaudited Quarterly Operating Results | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Unaudited Quarterly Operating Results | Unaudited Quarterly Operating Results Unaudited quarterly operating results were as follows: 2015 (Quarter Ended) ( dollars in millions, except per share data ) March 31, June 30, September 30, December 31, Revenues $ 2,273 $ 2,222 $ 2,208 $ 2,079 Revenues less cost of sales ( exclusive of depreciation and amortization ) $ 665 $ 637 $ 678 $ 676 Asset charges $ 553 $ 10 $ 18 $ 58 Other costs $ 24 $ 27 $ 26 $ 57 Net income $ 51 $ 155 $ 213 $ 149 Net income attributable to noncontrolling interests $ 2 $ 15 $ 26 $ 24 Net income attributable to Cameron stockholders $ 49 $ 140 $ 187 $ 125 Earnings per share attributable to Cameron stockholders : Basic $ 0.25 $ 0.73 $ 0.98 $ 0.65 Diluted $ 0.25 $ 0.73 $ 0.97 $ 0.65 2014 (Quarter Ended) ( dollars in millions, except per share data ) March 31, June 30, September 30, December 31, Revenues $ 2,329 $ 2,570 $ 2,678 $ 2,804 Revenues less cost of sales ( exclusive of depreciation and amortization ) $ 639 $ 720 $ 763 $ 795 Other costs (credits) $ 49 $ (6 ) $ 19 $ 11 Net income $ 115 $ 233 $ 238 $ 262 Net income attributable to noncontrolling interests $ 4 $ 12 $ 13 $ 8 Net income attributable to Cameron stockholders $ 111 $ 221 $ 225 $ 254 Earnings per share attributable to Cameron stockholders : Basic $ 0.51 $ 1.08 $ 1.12 $ 1.30 Diluted $ 0.51 $ 1.08 $ 1.11 $ 1.28 |
Summary of Major Accounting P32
Summary of Major Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — These consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. Investments in affiliated companies are accounted for using the equity method when we are able to exert significant influence over the operations of the investee. |
Estimates in Financial Statements | Estimates in Financial Statements — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management 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 revenues and expenses during the reporting period. Such estimates include, but are not limited to, estimates of total contract profit or loss on certain long-term production contracts, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, contingencies (including tax contingencies, estimated liabilities for litigation exposures and liquidated damages), estimated warranty costs, estimates related to pension accounting, estimates used to determine fair values in purchase accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ materially from these estimates. |
Revenue Recognition | Revenue Recognition — The Company generally recognizes revenue, net of sales taxes, related to products, services or rental arrangements once the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery of the equipment has occurred or the customer has taken title and risk of loss or services have been rendered, (iii) the price of the equipment or service is fixed and determinable and (iv) collectibility is reasonably assured. For engineering, procurement and construction-type contracts, revenue is generally reported on the percentage-of-completion method of accounting. Progress is primarily measured by the completion of milestones; however, progress for specific types of subsea and drilling systems contracts, which differ from our other contracts, is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. Both methods require the Company to make estimates regarding the total costs of the project, which impacts the amount of gross margin the Company recognizes in each reporting period. Under the percentage-of-completion method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in accounting for contracts. All known or anticipated losses on contracts are provided for in the period they become evident. Revenues and gross profit on contracts can be significantly affected by change orders that may be approved subsequent to completion of related work. If it is not probable that costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. If it is probable that costs will be recovered through a change order, the costs are treated as contract costs and contract revenue is recognized to the extent of the lesser of the amounts management expects to recover or the costs expected to be incurred. Approximately 32% , 31% and 31% of the Company’s revenues for the years ended December 31, 2015 , 2014 and 2013 , respectively, were recognized under the percentage-of-completion method. |
Shipping and Handling Costs | Shipping and Handling Costs — Shipping and handling costs are reflected in the caption entitled “Cost of sales (exclusive of depreciation and amortization shown separately below)” in the accompanying Consolidated Results of Operations statements. |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments — Cash equivalents consist of highly liquid investments which are readily convertible to cash and have maturities of three months or less at the time of purchase. Short-term investments consist primarily of commercial paper, U.S. Treasury securities, U.S. non-governmental agency asset-backed securities and corporate debt obligations that have maturities of more than three months but less than one year. All of our short-term investments are classified as available-for-sale and recorded at fair value, with unrealized holding gains and losses recorded as a component of accumulated other comprehensive income (loss). |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts — The Company maintains allowances for doubtful accounts for estimated losses expected to result from the inability of its customers to make required payments. Such allowances are based upon several factors including, but not limited to, historical experience, the length of time an invoice has been outstanding, responses from customers relating to demands for payment and the current and projected financial condition of specific customers. |
Inventories | Inventories — Aggregate inventories are carried at the lower of cost or market. On the basis of current costs less accumulated depreciation and impairment charges, 54% of inventories at December 31, 2015 and 54% at December 31, 2014 are carried on the last-in, first-out (LIFO) method. For these locations, the use of LIFO results in a better matching of costs and revenues. The remaining inventories, which are generally located outside the United States and Canada, are carried on the first-in, first-out (FIFO) method. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference between the cost of the inventory and its estimated realizable value. |
Plant and Equipment | Plant and Equipment — Property, plant and equipment, both owned and under capital lease, are carried at cost. Maintenance and repair costs are expensed as incurred. The cost of renewals, replacements and betterments is capitalized. The Company capitalizes software developed or obtained for internal use. Accordingly, the cost of third-party software, as well as the cost of third-party and internal personnel that are directly involved in application development activities, are capitalized during the application development phase of new software systems projects. Costs during the preliminary project stage and post-implementation stage of new software systems projects, including data conversion and training costs, are expensed as incurred. Depreciation and amortization is provided over the estimated useful lives of the related assets, or in the case of assets under capital leases, over the related lease term, if less, using the straight-line method. The estimated useful lives of the major classes of property, plant and equipment are as follows: Estimated Useful Lives Buildings and leasehold improvements 10-40 years Machinery, equipment and tooling 3-18 years Office furniture, software and other 3-10 years |
Goodwill and Intangible Assets | Goodwill and Intangible Assets — Cameron allocates the purchase price of acquired businesses to their identifiable tangible assets and liabilities, such as accounts receivable, inventory, property, plant and equipment, accounts payable and accrued liabilities, based on their estimated fair values. The Company also typically allocates a portion of the purchase price to identifiable intangible assets, such as noncompete agreements, trademarks, trade names, patents, technology, customer relationships and backlog using various widely accepted valuation techniques such as discounted future cash flows and the relief-from-royalty and excess earnings methods. Each of these methods involves level 3 unobservable market inputs. Any remaining excess of cost over allocated fair values is recorded as goodwill. On larger acquisitions, Cameron will typically engage third-party valuation experts to assist in determining the fair values for both the identifiable tangible and intangible assets. Certain estimates and judgments are required in the application of the fair value techniques, including estimates of future cash flows, selling prices, replacement costs, royalty rates for use of assets, economic lives and the selection of a discount rate. The Company reviews the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required. The estimated fair value of each reporting unit is primarily determined using discounted future expected cash flows (level 3 unobservable inputs) consistent with the accounting guidance for fair-value measurements. Certain estimates and judgments are required in the application of the fair value models, including, but not limited to, estimates of future cash flows and the selection of a discount rate. At December 31, 2015 , the Company’s reporting units for goodwill impairment evaluation purposes were the OneSubsea, Process Systems, Surface, Drilling, Valves and Measurement businesses. Prior to the fourth quarter of 2014, there were five reporting units within the V&M segment (now combined into two reporting units based on changes in management’s reporting structure during the fourth quarter of 2014). In connection with our annual goodwill impairment test as of March 31, 2015, we tested the goodwill for each of our six reporting units. With the exception of the Process Systems reporting unit, no goodwill impairments were indicated. With respect to the Process Systems reporting unit, our determination of fair value as of March 31, 2015 considered events that occurred in the first quarter, as well as our updated long-term outlook for this reporting unit. Those events included ongoing changes in the energy industry during the first quarter of 2015, a reduction in North American rig count, numerous industry-wide deepwater project deferrals and idling of deepwater drilling rigs, as well as significant capital spending cuts announced by a number of oil and gas exploration companies since December 31, 2014. Consistent with these industry-wide market changes, the Company also experienced the loss or indefinite deferral of several major project awards that we previously anticipated receiving. Accordingly, when determining the fair value of the Process Systems reporting unit as of March 31, 2015, our projections considered these factors as well as the negative impact of the low commodity price environment on the long-term outlook for revenue growth and profitability in this business. Based on these considerations, we concluded the fair value (estimated using Level 3 unobservable inputs) of the Process Systems reporting unit was less than its carrying value as of March 31, 2015. We conducted a Step 2 analysis, which included a hypothetical purchase price allocation, and recorded a goodwill impairment charge of $ 517 million . As of December 31, 2015 , following the impairment, the Process Systems reporting unit had $ 52 million of goodwill remaining. With the continued decline in commodity prices and activity levels since our annual goodwill impairment test, we performed a qualitative assessment of current market conditions and our future long-term expectations of oil and gas markets as of December 31, 2015 to conclude as to whether it was more likely than not that the fair values of our reporting units continued to be higher than each respective reporting unit's carrying value at December 31, 2015. Our assessment took into consideration, among other things, the valuation of Cameron that was implied in the August 2015 announcement of the merger with Schlumberger, as well as changes in commodity prices and activity levels and financial performance during 2015 by each of our reporting units, against expectations that were considered as part of the annual goodwill impairment test as of March 31, 2015. As a result of our analysis, no further impairment of goodwill was required as of December 31, 2015. The Company’s intangible assets, excluding goodwill, represent purchased patents, trademarks, customer relationships and other identifiable intangible assets. The majority of intangible assets are amortized on a straight-line basis over the years expected to be benefited, generally ranging from 5 to 28 years. Such intangibles are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. As many areas of the Company’s business rely on patents and proprietary technology, it has followed a policy of seeking patent protection both inside and outside the United States for products and methods that appear to have commercial significance. The costs of developing any intangibles internally, as well as costs of defending such intangibles, are expensed as incurred. |
Long-Lived Assets | Long-Lived Assets — In accordance with accounting rules for the impairment or disposal of long-lived assets, such assets, excluding goodwill and indefinite-lived intangibles, to be held and used by the Company are reviewed, at least quarterly, to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that its remaining useful life may be shorter than previously expected. For long-lived assets to be held and used, the Company bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, the Company determines whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset, which in most cases is estimated based upon Level 3 unobservable inputs. If the asset is determined to have a remaining useful life shorter than previously expected, an adjustment for the shorter remaining life will be made for purposes of recognizing future depreciation expense. Assets are classified as held for sale when the Company has a plan, approved by the appropriate levels of management, for disposal of such assets and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. During the years ended December 31, 2015 and 2014 , the Company identified various instances of assets whose carrying values were impaired or had shorter remaining useful lives than previously anticipated due to current and expected future market conditions. The impairment charges and accelerated depreciation amounts associated with these items are discussed further in Note 4 of the Notes to Consolidated Financial Statements. |
Product Warranty | Product Warranty — Estimated warranty costs are accrued either at the time of sale based upon historical experience or, in some cases, when specific warranty problems are encountered. Adjustments to the recorded liability are made periodically to reflect actual experience. |
Contingencies | Contingencies — The Company accrues for costs relating to litigation when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties, amounts specified by contract, amounts designated by legal statute or management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. |
Income Taxes | Income Taxes — The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Income tax expense includes U.S. and foreign income taxes, including U.S. federal taxes on undistributed earnings of foreign subsidiaries to the extent such earnings are planned to be remitted. Taxes are not provided on the translation component of comprehensive income since the effect of translation is not considered to modify the amount of the earnings that are planned to be remitted. A valuation allowance is provided to offset any net deferred tax asset, if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest related to accruals for uncertain tax positions is reflected as a component of interest expense in the Consolidated Results of Operations statement. Penalties on a tax position taken by the Company are reflected as a component of income tax expense in the Consolidated Results of Operations statement. See Note 13 of the Notes to Consolidated Financial Statements for further discussion of the Company’s income taxes. |
Environmental Remediation and Compliance | Environmental Remediation and Compliance — Environmental remediation and postremediation monitoring costs are accrued when such obligations become probable and reasonably estimable. Such future expenditures are not discounted to their present value. |
Pension and Postretirement Benefits Accounting | Pension and Postretirement Benefits Accounting — The Company recognizes the funded status of its defined benefit pension and other postretirement benefit plans in its Consolidated Balance Sheets. The measurement date for all of the Company’s plans was December 31, 2015 . See Note 9 of the Notes to Consolidated Financial Statements for further information. |
Stock-Based Compensation | Stock-Based Compensation — At December 31, 2015 , the Company had grants outstanding under various stock-based employee compensation plans, which are described in further detail in Note 10 of the Notes to Consolidated Financial Statements. Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by accounting rules on stock compensation. Under this guidance, the fair value of stock option grants and restricted stock unit awards is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company recognizes all derivative financial instruments as assets and liabilities on a gross basis and measures them at fair value. Hedge accounting is only applied when the derivative is deemed highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other elements of comprehensive income (loss) until the underlying transactions are recognized in earnings, at which time any deferred hedging gains or losses are reclassified to earnings in the same income statement caption as impacted by the hedged item. Any ineffective portion of the change in the fair value of a derivative used as a cash flow hedge is recorded in earnings as incurred. The amounts recorded in earnings from ineffectiveness for the years ended December 31, 2015 , 2014 and 2013 have not been material. The Company may at times also use forward or option contracts to hedge certain other foreign currency exposures. These contracts are not designated as hedges under the accounting guidance described above. Therefore, the changes in fair value of these contracts are recognized in earnings as they occur and offset gains or losses on the related exposures. |
Foreign Currency | Foreign Currency — For most subsidiaries and branches outside the U.S., the local currency is the functional currency. The financial statements of these subsidiaries and branches are translated into U.S. dollars as follows: (i) assets and liabilities at year-end exchange rates; (ii) income and expenses at monthly average exchange rates or exchange rates in effect on the date of the transaction; and (iii) stockholders’ equity at historical exchange rates. For those subsidiaries where the local currency is the functional currency, the resulting translation adjustment is recorded as a component of accumulated other elements of comprehensive income (loss) in the accompanying Consolidated Balance Sheets. For certain other subsidiaries and branches, operations are conducted primarily in currencies other than the local currencies, which are therefore the functional currency. Non-functional currency monetary assets and liabilities are remeasured at ending exchange rates. Revenue, expense and gain and loss accounts of these foreign subsidiaries and branches are remeasured at average exchange rates or exchange rates in effect on the date of the transaction. Non-functional currency non-monetary assets and liabilities, and the related revenue, expense, gain and loss accounts are remeasured at historical rates. Foreign currency gains and losses arising from monetary transactions denominated in a currency other than the functional currency of the entity involved are included in income. |
Reclassifications and Revisions | Reclassifications — Certain prior year amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements | Revenue In May 2014, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (IFRS). The core principle of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09) , is that a company will recognize revenue when it transfers promised goods and services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In order to comply with this new standard, companies will need to: • identify performance obligations in each contract, • estimate the amount of variable consideration to include in the transaction price, and • allocate the transaction price to each separate performance obligation. In October 2015, the FASB further voted to amend this standard with regard to accounting for licenses of intellectual property and identifying performance obligations and in December 2015, the FASB and IASB unanimously voted to finalize clarifying amendments to the principal versus agent guidance in the new revenue standard. The FASB has also indicated they are planning to issue other proposed amendments that would clarify the collectibility criterion and provide practical expedients to ease transition, among other things. ASU 2014-09, as amended in 2015, will be effective for Cameron beginning in the first quarter of 2018. The Company is currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact, if any, they would have on our consolidated financial statements upon adoption of this standard. We have not yet determined if we will select the full retrospective or the modified retrospective implementation method upon adoption. Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements- Going Concern (Subtopic 205-40). ASU 2015-11 provides guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the Company beginning January 1, 2017. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized liability in the balance sheet be presented as a direct deduction to that liability rather than as an asset. This will align the presentation of debt issuance costs with that of debt discounts and premiums. Final guidance on this standard, issued as ASU 2015-15 in August 2015, includes an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The original standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. The Company will adopt this new standard beginning January 1, 2016, with the guidance applied retrospectively to all prior periods presented in financial statements issued after that date. The Company does not anticipate a material impact on its Consolidated Balance Sheet at the time of adoption of this new standard. Inventory In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 requires companies to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for the Company’s FIFO inventories beginning January 1, 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Business Combinations In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). This new standard specifies that an acquirer should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, eliminating the current requirement to retrospectively account for these adjustments. Additionally, the full effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts should be recognized in the same period as the adjustments to the provisional amounts. The Company will adopt this new standard beginning January 1, 2016. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Deferred taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17). This new standard requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. ASU 2015-17 is effective for the Company beginning January 1, 2017. The Company does not anticipate a material impact on its consolidated financial statements at the time of adoption of this new standard. Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This new standard requires, among other things, that entities measure equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) at fair value, with changes in fair value recognized in net income. Under ASU 2016-01, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available for sale in other comprehensive income and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. This new standard does not change the guidance for classifying and measuring investments in debt securities and loans. ASU 2016-01 is effective for the Company January 1, 2018. |
Summary of Major Accounting P33
Summary of Major Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
The estimated useful lives of the major classes of property, plant and equipment | The estimated useful lives of the major classes of property, plant and equipment are as follows: Estimated Useful Lives Buildings and leasehold improvements 10-40 years Machinery, equipment and tooling 3-18 years Office furniture, software and other 3-10 years |
Business Dispositions and Com34
Business Dispositions and Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summarized financial information of discontinued businesses | Summarized financial information relating to these businesses is shown below: Year Ended December 31, (dollars in millions) 2015 2014 2013 Revenues $ — $ 428 $ 701 Cost of sales (excluding depreciation and amortization) — (306 ) (498 ) All other costs (2 ) (94 ) (105 ) Gain on sale of the compression businesses, before tax 681 95 — Income before income taxes 679 123 98 Income tax provision (248 ) (97 ) (33 ) Income from discontinued operations, net of income taxes $ 431 $ 26 $ 65 Gains on the sale of the Compression businesses were determined as follows (dollars in millions): (dollars in millions) Sale of Centrifugal Compression Sale of Reciprocating Compression Sales price $ 850 $ 550 Net assets sold (160 ) (442 ) Transaction and other costs associated with the sale (9 ) (13 ) Pre-tax gain 681 95 Tax provision (1) (248 ) (85 ) Gain on sale $ 433 $ 10 (1) The tax provision associated with the pre-tax gain on the Reciprocating Compression business was impacted by nondeductible goodwill of approximately $ 192 million included in the total net assets sold. As described further in Note 4 of the Notes to Consolidated Financial Statements, on August 27, 2015, Cameron entered into an agreement to sell the LeTourneau Offshore Products business within the Drilling Systems division to Keppel Offshore & Marine USA, Inc. for $100 million . This business is currently reflected as held for sale at December 31, 2015. Assets and liabilities of all businesses held for sale in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 were as follows: (dollars in millions) December 31, 2015 December 31, 2014 Receivables, net $ 4 $ 37 Inventories, net 62 86 Other current assets — 14 Plant and equipment, net 7 45 Intangibles, net 15 — Goodwill 14 35 Assets held for sale 102 217 Accounts payable, accrued and other current liabilities $ 2 $ 89 Other long-term liabilities — 1 Liabilities held for sale $ 2 $ 90 |
Asset Charges and Other Costs (
Asset Charges and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Nonrecurring (Income) Expense [Abstract] | |
Schedule of Other Costs | Asset charges and other costs, net of gains, consisted of the following: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Asset charges - Goodwill impairment $ 517 $ 40 $ — Other long-lived asset impairments 78 4 — Accelerated depreciation on underutilized assets 44 — — Total asset charges 639 44 — Other costs (gains) - Facility closures and severance 88 15 13 Loss on disposal of non-core assets 15 10 — Mark-to-market impact on currency derivatives not designated as accounting hedges 11 8 1 Merger costs 8 — — Gain from remeasurement of prior interest in equity method investment — (8 ) — All other costs, net 12 4 78 Total other costs (gains), net 134 29 92 Total asset charges and other costs (gains), net $ 773 $ 73 $ 92 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables | Receivables consisted of the following: December 31, ( dollars in millions ) 2015 2014 Trade receivables $ 1,167 $ 1,678 Costs and estimated earnings in excess of billings on uncompleted contracts 736 621 Other receivables 118 122 Allowance for doubtful accounts (57 ) (32 ) Total receivables $ 1,964 $ 2,389 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, ( dollars in millions ) 2015 2014 Raw materials $ 106 $ 159 Work-in-process 562 827 Finished goods, including parts and subassemblies 1,871 2,150 Other 20 24 2,559 3,160 Excess of current costs over LIFO costs (73 ) (86 ) Allowance for obsolete and excess inventory (126 ) (145 ) Total inventories $ 2,360 $ 2,929 |
Plant and Equipment, Goodwill38
Plant and Equipment, Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Plant and Equipment, Goodwill and Intangibles [Abstract] | |
Plant and equipment | Plant and equipment consisted of the following: December 31, ( dollars in millions ) 2015 2014 Land and land improvements $ 118 $ 130 Buildings 702 726 Machinery and equipment 1,586 1,682 Tooling, dies, patterns, etc. 185 179 Office furniture & equipment 213 212 Capitalized software 370 370 Assets under capital leases 108 120 Construction in progress 162 127 All other 17 34 3,461 3,580 Accumulated depreciation (1,744 ) (1,616 ) Total plant and equipment, net $ 1,717 $ 1,964 |
Changes in goodwill | Changes in goodwill during 2015 were as follows: ( dollars in millions ) Subsea Surface Drilling Valves & Measurement Total Balance at December 31, 2014 $ 1,476 $ 173 $ 501 $ 311 $ 2,461 Impairment (See Note 4) (517 ) — — — (517 ) Goodwill associated with assets held for sale — — (14 ) — (14 ) Adjustments to the purchase price allocation for prior year acquisitions (8 ) (4 ) — — (12 ) Translation effect of currency changes and other (134 ) (4 ) (4 ) (12 ) (154 ) Balance at December 31, 2015 $ 817 $ 165 $ 483 $ 299 $ 1,764 |
Intangibles | Intangibles consisted of the following: December 31, ( dollars in millions ) 2015 2014 Customer relationships $ 398 $ 459 Patents and technology 345 382 Trademarks 54 68 Noncompete agreements, engineering drawings and other 61 80 858 989 Accumulated amortization (276 ) (261 ) Total intangibles, net $ 582 $ 728 |
Accounts Payable and Accrued 39
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following: December 31, ( dollars in millions ) 2015 2014 Trade accounts payable and accruals $ 650 $ 1,084 Advances from customers 1,082 1,576 Salaries, wages, and related fringe 373 355 Other accruals 688 733 Total accounts payable and accrued liabilities $ 2,793 $ 3,748 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Total net benefit plan expense (income) | Total net benefit plan expense (income) associated with the Company’s defined benefit pension and postretirement benefit plans consisted of the following: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2013 2015 2014 2013 Service cost $ 8 $ 18 $ 10 $ — $ — $ — Interest cost 15 20 17 — — — Expected return on plan assets (23 ) (27 ) (21 ) — — — Amortization of prior service credits (2 ) (2 ) (2 ) (1 ) (1 ) (1 ) Amortization of losses (gains) 9 9 8 (1 ) (1 ) (1 ) Curtailment gain — (12 ) — — — — Settlement loss 1 4 — — — — Total net benefit plan expense (income) $ 8 $ 10 $ 12 $ (2 ) $ (2 ) $ (2 ) |
Schedule of net periodic benefit cost not yet recognized | Included in accumulated other elements of comprehensive income (loss) at December 31, 2015 and 2014 are the following amounts that have not yet been recognized in net periodic benefit plan cost, as well as the amounts that are expected to be recognized in net periodic benefit plan cost during the year ending December 31, 2016 : December 31, 2015 December 31, 2014 Year ending December 31, 2016 ( dollars in millions ) Before Tax After Tax Before Tax After Tax Expected Amortization Pension benefits : Prior service credits $ 15 $ 14 $ 19 $ 15 $ (2 ) Actuarial losses, net (131 ) (116 ) (164 ) (132 ) 9 Postretirement benefits : Prior service credits 2 1 3 2 (1 ) Actuarial gains 7 4 8 5 (1 ) $ (107 ) $ (97 ) $ (134 ) $ (110 ) $ 5 |
Schedule of changes in benefit obligations | The change in the projected benefit obligation associated with the Company’s defined benefit pension plans and the change in the accumulated benefit obligation associated with the Company’s postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2015 2014 Benefit obligation at beginning of year $ 509 $ 489 $ 9 $ 11 Service cost 8 18 — — Interest cost 15 20 — — Plan participants’ contributions 1 1 — — Actuarial losses (gains) 3 78 1 (1 ) Exchange rate changes (29 ) (52 ) — — Benefit payments (12 ) (14 ) (1 ) (1 ) Curtailments — (23 ) — — Settlements (59 ) (8 ) — — Benefit obligation at end of year $ 436 $ 509 $ 9 $ 9 |
Schedule of changes in fair value of plan assets | The change in the plan assets associated with the Company’s defined benefit pension and postretirement benefit plans was as follows: Pension Benefits Postretirement Benefits ( dollars in millions ) 2015 2014 2015 2014 Fair value of plan assets at beginning of year $ 455 $ 432 $ — $ — Actual return on plan assets 11 53 — — Company contributions 14 27 1 1 Plan participants’ contributions 1 1 — — Exchange rate changes (24 ) (40 ) — — Benefit payments (12 ) (14 ) (1 ) (1 ) Settlements (59 ) (8 ) — — Other (2 ) 4 — — Fair value of plan assets at end of year $ 384 $ 455 $ — $ — |
Status of underfunded defined benefit pension and postretirement benefit plans | The status of the Company’s underfunded defined benefit pension and postretirement benefit plans was as follows: Pension Benefits December 31, Postretirement Benefits December 31, ( dollars in millions ) 2015 2014 2015 2014 Noncurrent assets $ 20 $ — $ — $ — Current liabilities (1 ) (1 ) (2 ) (1 ) Non-current liabilities (71 ) (53 ) (7 ) (8 ) Underfunded status at end of year $ (52 ) $ (54 ) $ (9 ) $ (9 ) |
Schedule of actual asset investment allocations | Actual asset investment allocations for the Company’s main defined benefit pension plan in the United Kingdom, which accounts for approximately 89% of total plan assets, were as follows: 2015 2014 2013 U.K. plan : Equity securities 33 % 55 % 60 % Fixed income debt securities, cash and other 67 % 45 % 40 % |
Schedule of fair values of plan assets | The fair values of the Company’s pension plan assets by asset category at December 31, 2015 and 2014 were as follows: Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) Fair Value Based on Significant Other Observable Inputs (Level 2) Fair Value Based on Significant Unobservable Inputs (Level 3) Total ( dollars in millions ) 2015 2014 2015 2014 2015 2014 2015 2014 Cash and cash equivalents $ 1 $ 1 $ — $ — $ — $ — $ 1 $ 1 Equity securities : U.S. equities — — 78 83 — — 78 83 Non-U.S. equities — — 120 120 — — 120 120 Bonds : Non-U.S. government bonds — — 114 117 — — 114 117 Non-U.S. corporate bonds — — 29 30 — — 29 30 Alternative investments : Insurance contracts — — — — 28 89 28 89 Real estate and other — — — — 14 15 14 15 Total assets $ 1 $ 1 $ 341 $ 350 $ 42 $ 104 $ 384 $ 455 |
Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs | Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 Balance at beginning of the year $ 104 $ 105 Purchases/sales, net (56 ) 10 Actual return on plan assets (2 ) 4 Currency impact (4 ) (15 ) Balance at end of the year $ 42 $ 104 |
Weighted-average assumptions associated with defined benefit pension and postretirement benefit plans | The weighted-average assumptions associated with the Company’s defined benefit pension and postretirement benefit plans were as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Assumptions related to net benefit costs : U.S. plans: Discount rate 3.25 % 3.75 % 3.25 % 3.75 % Measurement date 1/1/2015 1/1/2014 1/1/2015 1/1/2014 Foreign plans: Discount rate 2.25-4.25% 3.5-5.25% — — Expected return on plan assets 2.25-6.25% 2.25-6.75% — — Rate of compensation increase 2.25-5.00% 2.25-4.50% — — Measurement date 1/1/2015 1/1/2014 — — Assumptions related to end-of-period benefit obligations : U.S. plans : Discount rate 3.50 % 3.25 % 3.50 % 3.25 % Health care cost trend rate — — 7.00 % 7.00 % Measurement date 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Foreign plans : Discount rate 2.25-4.25% 2.25-4.25% — — Rate of compensation increase 2.25-4.00% 2.25-5.00% — — Measurement date 12/31/2015 12/31/2014 — — |
Projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets | Amounts applicable to the Company’s pension plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets were as follows: Projected Benefit Obligation in Excess of Plan Assets at December 31, Accumulated Benefit Obligation in Excess of Plan Assets at December 31, ( dollars in millions ) 2015 2014 2015 2014 Fair value of applicable plan assets $ 41 $ 101 $ 41 $ 101 Projected benefit obligation of applicable plans $ 113 $ 171 — — Accumulated benefit obligation of applicable plans — — $ 86 $ 149 |
Future expected benefit payments | Future expected benefit payments are as follows: ( dollars in millions ) Pension Benefits Postretirement Benefits Year ending December 31 : 2016 $ 11 $ 1 2017 $ 11 $ 1 2018 $ 12 $ 1 2019 $ 13 $ 1 2020 $ 13 $ 1 2021 - 2025 $ 71 $ 3 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation expense for all stock-based compensation plans | Stock-based compensation expense recognized was as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Outstanding restricted and deferred stock units and awards $ 40 $ 44 $ 40 Unvested outstanding stock options 9 10 14 Total stock-based compensation expense $ 49 $ 54 $ 54 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of activity in all stock based compensation plans | A summary of option activity under the Company’s stock compensation plans as of and for the year ended December 31, 2015 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (dollars in millions) Outstanding at January 1, 2015 3,912,488 $ 51.89 Granted 620,968 65.20 Exercised (771,707 ) 40.39 Forfeited and expired (37,603 ) 59.09 Outstanding at December 31, 2015 3,724,146 $ 56.42 6.77 $ 28 Vested at December 31, 2015 or expected to vest in the future 3,710,191 $ 56.40 6.76 $ 28 Exercisable at December 31, 2015 2,377,609 $ 53.07 5.49 $ 25 At Stock-based compensation cost not yet recognized under the straight-line method ( dollars in millions ) $ 15 Weighted-average remaining expense recognition period (in years ) 2.21 |
Share-based payment award, stock options, valuation assumptions | The fair values per share of option grants for the years ended December 31, 2015 , 2014 and 2013 were estimated using the Black-Scholes-Merton option pricing formula with the following weighted-average assumptions: Year Ended December 31, 2015 2014 2013 Expected life ( in years ) 3.5 3.3 3.2 Risk-free interest rate 0.95 % 0.86 % 0.67 % Volatility 27.9 % 33.8 % 34.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % |
Share-based payment award, options, grants in period, grant date intrinsic value | The above assumptions and market prices of the Company’s common stock at the date of option exercises resulted in the following values: Year Ended December 31, 2015 2014 2013 Grant-date fair value per option $ 14.47 $ 14.51 $ 16.19 Intrinsic value of options exercised ( dollars in millions ) $ 16 $ 26 $ 31 Average intrinsic value per share of options exercised $ 21.31 $ 24.17 $ 26.30 |
Restricted and Deferred Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted and deferred stock units granted and vesting | A summary of restricted and deferred stock unit award activity under the Company’s stock compensation plans as of and for the year ended December 31, 2015 is presented below: Restricted and Deferred Stock Units Number Weighted-Average Grant Date Fair Value Nonvested at January 1, 2015 1,848,682 $ 56.85 Granted 1,183,828 54.95 Vested (780,163 ) 54.79 Forfeited (86,910 ) 54.25 Nonvested at December 31, 2015 2,165,437 $ 56.66 At Stock-based compensation cost not yet recognized under the straight-line method ( dollars in millions ) $ 64 Weighted-average remaining expense recognition period ( in years ) 1.80 Information on restricted and deferred stock units granted and vesting during the three years ended December 31, 2015 follows: Year Ended December 31, 2015 2014 2013 Number of units granted with performance conditions 214,072 174,697 185,992 Intrinsic value of units vesting ( dollars in millions ) $ 39 $ 34 $ 46 Total number of units granted 1,183,828 826,329 838,207 Weighted average grant date fair value per unit $ 54.95 $ 59.63 $ 57.95 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt obligations | The Company’s debt obligations were as follows: December 31, ( dollars in millions ) 2015 2014 Commercial paper (0.49% weighted average rate at December 31, 2014) $ — $ 201 Senior notes : 1.15% notes due December 15, 2016 250 250 1.4% notes due June 15, 2017 250 250 6.375% notes due July 15, 2018 450 450 4.5% notes due June 1, 2021 250 250 3.6% notes due April 30, 2022 250 250 4.0% notes due December 15, 2023 250 250 3.7% notes due June 15, 2024 250 250 7.0% notes due July 15, 2038 300 300 5.95% notes due June 1, 2041 250 250 5.125% notes due December 15, 2043 250 250 Unamortized original issue discount (6 ) (7 ) Other debt 22 67 Obligations under capital leases 60 71 2,826 3,082 Current maturities (284 ) (263 ) Long-term maturities $ 2,542 $ 2,819 |
Interest expensed and paid | Information on interest expensed and paid during the three years ended December 31, 2015 was as follows: Year Ended December 31 ( dollars in millions ) 2015 2014 2013 Interest expensed $ 160 $ 149 $ 115 Interest paid $ 154 $ 142 $ 105 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future minimum lease payments for capital leases and noncancelable operating leases | Future minimum lease payments with respect to capital leases and operating leases with noncancelable terms in excess of one year were as follows: Capital Operating ( dollars in millions ) Lease Payments Lease Payments Year ending December 31: 2016 $ 18 $ 109 2017 15 81 2018 10 62 2019 5 54 2020 4 50 Thereafter 47 139 Future minimum lease payments 99 495 Less: amount representing interest (39 ) — Lease obligations at December 31, 2015 $ 60 $ 495 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes | The components of income from continuing operations before income taxes were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 U.S. operations $ (423 ) $ 294 $ 219 Foreign operations 744 786 636 Income from continuing operations before income taxes $ 321 $ 1,080 $ 855 |
Provision for income taxes | The provisions for income taxes were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Current : U.S. federal $ 35 $ 70 $ — U.S. state and local (1 ) 4 11 Foreign 198 231 166 232 305 177 Deferred : U.S. federal (55 ) — 31 U.S. state and local — (3 ) 2 Foreign 7 (44 ) (14 ) (48 ) (47 ) 19 Income tax provision $ 184 $ 258 $ 196 |
Effective income tax rate reconciliation | The reasons for the differences between the provision for income taxes and income taxes using the U.S. federal income tax rate were as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes (0.1 )% — % 1.0 % Foreign statutory rate differential (34.7 )% (9.7 )% (10.6 )% Change in valuation allowance on deferred tax assets 5.4 % 3.4 % (1.7 )% Nondeductible expenses (1.1 )% (0.1 )% 1.1 % Goodwill impairments 56.4 % 1.0 % — % Net U.S. tax on foreign source income (5.8 )% (2.9 )% (3.2 )% All other 2.2 % (2.8 )% 1.3 % Total 57.3 % 23.9 % 22.9 % Total income taxes paid ( dollars in millions ) $ 548 $ 353 $ 329 |
Components of deferred tax assets and liabilities | Components of deferred tax assets (liabilities) were as follows: December 31, ( dollars in millions ) 2015 2014 Deferred tax liabilities : Plant and equipment $ (117 ) $ (190 ) Intangible assets (181 ) (221 ) Other (9 ) (9 ) Total deferred tax liabilities (307 ) (420 ) Deferred tax assets : Inventory 22 48 Postretirement benefits other than pensions — 3 Reserves and accruals 199 160 Net operating losses and tax credits 149 259 Pensions 28 38 Other 26 27 Total deferred tax assets 424 535 Valuation allowance (93 ) (79 ) Net deferred tax assets $ 24 $ 36 |
Changes in unrecognized tax benefits | Changes in the Company’s accruals for unrecognized tax benefits were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Balance at beginning of year $ 97 $ 103 $ 121 Increases in estimates of tax positions related to prior fiscal year 1 — — Increases due to tax positions taken during the current year — 6 3 Decreases relating to settlements with tax authorities (5 ) (10 ) (19 ) Decreases resulting from the lapse of applicable statutes of limitation — — — Net increases (decreases) due to translation and interest 2 (2 ) (2 ) Balance at end of year $ 95 $ 97 $ 103 |
Summary of income tax examinations | The earliest years’ tax returns filed by the Company that are still subject to examination by authorities in the major tax jurisdictions are as follows: United States United Kingdom Canada France Germany Norway Singapore Italy 2011 2012 2010 2013 2012 2013 2012 2011 |
Summary of valuation allowance | Changes in the Company’s valuation allowances against these net operating loss and credit carryforwards and other deferred tax assets were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Balance at beginning of year $ 79 $ 59 $ 84 Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year 45 25 11 Change in valuation allowances related to prior years (20 ) (2 ) (16 ) Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized — — (19 ) Effect of translation (11 ) (3 ) (1 ) Balance at end of year $ 93 $ 79 $ 59 |
Summary of tax credit carryforwards | Tax attribute carryforwards which are available for use on future income tax returns at December 31, 2015 are as follows: ( dollars in millions ) Domestic Foreign Expiration Net operating losses - regular income tax $ — $ 316 2018 - Indefinite Net operating losses – state income tax $ 32 $ — 2018 – 2035 Foreign tax credits $ 26 $ — 2025 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Changes in number of shares in stockholders' equity | Changes in the number of shares of the Company’s outstanding stock for the last three years were as follows: Common Stock Treasury Stock Shares Outstanding Balance - December 31, 2012 263,111,472 (16,415,336 ) 246,696,136 Purchase of treasury stock — (26,955,623 ) (26,955,623 ) Stock issued under stock compensation plans — 1,687,795 1,687,795 Balance - December 31, 2013 263,111,472 (41,683,164 ) 221,428,308 Purchase of treasury stock — (27,970,492 ) (27,970,492 ) Stock issued under stock compensation plans — 1,514,629 1,514,629 Balance - December 31, 2014 263,111,472 (68,139,027 ) 194,972,445 Purchase of treasury stock — (5,130,334 ) (5,130,334 ) Stock issued under stock compensation plans — 1,337,803 1,337,803 Balance - December 31, 2015 263,111,472 (71,931,558 ) (191,179,914 ) |
Accumulated Other Elements of46
Accumulated Other Elements of Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other elements of comprehensive income (loss) | Accumulated other elements of comprehensive income (loss) comprised the following ( dollars in millions ) Accumulated Foreign Currency Translation Gain (Loss) Prior Service Credits and Net Actuarial Losses Accumulated Gain (Loss) on Cash Flow Hedges Total Other Comprehensive Income (Loss) Balance at December 31, 2012 $ 46 $ (87 ) $ 11 $ (30 ) Foreign currency translation gain (loss) (95 ) — — (95 ) $ (95 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — 40 — 40 40 Amortization of actuarial (gains) losses, net of tax — 2 — 2 2 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — 6 6 6 (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax (3 ) (3 ) (3 ) Balance at December 31, 2013 (49 ) (45 ) 14 (80 ) $ (50 ) Foreign currency translation gain (loss) (379 ) — — (379 ) $ (379 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — (31 ) — (31 ) (31 ) Curtailment and settlement gains (losses) — (3 ) — (3 ) (3 ) Amortization of actuarial (gains) losses, net of tax — 1 — 1 1 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — (52 ) (52 ) (52 ) (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax — — 4 4 4 Balance at December 31, 2014 (428 ) (78 ) (34 ) (540 ) $ (460 ) Foreign currency translation gain (loss) (358 ) — — (358 ) $ (358 ) Actuarial gains (losses) recognized in other comprehensive income, net of tax — 12 — 12 12 Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax — 1 — 1 1 Amortization of actuarial (gains) losses, net of tax — 3 — 3 3 Gain (loss) on derivatives recognized in other comprehensive income, net of tax — — (54 ) (54 ) (54 ) (Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax — — 59 59 59 Balance of December 31, 2015 $ (786 ) $ (62 ) $ (29 ) $ (877 ) $ (337 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary financial data by segment | Summary financial data by segment follows: Year Ended December 31, ( dollars in millions) 2015 2014 2013 Revenues: Subsea $ 2,753 $ 3,067 $ 2,813 Surface 1,957 2,411 2,077 Drilling 2,708 3,049 2,327 V&M 1,548 2,125 2,105 Elimination of intersegment revenues (184 ) (271 ) (184 ) Consolidated revenues $ 8,782 $ 10,381 $ 9,138 Depreciation and amortization: Subsea $ 87 $ 113 $ 85 Surface 135 126 106 Drilling 67 60 60 V&M 53 49 47 Consolidated depreciation and amortization $ 342 $ 348 $ 298 Segment operating income before interest and income taxes: Subsea $ 407 $ 207 $ 152 Surface 264 427 367 Drilling 528 474 311 V&M 177 393 414 Elimination of intersegment earnings (36 ) (74 ) (35 ) Segment operating income before interest and income taxes 1,340 1,427 1,209 Corporate items: Corporate expenses (108 ) (145 ) (162 ) Interest, net (138 ) (129 ) (100 ) Other costs (773 ) (73 ) (92 ) Consolidated income from continuing operations before income taxes $ 321 $ 1,080 $ 855 Capital expenditures: Subsea $ 60 $ 70 $ 80 Surface 109 125 156 Drilling 44 38 111 V&M 36 49 58 Corporate 36 96 102 Discontinued operations — 7 13 Consolidated capital expenditures $ 285 $ 385 $ 520 Total assets: Subsea $ 4,735 $ 5,571 $ 5,897 Surface 2,667 2,756 2,705 Drilling 2,394 3,011 3,076 V&M 1,540 1,633 1,765 Corporate 1,025 581 844 Discontinued operations — 217 616 Elimination of intersegment investments (861 ) (877 ) (654 ) Consolidated total assets $ 11,500 $ 12,892 $ 14,249 |
Customer revenue by shipping location and long-lived assets by country | Customer revenue by shipping location and long-lived assets by country were as follows: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Revenues : United States $ 4,609 $ 4,689 $ 4,311 United Kingdom 1,200 964 822 Norway 776 952 684 Other foreign countries 2,197 3,776 3,321 Total revenues $ 8,782 $ 10,381 $ 9,138 December 31, ( dollars in millions ) 2015 2014 2013 Long-lived assets : United States $ 1,703 $ 2,367 $ 2,670 United Kingdom 221 219 197 Norway 1,314 1,627 1,953 Other foreign countries 825 940 1,046 Total long-lived assets $ 4,063 $ 5,153 $ 5,866 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | The calculation of basic and diluted earnings per share for each period presented was as follows: Year Ended December 31, ( amounts in millions, except per share data ) 2015 2014 2013 Net income attributable to Cameron $ 501 $ 811 $ 699 Average shares outstanding (basic) 192 204 242 Common stock equivalents 1 1 2 Shares utilized in diluted earnings per share calculation 193 205 244 Earnings per share attributable to Cameron stockholders : Basic $ 2.61 $ 3.98 $ 2.89 Diluted $ 2.60 $ 3.96 $ 2.87 |
Summary of Non-cash Operating49
Summary of Non-cash Operating, Investing and Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Effects on net assets of non-cash operating, investing and financing activities | The effect on net assets of non-cash operating, investing and financing activities was as follows: ( dollars in millions ) 2015 2014 2013 Tax benefit of stock compensation plan transactions $ 2 $ 6 $ 10 Change in fair value of derivatives accounted for as cash flow hedges, net of tax $ (65 ) $ (76 ) $ 14 Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans $ 8 $ (35 ) $ 13 |
Off-Balance Sheet Risk and Gu50
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments in the balance sheet | Following is a summary of the Company’s financial instruments which have been valued at fair value in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 : Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) Fair Value Based on Significant Other Observable Inputs (Level 2) Total ( dollars in millions ) 2015 2014 2015 2014 2015 2014 Cash and cash equivalents : Cash $ 562 $ 616 $ — $ — $ 562 $ 616 Money market funds 1,024 842 — — 1,024 842 Commercial paper — — 105 13 105 13 U.S. treasury securities — 5 — — — 5 U.S. corporate obligations 25 4 — — 25 4 Non-U.S. bank and other obligations 59 33 — — 59 33 Short-term investments : Commercial paper — — 223 11 223 11 U.S. Treasury securities 84 51 — — 84 51 U.S. corporate obligations 202 51 — — 202 51 U.S. non-governmental agency asset-backed securities — — 75 — 75 — Non-qualified plan assets : Money market funds 1 1 — — 1 1 Domestic bond funds 3 3 — — 3 3 Domestic equity funds 6 5 — — 6 5 International equity funds 3 3 — — 3 3 Blended equity funds 6 5 — — 6 5 Common stock 1 2 — — 1 2 Derivatives, net asset (liability) : Foreign currency contracts — — (34 ) (99 ) (34 ) (99 ) Total financial instruments $ 1,976 $ 1,621 $ 369 $ (75 ) $ 2,345 $ 1,546 |
Information relating to the contracts and estimated fair values recorded in the Company's Consolidated Balance Sheets | Total gross volume bought (sold) by notional currency and maturity date on open foreign currency forward contracts at December 31, 2015 was as follows: Notional Amount - Buy Notional Amount - Sell ( in millions ) 2016 2017 Total 2016 2017 2018 Total Foreign exchange forward contracts - Notional currency in : Euro 89 37 126 (11 ) — — (11 ) Malaysian ringgit 175 — 175 (9 ) — — (9 ) Norwegian krone 604 31 635 (132 ) (4 ) — (136 ) Pound Sterling 113 2 115 (5 ) — — (5 ) U.S. dollar 212 4 216 (440 ) (101 ) (1 ) (542 ) |
Schedule of fair values of derivative financial instruments of balance sheets | The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows: December 31, 2015 2014 ( dollars in millions ) Assets Liabilities Assets Liabilities Derivatives designated as hedges : Foreign exchange contracts – Current $ 7 $ 38 $ 8 $ 83 Non-current 1 2 1 12 Total derivatives designated as hedges 8 40 9 95 Derivatives not designated as hedges : Foreign exchange contracts – Current 1 3 1 14 Non-current — — — — Total derivatives not designated as hedges 1 3 1 14 Total derivatives $ 9 $ 43 $ 10 $ 109 |
Pre-tax gain (loss) from ineffective portion of derivatives | The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was: Year Ended December 31, ( dollars in millions ) 2015 2014 2013 Derivatives designated as hedging instruments : Foreign currency contracts – Cost of sales $ 6 $ (7 ) $ 1 Derivatives not designated as hedging instruments : Foreign currency contracts – Cost of sales (24 ) (11 ) 7 Other costs (11 ) (8 ) (1 ) Total pre-tax gain (loss) $ (29 ) $ (26 ) $ 7 |
Unaudited Quarterly Operating51
Unaudited Quarterly Operating Results (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Unaudited quarterly operating results | Unaudited quarterly operating results were as follows: 2015 (Quarter Ended) ( dollars in millions, except per share data ) March 31, June 30, September 30, December 31, Revenues $ 2,273 $ 2,222 $ 2,208 $ 2,079 Revenues less cost of sales ( exclusive of depreciation and amortization ) $ 665 $ 637 $ 678 $ 676 Asset charges $ 553 $ 10 $ 18 $ 58 Other costs $ 24 $ 27 $ 26 $ 57 Net income $ 51 $ 155 $ 213 $ 149 Net income attributable to noncontrolling interests $ 2 $ 15 $ 26 $ 24 Net income attributable to Cameron stockholders $ 49 $ 140 $ 187 $ 125 Earnings per share attributable to Cameron stockholders : Basic $ 0.25 $ 0.73 $ 0.98 $ 0.65 Diluted $ 0.25 $ 0.73 $ 0.97 $ 0.65 2014 (Quarter Ended) ( dollars in millions, except per share data ) March 31, June 30, September 30, December 31, Revenues $ 2,329 $ 2,570 $ 2,678 $ 2,804 Revenues less cost of sales ( exclusive of depreciation and amortization ) $ 639 $ 720 $ 763 $ 795 Other costs (credits) $ 49 $ (6 ) $ 19 $ 11 Net income $ 115 $ 233 $ 238 $ 262 Net income attributable to noncontrolling interests $ 4 $ 12 $ 13 $ 8 Net income attributable to Cameron stockholders $ 111 $ 221 $ 225 $ 254 Earnings per share attributable to Cameron stockholders : Basic $ 0.51 $ 1.08 $ 1.12 $ 1.30 Diluted $ 0.51 $ 1.08 $ 1.11 $ 1.28 |
Summary of Major Accounting P52
Summary of Major Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)business_segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Number of business segments | business_segment | 4 | ||
Revenue Recognition [Abstract] | |||
Percentage of revenue recognized under the accounting rules for construction-type and production-type contracts (in hundredths) | 32.00% | 31.00% | 31.00% |
Inventories [Abstract] | |||
Percentage of inventories carried on the LIFO method (in hundredths) | 54.00% | 54.00% | |
Foreign Currency Derivatives [Abstract] | |||
Foreign currency transactions gain (loss) | $ (16,000,000) | $ 22,000,000 | $ (1,000,000) |
Deferred tax asset related to foreign currency loss | $ 10,000,000 | $ 0 | |
Deferred tax liabilities related to foreign currency gain | $ 3,000,000 | ||
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Machinery, equipment and tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery, equipment and tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 18 years | ||
Office furniture, software and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Office furniture, software and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
Summary of Major Accounting P53
Summary of Major Accounting Policies - Goodwill (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)reporting_unit | Mar. 31, 2014USD ($) | Sep. 30, 2014reporting_unit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill [Line Items] | ||||||||
Goodwill impairment | $ 517 | $ 40 | $ 517 | $ 40 | $ 0 | |||
Goodwill | $ 2,461 | $ 1,764 | 2,461 | |||||
Minimum | ||||||||
Goodwill [Line Items] | ||||||||
Finite-lived intangible assets, useful life | 5 years | |||||||
Maximum | ||||||||
Goodwill [Line Items] | ||||||||
Finite-lived intangible assets, useful life | 28 years | |||||||
Valves & Measurement | ||||||||
Goodwill [Line Items] | ||||||||
Number of reporting units within the segment | reporting_unit | 2 | 5 | ||||||
Goodwill impairment | $ 0 | |||||||
Goodwill | $ 311 | 299 | $ 311 | |||||
CPS | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | $ 517 | |||||||
Goodwill | $ 52 |
Merger of Cameron with Schlum54
Merger of Cameron with Schlumberger (Details) - Scenario, Forecast $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Schlumberger Limited | |
Business Acquisition [Line Items] | |
Business acquisition, share price | $ / shares | $ 14.44 |
Schlumberger Limited | Common Stock | |
Business Acquisition [Line Items] | |
Business acquisition, equity interest issued or issuable for each share | shares | 0.716 |
Cameron International Corporation | |
Business Acquisition [Line Items] | |
Business combination, contingent consideration, early contract termination fee | $ | $ 321 |
Business Dispositions and Com55
Business Dispositions and Combinations - Disposal Group Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | |||
Revenues | $ 0 | $ 428 | $ 701 |
Cost of sales (excluding depreciation and amortization) | 0 | (306) | (498) |
All other costs | (2) | (94) | (105) |
Gain on sale of the compression businesses, before tax | 681 | 95 | 0 |
Income before income taxes | 679 | 123 | 98 |
Income tax provision | (248) | (97) | (33) |
Income from discontinued operations, net of income taxes | $ 431 | $ 26 | $ 65 |
Business Dispositions and Com56
Business Dispositions and Combinations - Gain on Sale of Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain | $ 681 | $ 95 | $ 0 |
Gain on sale | 681 | 95 | $ 0 |
Centrifugal Compression business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales price | 850 | ||
Net assets sold | (160) | ||
Transaction and other costs associated with the sale | (9) | ||
Pre-tax gain | 681 | ||
Tax provision | (248) | ||
Gain on sale | $ 433 | ||
Reciprocating Compression business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales price | 550 | ||
Net assets sold | (442) | ||
Transaction and other costs associated with the sale | (13) | ||
Pre-tax gain | 95 | ||
Tax provision | (85) | ||
Gain on sale | $ 10 |
Business Dispositions and Com57
Business Dispositions and Combinations - Balance Sheet Disclosures (Details) - Centrifugal Compression business - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 4 | $ 37 |
Inventory | 62 | 86 |
Other current assets | 0 | 14 |
Plant and equipment, net | 7 | 45 |
Intangibles, net | 15 | 0 |
Goodwill | 14 | 35 |
Net assets sold | 102 | 217 |
Accounts payable, accrued and other current liabilities | 2 | 89 |
Other long-term liabilities | 0 | 1 |
Liabilities held for sale | $ 2 | $ 90 |
Business Dispositions and Com58
Business Dispositions and Combinations - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 27, 2015 |
Business Acquisition [Line Items] | |||||||
Proceeds from Joint venture contribution | $ 600 | ||||||
Goodwill | $ 1,764 | $ 2,461 | |||||
Taxes paid | 548 | 353 | $ 329 | ||||
One Subsea | |||||||
Business Acquisition [Line Items] | |||||||
Cash, including cash acquired | 3 | ||||||
Goodwill | $ 1,000 | ||||||
One Subsea | Cameron | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of company acquired (in hundredths) | 60.00% | ||||||
Taxes paid | $ 80 | ||||||
One Subsea | Non-controlling Interests | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of company acquired (in hundredths) | 40.00% | ||||||
Douglas Chero's | |||||||
Business Acquisition [Line Items] | |||||||
Cash purchase price for company's acquired | $ 20 | ||||||
Reciprocating Compression and Centrifugal Compression Business | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 1,400 | ||||||
Reciprocating Compression business | |||||||
Business Acquisition [Line Items] | |||||||
Nondeductible goodwill | $ 192 | ||||||
LeTourneau Offshore Products Unit | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Business Acquisition [Line Items] | |||||||
Disposal group, including discontinued operation, consideration | $ 100 |
Asset Charges and Other Costs59
Asset Charges and Other Costs (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset charges - | |||||||||
Goodwill impairment | $ 517 | $ 40 | $ 517 | $ 40 | $ 0 | ||||
Other long-lived asset impairments | 78 | 4 | 0 | ||||||
Accelerated depreciation on underutilized assets | 44 | 0 | 0 | ||||||
Total asset charges | $ 58 | $ 18 | $ 10 | $ 553 | 639 | 44 | 0 | ||
Other costs (gains) - | |||||||||
Facility closures and severance | 88 | 15 | 13 | ||||||
Loss on disposal of non-core assets | 15 | 10 | 0 | ||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges | 11 | 8 | 1 | ||||||
Merger costs | 8 | 0 | 0 | ||||||
Gain from remeasurement of prior interest in equity method investment | 0 | (8) | 0 | ||||||
All other costs, net | 12 | 4 | 78 | ||||||
Total other costs (gains), net | 134 | 29 | 92 | ||||||
Total asset charges and other costs (gains), net | $ 773 | $ 73 | $ 92 |
Asset Charges and Other Costs -
Asset Charges and Other Costs - Asset Impairment Charges and Loss on Disposal of Non-Core Assets (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015USD ($) | Mar. 31, 2015USD ($)reporting_unit | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Aug. 27, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of reporting units | reporting_unit | 6 | ||||||
Goodwill impairment | $ 517 | $ 40 | $ 517 | $ 40 | $ 0 | ||
Other long-lived asset impairments | 78 | 4 | 0 | ||||
Goodwill | 1,764 | 2,461 | |||||
Loss on disposal of non-core assets | 15 | $ 10 | $ 0 | ||||
LeTourneau Offshore Products Unit | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal group, including discontinued operation, consideration | $ 100 | ||||||
Loss on disposal of non-core assets | 15 | ||||||
CPS | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill impairment | $ 517 | ||||||
Goodwill | $ 52 |
Asset Charges and Other Costs61
Asset Charges and Other Costs - Gain on Remeasurement of Prior Interest in Equity Method Investment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Tangible Asset Impairment Charges | $ 18 | |||
Restructuring charges | 132 | |||
Equity method investment, aggregate cost | $ 18 | |||
Gain from remeasurement of prior interest in equity method investment | $ 0 | $ (8) | $ 0 | |
Cameron Services Middle East LLC | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | |||
Cameron Services Middle East LLC | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 90.00% |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Trade receivables | $ 1,167 | $ 1,678 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 736 | 621 |
Other receivables | 118 | 122 |
Allowance for doubtful accounts | (57) | (32) |
Total receivables | $ 1,964 | $ 2,389 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 106 | $ 159 |
Work-in-process | 562 | 827 |
Finished goods, including parts and subassemblies | 1,871 | 2,150 |
Other | 20 | 24 |
Gross Inventories | 2,559 | 3,160 |
Excess of current costs over LIFO costs | (73) | (86) |
Allowance for obsolete and excess inventory | (126) | (145) |
Total inventories | $ 2,360 | $ 2,929 |
Plant and Equipment, Goodwill64
Plant and Equipment, Goodwill and Intangibles (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | $ 3,461 | $ 3,580 | |||
Accumulated depreciation | (1,744) | (1,616) | |||
Total plant and equipment, net | 1,717 | 1,964 | |||
Goodwill [Roll Forward] | |||||
December 31, 2014 | 2,461 | ||||
Impairment (See Note 4) | $ (517) | $ (40) | (517) | (40) | $ 0 |
Goodwill associated with assets held for sale | (14) | ||||
Adjustments to the purchase price allocation for prior year acquisitions | (12) | ||||
Translation effect of currency changes and other | (154) | ||||
December 31, 2015 | 1,764 | 2,461 | |||
Intangible assets, gross [Abstract] | |||||
Customer relationships | 398 | 459 | |||
Patents and technology | 345 | 382 | |||
Trademarks | 54 | 68 | |||
Noncompete agreements, engineering drawings and other | 61 | 80 | |||
Total intangible assets | 858 | 989 | |||
Accumulated amortization | (276) | (261) | |||
Total intangibles, net | 582 | 728 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2,016 | 41 | ||||
2,017 | 40 | ||||
2,018 | 39 | ||||
2,019 | 36 | ||||
2,020 | 34 | ||||
Subsea | |||||
Goodwill [Roll Forward] | |||||
December 31, 2014 | 1,476 | ||||
Impairment (See Note 4) | (517) | ||||
Goodwill associated with assets held for sale | 0 | ||||
Adjustments to the purchase price allocation for prior year acquisitions | (8) | ||||
Translation effect of currency changes and other | (134) | ||||
December 31, 2015 | 817 | 1,476 | |||
Surface | |||||
Goodwill [Roll Forward] | |||||
December 31, 2014 | 173 | ||||
Impairment (See Note 4) | 0 | ||||
Goodwill associated with assets held for sale | 0 | ||||
Adjustments to the purchase price allocation for prior year acquisitions | (4) | ||||
Translation effect of currency changes and other | (4) | ||||
December 31, 2015 | 165 | 173 | |||
Drilling | |||||
Goodwill [Roll Forward] | |||||
December 31, 2014 | 501 | ||||
Impairment (See Note 4) | 0 | ||||
Goodwill associated with assets held for sale | (14) | ||||
Adjustments to the purchase price allocation for prior year acquisitions | 0 | ||||
Translation effect of currency changes and other | (4) | ||||
December 31, 2015 | 483 | 501 | |||
Valves & Measurement | |||||
Goodwill [Roll Forward] | |||||
December 31, 2014 | 311 | ||||
Impairment (See Note 4) | 0 | ||||
Goodwill associated with assets held for sale | 0 | ||||
Adjustments to the purchase price allocation for prior year acquisitions | 0 | ||||
Translation effect of currency changes and other | (12) | ||||
December 31, 2015 | 299 | 311 | |||
Land and land improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 118 | 130 | |||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 702 | 726 | |||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 1,586 | 1,682 | |||
Tooling, dies, patterns, etc. | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 185 | 179 | |||
Office furniture & equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 213 | 212 | |||
Capitalized software | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 370 | 370 | |||
Assets under capital leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 108 | 120 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | 162 | 127 | |||
All other | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross plant and equipment | $ 17 | $ 34 |
Accounts Payable and Accrued 65
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable and accruals | $ 650 | $ 1,084 |
Advances from customers | 1,082 | 1,576 |
Salaries, wages, and related fringe | 373 | 355 |
Other accruals | 688 | 733 |
Total accounts payable and accrued liabilities | $ 2,793 | $ 3,748 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosures [Line Items] | |||
Curtailment gain | $ (8) | ||
Defined Contribution Plans | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Percentage of defined pay the Company contributes on behalf of each eligible employee's retirement plan account (in hundredths) | 3.00% | ||
Vesting period for the company's retirement contributions | 3 years | ||
Matching contribution percentage each employee is eligible to receive (of the first 6% of pay contributed) (in hundredths) | 100.00% | ||
Percentage of employee contribution eligible for the company's matching contribution (in hundredths) | 6.00% | ||
Expense under Retirement Savings Plan | $ 67 | 77 | $ 77 |
Expense with respect to these various defined contribution and government-mandated plans | 57 | 73 | 83 |
Pension Benefits | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Curtailment gain | 0 | 12 | 0 |
Accumulated benefit obligation for defined benefit pension plans | 392 | 469 | |
Expected contributions to plan assets for the next fiscal year | $ 9 | ||
U.K. Pension Plan | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Defined benefit plan assets for plan benefits United Kingdom percentage (in hundredths) | 89.00% | ||
U.K. Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Future target allocation (in hundredths) | 33.00% | ||
U.K. Pension Plan | Fixed income debt securities, cash and other | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Future target allocation (in hundredths) | 8.00% | ||
U.K. Pension Plan | Real Estate and Other | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Future target allocation (in hundredths) | 59.00% | ||
U. S. Postretirement Benefits | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Curtailment gain | $ 0 | $ 0 | $ 0 |
Ultimate health care cost trend rate (in hundredths) | 5.00% |
Employee Benefit Plan - Net Ben
Employee Benefit Plan - Net Benefit Plan Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Curtailment gain | $ 8 | ||
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 8 | 18 | $ 10 |
Interest cost | 15 | 20 | 17 |
Expected return on plan assets | (23) | (27) | (21) |
Amortization of prior service credits | (2) | (2) | (2) |
Amortization of losses (gains) | 9 | 9 | 8 |
Curtailment gain | 0 | (12) | 0 |
Settlement loss | 1 | 4 | 0 |
Total net benefit plan expense (income) | 8 | 10 | 12 |
U. S. Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | (1) | (1) | (1) |
Amortization of losses (gains) | (1) | (1) | (1) |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Total net benefit plan expense (income) | $ (2) | $ (2) | $ (2) |
Employee Benefit Plan - Amounts
Employee Benefit Plan - Amounts Included in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total benefits included in accumulated other comprehensive income, before tax | $ (107) | $ (134) |
Total benefits included in accumulated other comprehensive income, after tax | (97) | (110) |
Total expected amortization from accumulated other comprehensive income for the year ended December 31, 2013 | 5 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credits before tax | 15 | 19 |
Actuarial gain (losses), net before tax | (131) | (164) |
Prior service credits after tax | 14 | 15 |
Actuarial gain (losses), net after tax | (116) | (132) |
Expected Amortization, Prior service credits | (2) | |
Expected Amortization, Actuarial gain (losses), net | 9 | |
U. S. Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prior service credits before tax | 2 | 3 |
Actuarial gain (losses), net before tax | 7 | 8 |
Prior service credits after tax | 1 | 2 |
Actuarial gain (losses), net after tax | 4 | $ 5 |
Expected Amortization, Prior service credits | (1) | |
Expected Amortization, Actuarial gain (losses), net | $ (1) |
Employee Benefit Plan - Change
Employee Benefit Plan - Change in PBO (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 509 | $ 489 | |
Service cost | 8 | 18 | $ 10 |
Interest cost | 15 | 20 | 17 |
Plan participants’ contributions | 1 | 1 | |
Actuarial losses (gains) | 3 | 78 | |
Exchange rate changes | (29) | (52) | |
Benefit payments | (12) | (14) | |
Curtailments | 0 | (23) | |
Settlements | (59) | (8) | |
Benefit obligation at end of year | 436 | 509 | 489 |
U. S. Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 9 | 11 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Plan participants’ contributions | 0 | 0 | |
Actuarial losses (gains) | 1 | (1) | |
Exchange rate changes | 0 | 0 | |
Benefit payments | (1) | (1) | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Benefit obligation at end of year | $ 9 | $ 9 | $ 11 |
Employee Benefit Plan - Chang70
Employee Benefit Plan - Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 455 | |
Fair value of plan assets at end of year | 384 | $ 455 |
Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 455 | 432 |
Actual return on plan assets | 11 | 53 |
Company contributions | 14 | 27 |
Plan participants’ contributions | 1 | 1 |
Exchange rate changes | (24) | (40) |
Benefit payments | (12) | (14) |
Settlements | (59) | (8) |
Other | (2) | 4 |
Fair value of plan assets at end of year | 384 | 455 |
U. S. Postretirement Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Company contributions | 1 | 1 |
Plan participants’ contributions | 0 | 0 |
Exchange rate changes | 0 | 0 |
Benefit payments | (1) | (1) |
Settlements | 0 | 0 |
Other | 0 | 0 |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Employee Benefit Plan - Status
Employee Benefit Plan - Status of Underfunded Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | $ 20 | $ 0 |
Current liabilities | (1) | (1) |
Non-current liabilities | (71) | (53) |
Underfunded status at end of year | (52) | (54) |
U. S. Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2) | (1) |
Non-current liabilities | (7) | (8) |
Underfunded status at end of year | $ (9) | $ (9) |
Employee Benefit Plan - Asset A
Employee Benefit Plan - Asset Allocation of UK Plan (Details) - U.K. Pension Plan | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan assets allocation (in hundredths) | 33.00% | 55.00% | 60.00% |
Fixed income debt securities, cash and other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan assets allocation (in hundredths) | 67.00% | 45.00% | 40.00% |
Employee Benefit Plan - Fair Va
Employee Benefit Plan - Fair Value of Plan Assets by Asset Category (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | $ 384 | $ 455 |
Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 1 | 1 |
Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 341 | 350 |
Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 42 | 104 |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 1 | 1 |
Cash and cash equivalents | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 1 | 1 |
Cash and cash equivalents | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
US Equities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 78 | 83 |
US Equities | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
US Equities | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 78 | 83 |
US Equities | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Equities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 120 | 120 |
Non-US Equities | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Equities | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 120 | 120 |
Non-US Equities | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Government Bonds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 114 | 117 |
Non-US Government Bonds | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Government Bonds | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 114 | 117 |
Non-US Government Bonds | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Corporate Bonds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 29 | 30 |
Non-US Corporate Bonds | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Non-US Corporate Bonds | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 29 | 30 |
Non-US Corporate Bonds | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Insurance Contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 28 | 89 |
Insurance Contracts | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Insurance Contracts | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Insurance Contracts | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 28 | 89 |
Real Estate and Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 14 | 15 |
Real Estate and Other | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Real Estate and Other | Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Real Estate and Other | Fair Value Based on Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, fair value of plan assets | $ 14 | $ 15 |
Employee Benefit Plan - Fair 74
Employee Benefit Plan - Fair Value of Pension Plan Assets Based on Level 3 Unobservable Inputs (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of the year | $ 104 | $ 105 |
Purchases/sales, net | (56) | 10 |
Actual return on plan assets | (2) | 4 |
Currency impact | (4) | (15) |
Balance at end of the year | $ 42 | $ 104 |
Employee Benefit Plan - Weighte
Employee Benefit Plan - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U. S. Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate (in hundredths) | 3.25% | 3.75% |
Measurement date | 1/1/2015 | 1/1/2014 |
Discount rate (in hundredths) | 3.50% | 3.25% |
Health care cost trend rate (in hundredths) | 0.00% | 0.00% |
Measurement date | 12/31/2015 | 12/31/2014 |
U. S. Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate (in hundredths) | 3.25% | 3.75% |
Measurement date | 1/1/2015 | 1/1/2014 |
Discount rate (in hundredths) | 3.50% | 3.25% |
Health care cost trend rate (in hundredths) | 7.00% | 7.00% |
Measurement date | 12/31/2015 | 12/31/2014 |
Foreign Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Measurement date | 1/1/2015 | 1/1/2014 |
Measurement date | 12/31/2015 | 12/31/2014 |
Foreign Pension Plans | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate (in hundredths) | 2.25% | 3.50% |
Expected return on plan assets (in hundredths) | 2.25% | 2.25% |
Rate of compensation increase (in hundredths) | 2.25% | 2.25% |
Discount rate (in hundredths) | 2.25% | 2.25% |
Rate of compensation increase (in hundredths) | 2.25% | 2.25% |
Foreign Pension Plans | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate (in hundredths) | 4.25% | 5.25% |
Expected return on plan assets (in hundredths) | 6.25% | 6.75% |
Rate of compensation increase (in hundredths) | 5.00% | 4.50% |
Discount rate (in hundredths) | 4.25% | 4.25% |
Rate of compensation increase (in hundredths) | 4.00% | 5.00% |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected vs. Accumulated Benefit Obligations in Excess of Plan Assets (Details) - U. S. Pension Plans - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, plans with benefit obligations in excess of plan assets, aggregate fair value of plan assets | $ 41 | $ 101 |
Defined benefit plans with accumulated benefit obligations in excess of plan assets aggregate fair value of plan assets | 41 | 101 |
Defined benefit plan pension plans with projected benefit obligations in excess of plan assets aggregate projected benefit obligation | 113 | 171 |
Defined benefit plan pension plans with accumulated benefit obligations in excess of plan assets aggregate accumulated benefit obligation | 0 | 0 |
Total accumulated benefit obligation for defined benefit pension plans | $ 86 | $ 149 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
U. S. Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | $ 11 |
2,017 | 11 |
2,018 | 12 |
2,019 | 13 |
2,020 | 13 |
2021-2025 | 71 |
U. S. Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 1 |
2,017 | 1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2021-2025 | $ 3 |
Stock-Based Compensation Plan78
Stock-Based Compensation Plans (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)compensation_plan$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity compensation plans currently available for future grants | compensation_plan | 1 | ||
Total stock-based compensation expense | $ | $ 49,000,000 | $ 54,000,000 | $ 54,000,000 |
Recognized tax benefit | $ | $ 18,000,000 | $ 20,000,000 | $ 20,000,000 |
Summary of option activity [Rollforward] | |||
Outstanding at beginning of period (in shares) | shares | 3,912,488 | ||
Granted (in shares) | shares | 620,968 | ||
Exercised (in shares) | shares | (771,707) | ||
Forfeited and expired (in shares) | shares | (37,603) | ||
Outstanding at end of period (in shares) | shares | 3,724,146 | 3,912,488 | |
Vested or expected to vest at end of period (in shares) | shares | 3,710,191 | ||
Exercisable at end of period (in shares) | shares | 2,377,609 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price at beginning of period (in dollars per share) | $ / shares | $ 51.89 | ||
Weighted average exercise price granted (in dollars per share) | $ / shares | 65.2 | ||
Weighted average exercise price per exercised (in dollars per share) | $ / shares | 40.39 | ||
Weighted average exercise price forfeited and expired (in dollars per share) | $ / shares | 59.09 | ||
Weighted average exercise price outstanding at end of period (in dollars per share) | $ / shares | 56.42 | $ 51.89 | |
Weighted average exercise price vested or expected to vest at end of period (in dollars per share) | $ / shares | 56.40 | ||
Weighted average exercise price exercisable at end of period (in dollars per share) | $ / shares | $ 53.07 | ||
Weighted average remaining contractual term outstanding at end of period (in years) | 6 years 9 months 7 days | ||
Weighted average remaining contractual term vested or expected to vest at end of period (in years) | 6 years 9 months 4 days | ||
Weighted average remaining contractual term exercisable at end of period (In years) | 5 years 5 months 27 days | ||
Aggregate intrinsic value outstanding at end of period | $ | $ 28,000,000 | ||
Aggregate intrinsic value vested or expected to vest at end of period | $ | 28,000,000 | ||
Aggregate intrinsic value exercisable at end of period | $ | $ 25,000,000 | ||
Fair values and weighted-average assumptions used to value options [Abstract] | |||
Expected life (in years) | 3 years 6 months | 3 years 3 months 18 days | 3 years 2 months 12 days |
Risk-free interest rate (in hundredths) | 0.95% | 0.86% | 0.67% |
Volatility (in hundredths) | 27.90% | 33.80% | 34.30% |
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Grant-date fair value per option (in dollars per share) | $ / shares | $ 14.47 | $ 14.51 | $ 16.19 |
Intrinsic value of options exercised (dollars in millions) | $ | $ 16,000,000 | $ 26,000,000 | $ 31,000,000 |
Average intrinsic value per share of options exercised (in dollars per share) | $ / shares | $ 21.31 | $ 24.17 | $ 26.30 |
Restricted and deferred stock units and awards [Abstract] | |||
Annual value of deferred stock units available for grants to non-employee directors | $ | $ 250,000 | ||
Period of time after the date of grant during which deferred stock units cannot be converted into common stock | 3 years | ||
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Shares granted (in shares) | shares | 1,183,828 | 826,329 | 838,207 |
Intrinsic value of units vesting (dollars in millions) | $ | $ 39,000,000 | $ 34,000,000 | $ 46,000,000 |
Restricted and deferred stock units and awards, additional disclosures [Abstract] | |||
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | $ 54.95 | $ 59.63 | $ 57.95 |
Shares reserved for future grants of options, deferred stock units, restricted stock units and other awards (in shares) | shares | 9,236,764 | ||
Restricted and Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ | $ 40,000,000 | $ 44,000,000 | $ 40,000,000 |
Unrecognized share-based compensation cost [Abstract] | |||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | $ 64,000,000 | ||
Weighted-average remaining expense recognition period (in years) | 1 year 9 months 18 days | ||
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Nonvested shares, beginning of period (in shares) | shares | 1,848,682 | ||
Shares granted (in shares) | shares | 1,183,828 | ||
Shares vested (in shares) | shares | (780,163) | ||
Shares forfeited (in shares) | shares | (86,910) | ||
Nonvested shares, end of period (in shares) | shares | 2,165,437 | 1,848,682 | |
Restricted and deferred stock units and awards, additional disclosures [Abstract] | |||
Weighted average grant date fair value, outstanding, beginning of period (in dollars per share) | $ / shares | $ 56.85 | ||
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 54.95 | ||
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 54.79 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | 54.25 | ||
Weighted average grant date fair value, outstanding at end of period (in dollars per share) | $ / shares | $ 56.66 | $ 56.85 | |
Restricted and Deferred Stock Units | Incremental Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The incremental portion of options that vest annually on the anniversary date of grant | 33.33% | ||
Restricted and Deferred Stock Units | Cliff Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The incremental portion of options that vest annually on the anniversary date of grant | 100.00% | ||
Restricted and deferred stock units and awards [Abstract] | |||
Award vesting period | 3 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ | $ 9,000,000 | $ 10,000,000 | $ 14,000,000 |
The incremental portion of options that vest annually on the anniversary date of grant | 33.33% | ||
Unrecognized share-based compensation cost [Abstract] | |||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | $ 15,000,000 | ||
Weighted-average remaining expense recognition period (in years) | 2 years 2 months 16 days | ||
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Terms of awards | 7 years | ||
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Terms of awards | 10 years | ||
Deferred Stock Units (DSUs) | Incremental Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The incremental portion of options that vest annually on the anniversary date of grant | 25.00% | ||
Restricted and Deferred Stock Units with Performance Conditions [Member] | |||
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Shares granted (in shares) | shares | 214,072 | 174,697 | 185,992 |
Debt - Obligations (Details)
Debt - Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Principal outstanding, net of unamortized discount | $ 2,826 | $ 3,082 | |
Current maturities | (284) | (263) | |
Long-term maturities | 2,542 | 2,819 | |
Interest expensed | 160 | 149 | $ 115 |
Interest paid | $ 154 | 142 | $ 105 |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Interest rate (in hundredths) | 0.49% | ||
Principal outstanding, net of unamortized discount | $ 0 | 201 | |
Senior Notes Payable Due 2016 | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 15, 2016 | ||
Interest rate (in hundredths) | 1.15% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2017 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jun. 15, 2017 | ||
Interest rate (in hundredths) | 1.40% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2018 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jul. 15, 2018 | ||
Interest rate (in hundredths) | 6.375% | ||
Principal outstanding, net of unamortized discount | $ 450 | 450 | |
Senior Notes Payable Due 2021 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jun. 1, 2021 | ||
Interest rate (in hundredths) | 4.50% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2022 | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 30, 2022 | ||
Interest rate (in hundredths) | 3.60% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2023 | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 15, 2023 | ||
Interest rate (in hundredths) | 4.00% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2024 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jun. 15, 2024 | ||
Interest rate (in hundredths) | 3.70% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2038 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jul. 15, 2038 | ||
Interest rate (in hundredths) | 7.00% | ||
Principal outstanding, net of unamortized discount | $ 300 | 300 | |
Senior Notes Payable Due 2041 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jun. 1, 2041 | ||
Interest rate (in hundredths) | 5.95% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable Due 2043 | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 15, 2043 | ||
Interest rate (in hundredths) | 5.125% | ||
Principal outstanding, net of unamortized discount | $ 250 | 250 | |
Senior Notes Payable | |||
Debt Instrument [Line Items] | |||
Unamortized original issue discount | (6) | (7) | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding, net of unamortized discount | 22 | 67 | |
Obligations Under Capital Leases | |||
Debt Instrument [Line Items] | |||
Principal outstanding, net of unamortized discount | $ 60 | $ 71 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | May. 14, 2015 | May. 13, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Weighted average interest rate (in hundredths) | 15.60% | 6.50% | ||
Future maturities, 2016 | $ 272,000,000 | |||
Future maturities, 2017 | 250,000,000 | |||
Future maturities, 2018 | 450,000,000 | |||
Future maturities, 2019 | 0 | |||
Future maturities, thereafter | 1,800,000,000 | |||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Number of days in which commercial paper matures | 364 days | |||
Amended Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 750,000,000 | $ 835,000,000 | ||
Term of revolving credit facility | 5 years | |||
Letters of credit outstanding | $ 0 | |||
Remaining capacity under revolving line of credit facility | 750,000,000 | |||
Line of Credit Multi Currency | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 750,000,000 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 200,000,000 | |||
New Line of Credit Multi Currency | ||||
Debt Instrument [Line Items] | ||||
Remaining capacity under revolving line of credit facility | 716,000,000 | |||
Letters of credit issued | $ 34,000,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rental expenses | $ 100 | $ 115 | $ 111 |
Future minimum lease payments with respect to capital leases [Abstract] | |||
2,016 | 18 | ||
2,017 | 15 | ||
2,018 | 10 | ||
2,019 | 5 | ||
2,020 | 4 | ||
Thereafter | 47 | ||
Future minimum lease payments | 99 | ||
Less: amount representing interest | (39) | ||
Lease obligations at December 31, 2015 | 60 | ||
Future minimum lease payments with respect to operating leases [Abstract] | |||
2,016 | 109 | ||
2,017 | 81 | ||
2,018 | 62 | ||
2,019 | 54 | ||
2,020 | 50 | ||
Thereafter | 139 | ||
Future minimum lease payments | 495 | ||
Less: amount representing interest | 0 | ||
Lease obligations at December 31, 2015 | $ 495 |
Income Taxes - Income from Cont
Income Taxes - Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (423) | $ 294 | $ 219 |
Foreign operations | 744 | 786 | 636 |
Income from continuing operations before income taxes | $ 321 | $ 1,080 | $ 855 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
U.S. federal | $ 35 | $ 70 | $ 0 |
U.S. state and local | (1) | 4 | 11 |
Foreign | 198 | 231 | 166 |
Total Current Income Taxes | 232 | 305 | 177 |
Deferred: | |||
U.S. federal | (55) | 0 | 31 |
U.S. state and local | 0 | (3) | 2 |
Foreign | 7 | (44) | (14) |
Total Deferred Income Taxes | (48) | (47) | 19 |
Income tax provision | $ 184 | $ 258 | $ 196 |
Income Taxes - Differences in P
Income Taxes - Differences in Provision for Income Taxes and Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | (0.10%) | 0.00% | 1.00% |
Foreign statutory rate differential | (34.70%) | (9.70%) | (10.60%) |
Change in valuation allowance on deferred tax assets | 5.40% | 3.40% | (1.70%) |
Nondeductible expenses | (1.10%) | (0.10%) | 1.10% |
Goodwill impairments | 56.40% | 1.00% | 0.00% |
Net U.S. tax on foreign source income | (5.80%) | (2.90%) | (3.20%) |
All other | 2.20% | (2.80%) | 1.30% |
Total | 57.30% | 23.90% | 22.90% |
Total income taxes paid (dollars in millions) | $ 548 | $ 353 | $ 329 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax liabilities: | ||||
Plant and equipment | $ (117) | $ (190) | ||
Intangible assets | (181) | (221) | ||
Other | (9) | (9) | ||
Total deferred tax liabilities | (307) | (420) | ||
Deferred tax assets: | ||||
Inventory | 22 | 48 | ||
Postretirement benefits other than pensions | 0 | 3 | ||
Reserves and accruals | 199 | 160 | ||
Net operating losses and tax credits | 149 | 259 | ||
Pensions | 28 | 38 | ||
Other | 26 | 27 | ||
Total deferred tax assets | 424 | 535 | ||
Valuation allowance | (93) | (79) | $ (59) | $ (84) |
Net deferred tax assets | $ 24 | $ 36 |
Income Taxes - Accrual for Unre
Income Taxes - Accrual for Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 97 | $ 103 | $ 121 |
Increases in estimates of tax positions related to prior fiscal year | 1 | 0 | 0 |
Increases due to tax positions taken during the current year | 0 | 6 | 3 |
Decreases relating to settlements with tax authorities | (5) | (10) | (19) |
Decreases resulting from the lapse of applicable statutes of limitation | 0 | 0 | 0 |
Net increases (decreases) due to translation and interest | 2 | (2) | (2) |
Balance at end of year | $ 95 | $ 97 | $ 103 |
Income Taxes - Local and Foreig
Income Taxes - Local and Foreign Subsidiaries Tax Examination (Details) | 12 Months Ended |
Dec. 31, 2015 | |
United States | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,011 |
United Kingdom | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,012 |
Canada | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,010 |
France | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,013 |
Germany | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,012 |
Norway | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,013 |
Singapore | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,012 |
Italy | |
Income Tax Examination [Line Items] | |
Earliest years remaining open to examinations | 2,011 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 79 | $ 59 | $ 84 |
Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year | 45 | 25 | 11 |
Change in valuation allowances related to prior years | (20) | (2) | (16) |
Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized | 0 | 0 | (19) |
Effect of translation | (11) | (3) | (1) |
Balance at end of year | $ 93 | $ 79 | $ 59 |
Income Taxes - Tax Attributable
Income Taxes - Tax Attributable Carryforwards (Details) $ in Millions | Dec. 31, 2015USD ($) |
Domestic | |
Tax Credit Carryforward [Line Items] | |
Net operating losses - regular income tax | $ 0 |
Net operating losses – state income tax | 32 |
Foreign tax credits | 26 |
Foreign | |
Tax Credit Carryforward [Line Items] | |
Net operating losses - regular income tax | 316 |
Net operating losses – state income tax | 0 |
Foreign tax credits | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits expected to settle | $ 95 | ||
Tax benefit of stock compensation plan transactions | 2 | $ 6 | $ 10 |
Unremitted foreign subsidiary earnings considered permanently reinvested | 8,300 | ||
Tax holiday benefit in Singapore and Malaysia jurisdictions | 16 | $ 11 | $ 3 |
Settlement with Taxing Authority [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits expected to settle | $ 85 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Common stock authorized for repurchase | $ 3.8 | ||
Shares of preferred stock authorized to issue (in shares) | 10,000,000 | 10,000,000 | |
Par value of authorized preferred stock (in dollars per share) | $ 0.01 | $ 0.01 | |
Capital in excess of par value plus the retained earnings | $ 9 | ||
Class of Stock [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 15,126,347 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance (in shares) | 194,972,445 | 221,428,308 | 246,696,136 |
Purchase of treasury stock (in shares) | (5,130,334) | (27,970,492) | (26,955,623) |
Stock issued under stock compensation plans (in shares) | 1,337,803 | 1,514,629 | 1,687,795 |
Balance (in shares) | (191,179,914) | 194,972,445 | 221,428,308 |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance (in shares) | 263,111,472 | 263,111,472 | 263,111,472 |
Purchase of treasury stock (in shares) | 0 | 0 | 0 |
Stock issued under stock compensation plans (in shares) | 0 | 0 | 0 |
Balance (in shares) | 263,111,472 | 263,111,472 | 263,111,472 |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance (in shares) | (68,139,027) | (41,683,164) | (16,415,336) |
Purchase of treasury stock (in shares) | (5,130,334) | (27,970,492) | (26,955,623) |
Stock issued under stock compensation plans (in shares) | 1,337,803 | 1,514,629 | 1,687,795 |
Balance (in shares) | (71,931,558) | (68,139,027) | (41,683,164) |
Accumulated Other Elements of92
Accumulated Other Elements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | $ (540) | ||
Foreign currency translation gain (loss) | (469) | $ (526) | $ (70) |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | (65) | (76) | 14 |
Balance at end of period | (877) | (540) | |
Accumulated Foreign Currency Translation Gain (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (428) | (49) | 46 |
Foreign currency translation gain (loss) | (358) | (379) | (95) |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | |
Amortization of actuarial (gains) losses, net of tax | 0 | 0 | 0 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Balance at end of period | (786) | (428) | (49) |
Prior Service Credits and Net Actuarial Losses | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (78) | (45) | (87) |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 12 | (31) | 40 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 1 | (3) | |
Amortization of actuarial (gains) losses, net of tax | 3 | 1 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Balance at end of period | (62) | (78) | (45) |
Accumulated Gain (Loss) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (34) | 14 | 11 |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | |
Amortization of actuarial (gains) losses, net of tax | 0 | 0 | 0 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | (54) | (52) | 6 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 59 | 4 | (3) |
Balance at end of period | (29) | (34) | 14 |
Accumulated Other Elements of Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (540) | (80) | (30) |
Foreign currency translation gain (loss) | (358) | (379) | (95) |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 12 | (31) | 40 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 1 | (3) | |
Amortization of actuarial (gains) losses, net of tax | 3 | 1 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | (54) | (52) | 6 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 59 | 4 | (3) |
Balance at end of period | (877) | (540) | (80) |
Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (460) | (50) | |
Foreign currency translation gain (loss) | (358) | (379) | (95) |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 12 | (31) | 40 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 1 | (3) | |
Amortization of actuarial (gains) losses, net of tax | 3 | 1 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | (54) | (52) | 6 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 59 | 4 | (3) |
Balance at end of period | $ (337) | $ (460) | $ (50) |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)reporting_unitbusiness_segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | business_segment | 4 | ||
Research and product development costs | $ | $ 140 | $ 128 | $ 83 |
Percent of total research and development costs incurred by DPS (in hundredths) | 52.00% | 58.00% | 44.00% |
OneSubsea | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage | 60.00% | ||
Minority ownership percentage (in hundredths) | 40.00% | ||
Subsea | |||
Segment Reporting Information [Line Items] | |||
Number of reporting units within the segment | reporting_unit | 2 |
Business Segments - Summary Fin
Business Segments - Summary Financial Data by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 2,079 | $ 2,208 | $ 2,222 | $ 2,273 | $ 2,804 | $ 2,678 | $ 2,570 | $ 2,329 | $ 8,782 | $ 10,381 | $ 9,138 |
Depreciation and amortization | 342 | 348 | 298 | ||||||||
Segment operating income before interest and income taxes | 1,340 | 1,427 | 1,209 | ||||||||
Other costs | (773) | (73) | (92) | ||||||||
Income from continuing operations before income taxes | 321 | 1,080 | 855 | ||||||||
Consolidated capital expenditures | 285 | 385 | 520 | ||||||||
Consolidated total assets | 11,500 | 12,892 | 11,500 | 12,892 | 14,249 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | (108) | (145) | (162) | ||||||||
Interest, net | (138) | (129) | (100) | ||||||||
Other costs | (773) | (73) | (92) | ||||||||
Consolidated capital expenditures | 36 | 96 | 102 | ||||||||
Consolidated total assets | 1,025 | 581 | 1,025 | 581 | 844 | ||||||
Discontinued Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated capital expenditures | 0 | 7 | 13 | ||||||||
Consolidated total assets | 0 | 217 | 0 | 217 | 616 | ||||||
Elimination of intersegment earnings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (184) | (271) | (184) | ||||||||
Segment operating income before interest and income taxes | (36) | (74) | (35) | ||||||||
Consolidated total assets | (861) | (877) | (861) | (877) | (654) | ||||||
Subsea | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,753 | 3,067 | 2,813 | ||||||||
Depreciation and amortization | 87 | 113 | 85 | ||||||||
Segment operating income before interest and income taxes | 407 | 207 | 152 | ||||||||
Consolidated capital expenditures | 60 | 70 | 80 | ||||||||
Consolidated total assets | 4,735 | 5,571 | 4,735 | 5,571 | 5,897 | ||||||
Surface | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,957 | 2,411 | 2,077 | ||||||||
Depreciation and amortization | 135 | 126 | 106 | ||||||||
Segment operating income before interest and income taxes | 264 | 427 | 367 | ||||||||
Consolidated capital expenditures | 109 | 125 | 156 | ||||||||
Consolidated total assets | 2,667 | 2,756 | 2,667 | 2,756 | 2,705 | ||||||
Drilling | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,708 | 3,049 | 2,327 | ||||||||
Depreciation and amortization | 67 | 60 | 60 | ||||||||
Segment operating income before interest and income taxes | 528 | 474 | 311 | ||||||||
Consolidated capital expenditures | 44 | 38 | 111 | ||||||||
Consolidated total assets | 2,394 | 3,011 | 2,394 | 3,011 | 3,076 | ||||||
Valves & Measurement | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,548 | 2,125 | 2,105 | ||||||||
Depreciation and amortization | 53 | 49 | 47 | ||||||||
Segment operating income before interest and income taxes | 177 | 393 | 414 | ||||||||
Consolidated capital expenditures | 36 | 49 | 58 | ||||||||
Consolidated total assets | $ 1,540 | $ 1,633 | $ 1,540 | $ 1,633 | $ 1,765 |
Business Segments - Revenue by
Business Segments - Revenue by Shipping Location and Long-lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 8,782 | $ 10,381 | $ 9,138 |
Long-lived assets | 4,063 | 5,153 | 5,866 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,609 | 4,689 | 4,311 |
Long-lived assets | 1,703 | 2,367 | 2,670 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,200 | 964 | 822 |
Long-lived assets | 221 | 219 | 197 |
Norway | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 776 | 952 | 684 |
Long-lived assets | 1,314 | 1,627 | 1,953 |
Other foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,197 | 3,776 | 3,321 |
Long-lived assets | $ 825 | $ 940 | $ 1,046 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Cameron stockholders | $ 125 | $ 187 | $ 140 | $ 49 | $ 254 | $ 225 | $ 221 | $ 111 | $ 501 | $ 811 | $ 699 |
Average shares outstanding (basic) (in shares) | 192 | 204 | 242 | ||||||||
Common stock equivalents (in shares) | 1 | 1 | 2 | ||||||||
Shares utilized in diluted earnings per share calculation (in shares) | 193 | 205 | 244 | ||||||||
Earnings per share attributable to Cameron stockholders [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | $ 0.65 | $ 0.98 | $ 0.73 | $ 0.25 | $ 1.30 | $ 1.12 | $ 1.08 | $ 0.51 | $ 2.61 | $ 3.98 | $ 2.89 |
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 0.97 | $ 0.73 | $ 0.25 | $ 1.28 | $ 1.11 | $ 1.08 | $ 0.51 | $ 2.60 | $ 3.96 | $ 2.87 |
Summary of Non-cash Operating97
Summary of Non-cash Operating, Investing and Financing Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Tax benefit of stock compensation plan transactions | $ 2 | $ 6 | $ 10 |
Change in fair value of derivatives accounted for as cash flow hedges, net of tax | (65) | (76) | 14 |
Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans | $ 8 | $ (35) | $ 13 |
Off-Balance Sheet Risk and Gu98
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Contingently liable for bank guarantees and standby letters of credit issued on the company's behalf | $ 1,100 | |
Liability to financial institutions for financial letters of credit and other guarantees issued on the Company's behalf | 36 | |
Liability for insurance bonds issued on the company's behalf | 36 | |
Fair value of long term debt | 2,900 | $ 2,900 |
Face value of long term debt, excluding original issuance cost | $ 2,700 | $ 2,700 |
Off-Balance Sheet Risk and Gu99
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash | $ 562 | $ 616 |
Money market funds | 1,024 | 842 |
Commercial paper | 105 | 13 |
U.S. treasury securities | 0 | 5 |
U.S. corporate obligations | 25 | 4 |
Non-U.S. bank and other obligations | 59 | 33 |
Short-term investments: | ||
Commercial paper | 223 | 11 |
U.S. Treasury securities | 84 | 51 |
U.S. corporate obligations | 202 | 51 |
U.S. non-governmental agency asset-backed securities | 75 | 0 |
Non-qualified plan assets: | ||
Money market funds | 1 | 1 |
Domestic bond funds | 3 | 3 |
Domestic equity funds | 6 | 5 |
International equity funds | 3 | 3 |
Blended equity funds | 6 | 5 |
Common stock | 1 | 2 |
Derivatives, net asset (liability): | ||
Foreign currency contracts | (34) | (99) |
Total financial instruments | 2,345 | 1,546 |
Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash and cash equivalents: | ||
Cash | 562 | 616 |
Money market funds | 1,024 | 842 |
Commercial paper | 0 | 0 |
U.S. treasury securities | 0 | 5 |
U.S. corporate obligations | 25 | 4 |
Non-U.S. bank and other obligations | 59 | 33 |
Short-term investments: | ||
Commercial paper | 0 | 0 |
U.S. Treasury securities | 84 | 51 |
U.S. corporate obligations | 202 | 51 |
U.S. non-governmental agency asset-backed securities | 0 | 0 |
Non-qualified plan assets: | ||
Money market funds | 1 | 1 |
Domestic bond funds | 3 | 3 |
Domestic equity funds | 6 | 5 |
International equity funds | 3 | 3 |
Blended equity funds | 6 | 5 |
Common stock | 1 | 2 |
Derivatives, net asset (liability): | ||
Foreign currency contracts | 0 | 0 |
Total financial instruments | 1,976 | 1,621 |
Fair Value Based on Significant Other Observable Inputs (Level 2) | ||
Cash and cash equivalents: | ||
Cash | 0 | 0 |
Money market funds | 0 | 0 |
Commercial paper | 105 | 13 |
U.S. treasury securities | 0 | 0 |
U.S. corporate obligations | 0 | 0 |
Non-U.S. bank and other obligations | 0 | 0 |
Short-term investments: | ||
Commercial paper | 223 | 11 |
U.S. Treasury securities | 0 | 0 |
U.S. corporate obligations | 0 | 0 |
U.S. non-governmental agency asset-backed securities | 75 | 0 |
Non-qualified plan assets: | ||
Money market funds | 0 | 0 |
Domestic bond funds | 0 | 0 |
Domestic equity funds | 0 | 0 |
International equity funds | 0 | 0 |
Blended equity funds | 0 | 0 |
Common stock | 0 | 0 |
Derivatives, net asset (liability): | ||
Foreign currency contracts | (34) | (99) |
Total financial instruments | $ 369 | $ (75) |
Off-Balance Sheet Risk and G100
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments - Derivative Contracts (Details) - Dec. 31, 2015 - Foreign Exchange Forward € in Millions, £ in Millions, NOK in Millions, MYR in Millions, $ in Millions | USD ($) | MYR | EUR (€) | NOK | GBP (£) |
Long | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 216 | MYR 175 | € 126 | NOK 635 | £ 115 |
Short | |||||
Derivative [Line Items] | |||||
Notional Amount | 542 | 9 | 11 | 136 | 5 |
2016 | Long | |||||
Derivative [Line Items] | |||||
Notional Amount | 212 | 175 | 89 | 604 | 113 |
2016 | Short | |||||
Derivative [Line Items] | |||||
Notional Amount | 440 | 9 | 11 | 132 | 5 |
2017 | Long | |||||
Derivative [Line Items] | |||||
Notional Amount | 4 | 0 | 37 | 31 | 2 |
2017 | Short | |||||
Derivative [Line Items] | |||||
Notional Amount | 101 | 0 | 0 | 4 | 0 |
2018 | Short | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 1 | MYR 0 | € 0 | NOK 0 | £ 0 |
Off-Balance Sheet Risk and G101
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments - Financial Instruments Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 9 | $ 10 |
Liabilities | 43 | 109 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 8 | 9 |
Liabilities | 40 | 95 |
Designated as Hedging Instrument | Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7 | 8 |
Designated as Hedging Instrument | Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 38 | 83 |
Designated as Hedging Instrument | Non Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 1 |
Designated as Hedging Instrument | Non Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 2 | 12 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 1 |
Liabilities | 3 | 14 |
Not Designated as Hedging Instrument | Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 1 |
Not Designated as Hedging Instrument | Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 3 | 14 |
Not Designated as Hedging Instrument | Non Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Not Designated as Hedging Instrument | Non Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Off-Balance Sheet Risk and G102
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments - Derivative Instruments, Gain (Loss) by Hedging Relationship (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net, pretax | $ (29) | $ (26) | $ 7 |
Designated as Hedging Instrument | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instrument, designated as hedging instrument, gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing | 6 | (7) | 1 |
Not Designated as Hedging Instrument | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments, not designated as hedging instruments, gain (loss), net | (24) | (11) | 7 |
Not Designated as Hedging Instrument | Other costs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments, not designated as hedging instruments, gain (loss), net | $ (11) | $ (8) | $ (1) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)cleanup_sitecountry | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued liability for claims of other litigation | $ 21 |
Number of countries where company has legal entities | country | 50 |
Customs duties, penalties and interest by the government of Brazil | $ 34 |
Number of sites designated for cleanup under the Comprehensive Environmental Response Compensation and Liability Act or similar state law where Company is identified as a potentially responsible party | cleanup_site | 1 |
Accrual for environmental loss contingencies | $ 7 |
Accrued liability for claims for contaminated underground water from Houston manufacturing site | $ 5 |
Unaudited Quarterly Operatin104
Unaudited Quarterly Operating Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 2,079 | $ 2,208 | $ 2,222 | $ 2,273 | $ 2,804 | $ 2,678 | $ 2,570 | $ 2,329 | $ 8,782 | $ 10,381 | $ 9,138 |
Revenues less cost of sales (exclusive of depreciation and amortization) | 676 | 678 | 637 | 665 | 795 | 763 | 720 | 639 | |||
Asset charges | 58 | 18 | 10 | 553 | 639 | 44 | 0 | ||||
Other costs | 57 | 26 | 27 | 24 | 11 | 19 | (6) | 49 | |||
Net income | 149 | 213 | 155 | 51 | 262 | 238 | 233 | 115 | 568 | 848 | 724 |
Net income attributable to noncontrolling interests | 24 | 26 | 15 | 2 | 8 | 13 | 12 | 4 | 67 | 37 | 25 |
Net income attributable to Cameron stockholders | $ 125 | $ 187 | $ 140 | $ 49 | $ 254 | $ 225 | $ 221 | $ 111 | $ 501 | $ 811 | $ 699 |
Earnings per share attributable to Cameron stockholders: | |||||||||||
Basic earnings per share (in dollars per share) | $ 0.65 | $ 0.98 | $ 0.73 | $ 0.25 | $ 1.30 | $ 1.12 | $ 1.08 | $ 0.51 | $ 2.61 | $ 3.98 | $ 2.89 |
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 0.97 | $ 0.73 | $ 0.25 | $ 1.28 | $ 1.11 | $ 1.08 | $ 0.51 | $ 2.60 | $ 3.96 | $ 2.87 |