Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Entity Information [Line Items] | ||
Document Period End Date | Sep. 30, 2016 | |
Entity Registrant Name | Halliburton Company | |
Entity Central Index Key | 45,012 | |
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 Common Stock, Shares Outstanding | 864,452,215 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Revenue: | |||||
Services | $ 2,695 | $ 3,999 | $ 8,320 | $ 13,460 | |
Product sales | 1,138 | 1,583 | 3,546 | 5,091 | |
Total revenue | 3,833 | 5,582 | 11,866 | 18,551 | |
Operating costs and expenses: | |||||
Cost of services | 2,743 | 3,818 | 8,476 | 12,612 | |
Cost of sales | 919 | 1,221 | 2,843 | 3,945 | |
Baker Hughes related costs and termination fee | 0 | 82 | 4,057 | 203 | |
Impairments and other charges | [1] | 0 | 381 | 3,189 | 1,895 |
General and administrative | 43 | 37 | 132 | 147 | |
Total operating costs and expenses | 3,705 | 5,539 | 18,697 | 18,802 | |
Operating income (loss) | 128 | 43 | (6,831) | (251) | |
Interest expense, net of interest income | (141) | (99) | (502) | (311) | |
Other, net | (39) | (34) | (117) | (281) | |
Income (loss) from continuing operations before income taxes | (52) | (90) | (7,450) | (843) | |
Income tax benefit (provision) | 59 | 37 | 1,836 | 207 | |
Income (loss) from continuing operations | 7 | (53) | (5,614) | (636) | |
Income (loss) from discontinued operations, net of income tax (provision) benefit | 0 | 0 | (2) | (5) | |
Net income (loss) | 7 | (53) | (5,616) | (641) | |
Net (income) loss attributable to noncontrolling interest | (1) | (1) | 2 | (2) | |
Net income (loss) attributable to company | 6 | (54) | (5,614) | (643) | |
Amounts attributable to company shareholders: | |||||
Income (loss) from continuing operations | 6 | (54) | (5,612) | (638) | |
Income (loss) from discontinued operations, net | 0 | 0 | (2) | (5) | |
Net income (loss) attributable to company | $ 6 | $ (54) | $ (5,614) | $ (643) | |
Basic income per share attributable to company shareholders: | |||||
Income (loss) from continuing operations (in dollars per share) | $ 0.01 | $ (0.06) | $ (6.53) | $ (0.75) | |
Income (loss) from discontinued operations, net (in dollars per share) | 0 | 0 | 0 | (0.01) | |
Net income (loss) per share (in dollars per share) | 0.01 | (0.06) | (6.53) | (0.76) | |
Diluted income per share attributable to company shareholders: | |||||
Income (loss) from continuing operations (in dollars per share) | 0.01 | (0.06) | (6.53) | (0.75) | |
Income (loss) from discontinued operations, net (in dollars per share) | 0 | 0 | 0 | (0.01) | |
Net (loss) income per share (in dollars per share) | 0.01 | (0.06) | (6.53) | (0.76) | |
Cash dividends per share | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 | |
Basic weighted average common shares outstanding (in shares) | 862 | 855 | 860 | 852 | |
Diluted weighted average common shares outstanding (in shares) | 864 | 855 | 860 | 852 | |
[1] | Impairments and other charges are as follows:-For the three months ended September 30, 2015, includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015, includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | $ 18 | $ 3 | $ 38 | $ 10 |
Income (loss) from discontinued operations, income tax benefit (provision) | $ 0 | $ 0 | $ 1 | $ 3 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) | $ 7 | $ (53) | $ (5,616) | $ (641) |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized gain (loss) on cash flow hedges | 0 | (166) | 0 | (62) |
Other | 1 | 13 | 3 | 10 |
Other comprehensive income (loss), net of income taxes | 1 | (153) | 3 | (52) |
Comprehensive income (loss) | 8 | (206) | (5,613) | (693) |
Comprehensive (income) loss attributable to noncontrolling interest | (1) | (1) | 2 | (2) |
Comprehensive income (loss) attributable to company shareholders | $ 7 | $ (207) | $ (5,611) | $ (695) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and equivalents | $ 3,289 | $ 10,077 |
Receivables less allowance for bad debts | 4,360 | 5,317 |
Inventories | 2,475 | 2,993 |
Prepaid income taxes | 703 | 527 |
Other current assets | 933 | 1,156 |
Total current assets | 11,760 | 20,070 |
Property, plant, and equipment, net of accumulated depreciation | 8,741 | 12,117 |
Goodwill | 2,383 | 2,385 |
Deferred income taxes | 1,944 | 552 |
Other assets | 1,927 | 1,818 |
Total assets | 26,755 | 36,942 |
Current liabilities: | ||
Accounts payable | 1,543 | 2,019 |
Accrued employee compensation and benefits | 535 | 862 |
Liabilities for Macondo well incident | 369 | 400 |
Current maturities of long-term debt | 152 | 659 |
Other current liabilities | 1,032 | 1,397 |
Total current liabilities | 3,631 | 5,337 |
Long-term debt | 12,163 | 14,687 |
Employee compensation and benefits | 449 | 479 |
Other liabilities | 786 | 944 |
Total liabilities | 17,029 | 21,447 |
Shareholders' equity: | ||
Common shares, par value $2.50 per share | 2,675 | 2,677 |
Paid-in capital in excess of par value | 184 | 274 |
Accumulated other comprehensive loss | (360) | (363) |
Retained earnings | 14,445 | 20,524 |
Treasury stock, at cost | (7,262) | (7,650) |
Company shareholders' equity | 9,682 | 15,462 |
Noncontrolling interest in consolidated subsidiaries | 44 | 33 |
Total shareholders' equity | 9,726 | 15,495 |
Total liabilities and shareholders' equity | $ 26,755 | $ 36,942 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for bad debts | $ 197 | $ 145 |
Accumulated depreciation | $ 10,944 | $ 11,576 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 2,000 | 2,000 |
Common stock, shares issued (in shares) | 1,070 | 1,071 |
Treasury shares (in shares) | 206 | 215 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ (5,616) | $ (641) | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Impairments and other charges | [1] | 3,189 | 1,895 |
Deferred income tax expense (benefit), continuing operations | (1,511) | (411) | |
Depreciation, depletion, and amortization | 1,117 | 1,433 | |
U.S. tax refund | 430 | 0 | |
Payment related to the Macondo well incident | (33) | (333) | |
Changes in assets and liabilities: | |||
Receivables | 682 | 1,396 | |
Accounts payable | (461) | (469) | |
Inventories | 388 | (23) | |
Other | (947) | (826) | |
Total cash flows provided by (used in) operating activities | (2,762) | 2,021 | |
Cash flows from investing activities: | |||
Capital expenditures | (625) | (1,748) | |
Proceeds from sales of property, plant, and equipment | 176 | 133 | |
Other investing activities | (73) | (109) | |
Total cash flows used in investing activities | (522) | (1,724) | |
Cash flows from financing activities: | |||
Payments on long-term borrowings | (3,149) | (8) | |
Dividends to shareholders | (465) | (460) | |
Other financing activities | 163 | 146 | |
Total cash flows used in financing activities | (3,451) | (322) | |
Effect of exchange rate changes on cash | (53) | (17) | |
Increase (decrease) in cash and equivalents | (6,788) | (42) | |
Cash and equivalents at beginning of period | 10,077 | 2,291 | |
Cash and equivalents at end of period | 3,289 | 2,249 | |
Cash payments (receipts) during the period for: | |||
Interest | 516 | 355 | |
Income taxes | $ (25) | $ 454 | |
[1] | Impairments and other charges are as follows:-For the three months ended September 30, 2015, includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015, includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Termination of Baker Hughes acquisition In November 2014, we entered into a merger agreement with Baker Hughes to acquire all outstanding shares of Baker Hughes in a stock and cash transaction. On April 30, 2016, we and Baker Hughes mutually terminated our merger agreement primarily because of the challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics. In April 2015, we had announced our decision to market for sale our Fixed Cutter and Roller Cone Drill Bits, our Directional Drilling, and our Logging-While-Drilling/Measurement-While-Drilling businesses in connection with the anticipated Baker Hughes transaction. Accordingly, beginning in April 2015, the assets and liabilities for these businesses, which are included within our Drilling and Evaluation operating segment, were classified as held for sale and the corresponding depreciation and amortization expense ceased at that time. Since our proposed divestitures no longer met the assets held for sale accounting criteria at March 31, 2016, we reclassified these businesses to assets held and used in the accompanying condensed consolidated balance sheets for both periods presented. We recorded corresponding charges during the first quarter of 2016 totaling $464 million within "Baker Hughes related costs and termination fee" in our condensed consolidated statements of operations, which included $329 million of accumulated unrecognized depreciation and amortization expense for these businesses during the period the associated assets were classified as held for sale, including the first quarter of 2016, along with $135 million of capitalized and other divestiture-related costs incurred during the first quarter. Beginning April 1, 2016, all depreciation and amortization expense associated with these businesses were included in operating costs and expenses on our condensed consolidated statements of operations. In conjunction with the termination of our merger agreement, we paid Baker Hughes a termination fee of $3.5 billion in May 2016 and recognized this expense during the second quarter. The termination also triggered a mandatory redemption of $2.5 billion of the senior notes we had issued in November 2015 in contemplation of the transaction. We redeemed those notes in May 2016 using cash on hand at a price of 101% of their principal amount, plus accrued and unpaid interest. The notes redeemed included the $1.25 billion of 2.7% senior notes due in 2020 and $1.25 billion of 3.375% senior notes due in 2022. The redemption resulted in $41 million of fees and associated expenses included in interest expense on our condensed consolidated statements of operations for the nine months ended September 30, 2016. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2015 Annual Report on Form 10-K. Our accounting policies are in accordance with United States generally accepted accounting principles. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect: - the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and - the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates. In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of September 30, 2016 , the results of our operations for the three and nine months ended September 30, 2016 and 2015 , and our cash flows for the nine months ended September 30, 2016 and 2015 . Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. The results of our operations for the three and nine months ended September 30, 2016 may not be indicative of results for the full year. |
Impairments and Other Charges (
Impairments and Other Charges (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairments and Other Charges | Impairments and Other Charges We carry a variety of long-lived assets on our balance sheet including property, plant and equipment, goodwill, and other intangibles. We conduct impairment tests on long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, and we conduct impairment tests on goodwill annually. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates including the future use of the asset, remaining useful life of the asset and service potential of the asset. Additionally, inventories are valued at the lower of cost or market. Market conditions have negatively impacted our business during 2016 with continued depressed commodity prices and widespread pricing pressure and activity reductions for our products and services on a global basis. As a result of these conditions and their corresponding impact on our business outlook, we determined the carrying amount of a number of our long-lived assets exceeded their respective fair values due to projected declines in asset utilization. We assessed the fair value of our long-lived assets based on a discounted cash flow analysis, which required the use of significant unobservable inputs such as management’s short-term and long-term forecast of operating performance, including revenue growth rates and expected profitability margins, and a discount rate based on our weighted average cost of capital. Over the last four years, we have been systematically converting our pressure pumping fleet in North America over to a new pump and blender design. As such, we impaired or wrote off a large portion of our older equipment, primarily during the first quarter of 2016. Additionally, current market conditions required us to take other actions to reduce some of our infrastructure and further reduce our global workforce in an effort to mitigate the impact of the industry downturn and better align our workforce with anticipated activity levels in the near-term. This resulted in a headcount reduction of approximately 13,000 for the first nine months of 2016 and corresponding severance charges recognized during the period. We also determined that the cost of some of our inventory exceeded its market value, resulting in associated write-downs of its carrying value during the nine months ended September 30, 2016. We executed a financing agreement with our primary customer in Venezuela during the second quarter of 2016 in an effort to actively manage outstanding receivables in the country, resulting in an exchange of $200 million of outstanding trade receivables for an interest-bearing promissory note. We recorded the note at its fair market value at the date of exchange based on available pricing data points for similar assets in an illiquid market, which resulted in a $148 million pre-tax loss on exchange during the second quarter. For additional information, see Note 10 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations.” As a result of the events described above, we recorded impairments and other charges of approximately $3.2 billion and $1.9 billion during the nine months ended September 30, 2016 and 2015, respectively, and $381 million during the three months ended September 30, 2015. Total impairments and other charges consisted of fixed asset impairments and write-offs, severance costs, impairments of intangible assets, inventory write-downs, country and facility closures, a loss on exchange for the Venezuela promissory note, and other items. There were no impairments and other charges recorded during the three months ended September 30, 2016. We also performed our annual goodwill impairment assessment at September 30, 2016. This assessment consists of a discounted cash flow analysis based on management’s short-term and long-term forecast of operating performance for each reporting unit. Our discounted cash flow analysis for each reporting unit includes significant assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures, the timing of an anticipated market recovery, and the timing of expected future cash flows. As such, these analyses incorporate inherent uncertainties that are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in our forecasts. As a result of our analyses, we determined that the fair value of each reporting unit exceeded its net book value and, therefore, no goodwill impairment was necessary as of September 30, 2016. The following table presents various charges we recorded during the nine months ended September 30, 2016 and 2015 and three months ended September 30, 2015 as a result of the downturn in the energy industry and other matters, all of which were recorded within "Impairments and other charges" on our condensed consolidated statements of operations: Nine Months Ended Three Months Ended Millions of dollars September 30, 2016 September 30, 2015 September 30, 2015 Industry downturn: Fixed asset impairments $ 2,537 $ 648 $ 154 Severance costs 261 308 96 Inventory write-downs 130 410 64 Intangible asset impairments 87 209 37 Other 40 173 21 Other matters: Venezuela promissory note loss 148 — — Country closures 2 81 4 Other (16 ) 66 5 Total impairments and other charges $ 3,189 $ 1,895 $ 381 |
Business Segment and Geographic
Business Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for by the equity method of accounting are included within cost of services on our statements of operations, which is part of operating income of the applicable segment. The following table presents information on our business segments. Three Months Ended Nine Months Ended Millions of dollars 2016 2015 2016 2015 Revenue: Completion and Production $ 2,176 $ 3,200 $ 6,614 $ 10,890 Drilling and Evaluation 1,657 2,382 5,252 7,661 Total revenue $ 3,833 $ 5,582 $ 11,866 $ 18,551 Operating income (loss): Completion and Production $ 24 $ 163 $ 22 $ 938 Drilling and Evaluation 151 401 546 1,107 Total operations 175 564 568 2,045 Corporate and other (a) (47 ) (140 ) (4,210 ) (401 ) Impairments and other charges (b) — (381 ) (3,189 ) (1,895 ) Total operating income (loss) $ 128 $ 43 $ (6,831 ) $ (251 ) Interest expense, net of interest income (141 ) (99 ) (502 ) (311 ) Other, net (39 ) (34 ) (117 ) (281 ) Loss from continuing operations before income taxes $ (52 ) $ (90 ) $ (7,450 ) $ (843 ) (a) Corporate and other includes certain expenses not attributable to a particular business segment such as costs related to support functions and corporate executives and Baker Hughes related costs for all periods presented, including the $3.5 billion termination fee incurred during the second quarter of 2016. (b) Impairments and other charges are as follows: -For the three months ended September 30, 2015 , includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016 , includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015 , includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. Receivables As of September 30, 2016 , 23% of our gross trade receivables were from customers in the United States, 13% in Venezuela, and 11% in Saudi Arabia. As of December 31, 2015 , 26% of our gross trade receivables were from customers in the United States and 14% in Venezuela. Other than the United States, Saudi Arabia, and Venezuela, no other country or single customer accounted for more than 10% of our gross trade receivables at these dates. Venezuela. We have continued to experience delays in collecting payments on our receivables from our primary customer in Venezuela. These receivables are not disputed, and we have not historically had material write-offs relating to this customer. Additionally, we routinely monitor the financial stability of our customers. During the second quarter of 2016, we executed a financing agreement with our primary customer in Venezuela in an effort to actively manage these customer receivables, resulting in an exchange of $200 million of outstanding trade receivables for an interest-bearing promissory note. Our total outstanding net trade receivables in Venezuela were $564 million as of September 30, 2016 , excluding the promissory note receivable discussed above, compared to $704 million as of December 31, 2015 , which represents 13% and 14% of total company trade receivables for the respective periods. The majority of our Venezuela receivables are United States dollar-denominated receivables. Of the $564 million of receivables in Venezuela as of September 30, 2016 , $138 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. Of the $704 million of receivables in Venezuela as of December 31, 2015 , $175 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. As a result of current conditions in Venezuela and the continued delays in collecting payments on our receivables in the country, we began curtailing activity in Venezuela during the first quarter of 2016. See Note 10 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations” for additional information about the promissory note exchange. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes During the three months ended September 30, 2016, we recorded a total income tax benefit of $59 million on pre-tax losses of $52 million , resulting in an effective tax rate of 114.3% . Our effective tax rate was primarily impacted by a $29 million tax benefit recognized during the third quarter reflecting the beneficial use of an Argentinian tax treaty that reduces the taxation of royalty payments for intellectual property. Additionally, we recognized third quarter taxable losses in our United States operations in which we recorded tax benefits at the U.S. statutory rate, offset by third quarter taxable income in our foreign operations in which the corresponding tax expenses are applied at lower statutory rates in certain jurisdictions. During the three months ended September 30, 2015, we recorded a total income tax benefit $37 million on pre-tax losses of $90 million , resulting in an effective tax rate of 40.8% . Our effective tax rate was positively impacted by lower tax rates in certain foreign jurisdictions and was impacted by the tax effects of the $381 million of impairments and other charges during the period, exacerbated by our lower level of pre–tax earnings during the period. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market value. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials and other tools that are recorded using the last-in, first-out method, which totaled $109 million as of September 30, 2016 and $138 million as of December 31, 2015 . If the average cost method had been used, total inventories would have been $19 million higher than reported as of September 30, 2016 and $18 million higher as of December 31, 2015 . The cost of the remaining inventory was recorded using the average cost method. Inventories consisted of the following: Millions of dollars September 30, December 31, Finished products and parts $ 1,528 $ 1,992 Raw materials and supplies 836 879 Work in process 111 122 Total $ 2,475 $ 2,993 As a result of the continued downturn in the oil and gas industry and its corresponding impact on our business outlook, we recorded inventory write-downs as the cost of some of our inventory exceeded its market value, particularly in the first nine months of 2016. See Note 3 for further information about impairments and other charges. Finished products and parts are reported net of obsolescence reserves of $240 million as of September 30, 2016 and $251 million as of December 31, 2015 . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity The following tables summarize our shareholders’ equity activity: Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries Balance at December 31, 2015 $ 15,495 $ 15,462 $ 33 Payments of dividends to shareholders (465 ) (465 ) — Stock plans 348 348 — Other (39 ) (52 ) 13 Comprehensive loss (5,613 ) (5,611 ) (2 ) Balance at September 30, 2016 $ 9,726 $ 9,682 $ 44 Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries Balance at December 31, 2014 $ 16,298 $ 16,267 $ 31 Payments of dividends to shareholders (460 ) (460 ) — Stock plans 380 380 — Other (45 ) (44 ) (1 ) Comprehensive income (loss) (693 ) (695 ) 2 Balance at September 30, 2015 $ 15,480 $ 15,448 $ 32 Our Board of Directors has authorized a program to repurchase our common stock from time to time. Approximately $5.7 billion remains authorized for repurchases as of September 30, 2016 . From the inception of this program in February 2006 through September 30, 2016 , we repurchased approximately 201 million shares of our common stock for a total cost of approximately $8.4 billion . There were no repurchases made under the program during the nine months ended September 30, 2016 . Accumulated other comprehensive loss consisted of the following: Millions of dollars September 30, December 31, Defined benefit and other postretirement liability adjustments $ (220 ) $ (221 ) Cumulative translation adjustments (79 ) (78 ) Other (61 ) (64 ) Total accumulated other comprehensive loss $ (360 ) $ (363 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Macondo well incident The semisubmersible drilling rig, Deepwater Horizon, sank on April 22, 2010 after an explosion and fire onboard the rig that began on April 20, 2010. The Deepwater Horizon was owned by an affiliate of Transocean Ltd. and had been drilling the Macondo exploration well in the Gulf of Mexico for the lease operator, BP Exploration & Production, Inc. (BP). We performed a variety of services on that well for BP. There were eleven fatalities and a number of injuries as a result of the Macondo well incident. Litigation and settlements. Numerous lawsuits relating to the Macondo well incident and alleging damages arising from the blowout were filed against various parties, including BP, Transocean and us, in federal and state courts throughout the United States, most of which were consolidated in a Multi District Litigation proceeding (MDL) in the United States Eastern District of Louisiana. The defendants in the MDL proceeding filed a variety of cross claims against each other. In 2012, BP reached a settlement to resolve the substantial majority of eligible private economic loss and medical claims stemming from the Macondo well incident (BP MDL Settlements). The MDL court has since certified the classes and granted final approval for the BP MDL Settlements, which also provided for the release by participating plaintiffs of compensatory damage claims against us. The trial for the first phase of the MDL proceeding occurred in February 2013 through April 2013 and covered issues arising out of the conduct and degree of culpability of various parties allegedly relevant to the loss of well control, the ensuing fire and explosion on and sinking of the Deepwater Horizon, and the initiation of the release of hydrocarbons from the Macondo well. In September 2014, the MDL court ruled (Phase One Ruling) that, among other things, (1) in relation to the Macondo well incident, BP’s conduct was reckless, Transocean’s conduct was negligent, and our conduct was negligent, (2) fault for the Macondo blowout, explosion and spill was apportioned 67% to BP, 30% to Transocean and 3% to us, and (3) the indemnity and release clauses in our contract with BP are valid and enforceable against BP. The MDL court did not find that our conduct was grossly negligent, thereby, subject to any appeals, eliminating our exposure in the MDL for punitive damages. The appeal process for the Phase One Ruling is underway, with various parties filing briefs according to a court-ordered schedule. In September 2014, prior to the Phase One Ruling, we reached an agreement, subject to court approval, to settle a substantial portion of the plaintiffs’ claims asserted against us relating to the Macondo well incident (our MDL Settlement). Pursuant to our MDL Settlement, we agreed to pay an aggregate of $1.1 billion , which includes legal fees and costs, into a settlement fund in three installments over two years, except that one installment of legal fees will not be paid until all of the conditions to the settlement have been satisfied or waived. Certain conditions must be satisfied before our MDL Settlement becomes effective and the funds are released from the settlement fund. These conditions include, among others, the issuance of a final order of the MDL court, including the resolution of certain appeals. In addition, we have the right to terminate our MDL Settlement if more than an agreed number of plaintiffs elect to opt out of the settlement prior to the expiration of the opt out deadline to be established by the MDL court. Before approving our MDL Settlement, the MDL court must certify the settlement class, the numerous class members must be notified of the proposed settlement, and the court must hold a fairness hearing. The Court has issued a preliminary approval, with the hearing for the final approval set for November 2016. We are unable to predict when the MDL court will approve our MDL Settlement. Our MDL Settlement does not cover claims against us by the state governments of Alabama, Florida, Mississippi, Louisiana, or Texas, claims by our own employees, compensatory damages claims by plaintiffs in the MDL that opted out of or were excluded from the settlement class in the BP MDL Settlements, or claims by other defendants in the MDL or their respective employees. However, these claims have either been dismissed, are subject to dismissal, are subject to indemnification by BP, or are not believed to be material. On May 20, 2015, we and BP entered into an agreement to resolve all remaining claims against each other, and pursuant to which BP will defend and indemnify us in future trials for compensatory damages. On July 2, 2015, BP announced that it had reached agreements in principle to settle all remaining federal, state and local government claims arising from the Macondo well incident. Regulatory action. In October 2011, the Bureau of Safety and Environmental Enforcement (BSEE) issued a notification of Incidents of Noncompliance (INCs) to us for allegedly violating federal regulations relating to the failure to take measures to prevent the unauthorized release of hydrocarbons, the failure to take precautions to keep the Macondo well under control, the failure to cement the well in a manner that would, among other things, prevent the release of fluids into the Gulf of Mexico, and the failure to protect health, safety, property and the environment as a result of a failure to perform operations in a safe and workmanlike manner. We have appealed the INCs, but the appeal has been suspended pending certain proceedings in the MDL and potential appeals. The BSEE has announced that the INCs will be reviewed for possible imposition of civil penalties once the appeal has ended. We understand that the regulations in effect at the time of the alleged violations provide for fines of up to $35,000 per day per violation. Loss contingency. During the second quarter of 2016, we made a legal fees payment of $33 million in accordance with our MDL Settlement. During the third quarter of 2016, we revised our estimate-based non-current Macondo liability with a reduction of $28 million . Accordingly, as of September 30, 2016 , our remaining loss contingency liability related to the Macondo well incident was $413 million , consisting of a current portion of $369 million related to our MDL Settlement and a non-current portion of $44 million unrelated to that settlement. Our loss contingency liability has not been reduced for potential recoveries from our insurers. See below for information regarding amounts that we could potentially recover from insurance. Subject to the satisfaction of the conditions of our MDL Settlement and to the resolution of the appeal of the Phase One Ruling, we believe that the BP MDL Settlement, our MDL Settlement, the Phase One Ruling and our settlement with BP have eliminated any additional material financial exposure to us in relation to the Macondo well incident. Insurance coverage. We had a general liability insurance program of $600 million at the time of the Macondo well incident. Our insurance was designed to cover claims by businesses and individuals made against us in the event of property damage, injury, or death and, among other things, claims relating to environmental damage, as well as legal fees incurred in defending against those claims. Through September 30, 2016 , we have incurred approximately $1.5 billion of expenses related to the MDL Settlement, legal fees, and other settlement-related costs, of which $409 million has been reimbursed or is expected to be reimbursed under our insurance program. Some of the insurance carriers that issued policies covering the final layer of insurance coverage relating to the Macondo well incident notified us that they would not reimburse us with respect to our MDL Settlement; however, we have settled with several of them and those settlement recoveries are included in the $409 million discussed above. We have initiated arbitration proceedings to pursue recovery of the remaining balance of approximately $100 million . Due to the uncertainty surrounding such recovery, no related amounts have been recognized in the condensed consolidated financial statements as of September 30, 2016 . Securities and related litigation In June 2002, a class action lawsuit was filed against us in federal court alleging violations of the federal securities laws after the Securities and Exchange Commission (SEC) initiated an investigation in connection with our change in accounting for revenue on long-term construction projects and related disclosures. In the weeks that followed, approximately twenty similar class actions were filed against us. Several of those lawsuits also named as defendants several of our present or former officers and directors. The class action cases were later consolidated, and the amended consolidated class action complaint, styled Richard Moore, et al. v. Halliburton Company, et al. , was filed and served upon us in April 2003. As a result of a substitution of lead plaintiffs, the case was styled Archdiocese of Milwaukee Supporting Fund (AMSF) v. Halliburton Company, et al . AMSF has changed its name to Erica P. John Fund, Inc. (the Fund). We settled with the SEC in the second quarter of 2004. In June 2003, the lead plaintiffs filed a motion for leave to file a second amended consolidated complaint, which was granted by the court. In addition to restating the original accounting and disclosure claims, the second amended consolidated complaint included claims arising out of our 1998 acquisition of Dresser Industries, Inc., including that we failed to timely disclose the resulting asbestos liability exposure. In April 2005, the court appointed new co-lead counsel and named the Fund the new lead plaintiff, directing that it file a third consolidated amended complaint and that we file our motion to dismiss. The court held oral arguments on that motion in August 2005. In March 2006, the court entered an order in which it granted the motion to dismiss with respect to claims arising prior to June 1999 and granted the motion with respect to certain other claims while permitting the Fund to re-plead some of those claims to correct deficiencies in its earlier complaint. In April 2006, the Fund filed its fourth amended consolidated complaint. We filed a motion to dismiss those portions of the complaint that had been re-pled. A hearing was held on that motion in July 2006, and in March 2007 the court ordered dismissal of the claims against all individual defendants other than our Chief Executive Officer (CEO). The court ordered that the case proceed against our CEO and us. In September 2007, the Fund filed a motion for class certification, and our response was filed in November 2007. The district court issued an order in November 2008 denying the motion for class certification. The Fifth Circuit Court of Appeals affirmed the district court’s order denying class certification. In June 2011, the United States Supreme Court reversed the Fifth Circuit ruling that the Fund needed to prove loss causation in order to obtain class certification and the case was returned to the lower courts for further consideration. In January 2012, the district court issued an order certifying the class. In April 2013, the Fifth Circuit issued an order affirming the district court's order. In June 2014, the Supreme Court reversed the Fifth Circuit and held that we are entitled to rebut that presumption of class member reliance by presenting evidence that there was no impact on our stock price from the alleged misrepresentations. The Supreme Court vacated the Fifth Circuit’s decision and remanded for further proceedings consistent with the Supreme Court decision. In December 2014, the district court held a hearing to consider whether there was an impact on our stock price from the alleged misrepresentations. On July 27, 2015, the district court denied certification for the plaintiff class with respect to five of the six dates upon which the plaintiffs claimed that disclosures correcting previously misleading statements had been made that resulted in an impact to the stock price. However, the district court certified the class with respect to a disclosure made on December 7, 2001 regarding an adverse jury verdict in an asbestos case that plaintiffs alleged was corrective. The ruling was based on the district court's conclusion that the court was required to assume at class certification that a disclosure was actually corrective. We appealed the ruling to the Fifth Circuit. The Fifth Circuit heard oral argument on the appeal on August 31, 2016. We are currently awaiting a decision from the Fifth Circuit. On October 19, 2016, the district court issued an order continuing the December 2016 trial date. A new trial date will be set at a later date. We cannot predict the outcome or consequences of this case, which we intend to vigorously defend. Investigations We are conducting internal investigations of certain areas of our operations in Angola and Iraq, focusing on compliance with certain company policies, including our Code of Business Conduct (COBC), and the Foreign Corrupt Practices Act (FCPA) and other applicable laws. In December 2010, we received an anonymous e-mail alleging that certain current and former personnel violated our COBC and the FCPA, principally through the use of an Angolan vendor. The e-mail also alleges conflicts of interest, self-dealing, and the failure to act on alleged violations of our COBC and the FCPA. We contacted the DOJ to advise them that we were initiating an internal investigation. During the second quarter of 2012, in connection with a meeting with the DOJ and the SEC regarding the above investigation, we advised the DOJ and the SEC that we were initiating unrelated, internal investigations into payments made to a third-party agent relating to certain customs matters in Angola and to third-party agents relating to certain customs and visa matters in Iraq. Since the initiation of the investigations described above, we have participated in meetings with the DOJ and the SEC to brief them on the status of the investigations and produced documents to them both voluntarily and as a result of SEC subpoenas to us and certain of our current and former officers and employees. We expect to continue to have discussions with the DOJ and the SEC regarding issues relevant to the Angola and Iraq matters described above. We have engaged outside counsel and independent forensic accountants to assist us with these investigations. Because these investigations are ongoing, we cannot predict their outcome or the consequences thereof. Environmental We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others: - the Comprehensive Environmental Response, Compensation, and Liability Act; - the Resource Conservation and Recovery Act; - the Clean Air Act; - the Federal Water Pollution Control Act; - the Toxic Substances Control Act; and - the Oil Pollution Act. In addition to the federal laws and regulations, states and other countries where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with environmental, legal and regulatory requirements. Our Health, Safety and Environment group has several programs in place to maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion, in addition to the matters relating to the Macondo well incident described above, we are involved in other environmental litigation and claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect on our liquidity, consolidated results of operations, or consolidated financial position. Our accrued liabilities for environmental matters were $53 million as of September 30, 2016 and $50 million as of December 31, 2015 . Because our estimated liability is typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous properties. Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for eight federal and state Superfund sites for which we have established reserves. As of September 30, 2016 , those eight sites accounted for approximately $5 million of our $53 million total environmental reserve. Despite attempts to resolve these Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims with respect to environmental matters for which we have been named as a potentially responsible party. Guarantee arrangements In the normal course of business, we have agreements with financial institutions under which approximately $1.9 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 2016 . Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Income per Share Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact would be antidilutive. A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows: Three Months Ended Nine Months Ended Millions of shares 2016 2015 2016 2015 Basic weighted average common shares outstanding 862 855 860 852 Dilutive effect of awards granted under our stock incentive plans 2 — — — Diluted weighted average common shares outstanding 864 855 860 852 Antidilutive shares: Options with exercise price greater than the average market price 12 13 13 10 Options which are antidilutive due to net loss position — 2 1 2 Total antidilutive shares 12 15 14 12 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments At September 30, 2016 , we held $96 million of investments in fixed income securities with maturities ranging from less than one year to May 2019 , of which $60 million are classified as “Other current assets” and $36 million are classified as “Other assets” on our condensed consolidated balance sheets. At December 31, 2015 , we held $96 million of investments in fixed income securities, of which $63 million are classified as “Other current assets” and $33 million are classified as “Other assets” on our condensed consolidated balance sheets. These securities consist primarily of corporate bonds and other debt instruments, are accounted for as available-for-sale and recorded at fair value, and are based on quoted prices for identical assets in less active markets (Level 2). During the second quarter of 2016, we executed a financing agreement with our primary customer in Venezuela, resulting in an exchange of $200 million of outstanding trade receivables for an interest-bearing promissory note. We recorded the note at its fair market value at the date of exchange based on pricing data points for similar assets in an illiquid market (Level 3), resulting in a $148 million pre-tax loss on exchange. We are using an effective interest method to accrete the carrying amount to its par value as it matures. This accretion income is being recorded through “Interest expense, net of interest income” on our condensed consolidated statements of operations. As of September 30, 2016, the carrying amount of this promissory note was $60 million and approximates its fair value. This amount consists of a current portion of $14 million and non-current portion of $46 million , which are classified as “Receivables” and “Other assets,” respectively, on our condensed consolidated balance sheets. In October 2016, we agreed to exchange this promissory note for a new note with the same maturity and coupon, but which is expected to be tradeable in a more liquid market. We intend to hold the new note to maturity. We maintain an interest rate management strategy that is intended to mitigate the exposure to changes in interest rates in the aggregate for our debt portfolio. We hold a series of interest rate swaps relating to three of our debt instruments with a total notional amount of $1.5 billion in order to effectively convert a portion of our fixed rate debt to floating LIBOR-based rates. These interest rate swaps, which expire when the underlying debt matures, are designated as fair value hedges of the underlying debt and are determined to be highly effective. These derivative instruments are marked to market with gains and losses recognized currently in interest expense to offset the respective gains and losses recognized on changes in the fair value of the hedged debt. The fair value of our interest rate swaps is included in “Other assets” in our condensed consolidated balance sheets and was immaterial as of September 30, 2016 and December 31, 2015 . The fair value of our interest rate swaps was determined using an income approach model with inputs, such as the notional amount, LIBOR rate spread, and settlement terms that are observable in the market or can be derived from or corroborated by observable data (Level 2). We have no financial instruments measured at fair value based on quoted prices in active markets (Level 1). The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our long-term debt, including current maturities, is as follows: September 30, 2016 December 31, 2015 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Long-term debt $ 783 $ 12,943 $ 13,726 $ 12,315 $ 1,009 $ 14,947 $ 15,956 $ 15,346 Our Level 1 debt fair values are calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our Level 2 debt fair values are calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our Level 1 and Level 2 classification of our long-term debt relate to the timing of when transactions are executed. We have no debt measured at fair value using unobservable inputs (Level 3). |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Pronouncements Standards adopted in 2016 Consolidation On January 1, 2016, we adopted an accounting standards update issued by the Financial Accounting Standards Board (FASB) related to the consolidation analysis, which amended the guidelines for determining whether certain legal entities should be consolidated. This update eliminated the presumption that a general partner should consolidate a limited partnership and modified the evaluation of whether limited partnerships are variable interest entities or voting interest entities. The adoption of this update did not materially impact our condensed consolidated financial statements. Business Combinations On January 1, 2016, we adopted an accounting standards update issued by the FASB which simplifies the accounting for measurement-period adjustments for an acquirer in a business combination. The update requires an acquirer to recognize any adjustments to provisional amounts of the initial accounting for a business combination with a corresponding adjustment to goodwill in the reporting period in which the adjustments are determined in the measurement period, as opposed to revising prior periods presented in financial statements. Thus, an acquirer shall adjust its financial statements as needed, including recognizing in its current-period earnings the full effect of changes in depreciation, amortization, or other income effects, by line item, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. The adoption of this update did not impact our condensed consolidated financial statements. Standards not yet adopted Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a comprehensive new revenue recognition standard that will supersede existing revenue recognition guidance under United States Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The issuance of this guidance completes the joint effort by the FASB and the IASB to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and IFRS. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for several transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements, including additional disclosures of the standard’s application impact to individual financial statement line items. In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are 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 they would have on our consolidated financial statements upon adoption. We have not yet determined which transition method we will utilize upon adoption on the effective date. Inventory In July 2015, the FASB issued an accounting standards update to simplify the measurement of inventory, which requires inventory measured using the first in, first out (FIFO) or average cost methods to be subsequently measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. Currently, these inventory methods are required to be subsequently measured at the lower of cost or market. "Market" could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This update will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. We evaluated this new accounting standard and determined it will not have an impact on our consolidated financial statements. Leases In February 2016, the FASB issued an accounting standards update related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This update will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact that this update will have on our consolidated financial statements. Stock-Based Compensation In March 2016, the FASB issued an accounting standards update to simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. In addition, an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is the current U.S. GAAP practice, or account for forfeitures when they occur. This update will be effective for fiscal periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact that this update will have on our consolidated financial statements. |
Impairments and Other Charges19
Impairments and Other Charges (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Inventory, Policy | inventories are valued at the lower of cost or market. Inventories are stated at the lower of cost or market value. |
Inventories (Policies)
Inventories (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy | inventories are valued at the lower of cost or market. Inventories are stated at the lower of cost or market value. |
Impairments and Other Charges21
Impairments and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairments and Other Charges | The following table presents various charges we recorded during the nine months ended September 30, 2016 and 2015 and three months ended September 30, 2015 as a result of the downturn in the energy industry and other matters, all of which were recorded within "Impairments and other charges" on our condensed consolidated statements of operations: Nine Months Ended Three Months Ended Millions of dollars September 30, 2016 September 30, 2015 September 30, 2015 Industry downturn: Fixed asset impairments $ 2,537 $ 648 $ 154 Severance costs 261 308 96 Inventory write-downs 130 410 64 Intangible asset impairments 87 209 37 Other 40 173 21 Other matters: Venezuela promissory note loss 148 — — Country closures 2 81 4 Other (16 ) 66 5 Total impairments and other charges $ 3,189 $ 1,895 $ 381 |
Business Segment and Geograph22
Business Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Information on business segments | The following table presents information on our business segments. Three Months Ended Nine Months Ended Millions of dollars 2016 2015 2016 2015 Revenue: Completion and Production $ 2,176 $ 3,200 $ 6,614 $ 10,890 Drilling and Evaluation 1,657 2,382 5,252 7,661 Total revenue $ 3,833 $ 5,582 $ 11,866 $ 18,551 Operating income (loss): Completion and Production $ 24 $ 163 $ 22 $ 938 Drilling and Evaluation 151 401 546 1,107 Total operations 175 564 568 2,045 Corporate and other (a) (47 ) (140 ) (4,210 ) (401 ) Impairments and other charges (b) — (381 ) (3,189 ) (1,895 ) Total operating income (loss) $ 128 $ 43 $ (6,831 ) $ (251 ) Interest expense, net of interest income (141 ) (99 ) (502 ) (311 ) Other, net (39 ) (34 ) (117 ) (281 ) Loss from continuing operations before income taxes $ (52 ) $ (90 ) $ (7,450 ) $ (843 ) (a) Corporate and other includes certain expenses not attributable to a particular business segment such as costs related to support functions and corporate executives and Baker Hughes related costs for all periods presented, including the $3.5 billion termination fee incurred during the second quarter of 2016. (b) Impairments and other charges are as follows: -For the three months ended September 30, 2015 , includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016 , includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015 , includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: Millions of dollars September 30, December 31, Finished products and parts $ 1,528 $ 1,992 Raw materials and supplies 836 879 Work in process 111 122 Total $ 2,475 $ 2,993 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of shareholders' equity activity | The following tables summarize our shareholders’ equity activity: Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries Balance at December 31, 2015 $ 15,495 $ 15,462 $ 33 Payments of dividends to shareholders (465 ) (465 ) — Stock plans 348 348 — Other (39 ) (52 ) 13 Comprehensive loss (5,613 ) (5,611 ) (2 ) Balance at September 30, 2016 $ 9,726 $ 9,682 $ 44 Millions of dollars Total shareholders' equity Company shareholders' equity Noncontrolling interest in consolidated subsidiaries Balance at December 31, 2014 $ 16,298 $ 16,267 $ 31 Payments of dividends to shareholders (460 ) (460 ) — Stock plans 380 380 — Other (45 ) (44 ) (1 ) Comprehensive income (loss) (693 ) (695 ) 2 Balance at September 30, 2015 $ 15,480 $ 15,448 $ 32 |
Schedule of comprehensive income (loss) | Accumulated other comprehensive loss consisted of the following: Millions of dollars September 30, December 31, Defined benefit and other postretirement liability adjustments $ (220 ) $ (221 ) Cumulative translation adjustments (79 ) (78 ) Other (61 ) (64 ) Total accumulated other comprehensive loss $ (360 ) $ (363 ) |
Income (Loss) per Share Income
Income (Loss) per Share Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Weighted average shares outstanding and antidilutive shares [Line Items] | |
Weighted average shares outstanding and antidilutive shares | A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows: Three Months Ended Nine Months Ended Millions of shares 2016 2015 2016 2015 Basic weighted average common shares outstanding 862 855 860 852 Dilutive effect of awards granted under our stock incentive plans 2 — — — Diluted weighted average common shares outstanding 864 855 860 852 Antidilutive shares: Options with exercise price greater than the average market price 12 13 13 10 Options which are antidilutive due to net loss position — 2 1 2 Total antidilutive shares 12 15 14 12 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments Fair value by balance sheet grouping table (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amount and fair value of our long-term debt, including current maturities, is as follows: September 30, 2016 December 31, 2015 Millions of dollars Level 1 Level 2 Total fair value Carrying value Level 1 Level 2 Total fair value Carrying value Long-term debt $ 783 $ 12,943 $ 13,726 $ 12,315 $ 1,009 $ 14,947 $ 15,956 $ 15,346 |
Acquisitions and Dispositions27
Acquisitions and Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Total charges related to Baker Hughes acquisition | $ 464 | ||
Baker Hughes Contract Termination Fee | $ 3,500 | ||
Mandatory Redemption of Senior Notes | $ 2,500 | ||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||
Depreciation Expense on Reclassified Assets | 329 | ||
Capitalized and divestiture costs related to Baker Hughes acquisition | $ 135 | ||
Redemption Premium | $ 41 | ||
Senior Notes due November 2020 [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Mandatory Redemption of Senior Notes | $ 1,250 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.70% | ||
Senior Notes due November 2022 [Member] | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Mandatory Redemption of Senior Notes | $ 1,250 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.375% |
Impairments and Other Charges28
Impairments and Other Charges (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | 13,000 | |||||
Goodwill impairment | $ 0 | $ 0 | ||||
Venezuela trade receivables exchanged for promissory note | $ 200 | |||||
Pre-tax loss on promissory note | $ 148 | $ 0 | 148 | $ 0 | ||
Fixed asset impairments | 154 | 2,537 | 648 | |||
Severance costs | 96 | 261 | 308 | |||
Intangible asset impairments | 37 | 87 | 209 | |||
Inventory write-downs | 64 | 130 | 410 | |||
Other restructuring costs | 21 | 40 | 173 | |||
Country closures | 4 | 2 | 81 | |||
Other Deductions and Charges | 5 | (16) | 66 | |||
Impairments and other charges | [1] | $ 0 | $ 381 | $ 3,189 | $ 1,895 | |
[1] | Impairments and other charges are as follows:-For the three months ended September 30, 2015, includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015, includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. |
Business Segment and Geograph29
Business Segment and Geographic Information (Narrative) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)DivisionCountriesCustomers | Dec. 31, 2015USD ($)CountriesCustomers | Jun. 30, 2016USD ($) | |
Concentration Risk [Line Items] | |||
Number of business segments | Division | 2 | ||
Maximum Percentage Gross Trade Receivables From One Geographic Segment | 10.00% | 10.00% | |
Maximum Percentage Gross Trade Receivables From One Customer | 10.00% | 10.00% | |
Number of Countries Exceed Receivables Threshold | Countries | 3 | 0 | |
Number of Customers Exceed Receivables Threshold | Customers | 0 | 0 | |
Venezuela trade receivables exchanged for promissory note | $ 200 | ||
VENEZUELA | |||
Concentration Risk [Line Items] | |||
Accounts Receivable, Gross | $ 564 | $ 704 | |
Accounts Receivable, Gross, Noncurrent | $ 138 | $ 175 | |
Accounts Receivable [Member] | VENEZUELA | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 14.00% | |
Geographic Concentration Risk [Member] | UNITED STATES | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.00% | 26.00% | |
Geographic Concentration Risk [Member] | SAUDI ARABIA | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% |
Business Segment and Geograph30
Business Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Baker Hughes Contract Termination Fee | $ 3,500 | |||||
Revenue: | ||||||
Revenue | $ 3,833 | $ 5,582 | $ 11,866 | $ 18,551 | ||
Operating income (loss): | ||||||
Operating income (loss) | 128 | 43 | (6,831) | (251) | ||
Impairments and other charges | [1] | 0 | (381) | (3,189) | (1,895) | |
Interest expense, net of interest income | (141) | (99) | (502) | (311) | ||
Other, net | (39) | (34) | (117) | (281) | ||
Income (loss) from continuing operations before income taxes | (52) | (90) | (7,450) | (843) | ||
Completion and Production | ||||||
Revenue: | ||||||
Revenue | 2,176 | 3,200 | 6,614 | 10,890 | ||
Operating income (loss): | ||||||
Operating income (loss) | 24 | 163 | 22 | 938 | ||
Impairments and other charges | (228) | (2,000) | (949) | |||
Drilling and Evaluation | ||||||
Revenue: | ||||||
Revenue | 1,657 | 2,382 | 5,252 | 7,661 | ||
Operating income (loss): | ||||||
Operating income (loss) | 151 | 401 | 546 | 1,107 | ||
Impairments and other charges | (138) | (1,100) | (865) | |||
Total operations | ||||||
Revenue: | ||||||
Revenue | 3,833 | 5,582 | 11,866 | 18,551 | ||
Operating income (loss): | ||||||
Operating income (loss) | 175 | 564 | 568 | 2,045 | ||
Corporate and other | ||||||
Operating income (loss): | ||||||
Operating income (loss) | [2] | $ (47) | (140) | (4,210) | (401) | |
Impairments and other charges | $ (15) | $ (8) | $ (81) | |||
[1] | Impairments and other charges are as follows:-For the three months ended September 30, 2015, includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015, includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. | |||||
[2] | Corporate and other includes certain expenses not attributable to a particular business segment such as costs related to support functions and corporate executives and Baker Hughes related costs for all periods presented, including the $3.5 billion termination fee incurred during the second quarter of 2016. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Income Taxes [Abstract] | |||||
Income Tax Expense (Benefit) | $ 59 | $ 37 | $ 1,836 | $ 207 | |
Income (loss) from continuing operations before income taxes | $ (52) | $ (90) | (7,450) | (843) | |
Effective Income Tax Rate Reconciliation, Percent | 114.30% | 40.80% | |||
Other Tax Expense (Benefit) | $ 29 | ||||
Impairments and other charges | [1] | $ 0 | $ 381 | $ 3,189 | $ 1,895 |
[1] | Impairments and other charges are as follows:-For the three months ended September 30, 2015, includes $228 million attributable to Completion and Production, $138 million attributable to Drilling and Evaluation, and $15 million attributable to Corporate and other. -For the nine months ended September 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other. -For the nine months ended September 30, 2015, includes $949 million attributable to Completion and Production, $865 million attributable to Drilling and Evaluation, and $81 million attributable to Corporate and other. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
LIFO Method Related Items [Abstract] | ||
LIFO Inventory Amount | $ 109 | $ 138 |
Average Cost Method, Difference | 19 | 18 |
Inventory, Net [Abstract] | ||
Finished products and parts | 1,528 | 1,992 |
Raw materials and supplies | 836 | 879 |
Work in process | 111 | 122 |
Inventory, net | 2,475 | 2,993 |
Obsolescence reserves | $ 240 | $ 251 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Shareholders' equity activity [Roll Forward] | ||||
Balance at beginning of period | $ 15,495 | $ 16,298 | ||
Stock plans | 348 | 380 | ||
Payments of dividends to shareholders | (465) | (460) | ||
Other | (39) | (45) | ||
Comprehensive income (loss) | $ 8 | $ (206) | (5,613) | (693) |
Balance at end of period | 9,726 | 15,480 | 9,726 | 15,480 |
Company shareholders' equity | ||||
Shareholders' equity activity [Roll Forward] | ||||
Balance at beginning of period | 15,462 | 16,267 | ||
Stock plans | 348 | 380 | ||
Payments of dividends to shareholders | (465) | (460) | ||
Other | (52) | (44) | ||
Comprehensive income (loss) | (5,611) | (695) | ||
Balance at end of period | 9,682 | 15,448 | 9,682 | 15,448 |
Noncontrolling interest in consolidated subsidiaries | ||||
Shareholders' equity activity [Roll Forward] | ||||
Balance at beginning of period | 33 | 31 | ||
Stock plans | 0 | 0 | ||
Payments of dividends to shareholders | 0 | 0 | ||
Other | 13 | (1) | ||
Comprehensive income (loss) | (2) | 2 | ||
Balance at end of period | $ 44 | $ 32 | $ 44 | $ 32 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | ||
Defined benefit and other postretirement liability adjustments | $ (220) | $ (221) |
Cumulative translation adjustments | (79) | (78) |
Other | (61) | (64) |
Total accumulated other comprehensive income (loss) | $ (360) | $ (363) |
Shareholders' Equity Repurchase
Shareholders' Equity Repurchase Activity (Details) $ in Billions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Class of Stock [Line Items] | |
Treasury Stock, Shares, Acquired | shares | 0 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 5.7 |
Treasury Stock Shares Acquired From Inception | shares | 201,000,000 |
Treasury Stock Value Acquired Cost Method From Inception | $ | $ 8.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014USD ($) | Sep. 30, 2016USD ($)Class_Actions | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($)Class_Actions | Dec. 31, 2015USD ($)number_of_paymentinstallments | Apr. 22, 2010USD ($)Fatalities | |
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Settlement Agreement, Terms | $ 1,100,000,000 | $ 33,000,000 | ||||
Loss contingency related to Macondo well incident, Period Increase (Decrease) | $ 28,000,000 | |||||
Loss contingency related to Macondo well incident (current) | 369,000,000 | $ 369,000,000 | $ 400,000,000 | |||
Loss Contingency, Information about Litigation Matters [Abstract] | ||||||
Number of Payment Installments | number_of_paymentinstallments | 3 | |||||
Installment Payment for Legal Fees | number_of_paymentinstallments | 1 | |||||
BP Fault Apportionment in Macondo Ruling | 67.00% | |||||
Transocean Fault Apportionment In Macondo Ruling | 30.00% | |||||
Halliburton Fault Apportionment In Macondo Ruling | 3.00% | |||||
Number Of Years | 2 years | |||||
Macondo well incident | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency related to Macondo well (total) | 413,000,000 | 413,000,000 | ||||
Loss contingency related to Macondo well incident (current) | 369,000,000 | 369,000,000 | ||||
Loss contingency related to Macondo well incident (non-current) | 44,000,000 | 44,000,000 | ||||
Loss Contingency, Estimated Recovery from Third Party | 100,000,000 | 100,000,000 | ||||
Number of fatalities | Fatalities | 11 | |||||
Maximum per day fine for violating federal regulations related to INCs | 35,000 | |||||
Indemnification and insurance [Abstract] | ||||||
Total amount of general liability insurance program | $ 600,000,000 | |||||
Legal Fees | 1,500,000,000 | |||||
Legal fees and related expenses covered by insurance | $ 409,000,000 | $ 409,000,000 | ||||
Securities and related litigation | ||||||
Loss Contingency, Information about Litigation Matters [Abstract] | ||||||
Number of similar class action lawsuits that were later consolidated into one suit | Class_Actions | 20 | 20 |
Commitments and Contingencies37
Commitments and Contingencies (Environmental) (Details) $ in Millions | Sep. 30, 2016USD ($)Superfund_Sites | Dec. 31, 2015USD ($) |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Accrual for Environmental Loss Contingencies | $ 53 | $ 50 |
Superfund Sites [Member] | ||
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Accrual for site contingency | $ 5 | |
Number of superfund sites | Superfund_Sites | 8 |
Commitments and Contingencies38
Commitments and Contingencies (Guarantee Arrangements) (Details) $ in Billions | Sep. 30, 2016USD ($) |
Financial agreements | |
Guarantee arrangements [Abstract] | |
Guarantee arrangements outstanding | $ 1.9 |
Income (Loss) per Share (Detail
Income (Loss) per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding (in shares) | 862 | 855 | 860 | 852 |
Dilutive effect of awards granted under our stock incentive plans | 2 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 864 | 855 | 860 | 852 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options with exercise price greater than the average market price | 12 | 13 | 13 | 10 |
Options which ordinarily would be considered dilutive if not for being in net loss position | 0 | 2 | 1 | 2 |
Total antidilutive shares | 12 | 15 | 14 | 12 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($)Debt_Instruments | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Debt_Instruments | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number Of Debt Instruments With Related Interest Rate Swaps | Debt_Instruments | 3 | 3 | ||||
Derivative, Notional Amount | $ 1,500 | $ 1,500 | ||||
Assets | ||||||
Fair value of investments and fixed income securities | $ 96 | 96 | $ 96 | |||
Investment maturity range (current) | 1 year | |||||
Available-for-sale Securities, Debt Maturities, Date | May 1, 2019 | |||||
Venezuela trade receivables exchanged for promissory note | $ 200 | |||||
Pre-tax loss on promissory note | $ 148 | $ 0 | 148 | $ 0 | ||
Promissory note fair value | $ 60 | 60 | ||||
Promissory note fair value, current | 14 | 14 | ||||
Promissory note fair value, noncurrent | 46 | 46 | ||||
Other Current Assets | ||||||
Assets | ||||||
Available-for-sale Securities, Current | 60 | 60 | 63 | |||
Other Assets | ||||||
Assets | ||||||
Available-for-sale Securities, Noncurrent | 36 | 36 | 33 | |||
Long-term debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Fair Value | 13,726 | 13,726 | 15,956 | |||
Carrying value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt | 12,315 | 12,315 | 15,346 | |||
Level 1 | ||||||
Assets | ||||||
Fair value of investments and fixed income securities | 0 | 0 | 0 | |||
Level 1 | Long-term debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Fair Value | 783 | 783 | 1,009 | |||
Level 2 | Long-term debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Fair Value | 12,943 | 12,943 | 14,947 | |||
Level 3 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Fair Value | 0 | 0 | 0 | |||
Assets | ||||||
Fair value of investments and fixed income securities | $ 0 | $ 0 | $ 0 |