Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 17, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CAMERON INTERNATIONAL CORP | ' |
Entity Central Index Key | '0000941548 | ' |
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 | ' | 202,901,463 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ' | ' | ' | ' |
REVENUES | $2,641 | $2,209 | $5,072 | $4,270 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown separately below) | 1,893 | 1,567 | 3,658 | 3,020 |
Selling and administrative expenses | 346 | 315 | 675 | 618 |
Depreciation and amortization | 90 | 67 | 177 | 135 |
Interest, net | 30 | 25 | 62 | 51 |
Other costs (credits) (see Note 3) | -4 | 35 | 44 | 66 |
Total costs and expenses | 2,355 | 2,009 | 4,616 | 3,890 |
Income from continuing operations before income taxes | 286 | 200 | 456 | 380 |
Income tax provision | -66 | -64 | -114 | -97 |
Income from continuing operations | 220 | 136 | 342 | 283 |
Income from discontinued operations, net of income taxes | 13 | 4 | 7 | 6 |
Net income | 233 | 140 | 349 | 289 |
Net income attributable to noncontrolling interests | 12 | 0 | 17 | 0 |
Net income attributable to Cameron stockholders | 221 | 140 | 332 | 289 |
Amounts attributable to Cameron stockholders: | ' | ' | ' | ' |
Income from continuing operations | 208 | 136 | 325 | 283 |
Income from discontinued operations | 13 | 4 | 7 | 6 |
Net income attributable to Cameron stockholders | 221 | 140 | 332 | 289 |
Basic | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $1.02 | $0.55 | $1.55 | $1.15 |
Discontinued operations (in dollars per share) | $0.06 | $0.02 | $0.04 | $0.02 |
Basic (in dollars per share) | $1.08 | $0.57 | $1.59 | $1.17 |
Diluted | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $1.02 | $0.55 | $1.54 | $1.14 |
Discontinued operations (in dollars per share) | $0.06 | $0.02 | $0.04 | $0.02 |
Diluted (in dollars per share) | $1.08 | $0.57 | $1.58 | $1.16 |
Shares used in computing earnings per common share: | ' | ' | ' | ' |
Basic (in shares) | 204 | 247 | 209 | 247 |
Diluted (in shares) | 205 | 248 | 211 | 249 |
Comprehensive income | 218 | 91 | 360 | 163 |
Comprehensive income attributable to noncontrolling interests | 4 | 0 | 24 | 0 |
Comprehensive income attributable to Cameron stockholders | $214 | $91 | $336 | $163 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,525 | $1,813 |
Short-term investments | 56 | 41 |
Receivables, net | 2,548 | 2,719 |
Inventories, net | 3,268 | 3,133 |
Other | 385 | 463 |
Total current assets | 7,782 | 8,169 |
Plant and equipment, net | 2,015 | 2,037 |
Goodwill | 2,704 | 2,925 |
Intangibles, net | 856 | 904 |
Other assets | 235 | 214 |
TOTAL ASSETS | 13,592 | 14,249 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Short-term debt | 562 | 297 |
Accounts payable and accrued liabilities | 3,506 | 3,883 |
Accrued income taxes | 100 | 80 |
Total current liabilities | 4,168 | 4,260 |
Long-term debt | 2,814 | 2,563 |
Deferred income taxes | 251 | 277 |
Other long-term liabilities | 229 | 233 |
Total liabilities | 7,462 | 7,333 |
Stockholders' Equity: | ' | ' |
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2014 and December 31, 2013 | 3 | 3 |
Capital in excess of par value | 3,220 | 3,207 |
Retained earnings | 5,152 | 4,820 |
Accumulated other elements of comprehensive income (loss) | -76 | -80 |
Less: Treasury stock, 60,027,350 shares at June 30, 2014 (41,683,164 shares at December 31, 2013) | -3,261 | -2,098 |
Total Cameron stockholders' equity | 5,038 | 5,852 |
Noncontrolling interests | 1,092 | 1,064 |
Total equity | 6,130 | 6,916 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $13,592 | $14,249 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 263,111,472 | 263,111,472 |
Treasury common stock at cost (in shares) | 60,027,350 | 41,683,164 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | $233 | $140 | $349 | $289 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Gain on sale of Reciprocating Compression business | -95 | 0 | -95 | 0 |
Depreciation | 71 | 59 | 139 | 115 |
Amortization | 19 | 11 | 38 | 25 |
Non-cash stock compensation expense | 15 | 14 | 30 | 27 |
Gain from remeasurement of prior interest in equity method investment | -8 | 0 | -8 | 0 |
Deferred income taxes and tax benefit of employee stock compensation plan transactions | 34 | -2 | 17 | 12 |
Changes in assets and liabilities, net of translation and non-cash items: | ' | ' | ' | ' |
Receivables | 171 | -236 | 111 | -71 |
Inventories | -53 | -124 | -228 | -340 |
Accounts payable and accrued liabilities | -257 | 212 | -471 | 7 |
Other assets and liabilities, net | 83 | -44 | 157 | -57 |
Net cash used for operating activities | 213 | 30 | 39 | 7 |
Cash flows from investing activities: | ' | ' | ' | ' |
Proceeds from sales and maturities of short-term investments | 18 | 353 | 23 | 628 |
Purchases of short-term investments | -33 | -135 | -38 | -421 |
Capital expenditures | -73 | -99 | -178 | -182 |
Proceeds received from sale of Reciprocating Compression business, net | 547 | 0 | 547 | 0 |
Other dispositions (acquisitions), net | -18 | 8 | -18 | 9 |
Proceeds received and cash acquired from formation of OneSubsea | 0 | 603 | 0 | 603 |
Proceeds from sales of plant and equipment | 4 | 3 | 10 | 4 |
Net cash used for investing activities | 445 | 733 | 346 | 641 |
Cash flows from financing activities: | ' | ' | ' | ' |
Issuance of senior notes | 500 | 0 | 500 | 0 |
Debt issuance costs | -4 | 0 | -4 | 0 |
Short-term loan borrowings (repayments), net | -321 | -28 | 9 | 9 |
Purchase of treasury stock | -303 | -93 | -1,205 | -125 |
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions | 16 | 7 | 25 | 29 |
Excess tax benefits from stock compensation plan transactions | 4 | 2 | 6 | 8 |
Principal payments on capital leases | -5 | -7 | -8 | -10 |
Net cash used for financing activities | -113 | -119 | -677 | -89 |
Effect of translation on cash | 8 | -8 | 4 | -27 |
Increase (decrease) in cash and cash equivalents | 553 | 636 | -288 | 532 |
Cash and cash equivalents, beginning of period | 972 | 1,082 | 1,813 | 1,186 |
Cash and cash equivalents, end of period | $1,525 | $1,718 | $1,525 | $1,718 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY (Unaudited) (USD $) | Common Stock [Member] | Capital in Excess of Par value [Member] | Retained Earnings [Member] | Accumulated Other Elements of Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Total |
In Millions | |||||||
Balance at Dec. 31, 2013 | $3 | $3,207 | $4,820 | ($80) | ($2,098) | $1,064 | $6,916 |
Net income | 0 | 0 | 332 | 0 | 0 | 17 | 349 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4 | 0 | 7 | ' |
Non-cash stock compensation expense | 0 | 30 | 0 | 0 | 0 | 0 | 30 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | -1,210 | 0 | ' |
Treasury stock issued under stock compensation plans | 0 | -22 | 0 | 0 | 47 | 0 | ' |
Tax benefit of stock compensation plan transactions | 0 | 5 | 0 | 0 | 0 | 0 | ' |
Purchases of noncontrolling ownership interests | 0 | 0 | 0 | 0 | 0 | 4 | ' |
Balance at Jun. 30, 2014 | $3 | $3,220 | $5,152 | ($76) | ($3,261) | $1,092 | $6,130 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Note 1: Basis of Presentation | |
The accompanying Unaudited Consolidated Condensed Financial Statements of Cameron International Corporation (the Company) have been prepared in accordance with Rule 10-01 of Regulation S-X and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Those adjustments, consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial information for the interim periods, have been made. The results of operations for such interim periods are not necessarily indicative of the results of operations for a full year. The Unaudited Consolidated Condensed Financial Statements should be read in conjunction with the Current Report on Form 8-K dated June 16, 2014, which reflects a recasting of the Audited Consolidated Financial Statements and Notes thereto filed by the Company on Form 10-K for the year ended December 31, 2013 to reflect the Reciprocating Compression business as a discontinued operation for all periods presented (see Note 2 of the Notes to Consolidated Condensed Financial Statements below for further information). | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, estimates of total contract profit or loss on certain long-term production-type contracts, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, contingencies, including tax contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill for impairment, estimated proceeds from assets held for sale and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ materially from these estimates. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
Note 2: Discontinued Operations | |||||||||||||||||
Effective June 1, 2014, the Company completed its previously announced sale of its Reciprocating Compression business, a division of the Process and Compression Systems (PCS) segment, to General Electric for cash consideration of approximately $547 million, net of transaction costs. As a result of this sale, the Reciprocating Compression business is being reported as a discontinued operation in the Company's results of operations for the three- and six-month periods ended June 30, 2014 and 2013. | |||||||||||||||||
Summarized financial information for the Reciprocating Compression business is as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Results of Operations: | |||||||||||||||||
Revenues | $ | 64 | $ | 78 | $ | 111 | $ | 135 | |||||||||
Cost of sales (excluding depreciation and amortization) | (49 | ) | (58 | ) | (86 | ) | (99 | ) | |||||||||
All other costs | (11 | ) | (14 | ) | (29 | ) | (27 | ) | |||||||||
Gain on sale of Reciprocating Compression business, before tax | 95 | – | 95 | – | |||||||||||||
Income before income taxes | 99 | 6 | 91 | 9 | |||||||||||||
Income tax provision | (86 | ) | (2 | ) | (84 | ) | (3 | ) | |||||||||
Income from discontinued operations, net of income taxes | $ | 13 | $ | 4 | $ | 7 | $ | 6 | |||||||||
The gain on the sale of the Reciprocating Compression business was determined as follows (in millions): | |||||||||||||||||
Sales price | $ | 550 | |||||||||||||||
Net assets sold | (442 | ) | |||||||||||||||
Transaction and other costs associated with the sale | (13 | ) | |||||||||||||||
Pre-tax gain | 95 | ||||||||||||||||
Tax provision | (85 | ) | |||||||||||||||
Gain on sale | $ | 10 | |||||||||||||||
The tax provision associated with the pre-tax gain is impacted by nondeductible goodwill of approximately $192 million included in the total net assets sold. | |||||||||||||||||
The net assets sold of the Reciprocating Compression business were as follows (in millions): | |||||||||||||||||
Accounts receivable | $ | 79 | |||||||||||||||
Inventory | 122 | ||||||||||||||||
Goodwill | 214 | ||||||||||||||||
All other | 27 | ||||||||||||||||
Net assets sold | $ | 442 |
Other_Costs_Credits
Other Costs (Credits) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Costs (Credits) [Abstract] | ' | ||||||||||||||||
Other Costs (Credits) | ' | ||||||||||||||||
Note 3: Other Costs (Credits) | |||||||||||||||||
Other costs (credits) consisted of the following (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Goodwill impairment | $ | – | $ | – | $ | 40 | $ | – | |||||||||
OneSubsea formation costs | – | 28 | – | 45 | |||||||||||||
Gain from remeasurement of prior interest in equity method investment | (8 | ) | – | (8 | ) | – | |||||||||||
Impairment of intangible assets | 4 | – | 4 | – | |||||||||||||
Acquisition and other integration costs | – | 2 | 2 | 3 | |||||||||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges | – | (3 | ) | – | – | ||||||||||||
Currency devaluation, severance, restructuring and other costs, net | – | 8 | 6 | 18 | |||||||||||||
Total other costs (credits) | $ | (4 | ) | $ | 35 | $ | 44 | $ | 66 | ||||||||
As described further in Note 2 of the Notes to Consolidated Condensed Financial Statements, the Company completed the sale of its Reciprocating Compression business to General Electric, effective June 1, 2014. Reciprocating Compression had previously been included with the Process Systems and Equipment (PSE) business in the Process Systems & Reciprocating Compression reporting unit for goodwill impairment evaluation purposes. As a result of the classification of Reciprocating Compression as a discontinued operation in the first quarter of 2014 when a definitive agreement to sell the business was entered into, total reporting unit goodwill was allocated between the two businesses. Following this, the PSE business was evaluated as a separate reporting unit in connection with the Company's annual goodwill impairment review conducted during the first quarter of 2014. As a result of this review, the PSE goodwill amount, totaling approximately $40 million, was fully impaired at that time. | |||||||||||||||||
In May 2014, the Company increased its prior ownership interest in Cameron Services Middle East LLC from 49% to 90%, for approximately $18 million. The Company recognized a pre-tax gain of nearly $8 million as a result of remeasuring its prior interest, which had been accounted for under the equity method, to fair value upon obtaining control of this entity during the second quarter of 2014. At June 30, 2014, the purchase price allocation for this business has been based upon preliminary estimates and assumptions, which are subject to change upon the receipt of additional information required to finalize the valuation. The primary areas that have not yet been finalized include amounts relating to inventory, property, plant and equipment, identifiable intangible assets, certain preacquisition contingencies, related adjustments to deferred income taxes and goodwill. The final valuation will be completed no later than one year from the acquisition date. Preliminary goodwill recognized at June 30, 2014 was approximately $21 million, which is not deductible for tax purposes. |
Receivables
Receivables | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Receivables | ' | ||||||||
Note 4: Receivables | |||||||||
Receivables consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 2,107 | $ | 2,368 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 305 | 253 | |||||||
Other receivables | 160 | 119 | |||||||
Allowance for doubtful accounts | (24 | ) | (21 | ) | |||||
Total receivables | $ | 2,548 | $ | 2,719 |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 5: Inventories | |||||||||
Inventories consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 375 | $ | 238 | |||||
Work-in-process | 1,015 | 894 | |||||||
Finished goods, including parts and subassemblies | 2,067 | 2,208 | |||||||
Other | 25 | 22 | |||||||
3,482 | 3,362 | ||||||||
Excess of current standard costs over LIFO costs | (91 | ) | (120 | ) | |||||
Allowances | (123 | ) | (109 | ) | |||||
Total inventories | $ | 3,268 | $ | 3,133 |
Plant_and_Equipment_and_Goodwi
Plant and Equipment and Goodwill | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Plant and Equipment and Goodwill [Abstract] | ' | ||||||||
Plant and Equipment and Goodwill | ' | ||||||||
Note 6: Plant and Equipment and Goodwill | |||||||||
Plant and equipment consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Plant and equipment, at cost | $ | 3,671 | $ | 3,670 | |||||
Accumulated depreciation | (1,656 | ) | (1,633 | ) | |||||
Total plant and equipment | $ | 2,015 | $ | 2,037 | |||||
Changes in goodwill during the six months ended June 30, 2014 were as follows (in millions): | |||||||||
Balance at December 31, 2013 | $ | 2,925 | |||||||
Sale of Reciprocating Compression business | (213 | ) | |||||||
Impairment (See Note 3) | (40 | ) | |||||||
Acquisitions | 21 | ||||||||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | ||||||||
Translation effect of currency changes and other | (8 | ) | |||||||
Balance at June 30, 2014 | $ | 2,704 |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ' | ||||||||||||||||||||||
Accounts Payable and Accrued Liabilities | ' | ||||||||||||||||||||||
Note 7: Accounts Payable and Accrued Liabilities | |||||||||||||||||||||||
Accounts payable and accrued liabilities consisted of the following (in millions): | |||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Trade accounts payable and accruals | $ | 690 | $ | 1,184 | |||||||||||||||||||
Advances from customers | 1,737 | 1,676 | |||||||||||||||||||||
Other accruals | 1,079 | 1,023 | |||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 3,506 | $ | 3,883 | |||||||||||||||||||
Activity during the six months ended June 30, 2014 associated with the Company's product warranty accruals was as follows (in millions): | |||||||||||||||||||||||
Balance | Net | Charges | Sale of Reciprocating Compression | Translation | Balance | ||||||||||||||||||
December 31, | warranty | against | and other | June 30, | |||||||||||||||||||
2013 | provisions | accrual | 2014 | ||||||||||||||||||||
$ | 46 | $ | 26 | $ | (18 | ) | $ | (7 | ) | $ | – | $ | 47 |
Debt
Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 8: Debt | |||||||||
The Company's debt obligations were as follows (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Commercial paper (0.33% weighted average rate) | $ | 263 | $ | – | |||||
Senior notes: | |||||||||
Floating rate notes due June 2, 2014 | – | 250 | |||||||
1.6% notes due April 30, 2015 | 250 | 250 | |||||||
1.15% notes due December 15, 2016 | 250 | 250 | |||||||
1.40% notes due June 15, 2017 | 250 | – | |||||||
6.375% notes due July 15, 2018 | 450 | 450 | |||||||
4.5% notes due June 1, 2021 | 250 | 250 | |||||||
3.6% notes due April 30, 2022 | 250 | 250 | |||||||
4.0% notes due December 15, 2023 | 250 | 250 | |||||||
3.7% notes due June 15, 2024 | 250 | – | |||||||
7.0% notes due July 15, 2038 | 300 | 300 | |||||||
5.95% notes due June 1, 2041 | 250 | 250 | |||||||
5.125% notes due December 15, 2043 | 250 | 250 | |||||||
Unamortized original issue discount | (7 | ) | (7 | ) | |||||
Other debt | 60 | 57 | |||||||
Obligations under capital leases | 60 | 60 | |||||||
3,376 | 2,860 | ||||||||
Current maturities | (562 | ) | (297 | ) | |||||
Long-term maturities | $ | 2,814 | $ | 2,563 | |||||
On June 20, 2014, the Company completed the public offering of $500 million in aggregate principal amount of senior unsecured notes as follows: | |||||||||
· | $250 million principal amount of 1.4% Senior Notes due June 15, 2017, sold at an offering price of 99.951%, and | ||||||||
· | $250 million principal amount of 3.7% Senior Notes due June 15, 2024, sold at an offering price of 99.769%. | ||||||||
Interest on the notes will be payable semiannually on June 15 and December 15 of each year, beginning December 15, 2014. The notes may be redeemed in whole or in part by the Company prior to maturity, as provided for in the terms of each note, for an amount equal to the principal amount of the notes redeemed plus a specified make-whole premium. All of the Company's senior notes rank equally with the Company's other existing unsecured and unsubordinated debt. | |||||||||
Utilizing proceeds from these notes, on July 21, 2014, the Company paid approximately $253 million, which included a make-whole premium plus accrued interest, to redeem early its $250 million principal amount of 1.6% Senior Notes. | |||||||||
During the first quarter of 2014, the Company's Board of Directors authorized the establishment of a $500 million commercial paper program. This program allows for issuances of commercial paper with maturities of up to 364 days to be used for general corporate purposes. The average term of the outstanding commercial paper at June 30, 2014 was approximately 62 days. | |||||||||
On April 11, 2014, the Company entered into a new $750 million three-year multi-currency syndicated Revolving Credit Facility expiring April 11, 2017. Up to $200 million of this new facility may be used for letters of credit and $92 million of letters of credit issued and outstanding under a previously existing $170 million bi-lateral facility were transferred to the new Revolving Credit Facility at close and concurrently the $170 million bi-lateral facility was amended to reduce its capacity to $40 million. The new Revolving Credit Facility contains covenants and terms consistent with the Company's existing $835 million five-year multi-currency Revolving Credit Facility, which matures on June 6, 2016, and it serves as the primary backstop to the commercial paper program. At June 30, 2014, no amounts had been borrowed under the $835 million Revolving Credit Facility. The Company has issued letters of credit totaling $77 million under the new $750 million Revolving Credit Facility and $29 million under the $40 million bi-lateral facility, leaving $673 million and $11 million, respectively, available for future use at June 30, 2014. |
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Note 9: Income Taxes | |||||||||||||||||
The Company's effective tax rate on income from continuing operations for the first six months of 2014 was 25.1% compared to 25.6% for the first half of 2013. The components of the effective tax rates for both periods were as follows (dollars in millions): | |||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Tax Provision | Tax Rate | Tax Provision | Tax Rate | ||||||||||||||
Forecasted tax expense by jurisdiction | $ | 109 | 24 | % | $ | 91 | 23.8 | % | |||||||||
Adjustments to income tax provision: | |||||||||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | – | – | (1 | ) | (0.1 | ) | |||||||||||
Tax effect of goodwill impairment | 10 | 2.1 | – | – | |||||||||||||
Finalization of prior year returns | (4 | ) | (0.9 | ) | 9 | 2.4 | |||||||||||
Tax effects of changes in legislation | – | – | (7 | ) | (1.9 | ) | |||||||||||
Changes in valuation allowances | – | – | 5 | 1.4 | |||||||||||||
Accrual adjustments and other | (1 | ) | (0.1 | ) | – | – | |||||||||||
Tax provision | $ | 114 | 25.1 | % | $ | 97 | 25.6 | % |
Business_Segments
Business Segments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Business Segments [Abstract] | ' | ||||||||||||||||
Business Segments | ' | ||||||||||||||||
Note 10: Business Segments | |||||||||||||||||
The Company's operations are organized into three separate business segments – Drilling & Production Systems (DPS), Valves & Measurement (V&M) and PCS. Summary financial data by segment follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
DPS | $ | 1,903 | $ | 1,438 | $ | 3,608 | $ | 2,707 | |||||||||
V&M | 536 | 534 | 1,028 | 1,056 | |||||||||||||
PCS | 202 | 237 | 436 | 507 | |||||||||||||
$ | 2,641 | $ | 2,209 | $ | 5,072 | $ | 4,270 | ||||||||||
Income (loss) before income taxes: | |||||||||||||||||
DPS | $ | 235 | $ | 196 | $ | 418 | $ | 350 | |||||||||
V&M | 107 | 109 | 201 | 222 | |||||||||||||
PCS | 13 | 17 | 28 | 37 | |||||||||||||
Corporate & other | (69 | ) | (122 | ) | (191 | ) | (229 | ) | |||||||||
$ | 286 | $ | 200 | $ | 456 | $ | 380 | ||||||||||
Corporate & other includes expenses associated with the Company's back office support and public company costs, all of the Company's interest income and interest expense and other costs as described further in Note 3 of the Notes to Consolidated Condensed Financial Statements. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 11: Earnings Per Share | |||||||||||||||||
The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in millions, except per share amounts): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income from continuing operations | $ | 220 | $ | 136 | $ | 342 | $ | 283 | |||||||||
Net income attributable to noncontrolling interests | 12 | – | 17 | – | |||||||||||||
Net income from continuing operations attributable to Cameron | 208 | 136 | 325 | 283 | |||||||||||||
Income from discontinued operations, net of taxes | 13 | 4 | 7 | 6 | |||||||||||||
Net income attributable to Cameron | $ | 221 | $ | 140 | $ | 332 | $ | 289 | |||||||||
Average shares outstanding (basic) | 204 | 247 | 209 | 247 | |||||||||||||
Common stock equivalents | 1 | 1 | 2 | 2 | |||||||||||||
Diluted shares | 205 | 248 | 211 | 249 | |||||||||||||
Basic earnings per share: | |||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.55 | $ | 1.15 | |||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | |||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.59 | $ | 1.17 | ||||||||||
Diluted earnings per share: | |||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.54 | $ | 1.14 | |||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | |||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.58 | $ | 1.16 | ||||||||||
Activity in the Company's treasury shares were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Treasury shares at beginning of period | 56,109,636 | 15,768,832 | 41,683,164 | 16,415,336 | |||||||||||||
Purchases of treasury shares | 4,516,668 | 1,500,002 | 19,673,771 | 2,113,455 | |||||||||||||
Net change in treasury shares owned by participants in nonqualified deferred compensation plans | (1,614 | ) | (1,068 | ) | 38,148 | 52,107 | |||||||||||
Treasury shares issued in satisfaction of stock option exercises and vesting of restricted stock units | (597,340 | ) | (266,036 | ) | (1,367,733 | ) | (1,579,168 | ) | |||||||||
Treasury shares at end of period | 60,027,350 | 17,001,730 | 60,027,350 | 17,001,730 | |||||||||||||
The average cost of treasury shares acquired for the three- and six-month periods ended June 30, 2014 was $63.00 and $61.37, respectively. The average cost of treasury shares acquired for the three- and six-month periods ended June 30, 2013 was $60.93 and $61.77, respectively. | |||||||||||||||||
The Company has an authorized stock repurchase program whereby the Company may purchase shares directly or indirectly by way of open market transactions or structured programs, including the use of derivatives, for the Company's own account or through commercial banks or financial institutions. The program, initiated in October 2011, has had a series of authorizations by the Board of Directors totaling $3.2 billion since inception. At June 30, 2014, the Company had remaining authority for future stock purchases totaling approximately $456 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Note 12: Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The changes in the components of accumulated other elements of comprehensive income (loss) for the three months ended June 30, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Accumulated Foreign Currency Translation | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Three Months Ended June 30, 2013 | |||||||||||||||||
Gain (Loss) | |||||||||||||||||||||
Balance at beginning of period | $ | (40 | ) | $ | (45 | ) | $ | 16 | $ | (69 | ) | $ | (107 | ) | |||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||
Pre-tax | (3 | ) | – | (3 | ) | (6 | ) | (51 | ) | ||||||||||||
Tax effect | – | – | 1 | 1 | 1 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | |||||||||||||||||||||
Revenues | – | – | (2 | ) | (2 | ) | - | ||||||||||||||
Cost of sales | – | – | (2 | ) | (2 | ) | - | ||||||||||||||
Selling and administrative expense | – | – | – | – | 1 | ||||||||||||||||
Tax effect | – | – | 2 | 2 | - | ||||||||||||||||
Net current period other comprehensive loss | (3 | ) | – | (4 | ) | (7 | ) | (49 | ) | ||||||||||||
Balance at end of period | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) | |||||||
The changes in the components of accumulated other elements of comprehensive income (loss) for the six months ended June 30, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Accumulated Foreign Currency Translation | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Six Months Ended June 30, 2013 | |||||||||||||||||
Gain (Loss) | |||||||||||||||||||||
Balance at beginning of year | $ | (49 | ) | $ | (45 | ) | $ | 14 | $ | (80 | ) | $ | (30 | ) | |||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||
Pre-tax | 6 | – | 4 | 10 | (132 | ) | |||||||||||||||
Tax effect | – | – | (2 | ) | (2 | ) | 5 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | |||||||||||||||||||||
Revenues | – | – | (5 | ) | (5 | ) | (2 | ) | |||||||||||||
Cost of sales | – | – | (2 | ) | (2 | ) | |||||||||||||||
Selling and administrative expense | – | – | – | – | 3 | ||||||||||||||||
Tax effect | – | – | 3 | 3 | - | ||||||||||||||||
Net current period other comprehensive income (loss) | 6 | – | (2 | ) | 4 | (126 | ) | ||||||||||||||
Balance at end of period | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Contingencies [Abstract] | ' |
Contingencies | ' |
Note 13: Contingencies | |
The Company is subject to a number of contingencies, including litigation, tax contingencies and environmental matters. | |
Litigation | |
The Company has been and continues to be named as a defendant in a number of multi-defendant, multi-plaintiff tort lawsuits. At June 30, 2014, the Company's Consolidated Condensed Balance Sheet included a liability of approximately $16 million for such cases. The Company believes, based on its review of the facts and law, that the potential exposure from these suits will not have a material adverse effect on its consolidated results of operations, financial condition or liquidity. | |
Tax and Other Contingencies | |
The Company has legal entities in over 50 countries. As a result, the Company is subject to various tax filing requirements in these countries. The Company prepares its tax filings in a manner which it believes is consistent with such filing requirements. However, some of the tax laws and regulations to which the Company is subject require interpretation and/or judgment. Although the Company believes the tax liabilities for periods ending on or before the balance sheet date have been adequately provided for in the financial statements, to the extent a taxing authority believes the Company has not prepared its tax filings in accordance with the authority's interpretation of the tax laws and regulations, the Company could be exposed to additional taxes. | |
The Company has been assessed customs duties and penalties by the government of Brazil totaling almost $58 million at June 30, 2014, including interest accrued at local country rates, following a customs audit for the years 2003-2010. The Company filed an administrative appeal and believes this assessment will ultimately be proven to be incorrect because of numerous errors in the assessment, and because the government has not provided appropriate supporting documentation for the assessment. As a result, the Company currently expects no material adverse impact on its results of operations or cash flows as a result of the ultimate resolution of this matter. No amounts have been accrued for this assessment as of June 30, 2014 as no loss is currently considered probable. | |
Environmental Matters | |
The Company is currently identified as a potentially responsible party (PRP) for one site designated for cleanup under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) or similar state law. The site is Osborne, Pennsylvania (a landfill into which a predecessor of the Reciprocating Compression operation in Grove City, Pennsylvania deposited waste), where remediation was completed in 2011 and remaining costs relate to ongoing ground water monitoring. The Company is also a party with de minimis exposure at other CERCLA sites. | |
The Company is engaged in site cleanup under the Voluntary Cleanup Plan of the Texas Commission on Environmental Quality ("TCEQ") at a former manufacturing location in Houston, Texas and one in Missouri City, Texas. With respect to the Missouri City site, the Company was notified in 2014 by the TCEQ that it may discontinue and decommission the ground-water treatment system there in preparation for site closure. With respect to the Houston site, in 2001 the Company discovered that contaminated underground water had migrated under an adjacent residential area. Pursuant to applicable state regulations, the Company notified the affected homeowners. Concerns over the impact on property values of the underground water contamination and its public disclosure led to a number of claims by homeowners. The Company has settled these claims, primarily as a result of the settlement of a class action lawsuit, and is obligated to reimburse approximately 190 homeowners for any diminution in value of their property due to contamination concerns at the time of the property's sale. Test results of monitoring wells on the southeastern border of the plume indicate that the plume is moving in a new direction, likely as a result of a ground water drainage system completed as part of an interstate highway improvement project. As a result, the Company notified 39 additional homeowners, and may provide notice to additional homeowners, whose property is adjacent to the class area that their property may be affected. The Company continues to monitor the situation to determine whether additional remedial measures would be appropriate. The Company believes, based on its review of the facts and law, that any potential exposure from existing agreements as well as any possible new claims that may be filed with respect to this underground water contamination will not have a material adverse effect on its financial position or results of operations. The Company's Consolidated Balance Sheet included a noncurrent liability of approximately $7 million for these matters as of June 30, 2014. | |
Additionally, the Company has discontinued operations at a number of other sites which had been active for many years and which may have yet undiscovered contamination. The Company does not believe, based upon information currently available, that there are any material environmental liabilities existing at these locations. At June 30, 2014, the Company's Consolidated Balance Sheet included a noncurrent liability of nearly $3 million for these environmental matters. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||||||||||
Note 14: Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||
The Company's financial instruments consist primarily of cash and cash equivalents, short-term investments, trade receivables, trade payables, derivative instruments and debt instruments. The book values of trade receivables, trade payables and floating-rate debt instruments are considered to be representative of their respective fair values. | |||||||||||||||||||||||||||||||||
Following is a summary of the Company's financial instruments which have been valued at fair value in the Company's Consolidated Balance Sheets at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Based on Quoted Prices in Active Markets for Identical Assets | Fair Value Based on Significant Other Observable Inputs | Total | |||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 536 | $ | 618 | $ | – | $ | – | $ | 536 | $ | 618 | |||||||||||||||||||||
Money market funds | 960 | 1,172 | – | – | 960 | 1,172 | |||||||||||||||||||||||||||
Commercial paper | – | – | 10 | 4 | 10 | 4 | |||||||||||||||||||||||||||
Non-U.S. bank and other obligations | 19 | 19 | – | – | 19 | 19 | |||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
U.S. Treasury securities | 56 | 41 | – | – | 56 | 41 | |||||||||||||||||||||||||||
Non-qualified plan assets: | |||||||||||||||||||||||||||||||||
Money market funds | 1 | 1 | – | – | 1 | 1 | |||||||||||||||||||||||||||
Domestic bond funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||||||
Domestic equity funds | 6 | 5 | – | – | 6 | 5 | |||||||||||||||||||||||||||
International equity funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||||||
Blended equity funds | 5 | 4 | – | – | 5 | 4 | |||||||||||||||||||||||||||
Common stock | 2 | 2 | – | – | 2 | 2 | |||||||||||||||||||||||||||
Derivatives, net asset (liability): | |||||||||||||||||||||||||||||||||
Foreign currency contracts | – | – | 5 | 19 | 5 | 19 | |||||||||||||||||||||||||||
$ | 1,591 | $ | 1,868 | $ | 15 | $ | 23 | $ | 1,606 | $ | 1,891 | ||||||||||||||||||||||
Fair values for financial instruments utilizing level 2 inputs were determined from information obtained from third party pricing sources, broker quotes or calculations involving the use of market indices. | |||||||||||||||||||||||||||||||||
At June 30, 2014, the fair value of the Company's fixed-rate debt (based on Level 1 quoted market rates) was approximately $3.3 billion as compared to the $3.0 billion face value of the debt recorded, net of original issue discounts, in the Company's Consolidated Condensed Balance Sheet. At December 31, 2013, the fair value of the Company's fixed-rate debt (based on Level 1 quoted market rates) was approximately $2.7 billion as compared to the $2.5 billion face value of the debt. | |||||||||||||||||||||||||||||||||
Derivative Contracts | |||||||||||||||||||||||||||||||||
In order to mitigate the effect of exchange rate changes, the Company will often attempt to structure sales contracts to provide for collections from customers in the currency in which the Company incurs its manufacturing costs. In certain instances, the Company will enter into foreign currency forward contracts to hedge specific large anticipated receipts or disbursements in currencies for which the Company does not expect to have fully offsetting local currency expenditures or receipts. The Company was party to a number of short- and long-term foreign currency forward contracts at June 30, 2014. The purpose of the majority of these contracts was to hedge large anticipated non-functional currency cash flows on major subsea, drilling, valve or other equipment contracts. Many of these contracts have been designated as and are accounted for as cash flow hedges with changes in the fair value of those contracts recorded in accumulated other comprehensive income (loss) in the period such change occurs. Certain other contracts, many of which are centrally managed, are intended to offset other foreign currency exposures but have not been designated as hedges for accounting purposes and, therefore, any change in the fair value of those contracts is reflected in earnings in the period such change occurs. The Company determines the fair value of its outstanding foreign currency forward contracts based on quoted exchange rates for the respective currencies applicable to similar instruments. | |||||||||||||||||||||||||||||||||
The Company manages its debt portfolio to achieve an overall desired position of fixed and floating rates and employs from time to time interest rate swaps as a tool to achieve that goal. | |||||||||||||||||||||||||||||||||
Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at June 30, 2014 was as follows (in millions): | |||||||||||||||||||||||||||||||||
Notional Amount - Buy | Notional Amount - Sell | ||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | Total | 2014 | 2015 | 2016 | Total | ||||||||||||||||||||||||||
Foreign exchange forward contracts - | |||||||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||||||
Australian dollar | 17 | – | – | 17 | (17 | ) | – | – | (17 | ) | |||||||||||||||||||||||
Chinese yuan | 20 | – | – | 20 | – | – | – | – | |||||||||||||||||||||||||
Euro | 107 | 28 | 10 | 145 | (23 | ) | (4 | ) | (1 | ) | (28 | ) | |||||||||||||||||||||
Malaysian ringgit | 51 | 215 | 3 | 269 | (14 | ) | – | – | (14 | ) | |||||||||||||||||||||||
Norwegian krone | 612 | 513 | 54 | 1,179 | (159 | ) | (64 | ) | – | (223 | ) | ||||||||||||||||||||||
Pound sterling | 52 | 17 | 1 | 70 | (37 | ) | (17 | ) | (1 | ) | (55 | ) | |||||||||||||||||||||
U.S. dollar | 56 | 7 | – | 63 | (389 | ) | (215 | ) | (47 | ) | (651 | ) | |||||||||||||||||||||
While the Company reports and generally settles its individual derivative financial instruments on a gross basis, the agreements between the Company and its third party financial counterparties to the derivative contracts generally provide both the Company and its counterparties with the legal right to net settle contracts that are in an asset position with other contracts that are in an offsetting liability position, if required. The fair values of derivative financial instruments recorded in the Company's Consolidated Condensed Balance Sheets at June 30, 2014 and December 31, 2013 were as follows (in millions): | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Current | $ | 18 | $ | 13 | $ | 28 | $ | 10 | |||||||||||||||||||||||||
Non-current | 3 | 2 | 3 | 2 | |||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | 21 | 15 | 31 | 12 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Current | 2 | 3 | 6 | 6 | |||||||||||||||||||||||||||||
Non-current | – | – | – | – | |||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 2 | 3 | 6 | 6 | |||||||||||||||||||||||||||||
Total derivatives | $ | 23 | $ | 18 | $ | 37 | $ | 18 | |||||||||||||||||||||||||
The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments - | |||||||||||||||||||||||||||||||||
Cost of sales | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | (5 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments - | |||||||||||||||||||||||||||||||||
Cost of sales | 1 | – | 2 | – | |||||||||||||||||||||||||||||
Other costs | – | 3 | – | – | |||||||||||||||||||||||||||||
$ | – | $ | 2 | $ | 3 | $ | (5 | ) |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 6 Months Ended | ||
Jun. 30, 2014 | |||
Recently Issued Accounting Pronouncements [Abstract] | ' | ||
Recently Issued Accounting Pronouncements | ' | ||
Note 15: Recently Issued Accounting Pronouncements | |||
Revenue | |||
In May 2014, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (IFRS). | |||
The core principle of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), is that a company will recognize revenue when it transfers promised goods and services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. Companies will need to: | |||
· | identify performance obligations in each contract, | ||
· | estimate the amount of variable consideration to include in the transaction price, and | ||
· | allocate the transaction price to each separate performance obligation. | ||
ASU 2014-09 will be effective for Cameron no earlier than the first quarter of 2017. The Company is beginning the process of evaluating the impact of the new standard on its business and addressing whether it will select either the full retrospective or the modified retrospective implementation method upon adoption in 2017. | |||
Discontinued operations | |||
The FASB issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08) in April 2014. | |||
This new standard: | |||
· | raises the threshold for disposals to qualify as discontinued operations, | ||
· | allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation, and | ||
· | provides for new and additional disclosures of discontinued operations and individually material disposal transactions. | ||
The Company expects to adopt the new standard when it becomes effective in the first quarter of 2015. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations [Abstract] | ' | ||||||||||||||||
Summarized financial information for the Reciprocating Compression business | ' | ||||||||||||||||
Summarized financial information for the Reciprocating Compression business is as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Results of Operations: | |||||||||||||||||
Revenues | $ | 64 | $ | 78 | $ | 111 | $ | 135 | |||||||||
Cost of sales (excluding depreciation and amortization) | (49 | ) | (58 | ) | (86 | ) | (99 | ) | |||||||||
All other costs | (11 | ) | (14 | ) | (29 | ) | (27 | ) | |||||||||
Gain on sale of Reciprocating Compression business, before tax | 95 | – | 95 | – | |||||||||||||
Income before income taxes | 99 | 6 | 91 | 9 | |||||||||||||
Income tax provision | (86 | ) | (2 | ) | (84 | ) | (3 | ) | |||||||||
Income from discontinued operations, net of income taxes | $ | 13 | $ | 4 | $ | 7 | $ | 6 | |||||||||
The gain on the sale of the Reciprocating Compression business was determined as follows (in millions): | |||||||||||||||||
Sales price | $ | 550 | |||||||||||||||
Net assets sold | (442 | ) | |||||||||||||||
Transaction and other costs associated with the sale | (13 | ) | |||||||||||||||
Pre-tax gain | 95 | ||||||||||||||||
Tax provision | (85 | ) | |||||||||||||||
Gain on sale | $ | 10 | |||||||||||||||
The tax provision associated with the pre-tax gain is impacted by nondeductible goodwill of approximately $192 million included in the total net assets sold. | |||||||||||||||||
The net assets sold of the Reciprocating Compression business were as follows (in millions): | |||||||||||||||||
Accounts receivable | $ | 79 | |||||||||||||||
Inventory | 122 | ||||||||||||||||
Goodwill | 214 | ||||||||||||||||
All other | 27 | ||||||||||||||||
Net assets sold | $ | 442 |
Other_Costs_Credits_Tables
Other Costs (Credits) (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Costs (Credits) [Abstract] | ' | ||||||||||||||||
Other costs (credits) | ' | ||||||||||||||||
Other costs (credits) consisted of the following (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Goodwill impairment | $ | – | $ | – | $ | 40 | $ | – | |||||||||
OneSubsea formation costs | – | 28 | – | 45 | |||||||||||||
Gain from remeasurement of prior interest in equity method investment | (8 | ) | – | (8 | ) | – | |||||||||||
Impairment of intangible assets | 4 | – | 4 | – | |||||||||||||
Acquisition and other integration costs | – | 2 | 2 | 3 | |||||||||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges | – | (3 | ) | – | – | ||||||||||||
Currency devaluation, severance, restructuring and other costs, net | – | 8 | 6 | 18 | |||||||||||||
Total other costs (credits) | $ | (4 | ) | $ | 35 | $ | 44 | $ | 66 |
Receivables_Tables
Receivables (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Receivables | ' | ||||||||
Receivables consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 2,107 | $ | 2,368 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 305 | 253 | |||||||
Other receivables | 160 | 119 | |||||||
Allowance for doubtful accounts | (24 | ) | (21 | ) | |||||
Total receivables | $ | 2,548 | $ | 2,719 |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 375 | $ | 238 | |||||
Work-in-process | 1,015 | 894 | |||||||
Finished goods, including parts and subassemblies | 2,067 | 2,208 | |||||||
Other | 25 | 22 | |||||||
3,482 | 3,362 | ||||||||
Excess of current standard costs over LIFO costs | (91 | ) | (120 | ) | |||||
Allowances | (123 | ) | (109 | ) | |||||
Total inventories | $ | 3,268 | $ | 3,133 |
Plant_and_Equipment_and_Goodwi1
Plant and Equipment and Goodwill (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Plant and Equipment and Goodwill [Abstract] | ' | ||||||||
Plant and equipment | ' | ||||||||
Plant and equipment consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Plant and equipment, at cost | $ | 3,671 | $ | 3,670 | |||||
Accumulated depreciation | (1,656 | ) | (1,633 | ) | |||||
Total plant and equipment | $ | 2,015 | $ | 2,037 | |||||
Changes in goodwill | ' | ||||||||
Changes in goodwill during the six months ended June 30, 2014 were as follows (in millions): | |||||||||
Balance at December 31, 2013 | $ | 2,925 | |||||||
Sale of Reciprocating Compression business | (213 | ) | |||||||
Impairment (See Note 3) | (40 | ) | |||||||
Acquisitions | 21 | ||||||||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | ||||||||
Translation effect of currency changes and other | (8 | ) | |||||||
Balance at June 30, 2014 | $ | 2,704 |
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ' | ||||||||||||||||||||||
Accounts payable and accrued liabilities | ' | ||||||||||||||||||||||
Accounts payable and accrued liabilities consisted of the following (in millions): | |||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Trade accounts payable and accruals | $ | 690 | $ | 1,184 | |||||||||||||||||||
Advances from customers | 1,737 | 1,676 | |||||||||||||||||||||
Other accruals | 1,079 | 1,023 | |||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 3,506 | $ | 3,883 | |||||||||||||||||||
Company's product warranty accruals | ' | ||||||||||||||||||||||
Activity during the six months ended June 30, 2014 associated with the Company's product warranty accruals was as follows (in millions): | |||||||||||||||||||||||
Balance | Net | Charges | Sale of Reciprocating Compression | Translation | Balance | ||||||||||||||||||
December 31, | warranty | against | and other | June 30, | |||||||||||||||||||
2013 | provisions | accrual | 2014 | ||||||||||||||||||||
$ | 46 | $ | 26 | $ | (18 | ) | $ | (7 | ) | $ | – | $ | 47 |
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt [Abstract] | ' | ||||||||
Debt Obligations | ' | ||||||||
The Company's debt obligations were as follows (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Commercial paper (0.33% weighted average rate) | $ | 263 | $ | – | |||||
Senior notes: | |||||||||
Floating rate notes due June 2, 2014 | – | 250 | |||||||
1.6% notes due April 30, 2015 | 250 | 250 | |||||||
1.15% notes due December 15, 2016 | 250 | 250 | |||||||
1.40% notes due June 15, 2017 | 250 | – | |||||||
6.375% notes due July 15, 2018 | 450 | 450 | |||||||
4.5% notes due June 1, 2021 | 250 | 250 | |||||||
3.6% notes due April 30, 2022 | 250 | 250 | |||||||
4.0% notes due December 15, 2023 | 250 | 250 | |||||||
3.7% notes due June 15, 2024 | 250 | – | |||||||
7.0% notes due July 15, 2038 | 300 | 300 | |||||||
5.95% notes due June 1, 2041 | 250 | 250 | |||||||
5.125% notes due December 15, 2043 | 250 | 250 | |||||||
Unamortized original issue discount | (7 | ) | (7 | ) | |||||
Other debt | 60 | 57 | |||||||
Obligations under capital leases | 60 | 60 | |||||||
3,376 | 2,860 | ||||||||
Current maturities | (562 | ) | (297 | ) | |||||
Long-term maturities | $ | 2,814 | $ | 2,563 |
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Effective income tax rate reconciliation | ' | ||||||||||||||||
The Company's effective tax rate on income from continuing operations for the first six months of 2014 was 25.1% compared to 25.6% for the first half of 2013. The components of the effective tax rates for both periods were as follows (dollars in millions): | |||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Tax Provision | Tax Rate | Tax Provision | Tax Rate | ||||||||||||||
Forecasted tax expense by jurisdiction | $ | 109 | 24 | % | $ | 91 | 23.8 | % | |||||||||
Adjustments to income tax provision: | |||||||||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | – | – | (1 | ) | (0.1 | ) | |||||||||||
Tax effect of goodwill impairment | 10 | 2.1 | – | – | |||||||||||||
Finalization of prior year returns | (4 | ) | (0.9 | ) | 9 | 2.4 | |||||||||||
Tax effects of changes in legislation | – | – | (7 | ) | (1.9 | ) | |||||||||||
Changes in valuation allowances | – | – | 5 | 1.4 | |||||||||||||
Accrual adjustments and other | (1 | ) | (0.1 | ) | – | – | |||||||||||
Tax provision | $ | 114 | 25.1 | % | $ | 97 | 25.6 | % |
Business_Segments_Tables
Business Segments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Business Segments [Abstract] | ' | ||||||||||||||||
Summarized financial data by segment | ' | ||||||||||||||||
The Company's operations are organized into three separate business segments – Drilling & Production Systems (DPS), Valves & Measurement (V&M) and PCS. Summary financial data by segment follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
DPS | $ | 1,903 | $ | 1,438 | $ | 3,608 | $ | 2,707 | |||||||||
V&M | 536 | 534 | 1,028 | 1,056 | |||||||||||||
PCS | 202 | 237 | 436 | 507 | |||||||||||||
$ | 2,641 | $ | 2,209 | $ | 5,072 | $ | 4,270 | ||||||||||
Income (loss) before income taxes: | |||||||||||||||||
DPS | $ | 235 | $ | 196 | $ | 418 | $ | 350 | |||||||||
V&M | 107 | 109 | 201 | 222 | |||||||||||||
PCS | 13 | 17 | 28 | 37 | |||||||||||||
Corporate & other | (69 | ) | (122 | ) | (191 | ) | (229 | ) | |||||||||
$ | 286 | $ | 200 | $ | 456 | $ | 380 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Calculation of basic and diluted earnings per share | ' | ||||||||||||||||
The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in millions, except per share amounts): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income from continuing operations | $ | 220 | $ | 136 | $ | 342 | $ | 283 | |||||||||
Net income attributable to noncontrolling interests | 12 | – | 17 | – | |||||||||||||
Net income from continuing operations attributable to Cameron | 208 | 136 | 325 | 283 | |||||||||||||
Income from discontinued operations, net of taxes | 13 | 4 | 7 | 6 | |||||||||||||
Net income attributable to Cameron | $ | 221 | $ | 140 | $ | 332 | $ | 289 | |||||||||
Average shares outstanding (basic) | 204 | 247 | 209 | 247 | |||||||||||||
Common stock equivalents | 1 | 1 | 2 | 2 | |||||||||||||
Diluted shares | 205 | 248 | 211 | 249 | |||||||||||||
Basic earnings per share: | |||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.55 | $ | 1.15 | |||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | |||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.59 | $ | 1.17 | ||||||||||
Diluted earnings per share: | |||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.54 | $ | 1.14 | |||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | |||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.58 | $ | 1.16 | ||||||||||
Schedule of treasury shares | ' | ||||||||||||||||
Activity in the Company's treasury shares were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Treasury shares at beginning of period | 56,109,636 | 15,768,832 | 41,683,164 | 16,415,336 | |||||||||||||
Purchases of treasury shares | 4,516,668 | 1,500,002 | 19,673,771 | 2,113,455 | |||||||||||||
Net change in treasury shares owned by participants in nonqualified deferred compensation plans | (1,614 | ) | (1,068 | ) | 38,148 | 52,107 | |||||||||||
Treasury shares issued in satisfaction of stock option exercises and vesting of restricted stock units | (597,340 | ) | (266,036 | ) | (1,367,733 | ) | (1,579,168 | ) | |||||||||
Treasury shares at end of period | 60,027,350 | 17,001,730 | 60,027,350 | 17,001,730 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||||||||||||||
Rollforward of accumulated other comprehensive income (loss) | ' | ||||||||||||||||||||
The changes in the components of accumulated other elements of comprehensive income (loss) for the three months ended June 30, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Accumulated Foreign Currency Translation | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Three Months Ended June 30, 2013 | |||||||||||||||||
Gain (Loss) | |||||||||||||||||||||
Balance at beginning of period | $ | (40 | ) | $ | (45 | ) | $ | 16 | $ | (69 | ) | $ | (107 | ) | |||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||
Pre-tax | (3 | ) | – | (3 | ) | (6 | ) | (51 | ) | ||||||||||||
Tax effect | – | – | 1 | 1 | 1 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | |||||||||||||||||||||
Revenues | – | – | (2 | ) | (2 | ) | - | ||||||||||||||
Cost of sales | – | – | (2 | ) | (2 | ) | - | ||||||||||||||
Selling and administrative expense | – | – | – | – | 1 | ||||||||||||||||
Tax effect | – | – | 2 | 2 | - | ||||||||||||||||
Net current period other comprehensive loss | (3 | ) | – | (4 | ) | (7 | ) | (49 | ) | ||||||||||||
Balance at end of period | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) | |||||||
The changes in the components of accumulated other elements of comprehensive income (loss) for the six months ended June 30, 2014 and 2013 were as follows (in millions): | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Accumulated Foreign Currency Translation | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Six Months Ended June 30, 2013 | |||||||||||||||||
Gain (Loss) | |||||||||||||||||||||
Balance at beginning of year | $ | (49 | ) | $ | (45 | ) | $ | 14 | $ | (80 | ) | $ | (30 | ) | |||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||
Pre-tax | 6 | – | 4 | 10 | (132 | ) | |||||||||||||||
Tax effect | – | – | (2 | ) | (2 | ) | 5 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | |||||||||||||||||||||
Revenues | – | – | (5 | ) | (5 | ) | (2 | ) | |||||||||||||
Cost of sales | – | – | (2 | ) | (2 | ) | |||||||||||||||
Selling and administrative expense | – | – | – | – | 3 | ||||||||||||||||
Tax effect | – | – | 3 | 3 | - | ||||||||||||||||
Net current period other comprehensive income (loss) | 6 | – | (2 | ) | 4 | (126 | ) | ||||||||||||||
Balance at end of period | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||||||||||||||||||
Following is a summary of the Company's financial instruments which have been valued at fair value in the Company's Consolidated Balance Sheets at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Based on Quoted Prices in Active Markets for Identical Assets | Fair Value Based on Significant Other Observable Inputs | Total | |||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 536 | $ | 618 | $ | – | $ | – | $ | 536 | $ | 618 | |||||||||||||||||||||
Money market funds | 960 | 1,172 | – | – | 960 | 1,172 | |||||||||||||||||||||||||||
Commercial paper | – | – | 10 | 4 | 10 | 4 | |||||||||||||||||||||||||||
Non-U.S. bank and other obligations | 19 | 19 | – | – | 19 | 19 | |||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
U.S. Treasury securities | 56 | 41 | – | – | 56 | 41 | |||||||||||||||||||||||||||
Non-qualified plan assets: | |||||||||||||||||||||||||||||||||
Money market funds | 1 | 1 | – | – | 1 | 1 | |||||||||||||||||||||||||||
Domestic bond funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||||||
Domestic equity funds | 6 | 5 | – | – | 6 | 5 | |||||||||||||||||||||||||||
International equity funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||||||
Blended equity funds | 5 | 4 | – | – | 5 | 4 | |||||||||||||||||||||||||||
Common stock | 2 | 2 | – | – | 2 | 2 | |||||||||||||||||||||||||||
Derivatives, net asset (liability): | |||||||||||||||||||||||||||||||||
Foreign currency contracts | – | – | 5 | 19 | 5 | 19 | |||||||||||||||||||||||||||
$ | 1,591 | $ | 1,868 | $ | 15 | $ | 23 | $ | 1,606 | $ | 1,891 | ||||||||||||||||||||||
Open derivative contracts | ' | ||||||||||||||||||||||||||||||||
Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at June 30, 2014 was as follows (in millions): | |||||||||||||||||||||||||||||||||
Notional Amount - Buy | Notional Amount - Sell | ||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | Total | 2014 | 2015 | 2016 | Total | ||||||||||||||||||||||||||
Foreign exchange forward contracts - | |||||||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||||||
Australian dollar | 17 | – | – | 17 | (17 | ) | – | – | (17 | ) | |||||||||||||||||||||||
Chinese yuan | 20 | – | – | 20 | – | – | – | – | |||||||||||||||||||||||||
Euro | 107 | 28 | 10 | 145 | (23 | ) | (4 | ) | (1 | ) | (28 | ) | |||||||||||||||||||||
Malaysian ringgit | 51 | 215 | 3 | 269 | (14 | ) | – | – | (14 | ) | |||||||||||||||||||||||
Norwegian krone | 612 | 513 | 54 | 1,179 | (159 | ) | (64 | ) | – | (223 | ) | ||||||||||||||||||||||
Pound sterling | 52 | 17 | 1 | 70 | (37 | ) | (17 | ) | (1 | ) | (55 | ) | |||||||||||||||||||||
U.S. dollar | 56 | 7 | – | 63 | (389 | ) | (215 | ) | (47 | ) | (651 | ) | |||||||||||||||||||||
Fair values of derivative financial instruments | ' | ||||||||||||||||||||||||||||||||
The fair values of derivative financial instruments recorded in the Company's Consolidated Condensed Balance Sheets at June 30, 2014 and December 31, 2013 were as follows (in millions): | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Current | $ | 18 | $ | 13 | $ | 28 | $ | 10 | |||||||||||||||||||||||||
Non-current | 3 | 2 | 3 | 2 | |||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | 21 | 15 | 31 | 12 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Current | 2 | 3 | 6 | 6 | |||||||||||||||||||||||||||||
Non-current | – | – | – | – | |||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 2 | 3 | 6 | 6 | |||||||||||||||||||||||||||||
Total derivatives | $ | 23 | $ | 18 | $ | 37 | $ | 18 | |||||||||||||||||||||||||
Pre-tax gain (loss) from ineffective portion of derivatives | ' | ||||||||||||||||||||||||||||||||
The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was (in millions): | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments - | |||||||||||||||||||||||||||||||||
Cost of sales | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | (5 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments - | |||||||||||||||||||||||||||||||||
Cost of sales | 1 | – | 2 | – | |||||||||||||||||||||||||||||
Other costs | – | 3 | – | – | |||||||||||||||||||||||||||||
$ | – | $ | 2 | $ | 3 | $ | (5 | ) |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 01, 2014 |
Discontinued Operations [Abstract] | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | $547 |
Results of Operations [Abstract] | ' | ' | ' | ' | ' |
Gain on sale of Reciprocating Compression business, before tax | 95 | 0 | 95 | 0 | ' |
Income from discontinued operations, net of income taxes | 13 | 4 | 7 | 6 | ' |
Gain on the sale [Abstract] | ' | ' | ' | ' | ' |
Sales price | ' | ' | 550 | ' | ' |
Net assets sold | ' | ' | -442 | ' | ' |
Transaction and other costs associated with the sale | ' | ' | -13 | ' | ' |
Pre-tax gain | 95 | 0 | 95 | 0 | ' |
Tax provision | ' | ' | -85 | ' | ' |
Gain on sale | ' | ' | 10 | ' | ' |
Nondeductible goodwill | 192 | ' | 192 | ' | ' |
Net assets sold [Abstract] | ' | ' | ' | ' | ' |
Accounts receivable | 79 | ' | 79 | ' | ' |
Inventory | 122 | ' | 122 | ' | ' |
Goodwill | 214 | ' | 214 | ' | ' |
All other | 27 | ' | 27 | ' | ' |
Net assets sold | 442 | ' | 442 | ' | ' |
Reciprocating Compression business [Member] | ' | ' | ' | ' | ' |
Results of Operations [Abstract] | ' | ' | ' | ' | ' |
Revenues | 64 | 78 | 111 | 135 | ' |
Cost of sales (excluding depreciation and amortization) | -49 | -58 | -86 | -99 | ' |
All other costs | -11 | -14 | -29 | -27 | ' |
Gain on sale of Reciprocating Compression business, before tax | 95 | 0 | 95 | 0 | ' |
Income before income taxes | 99 | 6 | 91 | 9 | ' |
Income tax provision | -86 | -2 | -84 | -3 | ' |
Income from discontinued operations, net of income taxes | 13 | 4 | 7 | 6 | ' |
Gain on the sale [Abstract] | ' | ' | ' | ' | ' |
Pre-tax gain | $95 | $0 | $95 | $0 | ' |
Other_Costs_Credits_Details
Other Costs (Credits) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Apr. 30, 2014 |
Cameron Services Middle East LLC [Member] | Cameron Services Middle East LLC [Member] | ||||||
Other Costs (Credits) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | $0 | $0 | $40 | $0 | ' | ' | ' |
OneSubsea formation costs | 0 | 28 | 0 | 45 | ' | ' | ' |
Gain from remeasurement of prior interest in equity method investment | -8 | 0 | -8 | 0 | ' | ' | ' |
Impairment of intangible assets | 4 | 0 | 4 | 0 | ' | ' | ' |
Acquisition and other integration costs | 0 | 2 | 2 | 3 | ' | ' | ' |
Mark-to-market impact on currency derivatives not designated as accounting hedges | 0 | -3 | 0 | 0 | ' | ' | ' |
Currency devaluation, severance, restructuring and other costs, net | 0 | 8 | 6 | 18 | ' | ' | ' |
Total other costs (credits) | -4 | 35 | 44 | 66 | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | 90.00% | 49.00% |
Payment for increase in ownership interest | ' | ' | ' | ' | ' | 18 | ' |
Goodwill | $2,704 | ' | $2,704 | ' | $2,925 | $21 | ' |
Receivables_Details
Receivables (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Trade receivables | $2,107 | $2,368 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 305 | 253 |
Other receivables | 160 | 119 |
Allowance for doubtful accounts | -24 | -21 |
Total receivables | $2,548 | $2,719 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $375 | $238 |
Work-in-process | 1,015 | 894 |
Finished goods, including parts and subassemblies | 2,067 | 2,208 |
Other | 25 | 22 |
Gross Inventories | 3,482 | 3,362 |
Excess of current standard costs over LIFO costs | -91 | -120 |
Allowances | -123 | -109 |
Total inventories | $3,268 | $3,133 |
Plant_and_Equipment_and_Goodwi2
Plant and Equipment and Goodwill (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Plant and Equipment and Goodwill [Abstract] | ' | ' | ' | ' | ' |
Plant and equipment, at cost | $3,671 | ' | $3,671 | ' | $3,670 |
Accumulated depreciation | -1,656 | ' | -1,656 | ' | -1,633 |
Total plant and equipment | 2,015 | ' | 2,015 | ' | 2,037 |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | 2,925 | ' | ' |
Sale of Reciprocating Compression business | ' | ' | -213 | ' | ' |
Impairment (See Note 3) | 0 | 0 | -40 | 0 | ' |
Acquisitions | ' | ' | 21 | ' | ' |
Adjustments to the purchase price allocation for prior year acquisitions | ' | ' | 19 | ' | ' |
Translation effect of currency changes and other | ' | ' | -8 | ' | ' |
Balance at June 30, 2014 | $2,704 | ' | $2,704 | ' | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts Payable and Accrued Liabilities [Abstract] | ' | ' |
Trade accounts payable and accruals | $690 | $1,184 |
Advances from customers | 1,737 | 1,676 |
Other accruals | 1,079 | 1,023 |
Total accounts payable and accrued liabilities | 3,506 | 3,883 |
Product Warranty Accrual [Roll Forward] | ' | ' |
Balance, beginning | 46 | ' |
Net warranty provisions | 26 | ' |
Charges against accrual | -18 | ' |
Sale of Reciprocating Compression | -7 | ' |
Translation and other | 0 | ' |
Balance, ending | $47 | ' |
Debt_Details
Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 21, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 20, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 11, 2014 | Mar. 31, 2014 | Apr. 11, 2014 | Jun. 30, 2014 | Apr. 11, 2014 |
In Millions, unless otherwise specified | Senior Notes Payable Due 2014 [Member] | Senior Notes Payable Due 2014 [Member] | Senior Notes Payable Due 2015 [Member] | Senior Notes Payable Due 2015 [Member] | Senior Notes Payable Due 2016 [Member] | Senior Notes Payable Due 2016 [Member] | Senior Notes Payable Due 2017 [Member] | Senior Notes Payable Due 2017 [Member] | Senior Notes Payable Due 2018 [Member] | Senior Notes Payable Due 2018 [Member] | Senior Notes Payable Due 2021 [Member] | Senior Notes Payable Due 2021 [Member] | Senior Notes Payable Due 2022 [Member] | Senior Notes Payable Due 2022 [Member] | Senior Notes Payable Due 2023 [Member] | Senior Notes Payable Due 2023 [Member] | Senior Notes Payable Due 2024 [Member] | Senior Notes Payable Due 2024 [Member] | Senior Notes Payable Due 2038 [Member] | Senior Notes Payable Due 2038 [Member] | Senior Notes Payable Due 2041 [Member] | Senior Notes Payable Due 2041 [Member] | Senior Notes Payable Due 2043 [Member] | Senior Notes Payable Due 2043 [Member] | Senior Notes Payable [Member] | Senior Notes Payable [Member] | Senior Notes Payable [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Other Debt [Member] | Other Debt [Member] | Obligations Under Capital Leases [Member] | Obligations Under Capital Leases [Member] | Public offering [Member] | Amended Line of Credit [Member] | Line of Credit Multi Currency [Member] | Line of Credit Multi Currency [Member] | Line of Credit Multi Currency [Member] | New Line Of Credit Multi Currency [Member] | New Line Of Credit Multi Currency [Member] | Letter of Credit [Member] | ||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal outstanding, net of unamortized discount | $3,376 | $2,860 | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $0 | $450 | $450 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $0 | $300 | $300 | $250 | $250 | $250 | $250 | ' | ' | ' | $263 | ' | $0 | $60 | $57 | $60 | $60 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities | -562 | -297 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term maturities | 2,814 | 2,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | 2-Jun-14 | ' | 30-Apr-15 | ' | 15-Dec-16 | ' | 15-Jun-17 | ' | 15-Jul-18 | ' | 1-Jun-21 | ' | 30-Apr-22 | ' | 15-Dec-23 | ' | 15-Jun-24 | ' | 15-Jul-38 | ' | 1-Jun-41 | ' | 15-Dec-43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11-Apr-17 | ' | ' |
Interest rate (in hundredths) | ' | ' | ' | ' | 1.60% | 1.60% | 1.15% | 1.15% | 1.40% | ' | 6.38% | 6.38% | 4.50% | 4.50% | 3.60% | 3.60% | 4.00% | 4.00% | 3.70% | ' | 7.00% | 7.00% | 5.95% | 5.95% | 5.13% | 5.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued amount (Senior Notes) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, date of first required payment | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount that debt was sold for (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 99.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.77% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days in which commercial paper matures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average term of outstanding commercial paper | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '62 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92 | ' | ' |
Payment of principal and accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 253 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29 | ' | ' | 92 | 77 | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | 835 | ' | 40 | 170 | 750 | ' | 200 |
Remaining capacity under revolving line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | ' | ' | ' | $673 | ' |
Term of revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Tax Provision [Abstract] | ' | ' | ' | ' |
Forecasted tax expense by jurisdiction | ' | ' | $109 | $91 |
Adjustments to income tax provision [Abstract] | ' | ' | ' | ' |
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | ' | ' | 0 | -1 |
Tax effect of goodwill impairment | ' | ' | 10 | 0 |
Finalization of prior year returns | ' | ' | -4 | 9 |
Tax effects of changes in legislation | ' | ' | 0 | -7 |
Changes in valuation allowances | ' | ' | 0 | 5 |
Accrual adjustments and other | ' | ' | -1 | 0 |
Tax provision | $66 | $64 | $114 | $97 |
Tax Rate [Abstract] | ' | ' | ' | ' |
Forecasted tax expense by jurisdiction (in hundredths) | ' | ' | 24.00% | 23.80% |
Adjustments to income tax provision [Abstract] | ' | ' | ' | ' |
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved (in hundredths) | ' | ' | 0.00% | -0.10% |
Tax effect of goodwill impairment (in hundredths) | ' | ' | 2.10% | 0.00% |
Finalization of prior year returns (in hundredths) | ' | ' | -0.90% | 2.40% |
Tax effects of changes in legislation (in hundredths) | ' | ' | 0.00% | -1.90% |
Changes in valuation allowances (in hundredths) | ' | ' | 0.00% | 1.40% |
Accrual adjustments and other (in hundredths) | ' | ' | -0.10% | 0.00% |
Tax provision (in hundredths) | ' | ' | 25.10% | 25.60% |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment | ||||
Business Segments [Abstract] | ' | ' | ' | ' |
Number of business segments | ' | ' | 3 | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | $2,641 | $2,209 | $5,072 | $4,270 |
Income (loss) before income taxes: | 286 | 200 | 456 | 380 |
Operating Segments [Member] | DPS [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 1,903 | 1,438 | 3,608 | 2,707 |
Income (loss) before income taxes: | 235 | 196 | 418 | 350 |
Operating Segments [Member] | V&M [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 536 | 534 | 1,028 | 1,056 |
Income (loss) before income taxes: | 107 | 109 | 201 | 222 |
Operating Segments [Member] | PCS [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 202 | 237 | 436 | 507 |
Income (loss) before income taxes: | 13 | 17 | 28 | 37 |
Corporate, Non-Segment [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income (loss) before income taxes: | ($69) | ($122) | ($191) | ($229) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income from continuing operations | $220,000,000 | $136,000,000 | $342,000,000 | $283,000,000 |
Net income attributable to noncontrolling interests | 12,000,000 | 0 | 17,000,000 | 0 |
Net income from continuing operations attributable to Cameron | 208,000,000 | 136,000,000 | 325,000,000 | 283,000,000 |
Income from discontinued operations, net of taxes | 13,000,000 | 4,000,000 | 7,000,000 | 6,000,000 |
Net income attributable to Cameron stockholders | 221,000,000 | 140,000,000 | 332,000,000 | 289,000,000 |
Average shares outstanding (basic) (in shares) | 204,000,000 | 247,000,000 | 209,000,000 | 247,000,000 |
Common stock equivalents (in shares) | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 |
Diluted shares (in shares) | 205,000,000 | 248,000,000 | 211,000,000 | 249,000,000 |
Basic earnings (loss) per share [Abstract] | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $1.02 | $0.55 | $1.55 | $1.15 |
Discontinued operations (in dollars per share) | $0.06 | $0.02 | $0.04 | $0.02 |
Basic (in dollars per share) | $1.08 | $0.57 | $1.59 | $1.17 |
Diluted earnings (loss) per share [Abstract] | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $1.02 | $0.55 | $1.54 | $1.14 |
Discontinued operations (in dollars per share) | $0.06 | $0.02 | $0.04 | $0.02 |
Diluted (in dollars per share) | $1.08 | $0.57 | $1.58 | $1.16 |
Treasury Shares [Roll Forward] | ' | ' | ' | ' |
Treasury shares at beginning of period (in shares) | 56,109,636 | 15,768,832 | 41,683,164 | 16,415,336 |
Purchase of treasury shares (in shares) | 4,516,668 | 1,500,002 | 19,673,771 | 2,113,455 |
Net change in treasury shares owned by participants in nonqualified deferred compensation plans (in shares) | -1,614 | -1,068 | 38,148 | 52,107 |
Treasury shares issued in satisfaction of stock option exercises and vesting of restricted stock units (in shares) | -597,340 | -266,036 | -1,367,733 | -1,579,168 |
Treasury shares at end of period (in shares) | 60,027,350 | 17,001,730 | 60,027,350 | 17,001,730 |
Average cost of treasury shares acquired (in dollars per share) | $63 | $60.93 | $61.37 | $61.77 |
Stock repurchase, authorized amount | 3,200,000,000 | ' | 3,200,000,000 | ' |
Remaining authority for future stock purchase | $456,000,000 | ' | $456,000,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | ($69) | ($107) | ($80) | ($30) |
Net current period other comprehensive income (loss) | -7 | -49 | 4 | -126 |
Balance at end of period | -76 | -156 | -76 | -156 |
Other comprehensive income (loss) before reclassifications [Abstract] | ' | ' | ' | ' |
Pre-tax | -6 | -51 | 10 | -132 |
Tax effect | 1 | 1 | -2 | 5 |
Amounts reclassified from accumulated other comprehensive income (loss) to [Abstract] | ' | ' | ' | ' |
Revenues | -2,641 | -2,209 | -5,072 | -4,270 |
Cost of sales | -1,893 | -1,567 | -3,658 | -3,020 |
Selling and administrative expenses | 346 | 315 | 675 | 618 |
Amounts reclassified from accumulated other comprehensive income to [Member] | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to [Abstract] | ' | ' | ' | ' |
Revenues | -2 | 0 | -5 | -2 |
Cost of sales | -2 | 0 | -2 | ' |
Selling and administrative expenses | 0 | 1 | 0 | 3 |
Tax effect | 2 | 0 | 3 | 0 |
Accumulated Foreign Currency Translation Gain (Loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | -40 | ' | -49 | ' |
Net current period other comprehensive income (loss) | -3 | ' | 6 | ' |
Balance at end of period | -43 | ' | -43 | ' |
Other comprehensive income (loss) before reclassifications [Abstract] | ' | ' | ' | ' |
Pre-tax | -3 | ' | 6 | ' |
Tax effect | 0 | ' | 0 | ' |
Accumulated Foreign Currency Translation Gain (Loss) [Member] | Amounts reclassified from accumulated other comprehensive income to [Member] | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to [Abstract] | ' | ' | ' | ' |
Revenues | 0 | ' | 0 | ' |
Cost of sales | 0 | ' | 0 | ' |
Selling and administrative expenses | 0 | ' | 0 | ' |
Tax effect | 0 | ' | 0 | ' |
Prior Service Credits and Net Actuarial Losses [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | -45 | ' | -45 | ' |
Net current period other comprehensive income (loss) | 0 | ' | 0 | ' |
Balance at end of period | -45 | ' | -45 | ' |
Other comprehensive income (loss) before reclassifications [Abstract] | ' | ' | ' | ' |
Pre-tax | 0 | ' | 0 | ' |
Tax effect | 0 | ' | 0 | ' |
Prior Service Credits and Net Actuarial Losses [Member] | Amounts reclassified from accumulated other comprehensive income to [Member] | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to [Abstract] | ' | ' | ' | ' |
Revenues | 0 | ' | 0 | ' |
Cost of sales | 0 | ' | 0 | ' |
Selling and administrative expenses | 0 | ' | 0 | ' |
Tax effect | 0 | ' | 0 | ' |
Accumulated Gain (Loss) on Cash Flow Hedge Derivatives [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | 16 | ' | 14 | ' |
Net current period other comprehensive income (loss) | -4 | ' | -2 | ' |
Balance at end of period | 12 | ' | 12 | ' |
Other comprehensive income (loss) before reclassifications [Abstract] | ' | ' | ' | ' |
Pre-tax | -3 | ' | 4 | ' |
Tax effect | 1 | ' | -2 | ' |
Accumulated Gain (Loss) on Cash Flow Hedge Derivatives [Member] | Amounts reclassified from accumulated other comprehensive income to [Member] | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to [Abstract] | ' | ' | ' | ' |
Revenues | -2 | ' | -5 | ' |
Cost of sales | -2 | ' | -2 | ' |
Selling and administrative expenses | 0 | ' | 0 | ' |
Tax effect | $2 | ' | $3 | ' |
Contingencies_Details
Contingencies (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Site | |
Homeowner | |
Country | |
Contingencies [Abstract] | ' |
Accrued liability for claims of other litigation | $16 |
Number of countries where company has legal entities | 50 |
Customs duties, penalties and interest by the government of Brazil | 58 |
Number of sites designated for cleanup under the Comprehensive Environmental Response Compensation and Liability Act or similar state law where Company is identified as a potentially responsible party | 1 |
Number of homeowners covered by class action lawsuit settlement on contaminated underground water from Houston manufacturing site (in number of homeowners) | 190 |
Number of homeowners whose property is adjacent to the class area and may be affected by underground water contamination (in number of homeowners) | 39 |
Accrued liability for claims for contaminated underground water from Houston manufacturing site | 7 |
Accrued environmental loss contingencies, noncurrent | $3 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cash and cash equivalents [Abstract] | ' | ' |
Cash | $536 | $618 |
Money market funds | 960 | 1,172 |
Commercial paper | 10 | 4 |
Non-U.S. bank and other obligations | 19 | 19 |
Short-term investments [Abstract] | ' | ' |
U.S. Treasury securities | 56 | 41 |
Non-qualified plan assets [Abstract] | ' | ' |
Money market funds | 1 | 1 |
Domestic bond funds | 3 | 3 |
Domestic equity funds | 6 | 5 |
International equity funds | 3 | 3 |
Blended equity funds | 5 | 4 |
Common stock | 2 | 2 |
Derivatives, net asset (liability) [Abstract] | ' | ' |
Foreign currency contracts | 5 | 19 |
Total financial instruments | 1,606 | 1,891 |
Fair value of the fixed-rate debt | 3,300 | 2,700 |
Face value of the fixed-rate debt | 3,000 | 2,500 |
Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash | 536 | 618 |
Money market funds | 960 | 1,172 |
Commercial paper | 0 | 0 |
Non-U.S. bank and other obligations | 19 | 19 |
Short-term investments [Abstract] | ' | ' |
U.S. Treasury securities | 56 | 41 |
Non-qualified plan assets [Abstract] | ' | ' |
Money market funds | 1 | 1 |
Domestic bond funds | 3 | 3 |
Domestic equity funds | 6 | 5 |
International equity funds | 3 | 3 |
Blended equity funds | 5 | 4 |
Common stock | 2 | 2 |
Derivatives, net asset (liability) [Abstract] | ' | ' |
Foreign currency contracts | 0 | 0 |
Total financial instruments | 1,591 | 1,868 |
Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash | 0 | 0 |
Money market funds | 0 | 0 |
Commercial paper | 10 | 4 |
Non-U.S. bank and other obligations | 0 | 0 |
Short-term investments [Abstract] | ' | ' |
U.S. Treasury securities | 0 | 0 |
Non-qualified plan assets [Abstract] | ' | ' |
Money market funds | 0 | 0 |
Domestic bond funds | 0 | 0 |
Domestic equity funds | 0 | 0 |
International equity funds | 0 | 0 |
Blended equity funds | 0 | 0 |
Common stock | 0 | 0 |
Derivatives, net asset (liability) [Abstract] | ' | ' |
Foreign currency contracts | 5 | 19 |
Total financial instruments | $15 | $23 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments, Derivative Contracts (Details) (Foreign Exchange Forward Contracts [Member]) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Buy [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] | Sell [Member] |
USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2014 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2015 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | 2016 [Member] | |
USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | USD ($) | AUD | CNY | EUR (€) | GBP (£) | MYR | NOK | |||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | $63 | 17 | 20 | € 145 | £ 70 | 269 | 1,179 | $56 | 17 | 20 | € 107 | £ 52 | 51 | 612 | $7 | 0 | 0 | € 28 | £ 17 | 215 | 513 | $0 | 0 | 0 | € 10 | £ 1 | 3 | 54 | ($651) | -17 | 0 | -€ 28 | £ (55) | -14 | -223 | ($389) | -17 | 0 | -€ 23 | £ (37) | -14 | -159 | ($215) | 0 | 0 | -€ 4 | £ (17) | 0 | -64 | ($47) | 0 | 0 | -€ 1 | £ (1) | 0 | 0 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments, Balance Sheet Classification (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | $23 | $37 |
Liabilities | 18 | 18 |
Derivatives Designated as Hedges Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 21 | 31 |
Liabilities | 15 | 12 |
Derivatives Designated as Hedges Instruments [Member] | Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 18 | 28 |
Derivatives Designated as Hedges Instruments [Member] | Non-Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 3 | 3 |
Derivatives Designated as Hedges Instruments [Member] | Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | 13 | 10 |
Derivatives Designated as Hedges Instruments [Member] | Non-Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | 2 | 2 |
Derivatives not Designated as Hedges Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 2 | 6 |
Liabilities | 3 | 6 |
Derivatives not Designated as Hedges Instruments [Member] | Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 2 | 6 |
Derivatives not Designated as Hedges Instruments [Member] | Non-Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 0 | 0 |
Derivatives not Designated as Hedges Instruments [Member] | Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | 3 | 6 |
Derivatives not Designated as Hedges Instruments [Member] | Non-Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | $0 | $0 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments-Derivative Instruments, Gain (Loss) by Hedging Relationship, Income Statement Location (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total pre-tax gain (loss) | $0 | $2 | $3 | ($5) |
Cost of Sales [Member] | Derivatives Designated as Hedges Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total pre-tax gain (loss) | -1 | -1 | 1 | -5 |
Cost of Sales [Member] | Derivatives not Designated as Hedges Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total pre-tax gain (loss) | 1 | 0 | 2 | 0 |
Other Costs [Member] | Derivatives not Designated as Hedges Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total pre-tax gain (loss) | $0 | $3 | $0 | $0 |