Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | NOV | |
Security Exchange Name | NYSE | |
Entity Registrant Name | NOV INC. | |
Entity Central Index Key | 0001021860 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 390,704,130 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-12317 | |
Entity Tax Identification Number | 76-0475815 | |
Entity Address, Address Line One | 7909 Parkwood Circle Drive | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 77036-6565 | |
City Area Code | 713 | |
Local Phone Number | 341-4802 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,572 | $ 1,692 |
Receivables, net | 1,258 | 1,274 |
Inventories, net | 1,322 | 1,408 |
Contract assets | 534 | 611 |
Prepaid and other current assets | 222 | 224 |
Total current assets | 4,908 | 5,209 |
Property, plant and equipment, net | 1,871 | 1,927 |
Lease right-of-use assets, operating | 369 | 371 |
Lease right-of-use assets, financing | 183 | 195 |
Goodwill | 1,495 | 1,493 |
Intangibles, net | 508 | 527 |
Investment in unconsolidated affiliates | 45 | 51 |
Other assets | 222 | 156 |
Total assets | 9,601 | 9,929 |
Current liabilities: | ||
Accounts payable | 526 | 489 |
Accrued liabilities | 771 | 863 |
Contract liabilities | 392 | 354 |
Current portion of lease liabilities | 105 | 110 |
Accrued income taxes | 16 | 51 |
Total current liabilities | 1,810 | 1,867 |
Lease liabilities | 595 | 612 |
Long-term debt | 1,686 | 1,834 |
Deferred income taxes | 72 | 78 |
Other liabilities | 260 | 259 |
Total liabilities | 4,423 | 4,650 |
Stockholders’ equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 390,629,483 and 388,255,374 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 4 | 4 |
Additional paid-in capital | 8,618 | 8,591 |
Accumulated other comprehensive loss | (1,497) | (1,509) |
Retained deficit | (2,017) | (1,876) |
Total Company stockholders' equity | 5,108 | 5,210 |
Noncontrolling interests | 70 | 69 |
Total stockholders’ equity | 5,178 | 5,279 |
Total liabilities and stockholders’ equity | $ 9,601 | $ 9,929 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 390,629,483 | 390,629,483 |
Common stock, shares outstanding | 388,255,374 | 388,255,374 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,417 | $ 1,496 | $ 2,666 | $ 3,379 |
Cost of revenue | 1,186 | 1,359 | 2,279 | 3,018 |
Gross profit | 231 | 137 | 387 | 361 |
Selling, general and administrative | 219 | 237 | 463 | 520 |
Goodwill and indefinite-lived intangible asset impairment | 1,378 | |||
Long-lived asset impairment | 513 | |||
Operating profit (loss) | 12 | (100) | (76) | (2,050) |
Interest and financial costs | (19) | (22) | (39) | (44) |
Interest income | 2 | 2 | 4 | 5 |
Equity loss in unconsolidated affiliates | (6) | (4) | (239) | |
Other income (expense), net | (16) | (8) | (26) | (11) |
Loss before income taxes | (21) | (134) | (141) | (2,339) |
Provision (benefit) for income taxes | 2 | (47) | (4) | (203) |
Net loss | (23) | (87) | (137) | (2,136) |
Net loss attributable to noncontrolling interests | 3 | 6 | 4 | 4 |
Net loss attributable to Company | $ (26) | $ (93) | $ (141) | $ (2,140) |
Net loss attributable to Company per share: | ||||
Basic | $ (0.07) | $ (0.24) | $ (0.37) | $ (5.57) |
Diluted | $ (0.07) | $ (0.24) | $ (0.37) | (5.57) |
Cash dividends per share | $ 0.05 | |||
Weighted average shares outstanding: | ||||
Basic | 386 | 385 | 386 | 384 |
Diluted | 386 | 385 | 386 | 384 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (23) | $ (87) | $ (137) | $ (2,136) |
Currency translation adjustments | 37 | 9 | 18 | (171) |
Changes in derivative financial instruments, net of tax | (4) | 33 | (6) | (19) |
Comprehensive income (loss) | 10 | (45) | (125) | (2,326) |
Net loss attributable to noncontrolling interests | 3 | 6 | 4 | 4 |
Comprehensive income (loss) attributable to Company | $ 7 | $ (51) | $ (129) | $ (2,330) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (137) | $ (2,136) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 156 | 187 |
Provision for inventory losses | 22 | 152 |
Deferred income taxes | (7) | (64) |
Loss on extinguishment of debt | 7 | |
Equity loss in unconsolidated affiliates | 4 | 239 |
Goodwill and indefinite-lived intangible asset impairment | 1,378 | |
Long-lived asset impairment | 513 | |
Other, net | 44 | 71 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables | 1 | 356 |
Inventories | 64 | 123 |
Contract assets | 77 | 127 |
Prepaid and other current assets | 4 | 42 |
Accounts payable | 37 | (160) |
Accrued liabilities | (88) | (174) |
Contract liabilities | 38 | (20) |
Income taxes payable | (36) | 18 |
Other assets/liabilities, net | (36) | (235) |
Net cash provided by operating activities | 150 | 417 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (98) | (124) |
Other | 9 | 13 |
Net cash used in investing activities | (89) | (111) |
Cash flows from financing activities: | ||
Borrowings against lines of credit and other debt | 34 | 25 |
Payments against lines of credit and other debt | (183) | |
Cash dividends paid | (19) | |
Other | (33) | (33) |
Net cash used in financing activities | (182) | (27) |
Effect of exchange rates on cash | 1 | (3) |
Increase (decrease) in cash and cash equivalents | (120) | 276 |
Cash and cash equivalents, beginning of period | 1,692 | 1,171 |
Cash and cash equivalents, end of period | 1,572 | 1,447 |
Cash payments (refunds) during the period for: | ||
Interest | 39 | 42 |
Income taxes | $ (85) | $ (63) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Revision of Prior Period Accounting Standards Update Adjustment [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Deficit) [Member] | Retained Earnings (Deficit) [Member]Revision of Prior Period Accounting Standards Update Adjustment [Member] | Total Company Stockholders' Equity [Member] | Total Company Stockholders' Equity [Member]Revision of Prior Period Accounting Standards Update Adjustment [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2019 | $ 7,846 | $ (5) | $ 4 | $ 8,507 | $ (1,423) | $ 690 | $ (5) | $ 7,778 | $ (5) | $ 68 |
Begining Balance, shares at Dec. 31, 2019 | 386 | |||||||||
Net income (loss) | (2,049) | (2,047) | (2,047) | (2) | ||||||
Other comprehensive income (loss) | (232) | (232) | (232) | |||||||
Cash dividends, per common share | $ (19) | $ (19) | $ (19) | |||||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Stock-based compensation | $ 27 | 27 | $ 27 | |||||||
Common stock issued, shares | 2 | |||||||||
Withholding taxes | (18) | (18) | (18) | |||||||
Other | 2 | 2 | ||||||||
Ending Balance at Mar. 31, 2020 | 5,552 | $ 4 | 8,516 | (1,655) | $ (1,381) | 5,484 | 68 | |||
Ending Balance, shares at Mar. 31, 2020 | 388 | |||||||||
Beginning Balance at Dec. 31, 2019 | 7,846 | $ (5) | $ 4 | 8,507 | (1,423) | 690 | $ (5) | 7,778 | $ (5) | 68 |
Begining Balance, shares at Dec. 31, 2019 | 386 | |||||||||
Net income (loss) | (2,136) | |||||||||
Cash dividends, per common share | (19) | |||||||||
Ending Balance at Jun. 30, 2020 | 5,533 | $ 4 | 8,543 | (1,613) | (1,474) | 5,460 | 73 | |||
Ending Balance, shares at Jun. 30, 2020 | 388 | |||||||||
Beginning Balance at Mar. 31, 2020 | 5,552 | $ 4 | 8,516 | (1,655) | (1,381) | 5,484 | 68 | |||
Begining Balance, shares at Mar. 31, 2020 | 388 | |||||||||
Net income (loss) | (87) | (93) | (93) | 6 | ||||||
Other comprehensive income (loss) | 42 | 42 | 42 | |||||||
Cash dividends, per common share | 0 | |||||||||
Stock-based compensation | 27 | 27 | 27 | |||||||
Other | (1) | (1) | ||||||||
Ending Balance at Jun. 30, 2020 | 5,533 | $ 4 | 8,543 | (1,613) | (1,474) | 5,460 | 73 | |||
Ending Balance, shares at Jun. 30, 2020 | 388 | |||||||||
Beginning Balance at Dec. 31, 2020 | 5,279 | $ 4 | 8,591 | (1,509) | (1,876) | 5,210 | 69 | |||
Begining Balance, shares at Dec. 31, 2020 | 388 | |||||||||
Net income (loss) | (114) | (115) | (115) | 1 | ||||||
Other comprehensive income (loss) | (21) | (21) | (21) | |||||||
Stock-based compensation | 20 | 20 | 20 | |||||||
Common stock issued, shares | 2 | |||||||||
Withholding taxes | (13) | (13) | (13) | |||||||
Other | (1) | (1) | ||||||||
Ending Balance at Mar. 31, 2021 | 5,150 | $ 4 | 8,598 | (1,530) | (1,991) | 5,081 | 69 | |||
Ending Balance, shares at Mar. 31, 2021 | 390 | |||||||||
Beginning Balance at Dec. 31, 2020 | 5,279 | $ 4 | 8,591 | (1,509) | (1,876) | 5,210 | 69 | |||
Begining Balance, shares at Dec. 31, 2020 | 388 | |||||||||
Net income (loss) | (137) | |||||||||
Cash dividends, per common share | 0 | |||||||||
Ending Balance at Jun. 30, 2021 | 5,178 | $ 4 | 8,618 | (1,497) | (2,017) | 5,108 | 70 | |||
Ending Balance, shares at Jun. 30, 2021 | 391 | |||||||||
Beginning Balance at Mar. 31, 2021 | 5,150 | $ 4 | 8,598 | (1,530) | (1,991) | 5,081 | 69 | |||
Begining Balance, shares at Mar. 31, 2021 | 390 | |||||||||
Net income (loss) | (23) | (26) | (26) | 3 | ||||||
Other comprehensive income (loss) | 33 | 33 | 33 | |||||||
Cash dividends, per common share | 0 | |||||||||
Stock-based compensation | 20 | 20 | 20 | |||||||
Common stock issued, shares | 1 | |||||||||
Other | (2) | (2) | ||||||||
Ending Balance at Jun. 30, 2021 | $ 5,178 | $ 4 | $ 8,618 | $ (1,497) | $ (2,017) | $ 5,108 | $ 70 | |||
Ending Balance, shares at Jun. 30, 2021 | 391 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Retained Earnings (Deficit) [Member] | |
Cash dividends, per common share | $ 0.05 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. The accompanying unaudited consolidated financial statements of NOV Inc. (“NOV” or the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 8, and the fair values of derivative financial instruments are provided in Note 11. |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories consist of (in millions): June 30, December 31, 2021 2020 Raw materials and supplies $ 362 $ 373 Work in process 233 189 Finished goods and purchased products 1,236 1,423 1,831 1,985 Less: Inventory reserve (509 ) (577 ) Total $ 1,322 $ 1,408 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 3 . Accrued liabilities consist of (in millions): June 30, December 31, 2021 2020 Compensation $ 193 $ 196 Taxes (non-income) 123 158 Vendor costs 110 118 Warranties 78 87 Insurance 52 48 Commissions 20 19 Fair value of derivatives 10 15 Interest 6 7 Other 179 215 Total $ 771 $ 863 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 4 . The components of accumulated other comprehensive loss are as follows (in millions): Derivative Defined Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2020 $ (1,481 ) $ 19 $ (47 ) $ (1,509 ) Accumulated other comprehensive income (loss) before reclassifications 18 (3 ) — 15 Amounts reclassified from accumulated other comprehensive income (loss) — (3 ) — (3 ) Balance at June 30, 2021 $ (1,463 ) $ 13 $ (47 ) $ (1,497 ) The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended June 30, 2021 2020 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ (1 ) $ — $ (1 ) $ — $ 2 $ — $ 2 Cost of revenue — (3 ) — (3 ) — 10 — 10 Tax effect — 1 — 1 — (2 ) — (2 ) $ — $ (3 ) $ — $ (3 ) $ — $ 10 $ — $ 10 Six Months Ended June 30, 2021 2020 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ (1 ) $ — $ (1 ) $ — $ 2 $ — $ 2 Cost of revenue — (3 ) — (3 ) — 15 — 15 Tax effect — 1 — 1 — (3 ) — (3 ) $ — $ (3 ) $ — $ (3 ) $ — $ 14 $ — $ 14 The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income (loss). The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions are realized. The movement in other comprehensive income (loss) from period to period will be the combination of: 1) changes in fair value of open derivatives of ($1) million and ($3) million during the three and six months ended June 30, 2021; and, 2) the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period of ($3) |
Segments
Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | 5 . Segments Financial results by operating segment are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue: Wellbore Technologies $ 463 $ 442 $ 876 $ 1,133 Completion & Production Solutions 497 611 936 1,286 Rig Technologies 487 476 918 1,033 Eliminations (30 ) (33 ) (64 ) (73 ) Total revenue $ 1,417 $ 1,496 $ 2,666 $ 3,379 Operating profit (loss): Wellbore Technologies $ 6 (67 ) $ (8 ) $ (730 ) Completion & Production Solutions (6 ) 42 (23 ) (971 ) Rig Technologies 49 (25 ) 41 (227 ) Eliminations and corporate costs (37 ) (50 ) (86 ) (122 ) Total operating profit (loss) $ 12 $ (100 ) $ (76 ) $ (2,050 ) Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations include intercompany transactions conducted between the three reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment. Operating loss for the six months ended June 30, 2021, includes pre-tax charges of $42 million (severance, facility closure, and inventory write downs) net of related credits of $18 million. Operating loss for the six months ended June 30, 2020, includes pre-tax charges for impairment of goodwill, indefinite-lived and finite-lived intangible and long-lived tangible assets ($1,891 million); inventory charges ($132 million); and, severance, facility closures and other items ($102 million). |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 6 . Revenue Disaggregation of Revenue The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions): Three Months Ended June 30, 2021 2020 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 215 $ 209 $ 69 $ — $ 493 $ 183 $ 181 $ 53 $ — $ 417 International 233 278 413 — 924 246 419 414 — 1,079 Eliminations 15 10 5 (30 ) — 13 11 9 (33 ) — $ 463 $ 497 $ 487 $ (30 ) $ 1,417 $ 442 $ 611 $ 476 $ (33 ) $ 1,496 Land $ 330 $ 329 $ 113 $ — $ 772 $ 296 $ 345 $ 113 $ — $ 754 Offshore 118 158 369 — 645 133 255 354 — 742 Eliminations 15 10 5 (30 ) — 13 11 9 (33 ) — $ 463 $ 497 $ 487 $ (30 ) $ 1,417 $ 442 $ 611 $ 476 $ (33 ) $ 1,496 Six Months Ended June 30, 2021 2020 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 403 $ 371 $ 124 $ — $ 898 $ 544 $ 406 $ 130 $ — $ 1,080 International 444 542 782 — 1,768 559 856 884 — 2,299 Eliminations 29 23 12 (64 ) — 30 24 19 (73 ) — $ 876 $ 936 $ 918 $ (64 ) $ 2,666 $ 1,133 $ 1,286 $ 1,033 $ (73 ) $ 3,379 Land $ 624 $ 594 $ 204 $ — $ 1,422 $ 825 $ 761 $ 264 $ — $ 1,850 Offshore 223 319 702 — 1,244 278 501 750 — 1,529 Eliminations 29 23 12 (64 ) — 30 24 19 (73 ) — $ 876 $ 936 $ 918 $ (64 ) $ 2,666 $ 1,133 $ 1,286 $ 1,033 $ (73 ) $ 3,379 Rig Technologies’ second quarter 2021 revenue included $74 million related to the cancelation of offshore rig projects. Performance Obligations Net revenue recognized from performance obligations satisfied in previous periods was $9 million for the three months ended June 30, 2021 primarily due to change orders. Remaining performance obligations represents the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $3,867 million. The Company expects to recognize approximately $594 million in revenue for the remaining performance obligations in 2021 and $3,273 million in 2022 and thereafter. Contract Assets and Liabilities Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. Contract liabilities consist of customer billings in excess of revenue recognized under over-time contracts, customer advance payments and deferred revenue. The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Contract Liabilities Balance at December 31, 2020 $ 611 $ 354 Provision (1 ) — Billings (414 ) 492 Revenue recognized 427 (374 ) Currency translation adjustments and other (89 ) (80 ) Balance at June 30, 2021 $ 534 $ 392 Contract Assets and Liabilities The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of Receivables and Contract Assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of June 30, 2021, allowance for credit losses totaled $98 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 7 . The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company initially intends that a lease option will be exercised due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews agreements at inception to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates. Components of leases are as follows (in millions): June 30, December 31, 2021 2020 Current portion of lease liabilities: Operating $ 80 $ 82 Financing 25 28 Total $ 105 $ 110 June 30, December 31, 2021 2020 Long-term portion of lease liability: Operating $ 371 $ 376 Financing 224 $ 236 Total $ 595 $ 612 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt consists of (in millions): June 30, December 31, 2021 2020 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 $ 1,089 $ 1,089 $0.5 billion in Senior Notes, interest at 3.60% payable semiannually, principal due on December 1, 2029 494 493 $0.2 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 - 182 Other debt 103 70 Total $ 1,686 $ 1,834 The Company has a $2.0 billion, five-year Additionally, the Company has a $150 million bank line of credit for the construction of a facility in Saudi Arabia. Interest under the bank line of credit is based upon LIBOR plus 1.40%. The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75%. As of June 30, 2021, the Company was in compliance. Other debt at June 30, 2021 included $25 million of funding provided by a minority interest partner of an NOV consolidated joint venture. On April 8, 2021, the Company extended the maturity date of the revolving credit facility by one additional year to October 30, 2025. The revolving credit facility has a borrowing capacity of $2.0 billion through October 30, 2024, and a borrowing capacity of $1.655 billion from October 31, 2024, to October 30, 2025. On April 9, 2021, the Company repaid the entire outstanding balance of $182 million of its 2.60% unsecured Senior Notes due December 1, 2022 using available cash balances. Upon redemption, the Company paid $191 million, which included a redemption premium of $6.8 million as well as accrued and unpaid interest of $1.7 million. As a result of the redemption, the Company recorded a loss on extinguishment of debt of $7.1 million in the second quarter, including a make whole premium of $6.8 million and non-cash charges of $0.3 million to write-off unamortized discount and debt issuance costs. Following the repayment, the Company’s earliest bond maturity is in 2029. The Company had $470 million of outstanding letters of credit at June 30, 2021, primarily in the U.S. and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. At June 30, 2021 and December 31, 2020, the fair value of the Company’s unsecured Senior Notes approximated $1,610 million and $1,833 million, respectively. The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those of similar instruments. At June 30, 2021 and December 31, 2020, the carrying value of the Company’s unsecured Senior Notes approximated $1,583 million and $1,764 million, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9 . The effective tax rate for the three and six months ended June 30, 2021 was (9.5%) and 2.8%, respectively, compared to 35.1% and 8.7% for the same periods in 2020. The Company has established valuation allowances on deferred tax assets for losses and tax credits generated in 2021 and 2020. The effective tax rate for 2021 was negatively impacted by current year losses in certain jurisdictions with no tax benefit, partially offset by favorable adjustments related to utilization of losses and tax credits for prior year tax returns. The effective tax rate for 2020 was negatively impacted by losses in certain jurisdictions with no tax benefit as well as the impairment of nondeductible goodwill, partially offset by an income tax benefit from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that was enacted on March 27, 2020 allowing net operating losses originating in 2018, 2019 or 2020 to be carried back five years. In addition, the Company recorded an income tax benefit of $90.3 million in the three and six months ended June 30, 2020 to reflect the Company’s decision to amend its 2016 United States income tax return and resulting net operating loss carryback to 2014. The income tax receivable of $90.3 million is recorded in Other Assets on the balance sheet as the Company believes the refund will not be received within the next twelve months. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10 . On May 19, 2021, the Company granted 78,552 restricted stock awards with a fair value of $16.50 per share. The awards were granted to non-employee members of the board of directors and vest on the first anniversary of the grant date. Total expense for all stock-based compensation arrangements was $20 million and $40 million for the three and six months ended June 30, 2021, respectively and $28 million and $55 million for the three and six months ended June 30, 2020, respectively. There was no income tax benefit recognized in the Consolidated Statements of Income (Loss) for stock-based compensation arrangements under the Plan for each of the three and six months ended June 30, 2021 and 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 1 1 . The Company uses forward currency contracts to manage the foreign currency exchange rate risk on forecasted revenues and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). The Company also executes forward currency contracts to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). The fair value of these derivative financial instruments are determined using level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange and interest rates at each financial reporting date. Forward currency contracts consist of (in millions): Currency Denomination June 30, December 31, Foreign Currency 2021 2020 South Korean Won KRW 17,600 KRW 17,600 Norwegian Krone NOK 2,496 NOK 3,817 Russian Ruble RUB 1,114 RUB 1,118 Mexican Peso MXN 415 MXN 402 Japanese Yen JPY 341 JPY 340 U.S. Dollar USD 291 USD 367 Euro EUR 131 EUR 116 South African Rand ZAR 124 ZAR 124 Singapore Dollar SGD 27 SGD 31 British Pound Sterling GBP 12 GBP 18 Danish Krone DKK 12 DKK 875 Canadian Dollar CAD — CAD 1 Brazilian Real BRL — BRL 768 Cash Flow Hedging Strategy To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company instituted a cash flow hedging program. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The Company includes time value in hedge relationships. The Company expects $18 million of the accumulated other comprehensive income will be reclassified into earnings within the next twelve months. Non-designated Hedging Strategy The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The gain or loss on the derivative instrument is recognized in earnings in other income (expense), together with the changes in the hedged nonfunctional monetary accounts. The amount of gain (loss) recognized in other income (expense), net was ($1) million and ($5) million for the three and six months ended June 30, 2021, respectively, and $5 million and ($38) million for the three and six months ended June 30, 2020, respectively. The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 18 $ 17 Accrued liabilities $ 1 $ 11 Foreign exchange contracts Other Assets — 12 Other liabilities — — Total derivatives designated as hedging instruments under ASC Topic 815 $ 18 $ 29 $ 1 $ 11 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 5 $ 17 Accrued liabilities $ 9 $ 4 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 5 $ 17 $ 9 $ 4 Total derivatives $ 23 $ 46 $ 10 $ 15 |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Company Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Company Per Share | 1 2 . The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net loss attributable to Company $ (26 ) $ (93 ) $ (141 ) $ (2,140 ) Denominator: Basic—weighted average common shares outstanding 386 385 386 384 Dilutive effect of employee stock options and other unvested stock awards — — — — Diluted outstanding shares 386 385 386 384 Net loss attributable to Company per share: Basic $ (0.07 ) $ (0.24 ) $ (0.37 ) $ (5.57 ) Diluted $ (0.07 ) $ (0.24 ) $ (0.37 ) $ (5.57 ) Cash dividends per share $ — $ - $ — $ 0.05 Companies with unvested participating securities are required to utilize a two-class method for the computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared. Net income (loss) attributable to Company allocated to participating securities was immaterial for each of the three and six months ended June 30, 2021 and 2020, respectively. The Company had stock options outstanding that were anti-dilutive totaling 23 million and 21 million shares for the three and six months ended June 30, 2021, respectively, compared to 28 million shares for each of the three and six months ended June 30, 2020, respectively. |
Cash Dividends
Cash Dividends | 6 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Cash Dividends | 1 3 . Cash dividends were $0 for the three and six months ended June 30, 2021 compared to $0 and $19 million for the three and six months ended June 30, 2020. The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 4 . Our business is governed by laws and regulations, including those directed to the oilfield service industry, promulgated by U.S. federal and state governments and regulatory agencies, as well as international governmental authorities in the many countries in which we conduct business. In the United States these governmental authorities include: the U.S. Department of Labor, the Occupational Safety and Health Administration, the Environmental Protection Agency, the Bureau of Land Management, the Department of Treasury, Office of Foreign Asset Controls, state and international environmental agencies and many others. We are unaware of any material unreserved liabilities in connection with our compliance with such laws. New laws, regulations and enforcement policies may result in additional, presently unquantifiable, or unknown, costs or liabilities. The Company is involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters. The Company maintains insurance that covers many of the claims arising from risks associated with the business activities of the Company, including claims for premises liability, product liability and other such claims. The Company carries substantial insurance to cover such risks above a self-insured retention. The Company believes, and the Company’s experience has been, that such insurance has been enough to cover any such material risks. See Item 1A. Risk Factors. The Company is also a party to claims, threatened and actual litigation, private arbitration, internal investigations of potential regulatory and compliance matters which arise from legacy businesses that the Company has acquired over many years and from the Company’s current ordinary day-to-day business activities. These regulatory matters and disputes may involve private parties and/or government authorities, which assert claims against the Company for a broad spectrum of potential claims including: employment law claims, collective actions or class action claims under employment laws, intellectual property claims, (such as alleged patent infringement, and/or misappropriation of trade secrets), premises liability claims, environmental claims, product liability claims, warranty claims, personal injury claims arising from exposure to or use of allegedly defective products, alleged regulatory violations, alleged violations of anti-corruption and anti-bribery laws and other commercial claims seeking recovery for alleged actual or exemplary damages or fines and penalties. Such claims involve various theories of liability which include: negligence, strict liability, product liability, and other theories of liability. For some of these contingent claims, the Company’s insurance coverage is inapplicable or an exclusion to coverage may apply. In such instances, settlement or other resolution of such claims, individually or collectively, could have a material financial or reputational impact on the Company. As of June 30, 2021, the Company recorded reserves in an amount believed to be sufficient, given the range of potential outcomes, for contingent liabilities representing all contingencies believed to be probable. These reserves include all costs expected for reclamation of a closed barite mine and product liability claims, as well as other circumstances involving material claims. Risks and Uncertainties The Company has assessed the potential for additional losses above the amounts accrued as well as potential losses for matters that are not probable but are reasonably possible. The litigation process as well as the outcome of regulatory oversight is inherently uncertain, and our best judgement concerning the probable outcome of litigation or regulatory enforcement matters may prove to be incorrect in some instances. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, will not materially affect our financial position, cash flow or results of operations. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s experience. Because of uncertainty and risk inherent to litigation and arbitration, actual liabilities incurred may exceed our estimated liabilities and reserves, which could have a material financial or reputational impact on the Company. In many instances, the Company’s products and services embody or incorporate trade secrets or patented inventions. From time to time, we are engaged in disputes concerning protection of trade secrets and confidential information, patents and other intellectual property rights. Such disputes frequently involve complex, factual, technical and/or legal issues which result in high costs to adjudicate our rights and difficulty in predicting the ultimate outcome. Because of the importance of the Company’s intellectual property to the Company’s performance, an adverse result in such disputes could result in the loss of revenue from royalties or a decline in sales of products protected by patents, which could materially and adversely impact our financial performance. Further, in some instances, direct or indirect consumers of our products and services, entities providing financing for purchases of our products and services or members of the supply chain for our products and services become involved in governmental investigations, internal investigations, political or other enforcement matters. In such circumstances, such investigations may adversely impact the ability of consumers of our products, entities providing financial support to such consumers or entities in the supply chain to timely perform their business plans or to timely perform under agreements with us. We may, from time to time, become involved in these investigations, at substantial cost to the Company. We also are subject to trade regulations, supply chain regulations, and other regulatory compliance in which the laws and regulations of different jurisdictions conflict or these regulations may conflict with contractual terms. In such circumstances, our compliance with U.S. laws and regulations may subject us to risk of fines, penalties or contractual liability in other jurisdictions. Our efforts to actively manage such risks may not always be successful which could lead to negative impacts on revenue or earnings. The Company is exposed to customs and trade regulation risk in the countries in which we do business or to which we transport goods. Such trade regulations can be complex and conflicting, as different countries use trade regulation to promote conflicting policy objectives. Compliance with these laws and regulations present challenges which could result in future liabilities (for example, when laws conflict between countries). The Company may face increased tariffs and trade costs, loss of revenue, loss of customers, increased costs, the need for renegotiation of agreements, and other business disruptions. In addition, trade regulations, export controls, and other laws may adversely impact our ability to do business in certain countries, e.g.: Iran, Syria, Russia, China and Venezuela. Uncertainty arising from the COVID-19 pandemic continues to adversely impact many jurisdictions and disrupt normal economic activities. The demand for energy may be constrained with adverse consequences for our customers and for the Company. As a result, the Company may be exposed to additional liabilities and risks. Due to market conditions and ongoing concerns about the energy transition, demand for our products and services may decline. Our customers may attempt to cancel or delay projects, cancel contracts or may invoke force majeure clauses. Our customers may also seek to delay or may default on their payments to us. The Company also continues to see operational delays due to supply chain disruption and closure or limitations imposed on our facilities and work force, from “shelter in place” orders around the world. The Company’s ability to perform services could also be impaired and the Company could be exposed to liabilities resulting from interruption in its ability to perform due to limited manpower and travel restrictions. These potential operational and service delays resulting from the COVID-19 pandemic could result in contractual or other legal claims from our customers. At this time, it is not possible to quantify these risks, but the combination of these factors could have a material impact on our financial results. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 1 5 . Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of accounting for income taxes. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 for the first quarter of 2021 with no material impact on the company’s financial position, results of operations and cash flows. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2021-01 and 2020-04, “Reference Rate Reform (Topic 848)” This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management is currently assessing the impact of adopting ASU 2020-04 on the company’s financial position, results of operations and cash flows. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 8, and the fair values of derivative financial instruments are provided in Note 11. |
Net Income (Loss) Attributable to Company Per Share | Companies with unvested participating securities are required to utilize a two-class method for the computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared. Net income (loss) attributable to Company allocated to participating securities was immaterial for each of the three and six months ended June 30, 2021 and 2020, respectively. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of accounting for income taxes. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 for the first quarter of 2021 with no material impact on the company’s financial position, results of operations and cash flows. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2021-01 and 2020-04, “Reference Rate Reform (Topic 848)” This ASU applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management is currently assessing the impact of adopting ASU 2020-04 on the company’s financial position, results of operations and cash flows. |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): June 30, December 31, 2021 2020 Raw materials and supplies $ 362 $ 373 Work in process 233 189 Finished goods and purchased products 1,236 1,423 1,831 1,985 Less: Inventory reserve (509 ) (577 ) Total $ 1,322 $ 1,408 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): June 30, December 31, 2021 2020 Compensation $ 193 $ 196 Taxes (non-income) 123 158 Vendor costs 110 118 Warranties 78 87 Insurance 52 48 Commissions 20 19 Fair value of derivatives 10 15 Interest 6 7 Other 179 215 Total $ 771 $ 863 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (in millions): Derivative Defined Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2020 $ (1,481 ) $ 19 $ (47 ) $ (1,509 ) Accumulated other comprehensive income (loss) before reclassifications 18 (3 ) — 15 Amounts reclassified from accumulated other comprehensive income (loss) — (3 ) — (3 ) Balance at June 30, 2021 $ (1,463 ) $ 13 $ (47 ) $ (1,497 ) |
Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended June 30, 2021 2020 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ (1 ) $ — $ (1 ) $ — $ 2 $ — $ 2 Cost of revenue — (3 ) — (3 ) — 10 — 10 Tax effect — 1 — 1 — (2 ) — (2 ) $ — $ (3 ) $ — $ (3 ) $ — $ 10 $ — $ 10 Six Months Ended June 30, 2021 2020 Currency Derivative Defined Currency Derivative Defined Translation Financial Benefit Translation Financial Benefit Adjustments Instruments Plans Total Adjustments Instruments Plans Total Revenue $ — $ (1 ) $ — $ (1 ) $ — $ 2 $ — $ 2 Cost of revenue — (3 ) — (3 ) — 15 — 15 Tax effect — 1 — 1 — (3 ) — (3 ) $ — $ (3 ) $ — $ (3 ) $ — $ 14 $ — $ 14 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Operating Segments | Financial results by operating segment are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue: Wellbore Technologies $ 463 $ 442 $ 876 $ 1,133 Completion & Production Solutions 497 611 936 1,286 Rig Technologies 487 476 918 1,033 Eliminations (30 ) (33 ) (64 ) (73 ) Total revenue $ 1,417 $ 1,496 $ 2,666 $ 3,379 Operating profit (loss): Wellbore Technologies $ 6 (67 ) $ (8 ) $ (730 ) Completion & Production Solutions (6 ) 42 (23 ) (971 ) Rig Technologies 49 (25 ) 41 (227 ) Eliminations and corporate costs (37 ) (50 ) (86 ) (122 ) Total operating profit (loss) $ 12 $ (100 ) $ (76 ) $ (2,050 ) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregate Revenue by Destinations | The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions): Three Months Ended June 30, 2021 2020 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 215 $ 209 $ 69 $ — $ 493 $ 183 $ 181 $ 53 $ — $ 417 International 233 278 413 — 924 246 419 414 — 1,079 Eliminations 15 10 5 (30 ) — 13 11 9 (33 ) — $ 463 $ 497 $ 487 $ (30 ) $ 1,417 $ 442 $ 611 $ 476 $ (33 ) $ 1,496 Land $ 330 $ 329 $ 113 $ — $ 772 $ 296 $ 345 $ 113 $ — $ 754 Offshore 118 158 369 — 645 133 255 354 — 742 Eliminations 15 10 5 (30 ) — 13 11 9 (33 ) — $ 463 $ 497 $ 487 $ (30 ) $ 1,417 $ 442 $ 611 $ 476 $ (33 ) $ 1,496 Six Months Ended June 30, 2021 2020 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 403 $ 371 $ 124 $ — $ 898 $ 544 $ 406 $ 130 $ — $ 1,080 International 444 542 782 — 1,768 559 856 884 — 2,299 Eliminations 29 23 12 (64 ) — 30 24 19 (73 ) — $ 876 $ 936 $ 918 $ (64 ) $ 2,666 $ 1,133 $ 1,286 $ 1,033 $ (73 ) $ 3,379 Land $ 624 $ 594 $ 204 $ — $ 1,422 $ 825 $ 761 $ 264 $ — $ 1,850 Offshore 223 319 702 — 1,244 278 501 750 — 1,529 Eliminations 29 23 12 (64 ) — 30 24 19 (73 ) — $ 876 $ 936 $ 918 $ (64 ) $ 2,666 $ 1,133 $ 1,286 $ 1,033 $ (73 ) $ 3,379 |
Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities | The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Contract Liabilities Balance at December 31, 2020 $ 611 $ 354 Provision (1 ) — Billings (414 ) 492 Revenue recognized 427 (374 ) Currency translation adjustments and other (89 ) (80 ) Balance at June 30, 2021 $ 534 $ 392 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Components of Leases | Components of leases are as follows (in millions): June 30, December 31, 2021 2020 Current portion of lease liabilities: Operating $ 80 $ 82 Financing 25 28 Total $ 105 $ 110 June 30, December 31, 2021 2020 Long-term portion of lease liability: Operating $ 371 $ 376 Financing 224 $ 236 Total $ 595 $ 612 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): June 30, December 31, 2021 2020 $1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042 $ 1,089 $ 1,089 $0.5 billion in Senior Notes, interest at 3.60% payable semiannually, principal due on December 1, 2029 494 493 $0.2 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022 - 182 Other debt 103 70 Total $ 1,686 $ 1,834 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | Forward currency contracts consist of (in millions): Currency Denomination June 30, December 31, Foreign Currency 2021 2020 South Korean Won KRW 17,600 KRW 17,600 Norwegian Krone NOK 2,496 NOK 3,817 Russian Ruble RUB 1,114 RUB 1,118 Mexican Peso MXN 415 MXN 402 Japanese Yen JPY 341 JPY 340 U.S. Dollar USD 291 USD 367 Euro EUR 131 EUR 116 South African Rand ZAR 124 ZAR 124 Singapore Dollar SGD 27 SGD 31 British Pound Sterling GBP 12 GBP 18 Danish Krone DKK 12 DKK 875 Canadian Dollar CAD — CAD 1 Brazilian Real BRL — BRL 768 |
Derivative Instruments and their Balance Sheet Classifications | The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 18 $ 17 Accrued liabilities $ 1 $ 11 Foreign exchange contracts Other Assets — 12 Other liabilities — — Total derivatives designated as hedging instruments under ASC Topic 815 $ 18 $ 29 $ 1 $ 11 Derivatives not designated as hedging instruments under ASC Topic 815 Foreign exchange contracts Prepaid and other current assets $ 5 $ 17 Accrued liabilities $ 9 $ 4 Total derivatives not designated as hedging instruments under ASC Topic 815 $ 5 $ 17 $ 9 $ 4 Total derivatives $ 23 $ 46 $ 10 $ 15 |
Net Income (Loss) Attributabl_2
Net Income (Loss) Attributable to Company Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Weighted Average Basic and Diluted Shares Outstanding | The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net loss attributable to Company $ (26 ) $ (93 ) $ (141 ) $ (2,140 ) Denominator: Basic—weighted average common shares outstanding 386 385 386 384 Dilutive effect of employee stock options and other unvested stock awards — — — — Diluted outstanding shares 386 385 386 384 Net loss attributable to Company per share: Basic $ (0.07 ) $ (0.24 ) $ (0.37 ) $ (5.57 ) Diluted $ (0.07 ) $ (0.24 ) $ (0.37 ) $ (5.57 ) Cash dividends per share $ — $ - $ — $ 0.05 |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 362 | $ 373 |
Work in process | 233 | 189 |
Finished goods and purchased products | 1,236 | 1,423 |
Inventory, Gross | 1,831 | 1,985 |
Less: Inventory reserve | (509) | (577) |
Total | $ 1,322 | $ 1,408 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Compensation | $ 193 | $ 196 |
Taxes (non-income) | 123 | 158 |
Vendor costs | 110 | 118 |
Warranties | 78 | 87 |
Insurance | 52 | 48 |
Commissions | 20 | 19 |
Fair value of derivatives | 10 | 15 |
Interest | 6 | 7 |
Other | 179 | 215 |
Total | $ 771 | $ 863 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 5,279 |
Ending Balance | 5,178 |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,481) |
Accumulated other comprehensive income (loss) before reclassifications | 18 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Ending Balance | (1,463) |
Derivative Financial Instruments, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 19 |
Accumulated other comprehensive income (loss) before reclassifications | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) | (3) |
Ending Balance | 13 |
Defined Benefit Plans, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (47) |
Accumulated other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Ending Balance | (47) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,509) |
Accumulated other comprehensive income (loss) before reclassifications | 15 |
Amounts reclassified from accumulated other comprehensive income (loss) | (3) |
Ending Balance | $ (1,497) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjusactment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | $ 1,417 | $ 1,496 | $ 2,666 | $ 3,379 |
Tax effect | (2) | 47 | 4 | 203 |
Net loss attributable to Company | (26) | (93) | (141) | (2,140) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjusactment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | (1) | 2 | (1) | 2 |
Cost of revenue | (3) | 10 | (3) | 15 |
Tax effect | 1 | (2) | 1 | (3) |
Net loss attributable to Company | (3) | 10 | (3) | 14 |
Derivative Financial Instruments, Net of Tax [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjusactment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue | (1) | 2 | (1) | 2 |
Cost of revenue | (3) | 10 | (3) | 15 |
Tax effect | 1 | (2) | 1 | (3) |
Net loss attributable to Company | $ (3) | $ 10 | $ (3) | $ 14 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in fair value of open derivatives | $ (1) | $ (3) |
Cumulative changes in the fair value of derivatives | $ (3) | $ (3) |
Segments - Operating Segments (
Segments - Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,417 | $ 1,496 | $ 2,666 | $ 3,379 |
Total operating profit (loss) | 12 | (100) | (76) | (2,050) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,417 | |||
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 463 | 442 | 876 | 1,133 |
Total operating profit (loss) | 6 | (67) | (8) | (730) |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 497 | 611 | 936 | 1,286 |
Total operating profit (loss) | (6) | 42 | (23) | (971) |
Operating Segments [Member] | Rig Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 487 | 476 | 918 | 1,033 |
Total operating profit (loss) | 49 | (25) | 41 | (227) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (30) | (33) | (64) | (73) |
Total operating profit (loss) | $ (37) | $ (50) | $ (86) | $ (122) |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Severance, Facility Closures and Inventory Write Downs [Member] | ||
Segment Reporting Information [Line Items] | ||
Charges/ (reversals) | $ 18 | |
Goodwill, Indefinite-lived and Finite-Lived Intangible and Long-Lived Tangible Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Charges/ (reversals) | $ 1,891 | |
Inventory Charges [Member] | ||
Segment Reporting Information [Line Items] | ||
Charges/ (reversals) | 132 | |
Severance, Facility Closures And Other Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Charges/ (reversals) | $ 42 | $ 102 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregate Revenue by Destinations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | $ 1,417 | $ 1,496 | $ 2,666 | $ 3,379 |
Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 1,417 | |||
Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 463 | 442 | 876 | 1,133 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 497 | 611 | 936 | 1,286 |
Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 487 | 476 | 918 | 1,033 |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (30) | (33) | (64) | (73) |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 15 | 13 | 29 | 30 |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 10 | 11 | 23 | 24 |
Continental [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 5 | 9 | 12 | 19 |
Continental [Member] | Intersubsegment Eliminations [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (30) | (33) | (64) | (73) |
Continental [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 417 | 898 | 1,080 | |
Continental [Member] | North America [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 493 | |||
Continental [Member] | North America [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 215 | 183 | 403 | 544 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 209 | 181 | 371 | 406 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 69 | 53 | 124 | 130 |
Continental [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 1,079 | 1,768 | 2,299 | |
Continental [Member] | International [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 924 | |||
Continental [Member] | International [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 233 | 246 | 444 | 559 |
Continental [Member] | International [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 278 | 419 | 542 | 856 |
Continental [Member] | International [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 413 | 414 | 782 | 884 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 15 | 13 | 29 | 30 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 10 | 11 | 23 | 24 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 5 | 9 | 12 | 19 |
Land and Offshore [Member] | Intersubsegment Eliminations [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | (30) | (33) | (64) | (73) |
Land and Offshore [Member] | Land Destination [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 754 | 1,422 | 1,850 | |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 772 | |||
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 330 | 296 | 624 | 825 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 329 | 345 | 594 | 761 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 113 | 113 | 204 | 264 |
Land and Offshore [Member] | Offshore Destination [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 742 | 1,244 | 1,529 | |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 645 | |||
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 118 | 133 | 223 | 278 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | 158 | 255 | 319 | 501 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Disaggregate revenue | $ 369 | $ 354 | $ 702 | $ 750 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Net revenue recognized from performance obligations | $ 9 | |
Remaining performance obligations | 3,867 | $ 3,867 |
Allowance for credit losses | $ 98 | 98 |
Rig Technologies [Member] | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Net revenue recognized from performance obligations | $ 74 |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail 1) $ in Millions | Jun. 30, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,867 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 594 |
Remaining performance obligations, expected to be recognized, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,273 |
Remaining performance obligations, expected to be recognized, period | 1 year |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at December 31, 2020 | $ 611 |
Provision | (1) |
Billings | (414) |
Revenue recognized | 427 |
Currency translation adjustments and other | (89) |
Balance at June 30, 2021 | 534 |
Balance at December 31, 2020 | 354 |
Billings | 492 |
Revenue recognized | (374) |
Currency translation adjustments and other | (80) |
Balance at June 30, 2021 | $ 392 |
Leases - Schedule of Components
Leases - Schedule of Components of Leases (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current portion of lease liabilities: | ||
Operating | $ 80 | $ 82 |
Financing | 25 | 28 |
Total | 105 | 110 |
Long-term portion of lease liability: | ||
Operating | 371 | 376 |
Financing | 224 | 236 |
Total | $ 595 | $ 612 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,583 | $ 1,764 |
Other debt | 103 | 70 |
Total | 1,686 | 1,834 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,089 | 1,089 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 494 | 493 |
Senior Notes, Interest at 2.60% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 182 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Senior Notes, Interest at 2.60% Payable Semiannually, Principal Due on December 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 200,000,000 | $ 200,000,000 |
Senior notes interest rate | 2.60% | 2.60% |
Senior note due date | Dec. 1, 2022 | Dec. 1, 2022 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 500,000,000 | $ 500,000,000 |
Senior notes interest rate | 3.60% | 3.60% |
Senior note due date | Dec. 1, 2029 | Dec. 1, 2029 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 1,100,000,000 | $ 1,100,000,000 |
Senior notes interest rate | 3.95% | 3.95% |
Senior note due date | Dec. 1, 2042 | Dec. 1, 2042 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 09, 2021 | Apr. 08, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||||
Interest rate under multi currency facility | LIBOR, NIBOR or CDOR plus 1.125% | ||||
Capitalization ratio, Maximum | 60.00% | ||||
Capitalization ratio, Actual | 27.20% | ||||
Funds available under revolving credit facility | $ 2,000,000,000 | ||||
Other debt | 103,000,000 | $ 70,000,000 | |||
Loss on extinguishment of debt | (7,000,000) | ||||
Outstanding letters of credit under various bilateral letter of credit facilities | 470,000,000 | ||||
Carrying value of Unsecured Senior Notes | 1,583,000,000 | 1,764,000,000 | |||
2.60% Unsecured Senior Notes Due December 1, 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of unsecured note outstanding balance | $ 182,000,000 | ||||
Senior notes interest rate | 2.60% | ||||
Redemption of unsecured note | $ 191,000,000 | ||||
Redemption premium | 6,800,000 | ||||
Accrued and unpaid interest | $ 1,700,000 | ||||
Loss on extinguishment of debt | (7,100,000) | ||||
Premium | 6,800,000 | ||||
Write off of unamortized discount and debt issuance cost | 300,000 | ||||
Debt Instrument Maturity Date | 2029 | ||||
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of Unsecured Senior Notes | $ 1,610,000,000 | $ 1,833,000,000 | |||
Noncontrolling Interests [Member] | |||||
Debt Instrument [Line Items] | |||||
Other debt | $ 25,000,000 | ||||
Canadian Dollar Offered Rate (CDOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.125% | ||||
Five Year Unsecured Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 2,000,000,000 | ||||
Credit facility, maturity date | Oct. 30, 2024 | ||||
Credit facility, extendable borrowing capacity | $ 3,000,000,000 | ||||
Variable rate basis | LIBOR, NIBOR or CDOR plus | ||||
Outstanding letters of credit issued | $ 0 | ||||
Unsecured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, Period | 5 years | ||||
Foreign Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.40% | ||||
Additional line of credit facility borrowing capacity | $ 150,000,000 | ||||
Debt to equity ratio maximum | 75.00% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Funds available under revolving credit facility | $ 1,655,000,000 | ||||
Line of credit facility extended maturity date | Oct. 30, 2025 | ||||
Line of credit facility current borrowing capacity | $ 2,000,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | (9.50%) | 35.10% | 2.80% | 8.70% |
Net operating losses carried back term due to cares act | 5 years | |||
Favorably impacted by an income tax benefit | $ 90.3 | $ 90.3 | ||
Income tax receivable recorded in other assets | $ 90.3 | $ 90.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 20, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 20 | $ 28 | $ 40 | $ 55 | |
Income tax benefit recognized | $ 0 | $ 0 | $ 0 | $ 0 | |
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 78,552 | ||||
Restricted stock granted fair value | $ 16.50 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) ₽ in Millions, € in Millions, ₩ in Millions, ¥ in Millions, £ in Millions, kr in Millions, kr in Millions, R$ in Millions, R in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jun. 30, 2021USD ($) | Jun. 30, 2021KRW (₩) | Jun. 30, 2021NOK (kr) | Jun. 30, 2021RUB (₽) | Jun. 30, 2021MXN ($) | Jun. 30, 2021JPY (¥) | Jun. 30, 2021EUR (€) | Jun. 30, 2021ZAR (R) | Jun. 30, 2021SGD ($) | Jun. 30, 2021GBP (£) | Jun. 30, 2021DKK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2020KRW (₩) | Dec. 31, 2020NOK (kr) | Dec. 31, 2020RUB (₽) | Dec. 31, 2020MXN ($) | Dec. 31, 2020JPY (¥) | Dec. 31, 2020EUR (€) | Dec. 31, 2020ZAR (R) | Dec. 31, 2020SGD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020DKK (kr) | Dec. 31, 2020CAD ($) | Dec. 31, 2020BRL (R$) |
Forward Contracts [Member] | ||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||
Foreign currency, Cash flow hedging | $ 291 | ₩ 17,600 | kr 2,496 | ₽ 1,114 | $ 415 | ¥ 341 | € 131 | R 124 | $ 27 | £ 12 | kr 12 | $ 367 | ₩ 17,600 | kr 3,817 | ₽ 1,118 | $ 402 | ¥ 340 | € 116 | R 124 | $ 31 | £ 18 | kr 875 | $ 1 | R$ 768 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Accumulated other comprehensive income (loss) reclassified into earnings within the next twelve months | $ 18 | |||
Gain (loss) recognized in other income (expense), net | $ (1) | $ 5 | $ (5) | $ (38) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 23 | $ 46 |
Liability Derivatives | 10 | 15 |
Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 18 | 29 |
Liability Derivatives | 1 | 11 |
Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 5 | 17 |
Liability Derivatives | 9 | 4 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1 | 11 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 9 | 4 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 18 | 17 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 5 | 17 |
Foreign Exchange Contracts [Member] | Other Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 12 |
Net Income (Loss) Attributabl_3
Net Income (Loss) Attributable to Company Per Share - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net loss attributable to Company | $ (26) | $ (93) | $ (141) | $ (2,140) |
Denominator: | ||||
Basic—weighted average common shares outstanding | 386 | 385 | 386 | 384 |
Diluted outstanding shares | 386 | 385 | 386 | 384 |
Basic | $ (0.07) | $ (0.24) | $ (0.37) | $ (5.57) |
Diluted | $ (0.07) | $ (0.24) | $ (0.37) | (5.57) |
Cash dividends per share | $ 0.05 |
Net Income (Loss) Attributabl_4
Net Income (Loss) Attributable to Company Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options outstanding | 23 | 28 | 21 | 28 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Dividends [Abstract] | |||||
Cash dividends paid | $ 0 | $ 0 | $ 19 | $ 0 | $ 19 |