Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 10, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CAMERON INTERNATIONAL CORP | ||
Entity Central Index Key | 941548 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $10,963.20 | ||
Entity Common Stock, Shares Outstanding | 193,721,697 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Results_of_Operat
Consolidated Results of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Results of Operations [Abstract] | |||
Revenues | $10,381 | $9,138 | $7,795 |
Costs and expenses: | |||
Cost of sales (exclusive of depreciation and amortization shown separately below) | 7,464 | 6,518 | 5,522 |
Selling and administrative expenses | 1,287 | 1,275 | 1,070 |
Depreciation and amortization | 348 | 298 | 238 |
Interest, net | 129 | 100 | 90 |
Other costs (see Note 3) | 73 | 92 | 33 |
Total costs and expenses | 9,301 | 8,283 | 6,953 |
Income from continuing operations before income taxes | 1,080 | 855 | 842 |
Income tax provision | -258 | -196 | -157 |
Income from continuing operations | 822 | 659 | 685 |
Income from discontinued operations, net of income taxes | 26 | 65 | 66 |
Net income | 848 | 724 | 751 |
Less: Net income attributable to noncontrolling interests | 37 | 25 | 0 |
Net income attributable to Cameron stockholders | 811 | 699 | 751 |
Amounts attributable to Cameron stockholders: | |||
Income from continuing operations | 785 | 634 | 685 |
Income from discontinued operations | 26 | 65 | 66 |
Net income attributable to Cameron stockholders | $811 | $699 | $751 |
Basic - | |||
Continuing operations (in dollars per share) | $3.85 | $2.62 | $2.78 |
Discontinued operations (in dollars per share) | $0.13 | $0.27 | $0.27 |
Basic earnings per share (in dollars per share) | $3.98 | $2.89 | $3.05 |
Diluted - | |||
Continuing operations (in dollars per share) | $3.83 | $2.60 | $2.76 |
Discontinued operations (in dollars per share) | $0.13 | $0.27 | $0.27 |
Diluted earnings per share (in dollars per share) | $3.96 | $2.87 | $3.03 |
Consolidated_Comprehensive_Inc
Consolidated Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Comprehensive Income [Abstract] | |||
Net income | $848 | $724 | $751 |
Foreign currency translation gain (loss) | -526 | -70 | 75 |
Gain (loss) on derivatives recognized in other comprehensive income: | |||
Pre-tax | -109 | 19 | 15 |
Tax effect | 33 | -5 | -5 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income to: | |||
Revenues | 7 | -2 | 6 |
Cost of sales | 6 | -5 | 4 |
Tax effect | -5 | 2 | -3 |
Actuarial gains (losses) recognized in other comprehensive income: | |||
Pre-tax | -43 | 25 | -43 |
Tax effect | 8 | -12 | 9 |
Curtailment and settlement (gains) losses recognized: | |||
Pre-tax | -11 | 0 | 0 |
Tax effect | 3 | 0 | 0 |
Amortization to selling and administrative expenses of: | |||
Prior service credits | -2 | -3 | -1 |
Net actuarial losses | 6 | 7 | 5 |
Tax effect | -1 | 0 | -1 |
Comprehensive income | 214 | 680 | 812 |
Comprehensive income attributable to noncontrolling interest: | |||
Net income | 37 | 25 | 0 |
Foreign currency translation gain (loss) | -147 | 24 | 0 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | -24 | 7 | 0 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 4 | -1 | 0 |
Actuarial (gains) loss recognized in other comprehensive income, net of tax | -4 | -26 | 0 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | -5 | 0 | 0 |
Amortization to selling and administrative expenses, net of tax | 2 | 2 | 0 |
Comprehensive income attributable to noncontrolling interest | -137 | 31 | 0 |
Comprehensive income attributable to Cameron | $351 | $649 | $812 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $1,513 | $1,813 |
Short-term investments | 113 | 41 |
Receivables, net | 2,389 | 2,719 |
Inventories, net | 2,929 | 3,133 |
Other | 391 | 463 |
Assets of discontinued operations | 217 | 0 |
Total current assets | 7,552 | 8,169 |
Plant and equipment, net | 1,964 | 2,037 |
Goodwill | 2,461 | 2,925 |
Intangibles, net | 728 | 904 |
Other assets | 187 | 214 |
Total assets | 12,892 | 14,249 |
Liabilities and stockholders' equity | ||
Short-term Debt | 263 | 297 |
Accounts payable and accrued liabilities | 3,748 | 3,883 |
Accrued income taxes | 168 | 80 |
Liabilities of discontinued operations | 90 | 0 |
Total current liabilities | 4,269 | 4,260 |
Long-term debt | 2,819 | 2,563 |
Deferred income taxes | 193 | 277 |
Other long-term liabilities | 167 | 233 |
Total liabilities | 7,448 | 7,333 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at December 31, 2014 and 2013 | 3 | 3 |
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Capital in excess of par value | 3,255 | 3,207 |
Retained earnings | 5,631 | 4,820 |
Accumulated other elements of comprehensive income (loss) | -540 | -80 |
Less: Treasury stock at cost, 68,139,027 shares at December 31, 2014 and 41,683,164 shares at December 31, 2013 | -3,794 | -2,098 |
Total Cameron stockholders' equity | 4,555 | 5,852 |
Noncontrolling interests | 889 | 1,064 |
Total equity | 5,444 | 6,916 |
Total liabilities and stockholders' equity | $12,892 | $14,249 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury common stock at cost (in shares) | 68,139,027 | 41,683,164 |
Consolidated_Cash_Flows
Consolidated Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $848 | $724 | $751 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of Reciprocating Compression business | -95 | 0 | 0 |
Depreciation | 296 | 246 | 212 |
Amortization | 64 | 69 | 43 |
Non-cash stock compensation expense | 54 | 54 | 44 |
Gain from remeasurement of prior interest in equity method investment | -8 | 0 | 0 |
Deferred income taxes and tax benefit of stock compensation plan transactions | -48 | 11 | -85 |
Changes in assets and liabilities, net of translation, acquisitions and non-cash items: | |||
Receivables | 166 | -470 | -144 |
Inventories | -144 | -367 | -369 |
Accounts payable and accrued liabilities | -17 | 556 | 213 |
Other assets and liabilities, net | 77 | 15 | 18 |
Net cash provided by operating activities | 1,193 | 838 | 683 |
Cash flows from investing activities: | |||
Proceeds from sales and maturities of short-term investments | 65 | 1,559 | 1,032 |
Purchases of short-term investments | -137 | -1,082 | -1,126 |
Capital expenditures | -385 | -520 | -427 |
Net proceeds received from sale of Reciprocating Compression business | 547 | 0 | 0 |
Dispositions (acquisitions), net of cash acquired | -7 | -11 | -349 |
Proceeds received and cash acquired from formation of OneSubsea, net of taxes paid of 80 | 0 | 523 | 0 |
Proceeds from sales of plant and equipment | 13 | 13 | 27 |
Net cash provided by (used for) investing activities | 96 | 482 | -843 |
Cash flows from financing activities: | |||
Short-term loan borrowings (repayments), net | -34 | 46 | -42 |
Issuance of senior debt | 500 | 747 | 499 |
Debt issuance costs | -4 | -6 | -3 |
Early retirement of senior notes | -253 | 0 | 0 |
Purchase of treasury stock | -1,747 | -1,531 | -21 |
Contributions from noncontrolling interest owners | 0 | 62 | 0 |
Distributions to noncontrolling interest owners | -42 | 0 | 0 |
Purchases of noncontrolling ownership interests | 0 | -7 | 0 |
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions | 40 | 31 | 12 |
Excess tax benefits from stock compensation plan transactions | 6 | 9 | 11 |
Principal payments on capital leases | -20 | -18 | -11 |
Net cash provided by (used for) financing activities | -1,554 | -667 | 445 |
Effect of translation on cash | -35 | -26 | 2 |
Increase (decrease) in cash and cash equivalents | -300 | 627 | 287 |
Cash and cash equivalents, beginning of year | 1,813 | 1,186 | 899 |
Cash and cash equivalents, end of year | $1,513 | $1,813 | $1,186 |
Consolidated_Cash_Flows_Parent
Consolidated Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Cash flows from investing activities: | |
Proceeds received and cash acquired from formation of OneSubsea, taxes paid | $80 |
Consolidated_Changes_in_Stockh
Consolidated Changes in Stockholders' Equity (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, 2011 | $3 | $2,072 | $3,370 | ($91) | ($647) | $0 | $4,707 |
Net income | 0 | 751 | 0 | 0 | 0 | 751 | |
Other comprehensive income (loss) | 0 | 0 | 61 | 0 | 0 | 61 | |
Non-cash stock compensation expense | 44 | 0 | 0 | 0 | 0 | 44 | |
Purchase of treasury stock | 0 | 0 | 0 | -22 | 0 | -22 | |
Treasury stock issued under stock compensation plans | -34 | 0 | 0 | 47 | 0 | 13 | |
Tax benefit of stock compensation plan transactions | 12 | 0 | 0 | 0 | 0 | 12 | |
Distributions to noncontrolling interest owners | 0 | ||||||
Balance at Dec. 31, 2012 | 3 | 2,094 | 4,121 | -30 | -622 | 0 | 5,566 |
Formation of OneSubsea, net of tax effects of $90 | 1,083 | 0 | 0 | 0 | 927 | 2,010 | |
Net income | 0 | 699 | 0 | 0 | 25 | 724 | |
Other comprehensive income (loss) | 0 | 0 | -50 | 0 | 6 | -45 | |
Non-cash stock compensation expense | 54 | 0 | 0 | 0 | 0 | 54 | |
Net change in treasury shares owned by participants in nonqualified deferred compensation plans | 0 | 0 | 0 | -2 | 0 | -2 | |
Purchase of treasury stock | 0 | 0 | 0 | -1,533 | 0 | -1,533 | |
Treasury stock issued under stock compensation plans | -28 | 0 | 0 | 59 | 0 | 31 | |
Tax benefit of stock compensation plan transactions | 10 | 0 | 0 | 0 | 0 | 10 | |
Contributions from noncontrolling interest owners | 0 | 0 | 0 | 0 | 75 | 75 | |
Purchases of noncontrolling ownership interests | 0 | 0 | 0 | 0 | -7 | -7 | |
Distributions to noncontrolling interest owners | 0 | ||||||
Other noncontrolling interests | 0 | 0 | 0 | 0 | 38 | 38 | |
Other | -6 | 0 | 0 | 0 | 0 | -6 | |
Balance at Dec. 31, 2013 | 3 | 3,207 | 4,820 | -80 | -2,098 | 1,064 | 6,916 |
Net income | 0 | 811 | 0 | 0 | 37 | 848 | |
Other comprehensive income (loss) | 0 | 0 | -460 | 0 | -174 | -634 | |
Non-cash stock compensation expense | 54 | 0 | 0 | 0 | 0 | 54 | |
Purchase of treasury stock | 0 | 0 | 0 | -1,750 | 0 | -1,750 | |
Treasury stock issued under stock compensation plans | -12 | 0 | 0 | 54 | 0 | 42 | |
Tax benefit of stock compensation plan transactions | 6 | 0 | 0 | 0 | 0 | 6 | |
Purchases of noncontrolling ownership interests | 0 | 0 | 0 | 0 | 4 | 4 | |
Distributions to noncontrolling interest owners | 0 | 0 | 0 | 0 | 0 | -42 | -42 |
Balance at Dec. 31, 2014 | $3 | $3,255 | $5,631 | ($540) | ($3,794) | $889 | $5,444 |
Consolidated_Changes_in_Stockh1
Consolidated Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Consolidated Changes in Stockholders' Equity [Abstract] | |
Formation of OneSubsea, tax effects | $90 |
Summary_of_Major_Accounting_Po
Summary of Major Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary of Major Accounting Policies [Abstract] | ||
Summary of Major Accounting Policies | Note 1: Summary of Major Accounting Policies | |
Company Operations — Cameron International Corporation (Cameron or the Company) provides flow equipment products, systems and services to worldwide oil, gas and process industries through four business segments, Subsea, Surface, Drilling and Valves & Measurement (V&M). Prior to the fourth quarter of 2014, the Company reported its business segments as being Drilling & Production Systems (DPS), which included the Subsea, Drilling and Surface businesses, V&M and Process and Compression Systems, which included the Reciprocating and Centrifugal Compression businesses, both of which are now reported as discontinued operations (See Note 2 of the Notes to Consolidated Financial Statements) and the Processing Systems business. Additional information regarding each segment may be found in Note 16 of the Notes to Consolidated Financial Statements. | ||
Principles of Consolidation — These consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. Investments in affiliated companies are accounted for using the equity method when we are able to exert significant influence over the operations of the investee. | ||
Estimates in Financial Statements — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, estimates of total contract profit or loss on certain long-term production contracts, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, contingencies (including tax contingencies, estimated liabilities for litigation exposures and liquidated damages), estimated warranty costs, estimates related to pension accounting, estimates used to determine fair values in purchase accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ materially from these estimates. | ||
Revenue Recognition — The Company generally recognizes revenue, net of sales taxes, related to products, services or rental arrangements once the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery of the equipment has occurred or the customer has taken title and risk of loss or services have been rendered, (iii) the price of the equipment or service is fixed and determinable and (iv) collectibility is reasonably assured. For engineering, procurement and construction-type contracts, revenue is generally reported on the percentage-of-completion method of accounting. Progress is primarily measured by the completion of milestones; however, progress for specific types of subsea and drilling systems contracts, which differ from our other contracts, is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. Both methods require the Company to make estimates regarding the total costs of the project, which impacts the amount of gross margin the Company recognizes in each reporting period. Under the percentage-of-completion method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in accounting for contracts. All known or anticipated losses on contracts are provided for in the period they become evident. Revenues and gross profit on contracts can be significantly affected by change orders that may be approved subsequent to completion of related work. If it is not probable that costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. If it is probable that costs will be recovered through a change order, the costs are treated as contract costs and contract revenue is recognized to the extent of the lesser of the amounts management expects to recover or the costs expected to be incurred. | ||
Approximately 31%, 31% and 26% of the Company’s revenues for the years ended December 31, 2014, 2013 and 2012, respectively, were recognized under the percentage-of-completion method. | ||
Shipping and Handling Costs — Shipping and handling costs are reflected in the caption entitled “Cost of sales (exclusive of depreciation and amortization shown separately below)” in the accompanying Consolidated Results of Operations statements. | ||
Cash Equivalents and Short-Term Investments — Cash equivalents consist of highly liquid investments which are readily convertible to cash and have maturities of three months or less at the time of purchase. Short-term investments consist primarily of commercial paper, U.S. Treasury securities, U.S. non-governmental agency asset-backed securities and corporate debt obligations that have maturities of more than three months but less than one year. All of our short-term investments are classified as available-for-sale and recorded at fair value, with unrealized holding gains and losses recorded as a component of accumulated other comprehensive income (loss). | ||
Allowance for Doubtful Accounts — The Company maintains allowances for doubtful accounts for estimated losses expected to result from the inability of its customers to make required payments. Such allowances are based upon several factors including, but not limited to, historical experience, the length of time an invoice has been outstanding, responses from customers relating to demands for payment and the current and projected financial condition of specific customers. | ||
Inventories — Aggregate inventories are carried at the lower of cost or market. On the basis of current costs, 54% of inventories at December 31, 2014 and 49% at December 31, 2013 are carried on the last-in, first-out (LIFO) method. For these locations, the use of LIFO results in a better matching of costs and revenues. The remaining inventories, which are generally located outside the United States and Canada, are carried on the first-in, first-out (FIFO) method. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference between the cost of the inventory and its estimated realizable value. | ||
Plant and Equipment — Property, plant and equipment, both owned and under capital lease, are carried at cost. Maintenance and repair costs are expensed as incurred. The cost of renewals, replacements and betterments is capitalized. The Company capitalizes software developed or obtained for internal use. Accordingly, the cost of third-party software, as well as the cost of third-party and internal personnel that are directly involved in application development activities, are capitalized during the application development phase of new software systems projects. Costs during the preliminary project stage and post-implementation stage of new software systems projects, including data conversion and training costs, are expensed as incurred. Depreciation and amortization is provided over the estimated useful lives of the related assets, or in the case of assets under capital leases, over the related lease term, if less, using the straight-line method. The estimated useful lives of the major classes of property, plant and equipment are as follows: | ||
Estimated | ||
Useful Lives | ||
Buildings and leasehold improvements | 10-40 years | |
Machinery, equipment and tooling | 3-18 years | |
Office furniture, software and other | 3-10 years | |
Goodwill and Intangible Assets — Cameron allocates the purchase price of acquired businesses to their identifiable tangible assets and liabilities, such as accounts receivable, inventory, property, plant and equipment, accounts payable and accrued liabilities, based on their estimated fair values. The Company also typically allocates a portion of the purchase price to identifiable intangible assets, such as noncompete agreements, trademarks, trade names, patents, technology, customer relationships and backlog using various widely accepted valuation techniques such as discounted future cash flows and the relief-from-royalty and excess earnings methods. Each of these methods involves level 3 unobservable market inputs. Any remaining excess of cost over allocated fair values is recorded as goodwill. On larger acquisitions, Cameron will typically engage third-party valuation experts to assist in determining the fair values for both the identifiable tangible and intangible assets. Certain estimates and judgments are required in the application of the fair value techniques, including estimates of future cash flows, selling prices, replacement costs, royalty rates for use of assets, economic lives and the selection of a discount rate. | ||
The Company reviews the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required. The estimated fair value of each reporting unit for the 2014, 2013 and 2012 evaluations was determined using discounted future expected cash flows (level 3 unobservable inputs) consistent with the accounting guidance for fair-value measurements. Certain estimates and judgments are required in the application of the fair value models, including, but not limited to, estimates of future cash flows and the selection of a discount rate. At December 31, 2014, the Company’s reporting units for goodwill impairment evaluation purposes were the OneSubsea, Process Systems, Surface, Drilling, Valves and Measurement businesses. Prior to the fourth quarter of 2014, there were five reporting units within the V&M segment (now combined into two reporting units based on changes in management’s reporting structure during the fourth quarter of 2014). Those reporting units included $311 million of goodwill. The Company performed a goodwill impairment test before and after the change in V&M’s reporting units and concluded there was no impairment. | ||
Generally, the Company conducts its goodwill impairment review during the first quarter of each annual period. Due to the significant drop in commodity prices during the latter half of 2014 and the reorganization of the Company’s reporting structure, as described above, the Company made an additional evaluation of goodwill for impairment during the fourth quarter of 2014 based upon macro factors that existed at that point in time. The fair value of our Process Systems reporting unit was estimated to be 10% to 15% higher than its carrying value as part of that evaluation. The estimated fair value for Process Systems was based on forecasted timing and success in receiving new major project awards in 2015 and beyond, the pricing and profitability of those new awards and further improvements in revenue growth and profitability rates from those achieved historically. Should our expectations prove to be incorrect due to (i) further declines in oil and gas prices and continued instability in the worldwide energy markets, (ii) unanticipated delays occurring in project awards, including unplanned project cancellations, or, (iii) an increase in interest rates, our prior estimates of future earnings, cash flows and fair value of the Process Systems business would be negatively impacted, which could lead to an impairment of goodwill for that reporting unit, possibly even as early as our annual evaluation during the first quarter of 2015. Goodwill associated with the Process Systems reporting unit at December 31, 2014 was approximately $571 million. | ||
The Company’s intangible assets, excluding goodwill, represent purchased patents, trademarks, customer relationships and other identifiable intangible assets. The majority of intangible assets are amortized on a straight-line basis over the years expected to be benefited, generally ranging from 5 to 28 years. Such intangibles are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. As many areas of the Company’s business rely on patents and proprietary technology, it has followed a policy of seeking patent protection both inside and outside the United States for products and methods that appear to have commercial significance. The costs of developing any intangibles internally, as well as costs of defending such intangibles, are expensed as incurred. No material impairment of intangible assets was required during the years ended December 31, 2014, 2013 or 2012, except as reflected in Note 4 of the Notes to Consolidated Financial Statements. | ||
Long-Lived Assets — In accordance with accounting rules for the impairment or disposal of long-lived assets, such assets, excluding goodwill and indefinite-lived intangibles, to be held and used by the Company are reviewed to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. For long-lived assets to be held and used, the Company bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, the Company determines whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset. Assets are classified as held for sale when the Company has a plan, approved by the appropriate levels of management, for disposal of such assets and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. No material impairment of long-lived assets was required during the years ended December 31, 2014, 2013 or 2012. | ||
Product Warranty — Estimated warranty costs are accrued either at the time of sale based upon historical experience or, in some cases, when specific warranty problems are encountered. Adjustments to the recorded liability are made periodically to reflect actual experience. | ||
Contingencies — The Company accrues for costs relating to litigation when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties, amounts specified by contract, amounts designated by legal statute or management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. | ||
Income Taxes — The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Income tax expense includes U.S. and foreign income taxes, including U.S. federal taxes on undistributed earnings of foreign subsidiaries to the extent such earnings are planned to be remitted. Taxes are not provided on the translation component of comprehensive income since the effect of translation is not considered to modify the amount of the earnings that are planned to be remitted. | ||
A valuation allowance is provided to offset any net deferred tax asset, if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest related to accruals for uncertain tax positions is reflected as a component of interest expense in the Consolidated Results of Operations statement. Penalties on a tax position taken by the Company are reflected as a component of income tax expense in the Consolidated Results of Operations statement. See Note 13 of the Notes to Consolidated Financial Statements for further discussion of the Company’s income taxes. | ||
Environmental Remediation and Compliance — Environmental remediation and postremediation monitoring costs are accrued when such obligations become probable and reasonably estimable. Such future expenditures are not discounted to their present value. | ||
Pension and Postretirement Benefits Accounting — The Company recognizes the funded status of its defined benefit pension and other postretirement benefit plans in its Consolidated Balance Sheets. The measurement date for all of the Company’s plans was December 31, 2014. See Note 9 of the Notes to Consolidated Financial Statements for further information. | ||
Stock-Based Compensation — At December 31, 2014, the Company had grants outstanding under various stock-based employee compensation plans, which are described in further detail in Note 10 of the Notes to Consolidated Financial Statements. Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by accounting rules on stock compensation. Under this guidance, the fair value of stock option grants and restricted stock unit awards is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. | ||
Derivative Financial Instruments — The Company recognizes all derivative financial instruments as assets and liabilities on a gross basis and measures them at fair value. Hedge accounting is only applied when the derivative is deemed highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other elements of comprehensive income (loss) until the underlying transactions are recognized in earnings, at which time any deferred hedging gains or losses are reclassified to earnings in the same income statement caption as impacted by the hedged item. Any ineffective portion of the change in the fair value of a derivative used as a cash flow hedge is recorded in earnings as incurred. The amounts recorded in earnings from ineffectiveness for the years ended December 31, 2014, 2013 and 2012 have not been material. The Company may at times also use forward or option contracts to hedge certain other foreign currency exposures. These contracts are not designated as hedges under the accounting guidance described above. Therefore, the changes in fair value of these contracts are recognized in earnings as they occur and offset gains or losses on the related exposures. | ||
Foreign Currency — For most subsidiaries and branches outside the U.S., the local currency is the functional currency. The financial statements of these subsidiaries and branches are translated into U.S. dollars as follows: (i) assets and liabilities at year-end exchange rates; (ii) income and expenses at monthly average exchange rates or exchange rates in effect on the date of the transaction; and (iii) stockholders’ equity at historical exchange rates. For those subsidiaries where the local currency is the functional currency, the resulting translation adjustment is recorded as a component of accumulated other elements of comprehensive income (loss) in the accompanying Consolidated Balance Sheets. | ||
For certain other subsidiaries and branches, operations are conducted primarily in currencies other than the local currencies, which are therefore the functional currency. Non-functional currency monetary assets and liabilities are remeasured at ending exchange rates. Revenue, expense and gain and loss accounts of these foreign subsidiaries and branches are remeasured at average exchange rates or exchange rates in effect on the date of the transaction. Non-functional currency non-monetary assets and liabilities, and the related revenue, expense, gain and loss accounts are remeasured at historical rates. | ||
Foreign currency gains and losses arising from monetary transactions denominated in a currency other than the functional currency of the entity involved are included in income. The effects of foreign currency transactions were a gain of $22 million for the year ended December 31, 2014, a gain of less than $1 million for the year ended December 31, 2013 and a loss of $12 million for the year ended December 31, 2012. | ||
Reclassifications and Revisions — Certain prior year amounts have been reclassified to conform to the current year presentation. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations [Abstract] | |||||||||||||
Discontinued Operations | Note 2: Discontinued Operations | ||||||||||||
Effective June 1, 2014, the Company completed the sale of its Reciprocating Compression business to General Electric for gross cash consideration of approximately $550 million, before transaction costs. | |||||||||||||
On August 18, 2014, the Company announced that it had entered into a definitive agreement to sell its Centrifugal Compression business to Ingersoll Rand for gross cash consideration of $850 million, subject to closing adjustments. The sale was completed effective January 1, 2015. | |||||||||||||
The Company’s historical consolidated Results of Operations statement has been retrospectively revised to reflect the results of operations for both businesses as discontinued operations for all periods presented. Summarized financial information relating to these businesses is shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 428 | $ | 701 | $ | 707 | |||||||
Cost of sales (excluding depreciation and amortization) | (306 | ) | (498 | ) | (503 | ) | |||||||
All other costs | (94 | ) | (105 | ) | (108 | ) | |||||||
Gain on sale of the Reciprocating Compression business, before tax | 95 | – | – | ||||||||||
Income before income taxes | 123 | 98 | 96 | ||||||||||
Income tax provision | (97 | ) | (33 | ) | (30 | ) | |||||||
Income from discontinued operations, net of income taxes | $ | 26 | $ | 65 | $ | 66 | |||||||
The gain on the sale of the Reciprocating Compression business was determined as follows (dollars in millions): | |||||||||||||
Sales price | $ | 550 | |||||||||||
Net assets sold | (442 | ) | |||||||||||
Transaction and other costs associated with the sale | (13 | ) | |||||||||||
Pre-tax gain | 95 | ||||||||||||
Tax provision(1) | (88 | ) | |||||||||||
Gain on sale | $ | 7 | |||||||||||
(1) – The tax provision associated with the gain on the sale of the Reciprocating Compression business was approximately $88 million, which was 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 (dollars in millions): | |||||||||||||
Accounts receivable | $ | 79 | |||||||||||
Inventory | 122 | ||||||||||||
Goodwill | 214 | ||||||||||||
All other | 27 | ||||||||||||
Net assets sold | $ | 442 | |||||||||||
Assets and liabilities of the Centrifugal Compression business held for sale in the Company’s Consolidated Balance Sheet at December 31, 2014 were as follows: | |||||||||||||
(dollars in millions) | December 31, | ||||||||||||
2014 | |||||||||||||
Receivables, net | $ | 37 | |||||||||||
Inventories, net | 86 | ||||||||||||
Other current assets | 14 | ||||||||||||
Plant and equipment, net | 45 | ||||||||||||
Goodwill | 35 | ||||||||||||
Assets of discontinued operations | $ | 217 | |||||||||||
Accounts payable, accrued and other current liabilities | $ | 89 | |||||||||||
Other long-term liabilities | 1 | ||||||||||||
Liabilities of discontinued operations | $ | 90 |
Acquisitions_and_OneSubsea
Acquisitions and OneSubsea | 12 Months Ended |
Dec. 31, 2014 | |
Acquisitions and OneSubsea [Abstract] | |
Acquisitions and OneSubsea | Note 3: Acquisitions and OneSubsea |
Douglas Chero — During the third quarter of 2013, the Company’s V&M segment acquired Douglas Chero, an Italian valve manufacturer, for approximately $20 million, net of cash acquired. The acquisition was made to support the Company’s international growth strategy by expanding its downstream industrial valve offerings. Douglas Chero’s results of operations have been included in the V&M segment since the date of acquisition. | |
OneSubsea — On June 30, 2013, Cameron and Schlumberger Limited completed the formation of OneSubsea, a venture established to manufacture and develop products, systems and services for the subsea oil and gas market. Cameron contributed its existing subsea business unit and received $600 million from Schlumberger, while Schlumberger contributed its Framo, Surveillance, Flow Assurance and Power and Controls businesses, which included an additional $3 million of cash. As 60% owner, Cameron manages the venture and reflects a noncontrolling interest in its financial statements for Schlumberger’s 40% interest in the venture. | |
Under the purchase method of accounting, the assets and liabilities of the Schlumberger businesses contributed to OneSubsea were reflected at their estimated fair values at June 30, 2013. The excess of the fair value of the businesses contributed by Schlumberger over the net tangible and identifiable intangible assets of those businesses was recorded as goodwill. The OneSubsea goodwill, totaling approximately $1 billion, is not deductible for tax purposes. | |
Due to Cameron maintaining control of OneSubsea, the contribution of Cameron’s existing subsea business unit into the venture was recorded at historical cost and the issuance of a 40% interest in the venture to Schlumberger was reflected as an adjustment to Cameron’s paid in capital in accordance with accounting rules governing decreases in a parent’s ownership interest in a subsidiary without loss of control. Accordingly, the direct income tax consequences were also reflected as an adjustment to paid in capital. During the fourth quarter of 2013, the Company paid approximately $80 million in taxes associated with this transaction. | |
2012 Acquisitions — During the fourth quarter of 2012, the Company spent $40 million, net of cash acquired, on two acquisitions, CairnToul Well Equipment Services Limited and ICI Artificial Lift, Inc. both of which were made to enhance the product and service offerings of its Surface segment. | |
On June 6, 2012, the Company closed on its purchase of the drilling equipment business of TTS Energy Division (“TTS”) from TTS Group ASA, a Norwegian company, for a cash payment of $248 million, net of cash acquired, subject to certain post-closing adjustments. TTS provides high performance drilling equipment, rig packages and rig solutions for both onshore and offshore rigs to the international energy industry and its financial results have been included in the Drilling segment since the date of acquisition. | |
During the first quarter of 2012, the Company acquired 100% of the outstanding stock of Elco Filtration and Testing, Inc. (“Elco”), for a total purchase price of $61 million, net of cash acquired. Elco was purchased to strengthen the Company’s wellhead product and service offerings and has been included in the Surface segment since the date of acquisition. | |
Approximately $250 million of goodwill was recorded as a result of the 2012 acquisitions, nearly $28 million of which is deductible for tax purposes. |
Other_Costs
Other Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Costs [Abstract] | |||||||||||||
Other Costs | Note 4: Other Costs | ||||||||||||
Other costs, net of credits, consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Goodwill impairment | $ | 40 | $ | – | $ | – | |||||||
Litigation costs | 11 | 3 | 2 | ||||||||||
Loss on disposal of non-core assets | 10 | – | – | ||||||||||
Impairment of identifiable intangible assets | 4 | – | 18 | ||||||||||
Costs for early retirement of debt | 3 | – | – | ||||||||||
OneSubsea formation and other acquisition and integration costs | 2 | 60 | 16 | ||||||||||
International pension curtailment and settlement costs (credits), net | (8 | ) | – | 7 | |||||||||
Gain from remeasurement of prior interest in equity method investment | (8 | ) | – | – | |||||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges | 8 | 1 | (16 | ) | |||||||||
Currency devaluation | – | 10 | – | ||||||||||
Severance, restructuring and other costs | 11 | 18 | 6 | ||||||||||
Total other costs | $ | 73 | $ | 92 | $ | 33 | |||||||
Goodwill totaling $40 million relating to the Company’s Process Systems and Equipment (PSE) reporting unit was considered to be fully impaired during the annual goodwill impairment review conducted during the first quarter of 2014. | |||||||||||||
Integration costs consist of costs incurred for the integration of the operations of certain newly acquired businesses with the existing operations of the Company, largely reflecting the costs associated with converting legacy systems to the Company’s SAP information systems. |
Receivables
Receivables | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Receivables | Note 5: Receivables | ||||||||
Receivables consisted of the following: | |||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Trade receivables | $ | 1,678 | $ | 2,015 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 621 | 582 | |||||||
Other receivables | 122 | 143 | |||||||
Allowance for doubtful accounts | (32 | ) | (21 | ) | |||||
Total receivables | $ | 2,389 | $ | 2,719 |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 6: Inventories | ||||||||
Inventories consisted of the following: | |||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Raw materials | $ | 159 | $ | 238 | |||||
Work-in-process | 827 | 894 | |||||||
Finished goods, including parts and subassemblies | 2,150 | 2,208 | |||||||
Other | 24 | 22 | |||||||
3,160 | 3,362 | ||||||||
Excess of current costs over LIFO costs | (86 | ) | (120 | ) | |||||
Allowance for obsolete and excess inventory | (145 | ) | (109 | ) | |||||
Total inventories | $ | 2,929 | $ | 3,133 |
Plant_and_Equipment_Goodwill_a
Plant and Equipment, Goodwill and Intangibles | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Plant and Equipment, Goodwill and Intangibles [Abstract] | |||||||||||||||||||||||||
Plant and Equipment, Goodwill and Intangibles | Note 7: Plant and Equipment, Goodwill and Intangibles | ||||||||||||||||||||||||
Plant and equipment consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Land and land improvements | $ | 130 | $ | 132 | |||||||||||||||||||||
Buildings | 726 | 744 | |||||||||||||||||||||||
Machinery and equipment | 1,682 | 1,662 | |||||||||||||||||||||||
Tooling, dies, patterns, etc. | 179 | 208 | |||||||||||||||||||||||
Office furniture & equipment | 212 | 210 | |||||||||||||||||||||||
Capitalized software | 370 | 348 | |||||||||||||||||||||||
Assets under capital leases | 120 | 107 | |||||||||||||||||||||||
Construction in progress | 127 | 231 | |||||||||||||||||||||||
All other | 34 | 28 | |||||||||||||||||||||||
3,580 | 3,670 | ||||||||||||||||||||||||
Accumulated depreciation | (1,616 | ) | (1,633 | ) | |||||||||||||||||||||
Total plant and equipment, net | $ | 1,964 | $ | 2,037 | |||||||||||||||||||||
Changes in goodwill during 2014 were as follows: | |||||||||||||||||||||||||
(dollars in millions) | Subsea | Surface | Drilling | Valves & Measurement | Discontinued Operations | Total | |||||||||||||||||||
Balance at December 31, 2013 | $ | 1,654 | $ | 199 | $ | 505 | $ | 318 | $ | 249 | $ | 2,925 | |||||||||||||
Discontinued operations | – | – | – | – | (249 | ) | (249 | ) | |||||||||||||||||
Impairment | – | (40 | ) | – | – | – | (40 | ) | |||||||||||||||||
Acquisitions | – | 20 | – | – | – | 20 | |||||||||||||||||||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | – | – | (1 | ) | – | 18 | ||||||||||||||||||
Translation effect of currency changes and other | (197 | ) | (6 | ) | (4 | ) | (6 | ) | – | (213 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 1,476 | $ | 173 | $ | 501 | $ | 311 | $ | – | $ | 2,461 | |||||||||||||
Intangibles consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Customer relationships | $ | 459 | $ | 519 | |||||||||||||||||||||
Patents and technology | 382 | 426 | |||||||||||||||||||||||
Trademarks | 68 | 69 | |||||||||||||||||||||||
Noncompete agreements, engineering drawings and other | 80 | 103 | |||||||||||||||||||||||
989 | 1,117 | ||||||||||||||||||||||||
Accumulated amortization | (261 | ) | (213 | ) | |||||||||||||||||||||
Total intangibles, net | $ | 728 | $ | 904 | |||||||||||||||||||||
Amortization expense associated with the Company’s amortizable intangibles recorded as of December 31, 2014 is expected to approximate $45 million, $45 million, $44 million, $42 million, and $38 million for the years ending December 31, 2015, 2016, 2017, 2018 and 2019, respectively. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Payable and Accrued Liabilities [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities | Note 8: Accounts Payable and Accrued Liabilities | ||||||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Trade accounts payable and accruals | $ | 1,084 | $ | 1,184 | |||||
Advances from customers | 1,576 | 1,676 | |||||||
Other accruals | 1,088 | 1,023 | |||||||
Total accounts payable and accrued liabilities | $ | 3,748 | $ | 3,883 |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||
Employee Benefit Plans | Note 9: Employee Benefit Plans | ||||||||||||||||||||||||||||||||
As of December 31, 2014, the Company sponsored separate defined benefit pension plans for employees of certain of its international subsidiaries, as well as several unfunded defined benefit arrangements for various other employee groups. The defined benefit pension plan covering employees in the United Kingdom was frozen to new entrants effective June 14, 1996. | |||||||||||||||||||||||||||||||||
Certain of the Company’s employees also participate in various employee welfare benefit plans, including medical, dental and prescriptions. Additionally, certain retirees based in the United States receive retiree medical, prescription and life insurance benefits. All of the welfare benefit plans, including those providing postretirement benefits, are unfunded. | |||||||||||||||||||||||||||||||||
During 2014, the Company communicated to employees and beneficiaries of three of its international retirement plans that it had elected to terminate the respective defined benefit plans and replace them with defined contribution plans. The final settlement payments will occur in early 2015. The Company recorded a net pre-tax curtailment gain of approximately $8 million (included in Other Costs – see Note 4 of the Notes to Consolidated Financial Statements) related to the termination of these plans. | |||||||||||||||||||||||||||||||||
Total net benefit plan expense (income) associated with the Company’s defined benefit pension and postretirement benefit plans consisted of the following: | |||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | 18 | $ | 10 | $ | 3 | $ | − | $ | − | $ | − | |||||||||||||||||||||
Interest cost | 20 | 17 | 15 | − | − | − | |||||||||||||||||||||||||||
Expected return on plan assets | (27 | ) | (21 | ) | (18 | ) | − | − | − | ||||||||||||||||||||||||
Amortization of prior service credits | (2 | ) | (2 | ) | – | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||
Amortization of losses (gains) | 9 | 8 | 6 | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Curtailment gain | (12 | ) | – | – | – | – | – | ||||||||||||||||||||||||||
Settlement loss | 4 | – | 4 | – | – | – | |||||||||||||||||||||||||||
Other | – | – | 2 | − | − | − | |||||||||||||||||||||||||||
Total net benefit plan expense (income) | $ | 10 | $ | 12 | $ | 12 | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | ||||||||||||||||||
Included in accumulated other elements of comprehensive income (loss) at December 31, 2014 and 2013 are the following amounts that have not yet been recognized in net periodic benefit plan cost, as well as the amounts that are expected to be recognized in net periodic benefit plan cost during the year ending December 31, 2015: | |||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | Year Ending | |||||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||||||
(dollars in millions) | Before Tax | After Tax | Before Tax | After Tax | Expected | ||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||||||
Pension benefits: | |||||||||||||||||||||||||||||||||
Prior service credits | $ | 18 | $ | 14 | $ | 22 | $ | 17 | $ | (2 | ) | ||||||||||||||||||||||
Actuarial losses, net | (136 | ) | (109 | ) | (119 | ) | (94 | ) | 10 | ||||||||||||||||||||||||
Postretirement benefits: | |||||||||||||||||||||||||||||||||
Prior service credits | 3 | 2 | 3 | 2 | (1 | ) | |||||||||||||||||||||||||||
Actuarial gains | 8 | 5 | 9 | 6 | (1 | ) | |||||||||||||||||||||||||||
$ | (107 | ) | $ | (88 | ) | $ | (85 | ) | $ | (69 | ) | $ | 6 | ||||||||||||||||||||
The change in the projected benefit obligation associated with the Company’s defined benefit pension plans and the change in the accumulated benefit obligation associated with the Company’s postretirement benefit plans was as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 489 | $ | 387 | $ | 11 | $ | 13 | |||||||||||||||||||||||||
Service cost | 18 | 10 | − | − | |||||||||||||||||||||||||||||
Interest cost | 20 | 17 | − | − | |||||||||||||||||||||||||||||
Plan participants’ contributions | 1 | 1 | − | − | |||||||||||||||||||||||||||||
Actuarial losses (gains) | 78 | 12 | (1 | ) | (1 | ) | |||||||||||||||||||||||||||
Exchange rate changes | (52 | ) | 5 | − | − | ||||||||||||||||||||||||||||
Benefit payments | (14 | ) | (14 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Plan amendments | − | (21 | ) | − | − | ||||||||||||||||||||||||||||
Acquisitions | − | 67 | − | – | |||||||||||||||||||||||||||||
Curtailments | (23 | ) | – | − | – | ||||||||||||||||||||||||||||
Settlements | (8 | ) | – | − | − | ||||||||||||||||||||||||||||
Other | – | 25 | − | − | |||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 509 | $ | 489 | $ | 9 | $ | 11 | |||||||||||||||||||||||||
The total accumulated benefit obligation for the Company’s defined benefit pension plans was $469 million and $435 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
The change in the plan assets associated with the Company’s defined benefit pension and postretirement benefit plans was as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 432 | $ | 318 | $ | – | $ | − | |||||||||||||||||||||||||
Actual return on plan assets | 53 | 41 | − | − | |||||||||||||||||||||||||||||
Company contributions | 27 | 13 | 1 | 1 | |||||||||||||||||||||||||||||
Plan participants’ contributions | 1 | 1 | − | − | |||||||||||||||||||||||||||||
Exchange rate changes | (40 | ) | 6 | − | − | ||||||||||||||||||||||||||||
Benefit payments | (14 | ) | (14 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Acquisitions | – | 46 | – | – | |||||||||||||||||||||||||||||
Settlements | (8 | ) | – | – | – | ||||||||||||||||||||||||||||
Other | 4 | 21 | − | − | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 455 | $ | 432 | $ | − | $ | − | |||||||||||||||||||||||||
The status of the Company’s underfunded defined benefit pension and postretirement benefit plans was as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Current | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||
Non-current | (53 | ) | (55 | ) | (8 | ) | (9 | ) | |||||||||||||||||||||||||
Underfunded status at end of year | $ | (54 | ) | $ | (56 | ) | $ | (9 | ) | $ | (11 | ) | |||||||||||||||||||||
Actual asset investment allocations for the Company’s main defined benefit pension plan in the United Kingdom, which accounts for approximately 78% of total plan assets, were as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
U.K. plan: | |||||||||||||||||||||||||||||||||
Equity securities | 55 | % | 60 | % | 54 | % | |||||||||||||||||||||||||||
Fixed income debt securities, cash and other | 45 | % | 40 | % | 46 | % | |||||||||||||||||||||||||||
In each jurisdiction, the investment of plan assets is overseen by a plan asset committee whose members act as trustees of the plan and set investment policy. For the years ended December 31, 2014, 2013 and 2012, the investment strategy has been designed to approximate the performance of market indexes. The Company’s targeted allocation for the U.K. plan for 2015 and beyond is approximately 55% in equities, 40% in fixed income debt securities and 5% in real estate and other. | |||||||||||||||||||||||||||||||||
During 2014, the Company made contributions totaling approximately $27 million to the assets of its various defined benefit pension plans. Contributions to plan assets for 2015 are currently expected to approximate $12 million assuming no change in the current discount rate or expected investment earnings. | |||||||||||||||||||||||||||||||||
The assets of the Company’s pension plans are generally invested in debt and equity securities or mutual funds, which are valued based on quoted market prices for an individual asset (level 1 market inputs) or mutual fund unit values, which are based on the fair values of the individual securities that the fund has invested in (level 2 observable market inputs). A certain portion of the assets are invested in insurance contracts, real estate and other investments, which are valued based on level 3 unobservable inputs. | |||||||||||||||||||||||||||||||||
The fair values of the Company’s pension plan assets by asset category at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Fair Value Based on | Fair Value Based on | Fair Value Based | Total | ||||||||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | on Significant | |||||||||||||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 1 | $ | – | $ | – | $ | – | $ | – | $ | 1 | $ | 1 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equities | – | – | 83 | 83 | – | – | 83 | 83 | |||||||||||||||||||||||||
Non-U.S. equities | – | – | 120 | 125 | – | – | 120 | 125 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | – | – | 117 | 92 | – | – | 117 | 92 | |||||||||||||||||||||||||
Non-U.S. corporate bonds | – | – | 30 | 26 | – | – | 30 | 26 | |||||||||||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||||||||||
Insurance contracts | – | – | – | – | 89 | 91 | 89 | 91 | |||||||||||||||||||||||||
Real estate and other | – | – | – | – | 15 | 14 | 15 | 14 | |||||||||||||||||||||||||
Total assets | $ | 1 | $ | 1 | $ | 350 | $ | 326 | $ | 104 | $ | 105 | $ | 455 | $ | 432 | |||||||||||||||||
Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs were as follows: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Balance at beginning of the year | $ | 105 | $ | 28 | |||||||||||||||||||||||||||||
Purchases/sales, net | 10 | 7 | |||||||||||||||||||||||||||||||
Other plan additions | – | 68 | |||||||||||||||||||||||||||||||
Actual return on plan assets | 4 | 3 | |||||||||||||||||||||||||||||||
Currency impact | (15 | ) | (1 | ) | |||||||||||||||||||||||||||||
Balance at end of the year | $ | 104 | $ | 105 | |||||||||||||||||||||||||||||
The weighted-average assumptions associated with the Company’s defined benefit pension and postretirement benefit plans were as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Assumptions related to net benefit costs: | |||||||||||||||||||||||||||||||||
U.S. plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.75 | % | 2.75 | % | 3.75 | % | 2.75 | % | |||||||||||||||||||||||||
Measurement date | 1/1/14 | 1/1/13 | 1/1/14 | 1/1/13 | |||||||||||||||||||||||||||||
Foreign plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.5-5.25 | % | 2.25-6.75 | % | – | – | |||||||||||||||||||||||||||
Expected return on plan assets | 2.25-6.75 | % | 3.50-6.75 | % | – | – | |||||||||||||||||||||||||||
Rate of compensation increase | 2.25-4.5 | % | 3.0-4.5 | % | – | – | |||||||||||||||||||||||||||
Measurement date | 1/1/14 | 1/1/13 | – | – | |||||||||||||||||||||||||||||
Assumptions related to end-of-period benefit obligations: | |||||||||||||||||||||||||||||||||
U.S. plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.25 | % | 3.75 | % | 3.25 | % | 3.75 | % | |||||||||||||||||||||||||
Health care cost trend rate | – | – | 7 | % | 7.5 | % | |||||||||||||||||||||||||||
Measurement date | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||||||||||||||||||
Foreign plans: | |||||||||||||||||||||||||||||||||
Discount rate | 2.25-4.25 | % | 3.5-5.25 | % | – | – | |||||||||||||||||||||||||||
Rate of compensation increase | 2.25-5.0 | % | 2.25-4.5 | % | – | – | |||||||||||||||||||||||||||
Measurement date | 12/31/14 | 12/31/13 | – | – | |||||||||||||||||||||||||||||
The Company’s discount rate assumptions for its U.S. postretirement benefits plan and its international defined benefit pension plans are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plans. | |||||||||||||||||||||||||||||||||
The assumptions for expected long-term rates of return on assets are based on historical experience and estimated future investment returns, taking into consideration anticipated asset allocations, investment strategies and the views of various investment professionals. | |||||||||||||||||||||||||||||||||
The rate of compensation increase assumption for international plans reflects local economic conditions and the Company’s compensation strategy in those locations. | |||||||||||||||||||||||||||||||||
The health care cost trend rate is assumed to decrease gradually from 7% to 5% by 2021 and remain at that level thereafter. A one-percentage-point increase or decrease in the assumed health care cost trend rate would not have a material impact on the service and interest cost components in 2014 or the postretirement benefit obligation as of December 31, 2014. | |||||||||||||||||||||||||||||||||
Amounts applicable to the Company’s pension plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||||||||||
Projected Benefit | Accumulated Benefit | ||||||||||||||||||||||||||||||||
Obligation in Excess | Obligation in Excess | ||||||||||||||||||||||||||||||||
of Plan Assets | of Plan Assets | ||||||||||||||||||||||||||||||||
at December 31, | at December 31, | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Fair value of applicable plan assets | $ | 455 | $ | 97 | $ | 455 | $ | 42 | |||||||||||||||||||||||||
Projected benefit obligation of applicable plans | $ | 509 | $ | 172 | – | – | |||||||||||||||||||||||||||
Accumulated benefit obligation of applicable plans | – | – | $ | 469 | $ | 84 | |||||||||||||||||||||||||||
Future expected benefit payments are as follows: | |||||||||||||||||||||||||||||||||
(dollars in millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
Year ending December 31: | |||||||||||||||||||||||||||||||||
2015 | $ | 68 | $ | 1 | |||||||||||||||||||||||||||||
2016 | $ | 12 | $ | 1 | |||||||||||||||||||||||||||||
2017 | $ | 12 | $ | 1 | |||||||||||||||||||||||||||||
2018 | $ | 13 | $ | 1 | |||||||||||||||||||||||||||||
2019 | $ | 14 | $ | 1 | |||||||||||||||||||||||||||||
2020 - 2024 | $ | 74 | $ | 3 | |||||||||||||||||||||||||||||
The Company’s United States-based employees who are not covered by a bargaining unit and certain others are also eligible to participate in the Cameron International Corporation Retirement Savings Plan. Under this plan, employees’ savings deferrals are partially matched in cash and invested at the employees’ discretion. The Company provides nondiscretionary retirement contributions to the Retirement Savings Plan on behalf of each eligible employee equal to 3% of their defined pay. Eligible employees vest in the 3% retirement contributions plus any earnings after completing three years of service. In addition, the Company provides an immediately vested matching contribution of up to 100% of the first 6% of pay contributed by each eligible employee. Employees may contribute amounts in excess of 6% of their pay to the Retirement Savings Plan, subject to certain United States Internal Revenue Service limitations. The Company’s expense for the matching and retirement contribution for the years ended December 31, 2014, 2013 and 2012 amounted to $77 million, $77 million and $70 million, respectively. In addition, the Company provides savings or other benefit plans for employees under collective bargaining agreements and, in the case of certain international employees, as required by government mandate, which provide for, among other things, Company funding in cash based on specified formulas. Expense with respect to these various defined contribution and government-mandated plans for the years ended December 31, 2014, 2013 and 2012 amounted to $73 million, $83 million and $60 million, respectively. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-Based Compensation Plans [Abstract] | |||||||||||||||||
Stock-Based Compensation Plans | Note 10: Stock-Based Compensation Plans | ||||||||||||||||
The Company has grants outstanding under various equity compensation plans, only one of which, the Equity Incentive Plan (EQIP), is currently available for future grants of equity compensation awards to employees and non-employee directors. Options granted under the Company’s equity compensation plans had an exercise price equal to the market value of the underlying common stock on the date of grant and all terms were fixed. | |||||||||||||||||
Stock-based compensation expense recognized was as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Outstanding restricted and deferred stock units and awards | $ | 44 | $ | 40 | $ | 32 | |||||||||||
Unvested outstanding stock options | 10 | 14 | 12 | ||||||||||||||
Total stock-based compensation expense | $ | 54 | $ | 54 | $ | 44 | |||||||||||
The total income statement tax benefit recognized from stock-based compensation arrangements during the years ended December 31, 2014, 2013 and 2012 totaled approximately $20 million, $20 million and $17 million, respectively. | |||||||||||||||||
Stock options | |||||||||||||||||
Options with terms of seven or ten years have been granted to officers and other key employees of the Company under the EQIP plan at a fixed exercise price equal to the fair value of the Company’s common stock on the date of grant. The options generally vest in one-third increments each year on the anniversary date following the date of grant, based on continued employment. | |||||||||||||||||
A summary of option activity under the Company’s stock compensation plans as of and for the year ended December 31, 2014 is presented below: | |||||||||||||||||
Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (dollars in | |||||||||||||||
Term | millions) | ||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at January 1, 2014 | 4,197,093 | $ | 47.92 | ||||||||||||||
Granted | 782,779 | 57.71 | |||||||||||||||
Exercised | (1,064,138 | ) | 40.48 | ||||||||||||||
Forfeited | (3,246 | ) | 64.97 | ||||||||||||||
Outstanding at December 31, 2014 | 3,912,488 | $ | 51.89 | 6.27 | $ | 13 | |||||||||||
Vested at December 31, 2014 or expected to vest in the future | 3,899,272 | $ | 51.86 | 6.26 | $ | 13 | |||||||||||
Exercisable at December 31, 2014 | 2,471,452 | $ | 47.32 | 4.63 | $ | 13 | |||||||||||
At | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | 14 | |||||||||||||||
Weighted-average remaining expense recognition period (in years) | 1.95 | ||||||||||||||||
The fair values per share of option grants for the years ended December 31, 2014, 2013 and 2012 were estimated using the Black-Scholes-Merton option pricing formula with the following weighted-average assumptions: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (in years) | 3.3 | 3.2 | 3.2 | ||||||||||||||
Risk-free interest rate | 0.86 | % | 0.67 | % | 0.37 | % | |||||||||||
Volatility | 33.8 | % | 34.3 | % | 39.4 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
The Company determined the assumptions involving the expected life of its options and volatility rates based primarily on historical data and consideration of expectations for the future. | |||||||||||||||||
The above assumptions and market prices of the Company’s common stock at the date of option exercises resulted in the following values: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Grant-date fair value per option | $ | 14.51 | $ | 16.19 | $ | 15.68 | |||||||||||
Intrinsic value of options exercised (dollars in millions) | $ | 26 | $ | 31 | $ | 34 | |||||||||||
Average intrinsic value per share of options exercised | $ | 24.17 | $ | 26.3 | $ | 23.39 | |||||||||||
Restricted and deferred stock units and awards | |||||||||||||||||
Grants of restricted stock units are made to officers and other key employees. The restricted stock units granted generally provide for vesting in one-third increments each year or three-year 100% cliff vesting on the third anniversary of the date of grant, based on continued employment. | |||||||||||||||||
Non-employee directors are entitled to receive an annual number of deferred stock units equal to a value of $250,000 determined on the day following the Company’s annual meeting of stockholders or, if a director’s election to the Board occurs between annual meetings of stockholders, the initial grant of deferred stock units is based on a pro-rata portion of the annual grant amount equal to the remaining number of months in the board year until the next annual meeting of stockholders. These units, which have no exercise price and no expiration date, vest in one-fourth increments quarterly over the following year but cannot be converted into common stock until the earlier of termination of Board service or three years, although Board members have the ability to voluntarily defer conversion for a longer period of time. | |||||||||||||||||
A summary of restricted and deferred stock unit award activity under the Company’s stock compensation plans as of and for the year ended December 31, 2014 is presented below: | |||||||||||||||||
Number | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Restricted and Deferred Stock Units | Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 1,658,357 | $ | 28.22 | ||||||||||||||
Granted | 826,329 | 59.63 | |||||||||||||||
Vested | (563,179 | ) | 59.82 | ||||||||||||||
Forfeited | (72,825 | ) | 57.22 | ||||||||||||||
Nonvested at December 31, 2014 | 1,848,682 | $ | 31.89 | ||||||||||||||
At | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | 46 | |||||||||||||||
Weighted-average remaining expense recognition period (in years) | 1.6 | ||||||||||||||||
Information on restricted and deferred stock units granted and vesting during the three years ended December 31, 2014 follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Number of units granted with performance conditions | 174,697 | 185,992 | 211,244 | ||||||||||||||
Intrinsic value of units vesting (dollars in millions) | $ | 34 | $ | 46 | $ | 38 | |||||||||||
Total number of units granted | 826,329 | 838,207 | 674,578 | ||||||||||||||
Weighted average grant date fair value per unit | $ | 59.63 | $ | 57.95 | $ | 50.44 | |||||||||||
The fair value of restricted and deferred stock units is determined based on the closing trading price of the Company’s common stock on the grant date. | |||||||||||||||||
At December 31, 2014, 11,685,001 shares were reserved for future grants of options, deferred stock units, restricted stock units and other awards. The Company may issue either treasury shares or newly issued shares of its common stock in satisfaction of these awards. |
Debt
Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt [Abstract] | |||||||||||||
Debt | Note 11: Debt | ||||||||||||
The Company’s debt obligations were as follows: | |||||||||||||
December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||
Commercial paper (0.49% weighted average rate) | $ | 201 | $ | – | |||||||||
Senior notes: | |||||||||||||
Floating rate notes due June 2, 2014 | – | 250 | |||||||||||
1.6% notes due April 30, 2015 | – | 250 | |||||||||||
1.15% notes due December 15, 2016 | 250 | 250 | |||||||||||
1.4% 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 | 67 | 57 | |||||||||||
Obligations under capital leases | 71 | 60 | |||||||||||
3,082 | 2,860 | ||||||||||||
Current maturities | (263 | ) | (297 | ) | |||||||||
Long-term maturities | $ | 2,819 | $ | 2,563 | |||||||||
Senior Notes | |||||||||||||
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 is payable semiannually on June 15 and December 15 of each year, and began on 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 December 31, 2014 was approximately 36 days. | |||||||||||||
Multicurrency Revolving Letter of Credit and Credit Facilities | |||||||||||||
The Company’s Credit Agreement dated April 14, 2008 (as amended and restated, the "Amended Credit Agreement") provides for a multi-currency borrowing capacity of $835 million and matures on June 6, 2016. Pursuant to the Amended Credit Agreement, Cameron may borrow funds at the London Interbank Offered Rate (LIBOR) plus a spread, which varies based on the Company’s current debt rating, and, if aggregate outstanding credit exposure exceeds one-half of the total facility amount, an additional fee will be incurred. At December 31, 2014, no amounts have been borrowed under the $835 million Amended Credit Agreement. | |||||||||||||
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, described above, and it serves as the primary backstop to the commercial paper program. The Company has issued letters of credit totaling $69 million under the new $750 million Revolving Credit Facility and $3 million under the $40 million bi-lateral facility, leaving $681 million and $37 million, respectively, available for future use at December 31, 2014. | |||||||||||||
Other | |||||||||||||
Other debt, some of which is held by entities located in countries with high rates of inflation, has a weighted-average interest rate of 6.5% at December 31, 2014 (6.1% at December 31, 2013). | |||||||||||||
Future maturities of the Company’s debt (excluding the remaining amount of unamortized discount and capital leases) are approximately $249 million in 2015, $269 million in 2016, $250 million in 2017, $450 million in 2018 and $1.8 billion thereafter. | |||||||||||||
In addition to the above, the Company also has other unsecured and uncommitted credit facilities available to its foreign subsidiaries to fund ongoing operating activities. Certain of these facilities also include annual facility fees. | |||||||||||||
Information on interest expensed and paid during the three years ended December 31, 2014 was as follows: | |||||||||||||
Year Ended December 31 | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Interest expensed | $ | 149 | $ | 115 | $ | 104 | |||||||
Interest paid | $ | 142 | $ | 105 | $ | 97 |
Leases
Leases | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Leases | Note 12: Leases | ||||||||
The Company leases certain facilities, office space, vehicles, data processing and other equipment under capital and operating leases. Rental expenses for the years ended December 31, 2014, 2013 and 2012 were $115 million, $111 million and $86 million, respectively. Future minimum lease payments with respect to capital leases and operating leases with noncancelable terms in excess of one year were as follows: | |||||||||
Capital | Operating | ||||||||
(dollars in millions) | Lease Payments | Lease Payments | |||||||
Year ending December 31: | |||||||||
2015 | $ | 17 | $ | 103 | |||||
2016 | 15 | 90 | |||||||
2017 | 12 | 78 | |||||||
2018 | 8 | 64 | |||||||
2019 | 6 | 57 | |||||||
Thereafter | 62 | 350 | |||||||
Future minimum lease payments | 120 | 742 | |||||||
Less: amount representing interest | (49 | ) | – | ||||||
Lease obligations at December 31, 2014 | $ | 71 | $ | 742 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Taxes [Abstract] | |||||||||||||||
Income Taxes | Note 13: Income Taxes | ||||||||||||||
The components of income from continuing operations before income taxes were as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
U.S. operations | $ | 294 | $ | 219 | $ | 664 | |||||||||
Foreign operations | 786 | 636 | 178 | ||||||||||||
Income from continuing operations before income taxes | $ | 1,080 | $ | 855 | $ | 842 | |||||||||
The provisions for income taxes were as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Current: | |||||||||||||||
U.S. federal | $ | 70 | $ | – | $ | 97 | |||||||||
U.S. state and local | 4 | 11 | 7 | ||||||||||||
Foreign | 231 | 166 | 137 | ||||||||||||
305 | 177 | 241 | |||||||||||||
Deferred: | |||||||||||||||
U.S. federal | – | 31 | (37 | ) | |||||||||||
U.S. state and local | (3 | ) | 2 | (2 | ) | ||||||||||
Foreign | (44 | ) | (14 | ) | (45 | ) | |||||||||
(47 | ) | 19 | (84 | ) | |||||||||||
Income tax provision | $ | 258 | $ | 196 | $ | 157 | |||||||||
The reasons for the differences between the provision for income taxes and income taxes using the U.S. federal income tax rate were as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||
State and local income taxes | – | 1 | 0.4 | ||||||||||||
Foreign statutory rate differential | (10.7 | ) | (11.6 | ) | (10.2 | ) | |||||||||
Change in valuation allowance on deferred tax assets | 3.4 | (1.7 | ) | 6.6 | |||||||||||
Nondeductible expenses | (0.1 | ) | 1.1 | 0.9 | |||||||||||
Net U.S. tax on foreign source income | (2.9 | ) | (3.2 | ) | (12.2 | ) | |||||||||
All other | (0.8 | ) | 2.3 | (1.9 | ) | ||||||||||
Total | 23.9 | % | 22.9 | % | 18.6 | % | |||||||||
Total income taxes paid (dollars in millions) | $ | 353 | $ | 329 | $ | 240 | |||||||||
Components of deferred tax assets (liabilities) were as follows: | |||||||||||||||
December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Plant and equipment | $ | (190 | ) | $ | (171 | ) | |||||||||
Intangible assets | (221 | ) | (251 | ) | |||||||||||
Other | (9 | ) | (16 | ) | |||||||||||
Total deferred tax liabilities | (420 | ) | (438 | ) | |||||||||||
Deferred tax assets: | |||||||||||||||
Inventory | 48 | 20 | |||||||||||||
Postretirement benefits other than pensions | 3 | 12 | |||||||||||||
Reserves and accruals | 160 | 93 | |||||||||||||
Net operating losses and tax credits | 259 | 246 | |||||||||||||
Pensions | 38 | 16 | |||||||||||||
Other | 27 | 17 | |||||||||||||
Total deferred tax assets | 535 | 404 | |||||||||||||
Valuation allowance | (79 | ) | (59 | ) | |||||||||||
Net deferred tax assets (liabilities) | $ | 36 | $ | (93 | ) | ||||||||||
Changes in the Company’s accruals for unrecognized tax benefits were as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 103 | $ | 121 | $ | 148 | |||||||||
Decreases in estimates for tax positions taken prior to the current year | – | – | (11 | ) | |||||||||||
Increases due to tax positions taken during the current year | 6 | 3 | – | ||||||||||||
Decreases relating to settlements with tax authorities | (10 | ) | (19 | ) | (10 | ) | |||||||||
Decreases resulting from the lapse of applicable statutes of limitation | – | – | (7 | ) | |||||||||||
Net increases (decreases) due to translation and interest | (2 | ) | (2 | ) | 1 | ||||||||||
Balance at end of year | $ | 97 | $ | 103 | $ | 121 | |||||||||
The Company has a $97 million accrual for unrecognized tax benefits at December 31, 2014, for which the majority of the uncertainties surrounding the benefits are expected to be settled during the next twelve-month period as a result of the conclusion of various income tax audits or due to the expiration of the applicable statute of limitations. The Company is not currently aware of any material amounts included as unrecognized tax benefits at December 31, 2014 that, if recognized, would not impact the Company’s future effective income tax rate. | |||||||||||||||
There were no material payments for interest or penalties for the years ended December 31, 2014, 2013 or 2012. Also, there were no material accruals for unpaid interest or penalties at December 31, 2014 or 2013. | |||||||||||||||
The Company and its subsidiaries file income tax returns in the United States, various domestic states and localities and in many foreign jurisdictions. The earliest years’ tax returns filed by the Company that are still subject to examination by authorities in the major tax jurisdictions are as follows: | |||||||||||||||
United | United | Canada | France | Germany | Norway | Singapore | Italy | ||||||||
States | Kingdom | ||||||||||||||
2011 | 2012 | 2006 | 2012 | 2008 | 2010 | 2010 | 2008 | ||||||||
At December 31, 2014, the Company had net operating loss and credit carryforwards in numerous jurisdictions with various expiration periods, including certain jurisdictions which have no expiration period. Changes in the Company’s valuation allowances against these net operating loss and credit carryforwards and other deferred tax assets were as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 59 | $ | 84 | $ | 30 | |||||||||
Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year | 25 | 11 | 36 | ||||||||||||
Change in valuation allowances related to prior years | (2 | ) | (16 | ) | 19 | ||||||||||
Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized | – | (19 | ) | – | |||||||||||
Effect of translation | (3 | ) | (1 | ) | (1 | ) | |||||||||
Balance at end of year | $ | 79 | $ | 59 | $ | 84 | |||||||||
The Company has considered all available evidence in assessing the need for the valuation allowance, including future taxable income, future foreign source income, and ongoing prudent and feasible tax planning strategies. In the event the Company were to determine that it would not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the net deferred tax assets would be charged to income in the period such determination was made. | |||||||||||||||
Tax attribute carryforwards which are available for use on future income tax returns at December 31, 2014 are as follows: | |||||||||||||||
(dollars in millions) | Domestic | Foreign | Expiration | ||||||||||||
Net operating losses - regular income tax | $ | – | $ | 381 | 2018 - Indefinite | ||||||||||
Net operating losses – state income tax | $ | 6 | $ | – | 2018 – 2034 | ||||||||||
Foreign tax credits | $ | 93 | $ | – | 2016 – 2024 | ||||||||||
The tax benefit that the Company receives with respect to certain stock compensation plan transactions is credited to capital in excess of par value and does not reduce income tax expense. This benefit amounted to $6 million, $10 million and $12 million in 2014, 2013 and 2012, respectively. | |||||||||||||||
The Company considers all unremitted earnings of its foreign subsidiaries, except certain amounts primarily earned before 2003, certain amounts earned during 2009, certain amounts earned by NATCO, and amounts previously subjected to tax in the U.S., to be permanently reinvested. An estimate of the amounts considered permanently reinvested is $5.1 billion. It is not practical for the Company to compute the amount of additional U.S. tax that would be due on this amount. The Company has provided deferred income taxes on the earnings that the Company anticipates will be remitted. | |||||||||||||||
The Company operates in jurisdictions, primarily Singapore and Malaysia, in which it has been granted tax holidays. The benefit of these holidays for 2014, 2013 and 2012 was approximately $11 million, $3 million and $2 million, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||
Stockholders' Equity | Note 14: Stockholders’ Equity | ||||||||||||
Common Stock | |||||||||||||
The Company’s Board of Directors has given management the authority to purchase approximately $3.8 billion of the Company’s common stock. The Company, under this authorization, may purchase shares directly or indirectly by way of open market transactions or structured programs, including the use of derivatives, for the Company’s own account or through commercial banks or financial institutions. At December 31, 2014, the Company had remaining authority for future stock purchases totaling approximately $476 million. | |||||||||||||
Changes in the number of shares of the Company’s outstanding stock for the last three years were as follows: | |||||||||||||
Common | Treasury | Shares | |||||||||||
Stock | Stock | Outstanding | |||||||||||
Balance - December 31, 2011 | 263,111,472 | (17,579,397 | ) | 245,532,075 | |||||||||
Purchase of treasury stock | – | (412,800 | ) | (412,800 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,576,861 | 1,576,861 | ||||||||||
Balance - December 31, 2012 | 263,111,472 | (16,415,336 | ) | 246,696,136 | |||||||||
Purchase of treasury stock | – | (26,955,623 | ) | (26,955,623 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,687,795 | 1,687,795 | ||||||||||
Balance - December 31, 2013 | 263,111,472 | (41,683,164 | ) | 221,428,308 | |||||||||
Purchase of treasury stock | – | (27,970,492 | ) | (27,970,492 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,514,629 | 1,514,629 | ||||||||||
Balance - December 31, 2014 | 263,111,472 | (68,139,027 | ) | (194,972,445 | ) | ||||||||
At December 31, 2014, 17,447,056 shares of unissued common stock or treasury stock were reserved for future issuance relating to previous grants of options, deferred stock units, restricted stock units and other awards under various stock compensation plans that were still outstanding at December 31, 2014, and for future available grants under those plans. | |||||||||||||
Preferred Stock | |||||||||||||
The Company is authorized to issue up to 10 million shares of preferred stock, par value of $0.1 per share. Shares of preferred stock may be issued in one or more series of classes, each of which series or class shall have such distinctive designation or title and terms as shall be fixed by the Board of Directors of the Company prior to issuance of any shares. | |||||||||||||
Retained Earnings | |||||||||||||
Delaware law, under which the Company is incorporated, provides that dividends may be declared by the Company’s Board of Directors from a current year’s earnings as well as from the total of capital in excess of par value plus the retained earnings, which amounted to approximately $8.9 billion at December 31, 2014. | |||||||||||||
In addition, dividends to be paid by OneSubsea to the venture partners require approval by the Board of Directors of OneSubsea. |
Accumulated_Other_Elements_of_
Accumulated Other Elements of Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated Other Elements of Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||
Accumulated Other Elements of Comprehensive Income (Loss) | Note 15: Accumulated Other Elements of Comprehensive Income (Loss) | ||||||||||||||||||||
Accumulated other elements of comprehensive income (loss) comprised the following: | |||||||||||||||||||||
(dollars in millions) | Accumulated Foreign Currency Translation | Prior Service Credits and Net | Accumulated Gain (Loss) on Cash | Total | Other Comprehensive Income | ||||||||||||||||
Gain (Loss) | Actuarial Losses | Flow Hedges | |||||||||||||||||||
Balance at December 31, 2011 | $ | (29 | ) | $ | (56 | ) | $ | (6 | ) | $ | (91 | ) | |||||||||
Foreign currency translation gain (loss) | 75 | – | – | 75 | $ | 75 | |||||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | (33 | ) | – | (33 | ) | (33 | ) | |||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 2 | – | 2 | 2 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | 10 | 10 | 10 | ||||||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 7 | 7 | 7 | ||||||||||||||||||
Balance at December 31, 2012 | 46 | (87 | ) | 11 | (30 | ) | $ | 61 | |||||||||||||
Foreign currency translation gain (loss) | (95 | ) | – | – | (95 | ) | $ | (95 | ) | ||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | 40 | – | 40 | 40 | ||||||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 2 | – | 2 | 2 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | 6 | 6 | 6 | ||||||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | – | – | (3 | ) | (3 | ) | (3 | ) | |||||||||||||
Balance at December 31, 2013 | (49 | ) | (45 | ) | 14 | (80 | ) | $ | (50 | ) | |||||||||||
Foreign currency translation gain (loss) | (379 | ) | – | – | (379 | ) | $ | (379 | ) | ||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | (31 | ) | – | (31 | ) | (31 | ) | |||||||||||||
Curtailment and settlement gains (losses) | – | (3 | ) | – | (3 | ) | (3 | ) | |||||||||||||
recognized in other comprehensive income, net of tax | |||||||||||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 1 | – | 1 | 1 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | (52 | ) | (52 | ) | (52 | ) | |||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | – | – | 4 | 4 | 4 | ||||||||||||||||
Balance of December 31, 2014 | $ | (428 | ) | $ | (78 | ) | $ | (34 | ) | $ | (540 | ) | $ | (460 | ) |
Business_Segments
Business Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Segments [Abstract] | |||||||||||||
Business Segments | Note 16: Business Segments | ||||||||||||
The Company’s segment reporting changed in 2014 resulting in the business being organized into four segments – Subsea, Surface, Drilling and Valves & Measurement (V&M). Historical information by segment for 2012 and 2013 has been retrospectively revised to conform to the 2014 presentation. | |||||||||||||
The Subsea segment includes the operations of OneSubsea, a business jointly owned by Cameron (60%) and Schlumberger (40%). The Subsea segment delivers integrated solutions, products, systems and services to the subsea oil and gas market, including integrated subsea production systems involving wellheads, subsea trees, manifolds and flowline connectors, subsea processing systems for the enhanced recovery of hydrocarbons, control systems, connectors and services designed to maximize reservoir recovery and extend the life of each field. | |||||||||||||
The Surface segment provides onshore and offshore platform wellhead systems and processing solutions, including valves, chokes, actuators, Christmas trees and aftermarket services to oil and gas operators. Rental equipment and artificial lift technologies are also provided, as well as products and services involving shale gas production. | |||||||||||||
One of the major services provided by the Surface segment is CAMSHALE™ Production Solutions, which specializes in shale gas production. In this process, intense pressure from fracing fluid (usually a mixture of water and sand) is used to crack surrounding shale. Once the fractures are made, the water is removed from the well bore and the sand is left behind to hold the fractures open. Oil and natural gas then moves out of the fractures, into the well bore, and up to the surface. | |||||||||||||
The Drilling segment provides drilling equipment and aftermarket services to shipyards, drilling contractors, exploration & production operators and rental tool companies. Products fall into two broad categories: pressure control equipment and rotary drilling equipment and are designed for either onshore or offshore applications. Such products include drilling equipment packages, blowout preventers (BOPs), BOP control systems, connectors, riser systems, valve and choke manifold systems, topdrives, mud pumps, pipe handling equipment, rig designs and rig kits. | |||||||||||||
The V&M segment businesses serve portions of the upstream, midstream and downstream markets. These businesses provide valves and measurement systems that are primarily used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. Products include gate valves, butterfly valves, Orbit® brand rising stem ball valves, double block and bleed valves, plug valves, globe valves, check valves, actuators, chokes and aftermarket parts and services as well as measurement equipment products such as totalizers, turbine meters, flow computers, chart recorders, ultrasonic flow meters and sampling systems. | |||||||||||||
The Company’s primary customers are oil and gas majors, national oil companies, independent producers, engineering and construction companies, drilling contractors, rental companies, geothermal energy and independent power producers, pipeline operators, major chemical, petrochemical and refining companies, natural gas processing and transmission companies, compression leasing companies, durable goods manufacturers, utilities and air separation companies. | |||||||||||||
The Company markets its equipment through a worldwide network of sales and marketing employees supported by agents and distributors in selected international locations. Due to the extremely technical nature of many of the products, the marketing effort is further supported by a staff of engineering employees. | |||||||||||||
The Company expenses all research and product development and enhancement costs as incurred, or if incurred in connection with a product ordered by a customer, when the revenue associated with the product is recognized. For the years ended December 31, 2014, 2013 and 2012, research and product development expenditures, including amounts incurred on projects designed to enhance or add to its existing product offerings, totaled approximately $128 million, $83 million and $63 million, respectively. The Subsea segment accounted for 58%, 44% and 47% of each respective year’s total costs. | |||||||||||||
Summary financial data by segment follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
Subsea | $ | 3,067 | $ | 2,813 | $ | 2,061 | |||||||
Surface | 2,411 | 2,077 | 1,859 | ||||||||||
Drilling | 3,049 | 2,327 | 1,807 | ||||||||||
V&M | 2,125 | 2,105 | 2,168 | ||||||||||
Elimination of intersegment revenues | (271 | ) | (184 | ) | (100 | ) | |||||||
Consolidated revenues | $ | 10,381 | $ | 9,138 | $ | 7,795 | |||||||
Depreciation and amortization: | |||||||||||||
Subsea | $ | 113 | $ | 85 | $ | 57 | |||||||
Surface | 126 | 106 | 85 | ||||||||||
Drilling | 60 | 60 | 46 | ||||||||||
V&M | 49 | 47 | 50 | ||||||||||
Consolidated depreciation and amortization | $ | 348 | $ | 298 | $ | 238 | |||||||
Segment operating income before interest and income taxes: | |||||||||||||
Subsea | $ | 207 | $ | 152 | $ | 72 | |||||||
Surface | 427 | 367 | 315 | ||||||||||
Drilling | 474 | 311 | 329 | ||||||||||
V&M | 393 | 414 | 396 | ||||||||||
Elimination of intersegment earnings | (74 | ) | (35 | ) | (21 | ) | |||||||
Segment operating income before interest and income taxes | 1,427 | 1,209 | 1,091 | ||||||||||
Corporate items: | |||||||||||||
Corporate expenses | (145 | ) | (162 | ) | (126 | ) | |||||||
Interest, net | (129 | ) | (100 | ) | (90 | ) | |||||||
Other costs | (73 | ) | (92 | ) | (33 | ) | |||||||
Consolidated income from continuing operations before income taxes | $ | 1,080 | $ | 855 | $ | 842 | |||||||
Capital expenditures: | |||||||||||||
Subsea | $ | 70 | $ | 80 | $ | 82 | |||||||
Surface | 125 | 156 | 132 | ||||||||||
Drilling | 38 | 111 | 97 | ||||||||||
V&M | 49 | 58 | 30 | ||||||||||
Corporate | 96 | 102 | 69 | ||||||||||
Discontinued operations | 7 | 13 | 17 | ||||||||||
Consolidated capital expenditures | $ | 385 | $ | 520 | $ | 427 | |||||||
Total assets: | |||||||||||||
Subsea | $ | 5,571 | $ | 5,897 | $ | 3,364 | |||||||
Surface | 2,756 | 2,705 | 2,307 | ||||||||||
Drilling | 3,011 | 3,076 | 2,413 | ||||||||||
V&M | 1,633 | 1,765 | 1,743 | ||||||||||
Corporate | 581 | 844 | 1,376 | ||||||||||
Discontinued operations | 217 | 616 | 615 | ||||||||||
Elimination of intersegment investments | (877 | ) | (654 | ) | (660 | ) | |||||||
Consolidated total assets | $ | 12,892 | $ | 14,249 | $ | 11,158 | |||||||
For internal management reporting, and therefore in the above segment information, “Corporate items” include governance expenses associated with the Company’s corporate office, as well as all of the Company’s interest income, interest expense, certain litigation expense managed by the Company’s General Counsel, foreign currency gains and losses from certain derivative and intercompany lending activities managed by the Company’s centralized Treasury function, all of the Company’s pension settlement costs, asset impairment and restructuring expenses, acquisition-related costs and various other unusual or one-time costs that are not considered a component of segment operating income. Consolidated interest income and expense are treated as a corporate item because cash equivalents, short-term investments and debt, including location, type, currency, etc., are managed on a worldwide basis by the Corporate Treasury Department. | |||||||||||||
Customer revenue by shipping location and long-lived assets by country were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
United States | $ | 4,689 | $ | 4,311 | $ | 4,058 | |||||||
United Kingdom | 964 | 822 | 612 | ||||||||||
Other foreign countries | 4,728 | 4,005 | 3,125 | ||||||||||
Total revenues | $ | 10,381 | $ | 9,138 | $ | 7,795 | |||||||
December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 2,367 | $ | 2,670 | $ | 2,532 | |||||||
United Kingdom | 219 | 197 | 170 | ||||||||||
Other foreign countries | 2,567 | 2,999 | 1,323 | ||||||||||
Total long-lived assets | $ | 5,153 | $ | 5,866 | $ | 4,025 |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings per share attributable to Cameron stockholders [Abstract] | |||||||||||||
Earnings Per Share | Note 17: Earnings Per Share | ||||||||||||
The calculation of basic and diluted earnings per share for each period presented was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(amounts in millions, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Net income attributable to Cameron | $ | 811 | $ | 699 | $ | 751 | |||||||
Average shares outstanding (basic) | 204 | 242 | 246 | ||||||||||
Common stock equivalents | 1 | 2 | 2 | ||||||||||
Shares utilized in diluted earnings per share calculation | 205 | 244 | 248 | ||||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||
Basic | $ | 3.98 | $ | 2.89 | $ | 3.05 | |||||||
Diluted | $ | 3.96 | $ | 2.87 | $ | 3.03 |
Summary_of_Noncash_Operating_I
Summary of Non-cash Operating, Investing and Financing Activities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Non-cash Operating, Investing and Financing Activities [Abstract] | |||||||||||||
Summary of Non-cash Operating, Investing and Financing Activities | Note 18: Summary of Non-cash Operating, Investing and Financing Activities | ||||||||||||
The effect on net assets of non-cash operating, investing and financing activities was as follows: | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Tax benefit of stock compensation plan transactions | $ | 6 | $ | 10 | $ | 12 | |||||||
Change in fair value of derivatives accounted for as cash flow hedges, net of tax | $ | (76 | ) | $ | 14 | $ | 10 | ||||||
Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans | $ | (35 | ) | $ | 13 | $ | (34 | ) |
OffBalance_Sheet_Risk_and_Guar
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | Note 19: Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | ||||||||||||||||||||||||||||
Off-Balance Sheet Risk and Guarantees | |||||||||||||||||||||||||||||
At December 31, 2014, the Company was contingently liable with respect to approximately $1.1 billion of bank guarantees and standby letters of credit issued on its behalf by major domestic and international financial institutions in connection with the delivery, installation and performance of the Company’s products under contract with customers throughout the world. The Company was also liable to these financial institutions for financial letters of credit and other guarantees issued on its behalf totaling nearly $52 million, which provide security to third parties relating to the Company’s ability to meet specified financial obligations, including payment of leases, customs duties, insurance and other matters. Additionally, the Company was liable for approximately $28 million of insurance bonds at December 31, 2014 relating to the requirements in certain foreign jurisdictions where the Company does business that the Company hold insurance bonds rather than bank guarantees. | |||||||||||||||||||||||||||||
The Company’s other off-balance sheet risks were not material at December 31, 2014. | |||||||||||||||||||||||||||||
Concentrations of Credit Risk and Major Customers | |||||||||||||||||||||||||||||
Apart from its normal exposure to its customers, who are predominantly in the energy industry, the Company had no significant concentrations of credit risk at December 31, 2014. The Company typically does not require collateral for its customer trade receivables but does often obtain letters of credit from third-party banks as security for future payment on certain large product shipments. Allowances for doubtful accounts are recorded for estimated losses that may result from the inability of customers to make required payments. See Note 5 of the Notes to Consolidated Financial Statements for additional information. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, trade receivables, trade payables, derivative instruments and debt instruments. The book values of trade receivables, trade payables and floating-rate debt instruments are considered to be representative of their respective fair values. | |||||||||||||||||||||||||||||
Following is a summary of the Company’s financial instruments which have been valued at fair value in the Company’s Consolidated Balance Sheets at December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Fair Value Based on | Fair Value Based on | Total | |||||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | ||||||||||||||||||||||||||||
Markets for Identical | Observable Inputs | ||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Cash | $ | 616 | $ | 618 | $ | – | $ | – | $ | 616 | $ | 618 | |||||||||||||||||
Money market funds | 842 | 1,172 | – | – | 842 | 1,172 | |||||||||||||||||||||||
Commercial paper | – | – | 13 | 4 | 13 | 4 | |||||||||||||||||||||||
U.S. treasury securities | 5 | – | – | – | 5 | – | |||||||||||||||||||||||
U.S. corporate obligations | 4 | – | – | – | 4 | – | |||||||||||||||||||||||
Non-U.S. bank and other obligations | 33 | 19 | – | – | 33 | 19 | |||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||
Commercial paper | – | – | 11 | – | 11 | – | |||||||||||||||||||||||
U.S. Treasury securities | 51 | 41 | – | – | 51 | 41 | |||||||||||||||||||||||
U.S. corporate obligations | 51 | – | – | – | 51 | – | |||||||||||||||||||||||
Non-qualified plan assets: | |||||||||||||||||||||||||||||
Money market funds | 1 | 1 | – | – | 1 | 1 | |||||||||||||||||||||||
Domestic bond funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||
Domestic equity funds | 5 | 5 | – | – | 5 | 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 | – | – | (99 | ) | 19 | (99 | ) | 19 | |||||||||||||||||||||
Total financial instruments | $ | 1,621 | $ | 1,868 | $ | (75 | ) | $ | 23 | $ | 1,546 | $ | 1,891 | ||||||||||||||||
Fair values for financial instruments utilizing level 2 inputs were determined from information obtained from third-party pricing sources, broker quotes, calculations involving the use of market indices or mutual fund unit values determined based upon the valuation of the funds’ underlying assets. | |||||||||||||||||||||||||||||
At December 31, 2014, the fair value of the Company’s fixed-rate debt (based on Level 1 quoted market rates) was approximately $2.9 billion as compared to the $2.7 billion face value of the debt recorded, net of original issue discounts, in the Company’s Consolidated Balance Sheet. 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 have fully offsetting local currency expenditures or receipts. The Company was party to a number of long-term foreign currency forward contracts at December 31, 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 elements of comprehensive income (loss) in the period such change occurs. Certain other contracts, many of which are centrally managed, are intended to offset other foreign currency exposures but have not been designated as hedges for accounting purposes and, therefore, any change in the fair value of those contracts are reflected in earnings in the period such change occurs. The Company determines the fair value of its outstanding foreign currency forward contracts based on quoted exchange rates for the respective currencies applicable to similar instruments. | |||||||||||||||||||||||||||||
Total gross volume bought (sold) by notional currency and maturity date on open foreign currency forward contracts at December 31, 2014 was as follows: | |||||||||||||||||||||||||||||
Notional Amount - Buy | Notional Amount - Sell | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2016 | 2017 | Total | 2015 | 2016 | Total | ||||||||||||||||||||||
Foreign exchange forward contracts - | |||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||
Euro | 200 | 14 | – | 214 | (10 | ) | (1 | ) | (11 | ) | |||||||||||||||||||
Malaysian ringgit | 377 | 51 | – | 428 | (29 | ) | – | (29 | ) | ||||||||||||||||||||
Norwegian krone | 895 | 117 | 4 | 1,016 | (96 | ) | (44 | ) | (140 | ) | |||||||||||||||||||
Pound Sterling | 110 | 5 | – | 115 | (22 | ) | (1 | ) | (23 | ) | |||||||||||||||||||
U.S. dollar | 60 | – | – | 60 | (635 | ) | (47 | ) | (682 | ) | |||||||||||||||||||
Foreign exchange option contracts - | |||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||
U.S. dollar | 87 | – | – | 87 | – | – | – | ||||||||||||||||||||||
While the Company and its counterparties have the right to offset gains and losses on different derivative contracts under certain circumstances, the Company’s policy is to record its derivative contracts on a gross basis. The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(dollars in millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts – | |||||||||||||||||||||||||||||
Current | $ | 8 | $ | 83 | $ | 28 | $ | 10 | |||||||||||||||||||||
Non-current | 1 | 12 | 3 | 2 | |||||||||||||||||||||||||
Total derivatives designated as hedges | 9 | 95 | 31 | 12 | |||||||||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts – | |||||||||||||||||||||||||||||
Current | 1 | 14 | 6 | 6 | |||||||||||||||||||||||||
Non-current | – | – | – | – | |||||||||||||||||||||||||
Total derivatives not designated as hedges | 1 | 14 | 6 | 6 | |||||||||||||||||||||||||
Total derivatives | $ | 10 | $ | 109 | $ | 37 | $ | 18 | |||||||||||||||||||||
The after-tax loss on cash flow hedges included in accumulated other elements of comprehensive income and in noncontrolling interests totaled $47 million at December 31, 2014. Approximately $38 million (after-tax) is expected to be recognized as a reduction in earnings in 2015. | |||||||||||||||||||||||||||||
The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency contracts – | |||||||||||||||||||||||||||||
Cost of sales | $ | (7 | ) | $ | 1 | $ | – | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency contracts – | |||||||||||||||||||||||||||||
Cost of sales | (11 | ) | 7 | 2 | |||||||||||||||||||||||||
Other costs | (8 | ) | (1 | ) | 16 | ||||||||||||||||||||||||
Total pre-tax gain (loss) | $ | (26 | ) | $ | 7 | $ | 18 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Contingencies [Abstract] | |
Contingencies | Note 20: Contingencies |
The Company is subject to a number of contingencies, including litigation, tax contingencies and environmental matters. | |
Litigation | |
The Company has been and continues to be named as a defendant in a number of multi-defendant, multi-plaintiff tort lawsuits. At December 31, 2014, the Company’s Consolidated Balance Sheet included a liability of approximately $17 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 $50 million at December 31, 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 a majority of this assessment will ultimately be proven to be incorrect because of numerous errors in the assessment, and because the government has not provided appropriate supporting documentation for the assessment. As a result, the Company currently expects no material adverse impact on its results of operations or cash flows as a result of the ultimate resolution of this matter. No amounts have been accrued for this assessment as of December 31, 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 Osborne site is 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 had been endgaged in one at a former manufactuing location in Missouri City, Texas. With respect to the Missouri City site, the Company recieved a Certificate from the TCEQ on February 17, 2015. 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 December 31, 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 December 31, 2014, the Company's Consolidated Balance Sheet included a noncurrent liability of nearly $3 million for these environmental matters. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Events [Abstract] | |||
Subsequent Events | Note 21: Recently Issued Accounting Pronouncements | ||
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. |
Unaudited_Quarterly_Operating_
Unaudited Quarterly Operating Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Unaudited Quarterly Operating Results [Abstract] | |||||||||||||||||
Unaudited Quarterly Operating Results | Note 22: Unaudited Quarterly Operating Results | ||||||||||||||||
Unaudited quarterly operating results were as follows: | |||||||||||||||||
2014 (quarter ended) | |||||||||||||||||
(dollars in millions, except per share data) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Revenues | $ | 2,329 | $ | 2,570 | $ | 2,678 | $ | 2,804 | |||||||||
Revenues less cost of sales (exclusive of depreciation and amortization) | $ | 639 | $ | 720 | $ | 763 | $ | 795 | |||||||||
Other costs (credits) | $ | 49 | $ | (6 | ) | $ | 19 | $ | 11 | ||||||||
Net income | $ | 115 | $ | 233 | $ | 238 | $ | 262 | |||||||||
Net income attributable to noncontrolling interests | $ | 4 | $ | 12 | $ | 13 | $ | 8 | |||||||||
Net income attributable to Cameron stockholders | $ | 111 | $ | 221 | $ | 225 | $ | 254 | |||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||||||
Basic | $ | 0.51 | $ | 1.08 | $ | 1.12 | $ | 1.3 | |||||||||
Diluted | $ | 0.51 | $ | 1.08 | $ | 1.11 | $ | 1.28 | |||||||||
2013 (quarter ended) | |||||||||||||||||
(dollars in millions, except per share data) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Revenues | $ | 1,956 | $ | 2,134 | $ | 2,317 | $ | 2,731 | |||||||||
Revenues less cost of sales (exclusive of depreciation and amortization) | $ | 574 | $ | 620 | $ | 668 | $ | 758 | |||||||||
Other costs (credits) | $ | 31 | $ | 36 | $ | 14 | $ | 11 | |||||||||
Net income | $ | 149 | $ | 140 | $ | 192 | $ | 243 | |||||||||
Net income attributable to noncontrolling interests | $ | – | $ | – | $ | 3 | $ | 22 | |||||||||
Net income attributable to Cameron stockholders | $ | 149 | $ | 140 | $ | 189 | $ | 221 | |||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.57 | $ | 0.78 | $ | 0.96 | |||||||||
Diluted | $ | 0.6 | $ | 0.57 | $ | 0.78 | $ | 0.94 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts | ||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||
FOR THE YEAR ENDED | Balance at beginning | Charged | Charged | Deductions | Translation | Balance | |||||||||||||||||||
of period | to costs | to other accounts | (a) | atend | |||||||||||||||||||||
and | of period | ||||||||||||||||||||||||
expenses | |||||||||||||||||||||||||
DECEMBER 31, 2014: | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 21 | $ | 10 | $ | 8 | $ | (5 | ) | $ | (2 | ) | $ | 32 | |||||||||||
Allowance for obsolete and excess inventory | $ | 109 | $ | 65 | $ | (3 | ) | $ | (21 | ) | $ | (5 | ) | $ | 145 | ||||||||||
DECEMBER 31, 2013: | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 8 | $ | 14 | $ | – | $ | (1 | ) | $ | – | $ | 21 | ||||||||||||
Allowance for obsolete and excess inventory | $ | 89 | $ | 28 | $ | 4 | $ | (12 | ) | $ | – | $ | 109 | ||||||||||||
DECEMBER 31, 2012: | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 10 | $ | 1 | $ | – | $ | (3 | ) | $ | – | $ | 8 | ||||||||||||
Allowance for obsolete and excess inventory | $ | 82 | $ | 21 | $ | (2 | ) | $ | (12 | ) | $ | – | $ | 89 |
Summary_of_Major_Accounting_Po1
Summary of Major Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary of Major Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation — These consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. Investments in affiliated companies are accounted for using the equity method when we are able to exert significant influence over the operations of the investee. | |
Estimates in Financial Statements | Estimates in Financial Statements — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, estimates of total contract profit or loss on certain long-term production contracts, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, contingencies (including tax contingencies, estimated liabilities for litigation exposures and liquidated damages), estimated warranty costs, estimates related to pension accounting, estimates used to determine fair values in purchase accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ materially from these estimates. | |
Revenue Recognition | Revenue Recognition — The Company generally recognizes revenue, net of sales taxes, related to products, services or rental arrangements once the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery of the equipment has occurred or the customer has taken title and risk of loss or services have been rendered, (iii) the price of the equipment or service is fixed and determinable and (iv) collectibility is reasonably assured. For engineering, procurement and construction-type contracts, revenue is generally reported on the percentage-of-completion method of accounting. Progress is primarily measured by the completion of milestones; however, progress for specific types of subsea and drilling systems contracts, which differ from our other contracts, is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. Both methods require the Company to make estimates regarding the total costs of the project, which impacts the amount of gross margin the Company recognizes in each reporting period. Under the percentage-of-completion method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in accounting for contracts. All known or anticipated losses on contracts are provided for in the period they become evident. Revenues and gross profit on contracts can be significantly affected by change orders that may be approved subsequent to completion of related work. If it is not probable that costs will be recovered through a change in contract price, the costs attributable to change orders are treated as contract costs without incremental revenue. If it is probable that costs will be recovered through a change order, the costs are treated as contract costs and contract revenue is recognized to the extent of the lesser of the amounts management expects to recover or the costs expected to be incurred. | |
Approximately 31%, 31% and 26% of the Company’s revenues for the years ended December 31, 2014, 2013 and 2012, respectively, were recognized under the percentage-of-completion method. | ||
Shipping and Handling Costs | Shipping and Handling Costs — Shipping and handling costs are reflected in the caption entitled “Cost of sales (exclusive of depreciation and amortization shown separately below)” in the accompanying Consolidated Results of Operations statements. | |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments — Cash equivalents consist of highly liquid investments which are readily convertible to cash and have maturities of three months or less at the time of purchase. Short-term investments consist primarily of commercial paper, U.S. Treasury securities, U.S. non-governmental agency asset-backed securities and corporate debt obligations that have maturities of more than three months but less than one year. All of our short-term investments are classified as available-for-sale and recorded at fair value, with unrealized holding gains and losses recorded as a component of accumulated other comprehensive income (loss). | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts — The Company maintains allowances for doubtful accounts for estimated losses expected to result from the inability of its customers to make required payments. Such allowances are based upon several factors including, but not limited to, historical experience, the length of time an invoice has been outstanding, responses from customers relating to demands for payment and the current and projected financial condition of specific customers. | |
Inventories | Inventories — Aggregate inventories are carried at the lower of cost or market. On the basis of current costs, 54% of inventories at December 31, 2014 and 49% at December 31, 2013 are carried on the last-in, first-out (LIFO) method. For these locations, the use of LIFO results in a better matching of costs and revenues. The remaining inventories, which are generally located outside the United States and Canada, are carried on the first-in, first-out (FIFO) method. The Company provides a reserve for estimated inventory obsolescence or excess quantities on hand equal to the difference between the cost of the inventory and its estimated realizable value. | |
Plant and Equipment | Plant and Equipment — Property, plant and equipment, both owned and under capital lease, are carried at cost. Maintenance and repair costs are expensed as incurred. The cost of renewals, replacements and betterments is capitalized. The Company capitalizes software developed or obtained for internal use. Accordingly, the cost of third-party software, as well as the cost of third-party and internal personnel that are directly involved in application development activities, are capitalized during the application development phase of new software systems projects. Costs during the preliminary project stage and post-implementation stage of new software systems projects, including data conversion and training costs, are expensed as incurred. Depreciation and amortization is provided over the estimated useful lives of the related assets, or in the case of assets under capital leases, over the related lease term, if less, using the straight-line method. The estimated useful lives of the major classes of property, plant and equipment are as follows: | |
Estimated | ||
Useful Lives | ||
Buildings and leasehold improvements | 10-40 years | |
Machinery, equipment and tooling | 3-18 years | |
Office furniture, software and other | 3-10 years | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets — Cameron allocates the purchase price of acquired businesses to their identifiable tangible assets and liabilities, such as accounts receivable, inventory, property, plant and equipment, accounts payable and accrued liabilities, based on their estimated fair values. The Company also typically allocates a portion of the purchase price to identifiable intangible assets, such as noncompete agreements, trademarks, trade names, patents, technology, customer relationships and backlog using various widely accepted valuation techniques such as discounted future cash flows and the relief-from-royalty and excess earnings methods. Each of these methods involves level 3 unobservable market inputs. Any remaining excess of cost over allocated fair values is recorded as goodwill. On larger acquisitions, Cameron will typically engage third-party valuation experts to assist in determining the fair values for both the identifiable tangible and intangible assets. Certain estimates and judgments are required in the application of the fair value techniques, including estimates of future cash flows, selling prices, replacement costs, royalty rates for use of assets, economic lives and the selection of a discount rate. | |
The Company reviews the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required. The estimated fair value of each reporting unit for the 2014, 2013 and 2012 evaluations was determined using discounted future expected cash flows (level 3 unobservable inputs) consistent with the accounting guidance for fair-value measurements. Certain estimates and judgments are required in the application of the fair value models, including, but not limited to, estimates of future cash flows and the selection of a discount rate. At December 31, 2014, the Company’s reporting units for goodwill impairment evaluation purposes were the OneSubsea, Process Systems, Surface, Drilling, Valves and Measurement businesses. Prior to the fourth quarter of 2014, there were five reporting units within the V&M segment (now combined into two reporting units based on changes in management’s reporting structure during the fourth quarter of 2014). Those reporting units included $311 million of goodwill. The Company performed a goodwill impairment test before and after the change in V&M’s reporting units and concluded there was no impairment. | ||
Generally, the Company conducts its goodwill impairment review during the first quarter of each annual period. Due to the significant drop in commodity prices during the latter half of 2014 and the reorganization of the Company’s reporting structure, as described above, the Company made an additional evaluation of goodwill for impairment during the fourth quarter of 2014 based upon macro factors that existed at that point in time. The fair value of our Process Systems reporting unit was estimated to be 10% to 15% higher than its carrying value as part of that evaluation. The estimated fair value for Process Systems was based on forecasted timing and success in receiving new major project awards in 2015 and beyond, the pricing and profitability of those new awards and further improvements in revenue growth and profitability rates from those achieved historically. Should our expectations prove to be incorrect due to (i) further declines in oil and gas prices and continued instability in the worldwide energy markets, (ii) unanticipated delays occurring in project awards, including unplanned project cancellations, or, (iii) an increase in interest rates, our prior estimates of future earnings, cash flows and fair value of the Process Systems business would be negatively impacted, which could lead to an impairment of goodwill for that reporting unit, possibly even as early as our annual evaluation during the first quarter of 2015. Goodwill associated with the Process Systems reporting unit at December 31, 2014 was approximately $571 million. | ||
The Company’s intangible assets, excluding goodwill, represent purchased patents, trademarks, customer relationships and other identifiable intangible assets. The majority of intangible assets are amortized on a straight-line basis over the years expected to be benefited, generally ranging from 5 to 28 years. Such intangibles are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. As many areas of the Company’s business rely on patents and proprietary technology, it has followed a policy of seeking patent protection both inside and outside the United States for products and methods that appear to have commercial significance. The costs of developing any intangibles internally, as well as costs of defending such intangibles, are expensed as incurred. No material impairment of intangible assets was required during the years ended December 31, 2014, 2013 or 2012, except as reflected in Note 4 of the Notes to Consolidated Financial Statements. | ||
Long-Lived Assets | Long-Lived Assets — In accordance with accounting rules for the impairment or disposal of long-lived assets, such assets, excluding goodwill and indefinite-lived intangibles, to be held and used by the Company are reviewed to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. For long-lived assets to be held and used, the Company bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, the Company determines whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset. Assets are classified as held for sale when the Company has a plan, approved by the appropriate levels of management, for disposal of such assets and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. No material impairment of long-lived assets was required during the years ended December 31, 2014, 2013 or 2012. | |
Product Warranty | Product Warranty — Estimated warranty costs are accrued either at the time of sale based upon historical experience or, in some cases, when specific warranty problems are encountered. Adjustments to the recorded liability are made periodically to reflect actual experience. | |
Contingencies | Contingencies — The Company accrues for costs relating to litigation when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties, amounts specified by contract, amounts designated by legal statute or management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known. | |
Income Taxes | Income Taxes — The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Income tax expense includes U.S. and foreign income taxes, including U.S. federal taxes on undistributed earnings of foreign subsidiaries to the extent such earnings are planned to be remitted. Taxes are not provided on the translation component of comprehensive income since the effect of translation is not considered to modify the amount of the earnings that are planned to be remitted. | |
A valuation allowance is provided to offset any net deferred tax asset, if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest related to accruals for uncertain tax positions is reflected as a component of interest expense in the Consolidated Results of Operations statement. Penalties on a tax position taken by the Company are reflected as a component of income tax expense in the Consolidated Results of Operations statement. See Note 13 of the Notes to Consolidated Financial Statements for further discussion of the Company’s income taxes. | ||
Environmental Remediation and Compliance | Environmental Remediation and Compliance — Environmental remediation and postremediation monitoring costs are accrued when such obligations become probable and reasonably estimable. Such future expenditures are not discounted to their present value. | |
Pension and Postretirement Benefits Accounting | Pension and Postretirement Benefits Accounting — The Company recognizes the funded status of its defined benefit pension and other postretirement benefit plans in its Consolidated Balance Sheets. The measurement date for all of the Company’s plans was December 31, 2014. See Note 9 of the Notes to Consolidated Financial Statements for further information. | |
Stock-Based Compensation | Stock-Based Compensation — At December 31, 2014, the Company had grants outstanding under various stock-based employee compensation plans, which are described in further detail in Note 10 of the Notes to Consolidated Financial Statements. Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by accounting rules on stock compensation. Under this guidance, the fair value of stock option grants and restricted stock unit awards is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period. | |
Derivative Financial Instruments | Derivative Financial Instruments — The Company recognizes all derivative financial instruments as assets and liabilities on a gross basis and measures them at fair value. Hedge accounting is only applied when the derivative is deemed highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other elements of comprehensive income (loss) until the underlying transactions are recognized in earnings, at which time any deferred hedging gains or losses are reclassified to earnings in the same income statement caption as impacted by the hedged item. Any ineffective portion of the change in the fair value of a derivative used as a cash flow hedge is recorded in earnings as incurred. The amounts recorded in earnings from ineffectiveness for the years ended December 31, 2014, 2013 and 2012 have not been material. The Company may at times also use forward or option contracts to hedge certain other foreign currency exposures. These contracts are not designated as hedges under the accounting guidance described above. Therefore, the changes in fair value of these contracts are recognized in earnings as they occur and offset gains or losses on the related exposures. | |
Foreign Currency | Foreign Currency — For most subsidiaries and branches outside the U.S., the local currency is the functional currency. The financial statements of these subsidiaries and branches are translated into U.S. dollars as follows: (i) assets and liabilities at year-end exchange rates; (ii) income and expenses at monthly average exchange rates or exchange rates in effect on the date of the transaction; and (iii) stockholders’ equity at historical exchange rates. For those subsidiaries where the local currency is the functional currency, the resulting translation adjustment is recorded as a component of accumulated other elements of comprehensive income (loss) in the accompanying Consolidated Balance Sheets. | |
For certain other subsidiaries and branches, operations are conducted primarily in currencies other than the local currencies, which are therefore the functional currency. Non-functional currency monetary assets and liabilities are remeasured at ending exchange rates. Revenue, expense and gain and loss accounts of these foreign subsidiaries and branches are remeasured at average exchange rates or exchange rates in effect on the date of the transaction. Non-functional currency non-monetary assets and liabilities, and the related revenue, expense, gain and loss accounts are remeasured at historical rates. | ||
Foreign currency gains and losses arising from monetary transactions denominated in a currency other than the functional currency of the entity involved are included in income. The effects of foreign currency transactions were a gain of $22 million for the year ended December 31, 2014, a gain of less than $1 million for the year ended December 31, 2013 and a loss of $12 million for the year ended December 31, 2012. | ||
Reclassifications and Revisions | Reclassifications and Revisions — Certain prior year amounts have been reclassified to conform to the current year presentation. |
Summary_of_Major_Accounting_Po2
Summary of Major Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary of Major Accounting Policies [Abstract] | ||
The estimated useful lives of the major classes of property, plant and equipment | The estimated useful lives of the major classes of property, plant and equipment are as follows: | |
Estimated | ||
Useful Lives | ||
Buildings and leasehold improvements | 10-40 years | |
Machinery, equipment and tooling | 3-18 years | |
Office furniture, software and other | 3-10 years |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations [Abstract] | |||||||||||||
Summarized financial information of discontinued businesses | The Company’s historical consolidated Results of Operations statement has been retrospectively revised to reflect the results of operations for both businesses as discontinued operations for all periods presented. Summarized financial information relating to these businesses is shown below: | ||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues | $ | 428 | $ | 701 | $ | 707 | |||||||
Cost of sales (excluding depreciation and amortization) | (306 | ) | (498 | ) | (503 | ) | |||||||
All other costs | (94 | ) | (105 | ) | (108 | ) | |||||||
Gain on sale of the Reciprocating Compression business, before tax | 95 | – | – | ||||||||||
Income before income taxes | 123 | 98 | 96 | ||||||||||
Income tax provision | (97 | ) | (33 | ) | (30 | ) | |||||||
Income from discontinued operations, net of income taxes | $ | 26 | $ | 65 | $ | 66 | |||||||
The gain on the sale of the Reciprocating Compression business was determined as follows (dollars in millions): | |||||||||||||
Sales price | $ | 550 | |||||||||||
Net assets sold | (442 | ) | |||||||||||
Transaction and other costs associated with the sale | (13 | ) | |||||||||||
Pre-tax gain | 95 | ||||||||||||
Tax provision(1) | (88 | ) | |||||||||||
Gain on sale | $ | 7 | |||||||||||
(1) – The tax provision associated with the gain on the sale of the Reciprocating Compression business was approximately $88 million, which was 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 (dollars in millions): | |||||||||||||
Accounts receivable | $ | 79 | |||||||||||
Inventory | 122 | ||||||||||||
Goodwill | 214 | ||||||||||||
All other | 27 | ||||||||||||
Net assets sold | $ | 442 | |||||||||||
Assets and liabilities of the Centrifugal Compression business held for sale in the Company’s Consolidated Balance Sheet at December 31, 2014 were as follows: | |||||||||||||
(dollars in millions) | December 31, | ||||||||||||
2014 | |||||||||||||
Receivables, net | $ | 37 | |||||||||||
Inventories, net | 86 | ||||||||||||
Other current assets | 14 | ||||||||||||
Plant and equipment, net | 45 | ||||||||||||
Goodwill | 35 | ||||||||||||
Assets of discontinued operations | $ | 217 | |||||||||||
Accounts payable, accrued and other current liabilities | $ | 89 | |||||||||||
Other long-term liabilities | 1 | ||||||||||||
Liabilities of discontinued operations | $ | 90 |
Other_Costs_Tables
Other Costs (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Other Costs [Abstract] | |||||
Schedule of Other Costs | The gain on the sale of the Reciprocating Compression business was determined as follows (dollars in millions): | ||||
Sales price | $ | 550 | |||
Net assets sold | (442 | ) | |||
Transaction and other costs associated with the sale | (13 | ) | |||
Pre-tax gain | 95 | ||||
Tax provision(1) | (88 | ) | |||
Gain on sale | $ | 7 | |||
(1) – The tax provision associated with the gain on the sale of the Reciprocating Compression business was approximately $88 million, which was impacted by nondeductible goodwill of approximately $192 million included in the total net assets sold. |
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Receivables | Receivables consisted of the following: | ||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Trade receivables | $ | 1,678 | $ | 2,015 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 621 | 582 | |||||||
Other receivables | 122 | 143 | |||||||
Allowance for doubtful accounts | (32 | ) | (21 | ) | |||||
Total receivables | $ | 2,389 | $ | 2,719 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Inventories consisted of the following: | ||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Raw materials | $ | 159 | $ | 238 | |||||
Work-in-process | 827 | 894 | |||||||
Finished goods, including parts and subassemblies | 2,150 | 2,208 | |||||||
Other | 24 | 22 | |||||||
3,160 | 3,362 | ||||||||
Excess of current costs over LIFO costs | (86 | ) | (120 | ) | |||||
Allowance for obsolete and excess inventory | (145 | ) | (109 | ) | |||||
Total inventories | $ | 2,929 | $ | 3,133 |
Plant_and_Equipment_Goodwill_a1
Plant and Equipment, Goodwill and Intangibles (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Plant and Equipment, Goodwill and Intangibles [Abstract] | |||||||||||||||||||||||||
Plant and equipment | Plant and equipment consisted of the following: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Land and land improvements | $ | 130 | $ | 132 | |||||||||||||||||||||
Buildings | 726 | 744 | |||||||||||||||||||||||
Machinery and equipment | 1,682 | 1,662 | |||||||||||||||||||||||
Tooling, dies, patterns, etc. | 179 | 208 | |||||||||||||||||||||||
Office furniture & equipment | 212 | 210 | |||||||||||||||||||||||
Capitalized software | 370 | 348 | |||||||||||||||||||||||
Assets under capital leases | 120 | 107 | |||||||||||||||||||||||
Construction in progress | 127 | 231 | |||||||||||||||||||||||
All other | 34 | 28 | |||||||||||||||||||||||
3,580 | 3,670 | ||||||||||||||||||||||||
Accumulated depreciation | (1,616 | ) | (1,633 | ) | |||||||||||||||||||||
Total plant and equipment, net | $ | 1,964 | $ | 2,037 | |||||||||||||||||||||
Changes in goodwill | Changes in goodwill during 2014 were as follows: | ||||||||||||||||||||||||
(dollars in millions) | Subsea | Surface | Drilling | Valves & Measurement | Discontinued Operations | Total | |||||||||||||||||||
Balance at December 31, 2013 | $ | 1,654 | $ | 199 | $ | 505 | $ | 318 | $ | 249 | $ | 2,925 | |||||||||||||
Discontinued operations | – | – | – | – | (249 | ) | (249 | ) | |||||||||||||||||
Impairment | – | (40 | ) | – | – | – | (40 | ) | |||||||||||||||||
Acquisitions | – | 20 | – | – | – | 20 | |||||||||||||||||||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | – | – | (1 | ) | – | 18 | ||||||||||||||||||
Translation effect of currency changes and other | (197 | ) | (6 | ) | (4 | ) | (6 | ) | – | (213 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 1,476 | $ | 173 | $ | 501 | $ | 311 | $ | – | $ | 2,461 | |||||||||||||
Intangibles | Intangibles consisted of the following: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Customer relationships | $ | 459 | $ | 519 | |||||||||||||||||||||
Patents and technology | 382 | 426 | |||||||||||||||||||||||
Trademarks | 68 | 69 | |||||||||||||||||||||||
Noncompete agreements, engineering drawings and other | 80 | 103 | |||||||||||||||||||||||
989 | 1,117 | ||||||||||||||||||||||||
Accumulated amortization | (261 | ) | (213 | ) | |||||||||||||||||||||
Total intangibles, net | $ | 728 | $ | 904 | |||||||||||||||||||||
Amortization expense associated with the Company’s amortizable intangibles recorded as of December 31, 2014 is expected to approximate $45 million, $45 million, $44 million, $42 million, and $38 million for the years ending December 31, 2015, 2016, 2017, 2018 and 2019, respectively. |
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Payable and Accrued Liabilities [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities | Note 8: Accounts Payable and Accrued Liabilities | ||||||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||
December 31, | |||||||||
(dollars in millions) | 2014 | 2013 | |||||||
Trade accounts payable and accruals | $ | 1,084 | $ | 1,184 | |||||
Advances from customers | 1,576 | 1,676 | |||||||
Other accruals | 1,088 | 1,023 | |||||||
Total accounts payable and accrued liabilities | $ | 3,748 | $ | 3,883 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||
Total net benefit plan expense (income) | Total net benefit plan expense (income) associated with the Company’s defined benefit pension and postretirement benefit plans consisted of the following: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | 18 | $ | 10 | $ | 3 | $ | − | $ | − | $ | − | |||||||||||||||||||||
Interest cost | 20 | 17 | 15 | − | − | − | |||||||||||||||||||||||||||
Expected return on plan assets | (27 | ) | (21 | ) | (18 | ) | − | − | − | ||||||||||||||||||||||||
Amortization of prior service credits | (2 | ) | (2 | ) | – | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||
Amortization of losses (gains) | 9 | 8 | 6 | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Curtailment gain | (12 | ) | – | – | – | – | – | ||||||||||||||||||||||||||
Settlement loss | 4 | – | 4 | – | – | – | |||||||||||||||||||||||||||
Other | – | – | 2 | − | − | − | |||||||||||||||||||||||||||
Total net benefit plan expense (income) | $ | 10 | $ | 12 | $ | 12 | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | ||||||||||||||||||
Schedule of net periodic benefit cost not yet recognized | Included in accumulated other elements of comprehensive income (loss) at December 31, 2014 and 2013 are the following amounts that have not yet been recognized in net periodic benefit plan cost, as well as the amounts that are expected to be recognized in net periodic benefit plan cost during the year ending December 31, 2015: | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | Year Ending | |||||||||||||||||||||||||||||||
31-Dec-15 | |||||||||||||||||||||||||||||||||
(dollars in millions) | Before Tax | After Tax | Before Tax | After Tax | Expected | ||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||||||
Pension benefits: | |||||||||||||||||||||||||||||||||
Prior service credits | $ | 18 | $ | 14 | $ | 22 | $ | 17 | $ | (2 | ) | ||||||||||||||||||||||
Actuarial losses, net | (136 | ) | (109 | ) | (119 | ) | (94 | ) | 10 | ||||||||||||||||||||||||
Postretirement benefits: | |||||||||||||||||||||||||||||||||
Prior service credits | 3 | 2 | 3 | 2 | (1 | ) | |||||||||||||||||||||||||||
Actuarial gains | 8 | 5 | 9 | 6 | (1 | ) | |||||||||||||||||||||||||||
$ | (107 | ) | $ | (88 | ) | $ | (85 | ) | $ | (69 | ) | $ | 6 | ||||||||||||||||||||
Schedule of changes in benefit obligations | The change in the projected benefit obligation associated with the Company’s defined benefit pension plans and the change in the accumulated benefit obligation associated with the Company’s postretirement benefit plans was as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 489 | $ | 387 | $ | 11 | $ | 13 | |||||||||||||||||||||||||
Service cost | 18 | 10 | − | − | |||||||||||||||||||||||||||||
Interest cost | 20 | 17 | − | − | |||||||||||||||||||||||||||||
Plan participants’ contributions | 1 | 1 | − | − | |||||||||||||||||||||||||||||
Actuarial losses (gains) | 78 | 12 | (1 | ) | (1 | ) | |||||||||||||||||||||||||||
Exchange rate changes | (52 | ) | 5 | − | − | ||||||||||||||||||||||||||||
Benefit payments | (14 | ) | (14 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Plan amendments | − | (21 | ) | − | − | ||||||||||||||||||||||||||||
Acquisitions | − | 67 | − | – | |||||||||||||||||||||||||||||
Curtailments | (23 | ) | – | − | – | ||||||||||||||||||||||||||||
Settlements | (8 | ) | – | − | − | ||||||||||||||||||||||||||||
Other | – | 25 | − | − | |||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 509 | $ | 489 | $ | 9 | $ | 11 | |||||||||||||||||||||||||
Schedule of changes in fair value of plan assets | The change in the plan assets associated with the Company’s defined benefit pension and postretirement benefit plans was as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 432 | $ | 318 | $ | – | $ | − | |||||||||||||||||||||||||
Actual return on plan assets | 53 | 41 | − | − | |||||||||||||||||||||||||||||
Company contributions | 27 | 13 | 1 | 1 | |||||||||||||||||||||||||||||
Plan participants’ contributions | 1 | 1 | − | − | |||||||||||||||||||||||||||||
Exchange rate changes | (40 | ) | 6 | − | − | ||||||||||||||||||||||||||||
Benefit payments | (14 | ) | (14 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Acquisitions | – | 46 | – | – | |||||||||||||||||||||||||||||
Settlements | (8 | ) | – | – | – | ||||||||||||||||||||||||||||
Other | 4 | 21 | − | − | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 455 | $ | 432 | $ | − | $ | − | |||||||||||||||||||||||||
Status of underfunded defined benefit pension and postretirement benefit plans | The status of the Company’s underfunded defined benefit pension and postretirement benefit plans was as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Current | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||
Non-current | (53 | ) | (55 | ) | (8 | ) | (9 | ) | |||||||||||||||||||||||||
Underfunded status at end of year | $ | (54 | ) | $ | (56 | ) | $ | (9 | ) | $ | (11 | ) | |||||||||||||||||||||
Schedule of actual asset investment allocations | Actual asset investment allocations for the Company’s main defined benefit pension plan in the United Kingdom, which accounts for approximately 78% of total plan assets, were as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
U.K. plan: | |||||||||||||||||||||||||||||||||
Equity securities | 55 | % | 60 | % | 54 | % | |||||||||||||||||||||||||||
Fixed income debt securities, cash and other | 45 | % | 40 | % | 46 | % | |||||||||||||||||||||||||||
Schedule of fair values of plan assets | The fair values of the Company’s pension plan assets by asset category at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
Fair Value Based on | Fair Value Based on | Fair Value Based | Total | ||||||||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | on Significant | |||||||||||||||||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 1 | $ | – | $ | – | $ | – | $ | – | $ | 1 | $ | 1 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
U.S. equities | – | – | 83 | 83 | – | – | 83 | 83 | |||||||||||||||||||||||||
Non-U.S. equities | – | – | 120 | 125 | – | – | 120 | 125 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||||||
Non-U.S. government bonds | – | – | 117 | 92 | – | – | 117 | 92 | |||||||||||||||||||||||||
Non-U.S. corporate bonds | – | – | 30 | 26 | – | – | 30 | 26 | |||||||||||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||||||||||
Insurance contracts | – | – | – | – | 89 | 91 | 89 | 91 | |||||||||||||||||||||||||
Real estate and other | – | – | – | – | 15 | 14 | 15 | 14 | |||||||||||||||||||||||||
Total assets | $ | 1 | $ | 1 | $ | 350 | $ | 326 | $ | 104 | $ | 105 | $ | 455 | $ | 432 | |||||||||||||||||
Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs | Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs were as follows: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Balance at beginning of the year | $ | 105 | $ | 28 | |||||||||||||||||||||||||||||
Purchases/sales, net | 10 | 7 | |||||||||||||||||||||||||||||||
Other plan additions | – | 68 | |||||||||||||||||||||||||||||||
Actual return on plan assets | 4 | 3 | |||||||||||||||||||||||||||||||
Currency impact | (15 | ) | (1 | ) | |||||||||||||||||||||||||||||
Balance at end of the year | $ | 104 | $ | 105 | |||||||||||||||||||||||||||||
Weighted-average assumptions associated with defined benefit pension and postretirement benefit plans | The weighted-average assumptions associated with the Company’s defined benefit pension and postretirement benefit plans were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Assumptions related to net benefit costs: | |||||||||||||||||||||||||||||||||
U.S. plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.75 | % | 2.75 | % | 3.75 | % | 2.75 | % | |||||||||||||||||||||||||
Measurement date | 1/1/14 | 1/1/13 | 1/1/14 | 1/1/13 | |||||||||||||||||||||||||||||
Foreign plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.5-5.25 | % | 2.25-6.75 | % | – | – | |||||||||||||||||||||||||||
Expected return on plan assets | 2.25-6.75 | % | 3.50-6.75 | % | – | – | |||||||||||||||||||||||||||
Rate of compensation increase | 2.25-4.5 | % | 3.0-4.5 | % | – | – | |||||||||||||||||||||||||||
Measurement date | 1/1/14 | 1/1/13 | – | – | |||||||||||||||||||||||||||||
Assumptions related to end-of-period benefit obligations: | |||||||||||||||||||||||||||||||||
U.S. plans: | |||||||||||||||||||||||||||||||||
Discount rate | 3.25 | % | 3.75 | % | 3.25 | % | 3.75 | % | |||||||||||||||||||||||||
Health care cost trend rate | – | – | 7 | % | 7.5 | % | |||||||||||||||||||||||||||
Measurement date | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||||||||||||||||||
Foreign plans: | |||||||||||||||||||||||||||||||||
Discount rate | 2.25-4.25 | % | 3.5-5.25 | % | – | – | |||||||||||||||||||||||||||
Rate of compensation increase | 2.25-5.0 | % | 2.25-4.5 | % | – | – | |||||||||||||||||||||||||||
Measurement date | 12/31/14 | 12/31/13 | – | – | |||||||||||||||||||||||||||||
Projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets | Amounts applicable to the Company’s pension plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets were as follows: | ||||||||||||||||||||||||||||||||
Projected Benefit | Accumulated Benefit | ||||||||||||||||||||||||||||||||
Obligation in Excess | Obligation in Excess | ||||||||||||||||||||||||||||||||
of Plan Assets | of Plan Assets | ||||||||||||||||||||||||||||||||
at December 31, | at December 31, | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Fair value of applicable plan assets | $ | 455 | $ | 97 | $ | 455 | $ | 42 | |||||||||||||||||||||||||
Projected benefit obligation of applicable plans | $ | 509 | $ | 172 | – | – | |||||||||||||||||||||||||||
Accumulated benefit obligation of applicable plans | – | – | $ | 469 | $ | 84 | |||||||||||||||||||||||||||
Future expected benefit payments | Future expected benefit payments are as follows: | ||||||||||||||||||||||||||||||||
(dollars in millions) | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
Year ending December 31: | |||||||||||||||||||||||||||||||||
2015 | $ | 68 | $ | 1 | |||||||||||||||||||||||||||||
2016 | $ | 12 | $ | 1 | |||||||||||||||||||||||||||||
2017 | $ | 12 | $ | 1 | |||||||||||||||||||||||||||||
2018 | $ | 13 | $ | 1 | |||||||||||||||||||||||||||||
2019 | $ | 14 | $ | 1 | |||||||||||||||||||||||||||||
2020 - 2024 | $ | 74 | $ | 3 |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Total compensation expense for all stock-based compensation plans | Stock-based compensation expense recognized was as follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Outstanding restricted and deferred stock units and awards | $ | 44 | $ | 40 | $ | 32 | |||||||||||
Unvested outstanding stock options | 10 | 14 | 12 | ||||||||||||||
Total stock-based compensation expense | $ | 54 | $ | 54 | $ | 44 | |||||||||||
Share-based payment award, stock options, valuation assumptions | The fair values per share of option grants for the years ended December 31, 2014, 2013 and 2012 were estimated using the Black-Scholes-Merton option pricing formula with the following weighted-average assumptions: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (in years) | 3.3 | 3.2 | 3.2 | ||||||||||||||
Risk-free interest rate | 0.86 | % | 0.67 | % | 0.37 | % | |||||||||||
Volatility | 33.8 | % | 34.3 | % | 39.4 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Share-based payment award, options, grants in period, grant date intrinsic value | The above assumptions and market prices of the Company’s common stock at the date of option exercises resulted in the following values: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Grant-date fair value per option | $ | 14.51 | $ | 16.19 | $ | 15.68 | |||||||||||
Intrinsic value of options exercised (dollars in millions) | $ | 26 | $ | 31 | $ | 34 | |||||||||||
Average intrinsic value per share of options exercised | $ | 24.17 | $ | 26.3 | $ | 23.39 | |||||||||||
Restricted and deferred stock units granted and vesting | Information on restricted and deferred stock units granted and vesting during the three years ended December 31, 2014 follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Number of units granted with performance conditions | 174,697 | 185,992 | 211,244 | ||||||||||||||
Intrinsic value of units vesting (dollars in millions) | $ | 34 | $ | 46 | $ | 38 | |||||||||||
Total number of units granted | 826,329 | 838,207 | 674,578 | ||||||||||||||
Weighted average grant date fair value per unit | $ | 59.63 | $ | 57.95 | $ | 50.44 | |||||||||||
Stock Options [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Summary of activity in all stock based compensation plans | A summary of option activity under the Company’s stock compensation plans as of and for the year ended December 31, 2014 is presented below: | ||||||||||||||||
Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (dollars in | |||||||||||||||
Term | millions) | ||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at January 1, 2014 | 4,197,093 | $ | 47.92 | ||||||||||||||
Granted | 782,779 | 57.71 | |||||||||||||||
Exercised | (1,064,138 | ) | 40.48 | ||||||||||||||
Forfeited | (3,246 | ) | 64.97 | ||||||||||||||
Outstanding at December 31, 2014 | 3,912,488 | $ | 51.89 | 6.27 | $ | 13 | |||||||||||
Vested at December 31, 2014 or expected to vest in the future | 3,899,272 | $ | 51.86 | 6.26 | $ | 13 | |||||||||||
Exercisable at December 31, 2014 | 2,471,452 | $ | 47.32 | 4.63 | $ | 13 | |||||||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | At | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | 14 | |||||||||||||||
Weighted-average remaining expense recognition period (in years) | 1.95 | ||||||||||||||||
Restricted and Deferred Stock Units [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Summary of activity in all stock based compensation plans | A summary of restricted and deferred stock unit award activity under the Company’s stock compensation plans as of and for the year ended December 31, 2014 is presented below: | ||||||||||||||||
Number | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Restricted and Deferred Stock Units | Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 1,658,357 | $ | 28.22 | ||||||||||||||
Granted | 826,329 | 59.63 | |||||||||||||||
Vested | (563,179 | ) | 59.82 | ||||||||||||||
Forfeited | (72,825 | ) | 57.22 | ||||||||||||||
Nonvested at December 31, 2014 | 1,848,682 | $ | 31.89 | ||||||||||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | At | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions) | $ | 46 | |||||||||||||||
Weighted-average remaining expense recognition period (in years) | 1.6 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt [Abstract] | |||||||||||||
Debt obligations | The Company’s debt obligations were as follows: | ||||||||||||
December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||
Commercial paper (0.49% weighted average rate) | $ | 201 | $ | – | |||||||||
Senior notes: | |||||||||||||
Floating rate notes due June 2, 2014 | – | 250 | |||||||||||
1.6% notes due April 30, 2015 | – | 250 | |||||||||||
1.15% notes due December 15, 2016 | 250 | 250 | |||||||||||
1.4% 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 | 67 | 57 | |||||||||||
Obligations under capital leases | 71 | 60 | |||||||||||
3,082 | 2,860 | ||||||||||||
Current maturities | (263 | ) | (297 | ) | |||||||||
Long-term maturities | $ | 2,819 | $ | 2,563 | |||||||||
Interest expensed and paid | Information on interest expensed and paid during the three years ended December 31, 2014 was as follows: | ||||||||||||
Year Ended December 31 | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Interest expensed | $ | 149 | $ | 115 | $ | 104 | |||||||
Interest paid | $ | 142 | $ | 105 | $ | 97 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Future minimum lease payments for capital leases and noncancelable operating leases | Future minimum lease payments with respect to capital leases and operating leases with noncancelable terms in excess of one year were as follows: | ||||||||
Capital | Operating | ||||||||
(dollars in millions) | Lease Payments | Lease Payments | |||||||
Year ending December 31: | |||||||||
2015 | $ | 17 | $ | 103 | |||||
2016 | 15 | 90 | |||||||
2017 | 12 | 78 | |||||||
2018 | 8 | 64 | |||||||
2019 | 6 | 57 | |||||||
Thereafter | 62 | 350 | |||||||
Future minimum lease payments | 120 | 742 | |||||||
Less: amount representing interest | (49 | ) | – | ||||||
Lease obligations at December 31, 2014 | $ | 71 | $ | 742 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Taxes [Abstract] | |||||||||||||||
Components of income before income taxes | The components of income from continuing operations before income taxes were as follows: | ||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
U.S. operations | $ | 294 | $ | 219 | $ | 664 | |||||||||
Foreign operations | 786 | 636 | 178 | ||||||||||||
Income from continuing operations before income taxes | $ | 1,080 | $ | 855 | $ | 842 | |||||||||
Provision for income taxes | The provisions for income taxes were as follows: | ||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Current: | |||||||||||||||
U.S. federal | $ | 70 | $ | – | $ | 97 | |||||||||
U.S. state and local | 4 | 11 | 7 | ||||||||||||
Foreign | 231 | 166 | 137 | ||||||||||||
305 | 177 | 241 | |||||||||||||
Deferred: | |||||||||||||||
U.S. federal | – | 31 | (37 | ) | |||||||||||
U.S. state and local | (3 | ) | 2 | (2 | ) | ||||||||||
Foreign | (44 | ) | (14 | ) | (45 | ) | |||||||||
(47 | ) | 19 | (84 | ) | |||||||||||
Income tax provision | $ | 258 | $ | 196 | $ | 157 | |||||||||
Effective income tax rate reconciliation | The reasons for the differences between the provision for income taxes and income taxes using the U.S. federal income tax rate were as follows: | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||
State and local income taxes | – | 1 | 0.4 | ||||||||||||
Foreign statutory rate differential | (10.7 | ) | (11.6 | ) | (10.2 | ) | |||||||||
Change in valuation allowance on deferred tax assets | 3.4 | (1.7 | ) | 6.6 | |||||||||||
Nondeductible expenses | (0.1 | ) | 1.1 | 0.9 | |||||||||||
Net U.S. tax on foreign source income | (2.9 | ) | (3.2 | ) | (12.2 | ) | |||||||||
All other | (0.8 | ) | 2.3 | (1.9 | ) | ||||||||||
Total | 23.9 | % | 22.9 | % | 18.6 | % | |||||||||
Total income taxes paid (dollars in millions) | $ | 353 | $ | 329 | $ | 240 | |||||||||
Components of deferred tax assets and liabilities | Components of deferred tax assets (liabilities) were as follows: | ||||||||||||||
December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Plant and equipment | $ | (190 | ) | $ | (171 | ) | |||||||||
Intangible assets | (221 | ) | (251 | ) | |||||||||||
Other | (9 | ) | (16 | ) | |||||||||||
Total deferred tax liabilities | (420 | ) | (438 | ) | |||||||||||
Deferred tax assets: | |||||||||||||||
Inventory | 48 | 20 | |||||||||||||
Postretirement benefits other than pensions | 3 | 12 | |||||||||||||
Reserves and accruals | 160 | 93 | |||||||||||||
Net operating losses and tax credits | 259 | 246 | |||||||||||||
Pensions | 38 | 16 | |||||||||||||
Other | 27 | 17 | |||||||||||||
Total deferred tax assets | 535 | 404 | |||||||||||||
Valuation allowance | (79 | ) | (59 | ) | |||||||||||
Net deferred tax assets (liabilities) | $ | 36 | $ | (93 | ) | ||||||||||
Changes in unrecognized tax benefits | Changes in the Company’s accruals for unrecognized tax benefits were as follows: | ||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 103 | $ | 121 | $ | 148 | |||||||||
Decreases in estimates for tax positions taken prior to the current year | – | – | (11 | ) | |||||||||||
Increases due to tax positions taken during the current year | 6 | 3 | – | ||||||||||||
Decreases relating to settlements with tax authorities | (10 | ) | (19 | ) | (10 | ) | |||||||||
Decreases resulting from the lapse of applicable statutes of limitation | – | – | (7 | ) | |||||||||||
Net increases (decreases) due to translation and interest | (2 | ) | (2 | ) | 1 | ||||||||||
Balance at end of year | $ | 97 | $ | 103 | $ | 121 | |||||||||
Summary of income tax examinations | The Company and its subsidiaries file income tax returns in the United States, various domestic states and localities and in many foreign jurisdictions. The earliest years’ tax returns filed by the Company that are still subject to examination by authorities in the major tax jurisdictions are as follows: | ||||||||||||||
United | United | Canada | France | Germany | Norway | Singapore | Italy | ||||||||
States | Kingdom | ||||||||||||||
2011 | 2012 | 2006 | 2012 | 2008 | 2010 | 2010 | 2008 | ||||||||
Summary of valuation allowance | Changes in the Company’s valuation allowances against these net operating loss and credit carryforwards and other deferred tax assets were as follows: | ||||||||||||||
Year Ended December 31, | |||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 59 | $ | 84 | $ | 30 | |||||||||
Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year | 25 | 11 | 36 | ||||||||||||
Change in valuation allowances related to prior years | (2 | ) | (16 | ) | 19 | ||||||||||
Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized | – | (19 | ) | – | |||||||||||
Effect of translation | (3 | ) | (1 | ) | (1 | ) | |||||||||
Balance at end of year | $ | 79 | $ | 59 | $ | 84 | |||||||||
Summary of tax credit carryforwards | Tax attribute carryforwards which are available for use on future income tax returns at December 31, 2014 are as follows: | ||||||||||||||
(dollars in millions) | Domestic | Foreign | Expiration | ||||||||||||
Net operating losses - regular income tax | $ | – | $ | 381 | 2018 - Indefinite | ||||||||||
Net operating losses – state income tax | $ | 6 | $ | – | 2018 – 2034 | ||||||||||
Foreign tax credits | $ | 93 | $ | – | 2016 – 2024 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||
Changes in number of shares in stockholders' equity | Changes in the number of shares of the Company’s outstanding stock for the last three years were as follows: | ||||||||||||
Common | Treasury | Shares | |||||||||||
Stock | Stock | Outstanding | |||||||||||
Balance - December 31, 2011 | 263,111,472 | (17,579,397 | ) | 245,532,075 | |||||||||
Purchase of treasury stock | – | (412,800 | ) | (412,800 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,576,861 | 1,576,861 | ||||||||||
Balance - December 31, 2012 | 263,111,472 | (16,415,336 | ) | 246,696,136 | |||||||||
Purchase of treasury stock | – | (26,955,623 | ) | (26,955,623 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,687,795 | 1,687,795 | ||||||||||
Balance - December 31, 2013 | 263,111,472 | (41,683,164 | ) | 221,428,308 | |||||||||
Purchase of treasury stock | – | (27,970,492 | ) | (27,970,492 | ) | ||||||||
Stock issued under stock compensation plans | – | 1,514,629 | 1,514,629 | ||||||||||
Balance - December 31, 2014 | 263,111,472 | (68,139,027 | ) | (194,972,445 | ) |
Accumulated_Other_Elements_of_1
Accumulated Other Elements of Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated Other Elements of Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||
Components of accumulated other elements of comprehensive income (loss) | Accumulated other elements of comprehensive income (loss) comprised the following: | ||||||||||||||||||||
(dollars in millions) | Accumulated Foreign Currency Translation | Prior Service Credits and Net | Accumulated Gain (Loss) on Cash | Total | Other Comprehensive Income | ||||||||||||||||
Gain (Loss) | Actuarial Losses | Flow Hedges | |||||||||||||||||||
Balance at December 31, 2011 | $ | (29 | ) | $ | (56 | ) | $ | (6 | ) | $ | (91 | ) | |||||||||
Foreign currency translation gain (loss) | 75 | – | – | 75 | $ | 75 | |||||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | (33 | ) | – | (33 | ) | (33 | ) | |||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 2 | – | 2 | 2 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | 10 | 10 | 10 | ||||||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 7 | 7 | 7 | ||||||||||||||||||
Balance at December 31, 2012 | 46 | (87 | ) | 11 | (30 | ) | $ | 61 | |||||||||||||
Foreign currency translation gain (loss) | (95 | ) | – | – | (95 | ) | $ | (95 | ) | ||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | 40 | – | 40 | 40 | ||||||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 2 | – | 2 | 2 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | 6 | 6 | 6 | ||||||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | – | – | (3 | ) | (3 | ) | (3 | ) | |||||||||||||
Balance at December 31, 2013 | (49 | ) | (45 | ) | 14 | (80 | ) | $ | (50 | ) | |||||||||||
Foreign currency translation gain (loss) | (379 | ) | – | – | (379 | ) | $ | (379 | ) | ||||||||||||
Actuarial gains (losses) recognized in other comprehensive income, net of tax | – | (31 | ) | – | (31 | ) | (31 | ) | |||||||||||||
Curtailment and settlement gains (losses) | – | (3 | ) | – | (3 | ) | (3 | ) | |||||||||||||
recognized in other comprehensive income, net of tax | |||||||||||||||||||||
Amortization of actuarial (gains) losses, net of tax | – | 1 | – | 1 | 1 | ||||||||||||||||
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | – | – | (52 | ) | (52 | ) | (52 | ) | |||||||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | – | – | 4 | 4 | 4 | ||||||||||||||||
Balance of December 31, 2014 | $ | (428 | ) | $ | (78 | ) | $ | (34 | ) | $ | (540 | ) | $ | (460 | ) |
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Segments [Abstract] | |||||||||||||
Summary financial data by segment | Summary financial data by segment follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
Subsea | $ | 3,067 | $ | 2,813 | $ | 2,061 | |||||||
Surface | 2,411 | 2,077 | 1,859 | ||||||||||
Drilling | 3,049 | 2,327 | 1,807 | ||||||||||
V&M | 2,125 | 2,105 | 2,168 | ||||||||||
Elimination of intersegment revenues | (271 | ) | (184 | ) | (100 | ) | |||||||
Consolidated revenues | $ | 10,381 | $ | 9,138 | $ | 7,795 | |||||||
Depreciation and amortization: | |||||||||||||
Subsea | $ | 113 | $ | 85 | $ | 57 | |||||||
Surface | 126 | 106 | 85 | ||||||||||
Drilling | 60 | 60 | 46 | ||||||||||
V&M | 49 | 47 | 50 | ||||||||||
Consolidated depreciation and amortization | $ | 348 | $ | 298 | $ | 238 | |||||||
Segment operating income before interest and income taxes: | |||||||||||||
Subsea | $ | 207 | $ | 152 | $ | 72 | |||||||
Surface | 427 | 367 | 315 | ||||||||||
Drilling | 474 | 311 | 329 | ||||||||||
V&M | 393 | 414 | 396 | ||||||||||
Elimination of intersegment earnings | (74 | ) | (35 | ) | (21 | ) | |||||||
Segment operating income before interest and income taxes | 1,427 | 1,209 | 1,091 | ||||||||||
Corporate items: | |||||||||||||
Corporate expenses | (145 | ) | (162 | ) | (126 | ) | |||||||
Interest, net | (129 | ) | (100 | ) | (90 | ) | |||||||
Other costs | (73 | ) | (92 | ) | (33 | ) | |||||||
Consolidated income from continuing operations before income taxes | $ | 1,080 | $ | 855 | $ | 842 | |||||||
Capital expenditures: | |||||||||||||
Subsea | $ | 70 | $ | 80 | $ | 82 | |||||||
Surface | 125 | 156 | 132 | ||||||||||
Drilling | 38 | 111 | 97 | ||||||||||
V&M | 49 | 58 | 30 | ||||||||||
Corporate | 96 | 102 | 69 | ||||||||||
Discontinued operations | 7 | 13 | 17 | ||||||||||
Consolidated capital expenditures | $ | 385 | $ | 520 | $ | 427 | |||||||
Total assets: | |||||||||||||
Subsea | $ | 5,571 | $ | 5,897 | $ | 3,364 | |||||||
Surface | 2,756 | 2,705 | 2,307 | ||||||||||
Drilling | 3,011 | 3,076 | 2,413 | ||||||||||
V&M | 1,633 | 1,765 | 1,743 | ||||||||||
Corporate | 581 | 844 | 1,376 | ||||||||||
Discontinued operations | 217 | 616 | 615 | ||||||||||
Elimination of intersegment investments | (877 | ) | (654 | ) | (660 | ) | |||||||
Consolidated total assets | $ | 12,892 | $ | 14,249 | $ | 11,158 | |||||||
Customer revenue by shipping location and long-lived assets by country | Customer revenue by shipping location and long-lived assets by country were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
United States | $ | 4,689 | $ | 4,311 | $ | 4,058 | |||||||
United Kingdom | 964 | 822 | 612 | ||||||||||
Other foreign countries | 4,728 | 4,005 | 3,125 | ||||||||||
Total revenues | $ | 10,381 | $ | 9,138 | $ | 7,795 | |||||||
December 31, | |||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 2,367 | $ | 2,670 | $ | 2,532 | |||||||
United Kingdom | 219 | 197 | 170 | ||||||||||
Other foreign countries | 2,567 | 2,999 | 1,323 | ||||||||||
Total long-lived assets | $ | 5,153 | $ | 5,866 | $ | 4,025 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings per share attributable to Cameron stockholders [Abstract] | |||||||||||||
Calculation of basic and diluted earnings per share | The calculation of basic and diluted earnings per share for each period presented was as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
(amounts in millions, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Net income attributable to Cameron | $ | 811 | $ | 699 | $ | 751 | |||||||
Average shares outstanding (basic) | 204 | 242 | 246 | ||||||||||
Common stock equivalents | 1 | 2 | 2 | ||||||||||
Shares utilized in diluted earnings per share calculation | 205 | 244 | 248 | ||||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||
Basic | $ | 3.98 | $ | 2.89 | $ | 3.05 | |||||||
Diluted | $ | 3.96 | $ | 2.87 | $ | 3.03 |
Summary_of_Noncash_Operating_I1
Summary of Non-cash Operating, Investing and Financing Activities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Non-cash Operating, Investing and Financing Activities [Abstract] | |||||||||||||
Effects on net assets of non-cash operating, investing and financing activities | The effect on net assets of non-cash operating, investing and financing activities was as follows: | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Tax benefit of stock compensation plan transactions | $ | 6 | $ | 10 | $ | 12 | |||||||
Change in fair value of derivatives accounted for as cash flow hedges, net of tax | $ | (76 | ) | $ | 14 | $ | 10 | ||||||
Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans | $ | (35 | ) | $ | 13 | $ | (34 | ) |
OffBalance_Sheet_Risk_and_Guar1
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||
Fair value of financial instruments in the balance sheet | Following is a summary of the Company’s financial instruments which have been valued at fair value in the Company’s Consolidated Balance Sheets at December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Fair Value Based on | Fair Value Based on | Total | |||||||||||||||||||||||||||
Quoted Prices in Active | Significant Other | ||||||||||||||||||||||||||||
Markets for Identical | Observable Inputs | ||||||||||||||||||||||||||||
Assets (Level 1) | (Level 2) | ||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||
Cash | $ | 616 | $ | 618 | $ | – | $ | – | $ | 616 | $ | 618 | |||||||||||||||||
Money market funds | 842 | 1,172 | – | – | 842 | 1,172 | |||||||||||||||||||||||
Commercial paper | – | – | 13 | 4 | 13 | 4 | |||||||||||||||||||||||
U.S. treasury securities | 5 | – | – | – | 5 | – | |||||||||||||||||||||||
U.S. corporate obligations | 4 | – | – | – | 4 | – | |||||||||||||||||||||||
Non-U.S. bank and other obligations | 33 | 19 | – | – | 33 | 19 | |||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||
Commercial paper | – | – | 11 | – | 11 | – | |||||||||||||||||||||||
U.S. Treasury securities | 51 | 41 | – | – | 51 | 41 | |||||||||||||||||||||||
U.S. corporate obligations | 51 | – | – | – | 51 | – | |||||||||||||||||||||||
Non-qualified plan assets: | |||||||||||||||||||||||||||||
Money market funds | 1 | 1 | – | – | 1 | 1 | |||||||||||||||||||||||
Domestic bond funds | 3 | 3 | – | – | 3 | 3 | |||||||||||||||||||||||
Domestic equity funds | 5 | 5 | – | – | 5 | 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 | – | – | (99 | ) | 19 | (99 | ) | 19 | |||||||||||||||||||||
Total financial instruments | $ | 1,621 | $ | 1,868 | $ | (75 | ) | $ | 23 | $ | 1,546 | $ | 1,891 | ||||||||||||||||
Information relating to the contracts and estimated fair values recorded in the Company's Consolidated Balance Sheets | Total gross volume bought (sold) by notional currency and maturity date on open foreign currency forward contracts at December 31, 2014 was as follows: | ||||||||||||||||||||||||||||
Notional Amount - Buy | Notional Amount - Sell | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2016 | 2017 | Total | 2015 | 2016 | Total | ||||||||||||||||||||||
Foreign exchange forward contracts - | |||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||
Euro | 200 | 14 | – | 214 | (10 | ) | (1 | ) | (11 | ) | |||||||||||||||||||
Malaysian ringgit | 377 | 51 | – | 428 | (29 | ) | – | (29 | ) | ||||||||||||||||||||
Norwegian krone | 895 | 117 | 4 | 1,016 | (96 | ) | (44 | ) | (140 | ) | |||||||||||||||||||
Pound Sterling | 110 | 5 | – | 115 | (22 | ) | (1 | ) | (23 | ) | |||||||||||||||||||
U.S. dollar | 60 | – | – | 60 | (635 | ) | (47 | ) | (682 | ) | |||||||||||||||||||
Foreign exchange option contracts - | |||||||||||||||||||||||||||||
Notional currency in: | |||||||||||||||||||||||||||||
U.S. dollar | 87 | – | – | 87 | – | – | – | ||||||||||||||||||||||
Schedule of fair values of derivative financial instruments of balance sheets | The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(dollars in millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts – | |||||||||||||||||||||||||||||
Current | $ | 8 | $ | 83 | $ | 28 | $ | 10 | |||||||||||||||||||||
Non-current | 1 | 12 | 3 | 2 | |||||||||||||||||||||||||
Total derivatives designated as hedges | 9 | 95 | 31 | 12 | |||||||||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts – | |||||||||||||||||||||||||||||
Current | 1 | 14 | 6 | 6 | |||||||||||||||||||||||||
Non-current | – | – | – | – | |||||||||||||||||||||||||
Total derivatives not designated as hedges | 1 | 14 | 6 | 6 | |||||||||||||||||||||||||
Total derivatives | $ | 10 | $ | 109 | $ | 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: | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency contracts – | |||||||||||||||||||||||||||||
Cost of sales | $ | (7 | ) | $ | 1 | $ | – | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency contracts – | |||||||||||||||||||||||||||||
Cost of sales | (11 | ) | 7 | 2 | |||||||||||||||||||||||||
Other costs | (8 | ) | (1 | ) | 16 | ||||||||||||||||||||||||
Total pre-tax gain (loss) | $ | (26 | ) | $ | 7 | $ | 18 |
Unaudited_Quarterly_Operating_1
Unaudited Quarterly Operating Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Unaudited Quarterly Operating Results [Abstract] | |||||||||||||||||
Unaudited quarterly operating results | Unaudited quarterly operating results were as follows: | ||||||||||||||||
2014 (quarter ended) | |||||||||||||||||
(dollars in millions, except per share data) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Revenues | $ | 2,329 | $ | 2,570 | $ | 2,678 | $ | 2,804 | |||||||||
Revenues less cost of sales (exclusive of depreciation and amortization) | $ | 639 | $ | 720 | $ | 763 | $ | 795 | |||||||||
Other costs (credits) | $ | 49 | $ | (6 | ) | $ | 19 | $ | 11 | ||||||||
Net income | $ | 115 | $ | 233 | $ | 238 | $ | 262 | |||||||||
Net income attributable to noncontrolling interests | $ | 4 | $ | 12 | $ | 13 | $ | 8 | |||||||||
Net income attributable to Cameron stockholders | $ | 111 | $ | 221 | $ | 225 | $ | 254 | |||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||||||
Basic | $ | 0.51 | $ | 1.08 | $ | 1.12 | $ | 1.3 | |||||||||
Diluted | $ | 0.51 | $ | 1.08 | $ | 1.11 | $ | 1.28 | |||||||||
2013 (quarter ended) | |||||||||||||||||
(dollars in millions, except per share data) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Revenues | $ | 1,956 | $ | 2,134 | $ | 2,317 | $ | 2,731 | |||||||||
Revenues less cost of sales (exclusive of depreciation and amortization) | $ | 574 | $ | 620 | $ | 668 | $ | 758 | |||||||||
Other costs (credits) | $ | 31 | $ | 36 | $ | 14 | $ | 11 | |||||||||
Net income | $ | 149 | $ | 140 | $ | 192 | $ | 243 | |||||||||
Net income attributable to noncontrolling interests | $ | – | $ | – | $ | 3 | $ | 22 | |||||||||
Net income attributable to Cameron stockholders | $ | 149 | $ | 140 | $ | 189 | $ | 221 | |||||||||
Earnings per share attributable to Cameron stockholders: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.57 | $ | 0.78 | $ | 0.96 | |||||||||
Diluted | $ | 0.6 | $ | 0.57 | $ | 0.78 | $ | 0.94 |
Summary_of_Major_Accounting_Po3
Summary of Major Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Segment | Segment | Unit | |||
Summary of Major Accounting Policies [Abstract] | |||||
Number of business segments | 4 | 4 | |||
Revenue Recognition [Abstract] | |||||
Percentage of revenue recognized under the accounting rules for construction-type and production-type contracts (in hundredths) | 31.00% | 31.00% | 31.00% | 26.00% | |
Inventories [Abstract] | |||||
Percentage of inventories carried on the LIFO method (in hundredths) | 54.00% | 54.00% | 49.00% | ||
Intangible Assets [Abstract] | |||||
Amount of goodwill included in reporting units | $2,461 | $2,461 | $2,925 | ||
Minimum percentage of carrying value by unit (in hundredths) | 75.00% | ||||
Foreign Currency Derivatives [Abstract] | |||||
Foreign currency transactions gain (loss) | 22 | 1 | 12 | ||
Minimum [Member] | |||||
Intangible Assets [Abstract] | |||||
Finite-lived intangible assets, useful life | 5 years | ||||
Maximum [Member] | |||||
Intangible Assets [Abstract] | |||||
Finite-lived intangible assets, useful life | 28 years | ||||
Buildings and Leasehold Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 10 years | ||||
Buildings and Leasehold Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 40 years | ||||
Machinery, Equipment and Tooling [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Machinery, Equipment and Tooling [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 18 years | ||||
Office Furniture, Software and Other [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Office Furniture, Software and Other [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 10 years | ||||
V&M [Member] | |||||
Intangible Assets [Abstract] | |||||
Amount of goodwill included in reporting units | 311 | 311 | 318 | 311 | |
V&M [Member] | Minimum [Member] | |||||
Intangible Assets [Abstract] | |||||
Number of reporting units within the segment | 2 | ||||
V&M [Member] | Maximum [Member] | |||||
Intangible Assets [Abstract] | |||||
Number of reporting units within the segment | 5 | ||||
CPS [Member] | |||||
Intangible Assets [Abstract] | |||||
Amount of goodwill included in reporting units | $571 | $571 | |||
CPS [Member] | Minimum [Member] | |||||
Intangible Assets [Abstract] | |||||
Percentage of estimated fair value (in hundredths) | 10.00% | ||||
CPS [Member] | Maximum [Member] | |||||
Intangible Assets [Abstract] | |||||
Percentage of estimated fair value (in hundredths) | 15.00% |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 18, 2014 | Jun. 01, 2014 | |
Results of Operations [Abstract] | ||||||
Revenues | $428 | $701 | $707 | |||
Cost of sales (excluding depreciation and amortization) | -306 | -498 | -503 | |||
All other costs | -94 | -105 | -108 | |||
Gain on sale of Reciprocating Compression business, before tax | 95 | 0 | 0 | |||
Income before income taxes | 123 | 98 | 96 | |||
Income tax provision | -97 | -33 | -30 | |||
Income from discontinued operations, net of income taxes | 26 | 65 | 66 | |||
Gain on the sale [Abstract] | ||||||
Pre-tax gain | 95 | 0 | 0 | |||
Gain on sale | 95 | 0 | 0 | |||
Discontinued operation, balance sheet disclosures [Abstract] | ||||||
Nondeductible goodwill | 192 | |||||
Centrifugal Compression business [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Cash consideration | 850 | |||||
Results of Operations [Abstract] | ||||||
Revenues | 85 | |||||
Net assets sold [Abstract] | ||||||
Accounts receivable | 37 | |||||
Inventory | 86 | |||||
Goodwill | 35 | |||||
Assets of discontinued operations | 217 | |||||
Discontinued operation, balance sheet disclosures [Abstract] | ||||||
Receivables, net | 37 | |||||
Inventories, net | 86 | |||||
Other current assets | 14 | |||||
Plant and equipment, net | 45 | |||||
Goodwill | 35 | |||||
Assets of discontinued operations | 217 | |||||
Accounts payable, accrued and other current liabilities | 89 | |||||
Other long-term liabilities | 1 | |||||
Liabilities of discontinued operations | 90 | |||||
Reciprocating Compression business [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Cash consideration | 550 | |||||
Results of Operations [Abstract] | ||||||
Gain on sale of Reciprocating Compression business, before tax | 95 | |||||
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 | |||||
Tax provision | -88 | [1] | ||||
Gain on sale | 7 | |||||
Net assets sold [Abstract] | ||||||
Accounts receivable | 79 | |||||
Inventory | 122 | |||||
Goodwill | 214 | |||||
All other | 27 | |||||
Assets of discontinued operations | 442 | |||||
Discontinued operation, balance sheet disclosures [Abstract] | ||||||
Receivables, net | 79 | |||||
Inventories, net | 122 | |||||
Goodwill | 214 | |||||
Assets of discontinued operations | $442 | |||||
[1] | The tax provision associated with the gain on the sale of the Reciprocating Compression business was approximately $88 million, which was impacted by nondeductible goodwill of approximately $192 million included in the total net assets sold. |
Acquisitions_and_OneSubsea_Det
Acquisitions and OneSubsea (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 |
Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from Joint venture contribution | $600 | |||||
Summary of preliminary purchase price allocation [Abstract] | ||||||
Goodwill | 2,461 | 2,925 | ||||
Taxes paid | 353 | 329 | 240 | |||
One Subsea [Member] | ||||||
Summary of preliminary purchase price allocation [Abstract] | ||||||
Cash, including cash acquired | 3 | |||||
Goodwill | 1,000 | |||||
One Subsea [Member] | Cameron [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of company acquired (in hundredths) | 60.00% | |||||
Summary of preliminary purchase price allocation [Abstract] | ||||||
Taxes paid | 80 | |||||
One Subsea [Member] | Schlumberger [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of company acquired (in hundredths) | 40.00% | |||||
Douglas Chero's [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase price for company's acquired | 20 | |||||
2012 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase price for company's acquired | 40 | |||||
Business acquisitions completed during the period, number (in number of acquisitions) | 2 | |||||
Summary of preliminary purchase price allocation [Abstract] | ||||||
Goodwill | 250 | 250 | ||||
Preliminary goodwill deductible for income tax purposes | 28 | 28 | ||||
Elco [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase price for company's acquired | 61 | |||||
Percentage of company acquired (in hundredths) | 100.00% | |||||
Business combination, reason for business combination | Elco was purchased to strengthen the Company's wellhead product and service offerings and has been included in the DPS segment since the date of acquisition. | |||||
TTS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase price for company's acquired | $248 |
Other_Costs_Details
Other Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Costs [Abstract] | |||
Goodwill impairment | $40 | $0 | $0 |
Litigation costs | 11 | 3 | 2 |
Loss on disposal of non-core assets | 10 | 0 | 0 |
Impairment of identifiable intangible assets | 4 | 0 | 18 |
Cost for early retirement of debt | 3 | 0 | 0 |
OneSubsea formation and other acquisition and integration costs | 2 | 60 | 16 |
International pension curtailment and settlement costs (credits), net | -8 | 0 | 7 |
Gain from remeasurement of prior interest in equity method investment | -8 | 0 | 0 |
Mark-to-market impact on currency derivatives not designated as accounting hedges | 8 | 1 | -16 |
Currency devaluation | 0 | 10 | 0 |
Severance, restructuring and other costs | 11 | 18 | 6 |
Total other costs | $73 | $92 | $33 |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade receivables | $1,678 | $2,015 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 621 | 582 |
Other receivables | 122 | 143 |
Allowance for doubtful accounts | -32 | -21 |
Total receivables | $2,389 | $2,719 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $159 | $238 |
Work-in-process | 827 | 894 |
Finished goods, including parts and subassemblies | 2,150 | 2,208 |
Other | 24 | 22 |
Gross Inventories | 3,160 | 3,362 |
Excess of current costs over LIFO costs | -86 | -120 |
Allowance for obsolete and excess inventory | -145 | -109 |
Total inventories | $2,929 | $3,133 |
Plant_and_Equipment_Goodwill_a2
Plant and Equipment, Goodwill and Intangibles (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | $3,580 | $3,670 | ||
Accumulated depreciation | -1,616 | -1,633 | ||
Total plant and equipment, net | 1,964 | 2,037 | ||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 2,925 | |||
Discontinued operations | -249 | |||
Impairment | -40 | 0 | 0 | |
Acquisitions | 20 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 18 | |||
Translation effect of currency changes and other | -213 | |||
Balance at December 31, 2014 | 2,461 | 2,925 | ||
Intangible assets, gross [Abstract] | ||||
Customer relationships | 459 | 519 | ||
Patents and technology | 382 | 426 | ||
Trademarks | 68 | 69 | ||
Noncompete agreements, engineering drawings and other | 80 | 103 | ||
Total intangible assets | 989 | 1,117 | ||
Accumulated amortization | -261 | -213 | ||
Total intangibles, net | 728 | 904 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2015 | 45 | |||
2016 | 45 | |||
2017 | 44 | |||
2018 | 42 | |||
2019 | 38 | |||
Subsea [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 1,654 | |||
Discontinued operations | 0 | |||
Impairment | 0 | |||
Acquisitions | 0 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | |||
Translation effect of currency changes and other | -197 | |||
Balance at December 31, 2014 | 1,476 | |||
Surface [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 199 | |||
Discontinued operations | 0 | |||
Impairment | -40 | |||
Acquisitions | 20 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 0 | |||
Translation effect of currency changes and other | -6 | |||
Balance at December 31, 2014 | 173 | |||
Drilling [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 505 | |||
Discontinued operations | 0 | |||
Impairment | 0 | |||
Acquisitions | 0 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 0 | |||
Translation effect of currency changes and other | -4 | |||
Balance at December 31, 2014 | 501 | |||
Valves & Measurement [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 318 | 311 | ||
Discontinued operations | 0 | |||
Impairment | 0 | |||
Acquisitions | 0 | |||
Adjustments to the purchase price allocation for prior year acquisitions | -1 | |||
Translation effect of currency changes and other | -6 | |||
Balance at December 31, 2014 | 311 | 311 | ||
Discontinued Operations [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance at December 31, 2013 | 249 | |||
Discontinued operations | -249 | |||
Impairment | 0 | |||
Acquisitions | 0 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 0 | |||
Translation effect of currency changes and other | 0 | |||
Balance at December 31, 2014 | 0 | |||
Land and land improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 130 | 132 | ||
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 726 | 744 | ||
Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 1,682 | 1,662 | ||
Tooling, dies, patterns, etc. [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 179 | 208 | ||
Office furniture & equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 212 | 210 | ||
Capitalized software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 370 | 348 | ||
Assets under capital leases [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 120 | 107 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | 127 | 231 | ||
All other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gross plant and equipment | $34 | $28 |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable and accruals | $1,084 | $1,184 |
Advances from customers | 1,576 | 1,676 |
Other accruals | 1,088 | 1,023 |
Total accounts payable and accrued liabilities | $3,748 | $3,883 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net periodic benefit cost not yet recognized included in accumulated other comprehensive income [Abstract] | |||
Total benefits included in accumulated other comprehensive income, before tax | ($107) | ($85) | |
Total benefits included in accumulated other comprehensive income, after tax | -88 | -69 | |
Total expected amortization from accumulated other comprehensive income for the year ended December 31, 2013 | 6 | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 455 | 432 | 318 |
Net benefit plan expense (income) [Abstract] | |||
Service cost | 18 | 10 | 3 |
Interest cost | 20 | 17 | 15 |
Expected return on plan assets | -27 | -21 | -18 |
Amortization of prior service credits | -2 | -2 | 0 |
Amortization of losses (gains) | 9 | 8 | 6 |
Curtailment gain | -12 | 0 | 0 |
Settlement loss | 4 | 0 | 4 |
Other | 0 | 0 | 2 |
Total net benefit plan expense (income) | 10 | 12 | 12 |
Net periodic benefit cost not yet recognized included in accumulated other comprehensive income [Abstract] | |||
Prior service credits before tax | 18 | 22 | |
Prior service credits after tax | 14 | 17 | |
Actuarial gain (losses), net before tax | -136 | -119 | |
Actuarial gain (losses), net after tax | -109 | -94 | |
Expected Amortization, Prior service credits | -2 | ||
Expected Amortization, Actuarial gain (losses), net | 10 | ||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 489 | 387 | |
Service cost | 18 | 10 | 3 |
Interest cost | 20 | 17 | 15 |
Plan participants' contributions | 1 | 1 | |
Actuarial losses (gains) | 78 | 12 | |
Exchange rate changes | -52 | 5 | |
Benefits and expenses paid from plan assets | -14 | -14 | |
Plan amendments | 0 | -21 | |
Acquisitions | 0 | 67 | |
Curtailments | -23 | 0 | |
Settlements | -8 | 0 | |
Other | 0 | 25 | |
Benefit obligation at end of year | 509 | 489 | 387 |
Change in fair value of plan assets [Roll forward] | |||
Fair value of plan assets at beginning of year | 432 | 318 | |
Actual return on plan assets | 53 | 41 | |
Company contributions | 27 | 13 | |
Plan participants' contributions | 1 | 1 | |
Exchange rate changes | -40 | 6 | |
Benefits and expenses paid from plan assets | -14 | -14 | |
Acquisitions | 0 | 46 | |
Settlements | -8 | 0 | |
Other | 4 | 21 | |
Unfunded status of defined benefit plan [Abstract] | |||
Underfunded status at end of year - Current | -1 | -1 | |
Underfunded status at end of year - Non-current | -53 | -55 | |
Underfunded status at end of year | -54 | -56 | |
Actual asset investment allocations [Abstract] | |||
Expected contributions to plan assets for the next fiscal year | 12 | ||
Changes in the fair value of pension plan assets determined based on level 3 unobservable inputs [Roll Forward] | |||
Balance at beginning of the year | 105 | 28 | |
Purchases/Sales, net | 10 | 7 | |
Other plan additions | 0 | 68 | |
Actual return on plan assets | 4 | 3 | |
Currency impact | -15 | -1 | |
Balance at end of the year | 104 | 105 | 28 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Defined benefit plan, plans with benefit obligations in excess of plan assets, aggregate fair value of plan assets | 455 | 97 | |
Defined benefit plans with accumulated benefit obligations in excess of plan assets aggregate fair value of plan assets | 455 | 42 | |
Defined benefit plan pension plans with projected benefit obligations in excess of plan assets aggregate projected benefit obligation | 509 | 172 | |
Defined benefit plan pension plans with accumulated benefit obligations in excess of plan assets aggregate accumulated benefit obligation | 469 | 84 | |
Total accumulated benefit obligation for defined benefit pension plans | 469 | 435 | |
Future expected benefit payments [Abstract] | |||
Year ended December 31, 2015 | 68 | ||
Year ended December 31, 2016 | 12 | ||
Year ended December 31, 2017 | 12 | ||
Year ended December 31, 2018 | 13 | ||
Year ended December 31, 2019 | 14 | ||
Year ended December 31, 2020 - 2024 | 74 | ||
Pension Benefits [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Pension Benefits [Member] | Equity Securities [Member] | US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 83 | 83 | |
Pension Benefits [Member] | Equity Securities [Member] | Non-US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 120 | 125 | |
Pension Benefits [Member] | Bonds [Member] | Non-US Government Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 117 | 92 | |
Pension Benefits [Member] | Bonds [Member] | Non-US Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 30 | 26 | |
Pension Benefits [Member] | Alternative Investments [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 89 | 91 | |
Pension Benefits [Member] | Alternative Investments [Member] | Real Estate and Other [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 15 | 14 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | Non-US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Bonds [Member] | Non-US Government Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Bonds [Member] | Non-US Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Alternative Investments [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Alternative Investments [Member] | Real Estate and Other [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 350 | 326 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 83 | 83 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | Non-US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 120 | 125 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Bonds [Member] | Non-US Government Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 117 | 92 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Bonds [Member] | Non-US Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 30 | 26 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Real Estate and Other [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 104 | 105 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | Non-US Equities [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Bonds [Member] | Non-US Government Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Bonds [Member] | Non-US Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 89 | 91 | |
Pension Benefits [Member] | Fair Value Based on Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Real Estate and Other [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 15 | 14 | |
U. S. Pension Plans [Member] | |||
Assumptions related to net benefit costs [Abstract] | |||
Discount rate (in hundredths) | 3.75% | 2.75% | |
Measurement date | 1/1/14 | 1/1/13 | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 3.25% | 3.75% | |
Health care cost trend rate (in hundredths) | 0.00% | 0.00% | |
Measurement date | 12/31/14 | 12/31/13 | |
U. S. Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Fair value of plan assets | 0 | 0 | 0 |
Net benefit plan expense (income) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service credits | -1 | -1 | -1 |
Amortization of losses (gains) | -1 | -1 | -1 |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Total net benefit plan expense (income) | -2 | -2 | -2 |
Net periodic benefit cost not yet recognized included in accumulated other comprehensive income [Abstract] | |||
Prior service credits before tax | 3 | 3 | |
Prior service credits after tax | 2 | 2 | |
Actuarial gain (losses), net before tax | 8 | 9 | |
Actuarial gain (losses), net after tax | 5 | 6 | |
Expected Amortization, Prior service credits | -1 | ||
Expected Amortization, Actuarial gain (losses), net | -1 | ||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 11 | 13 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Plan participants' contributions | 0 | 0 | |
Actuarial losses (gains) | -1 | -1 | |
Exchange rate changes | 0 | 0 | |
Benefits and expenses paid from plan assets | -1 | -1 | |
Plan amendments | 0 | ||
Acquisitions | 0 | ||
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation at end of year | 9 | 11 | 13 |
Change in fair value of plan assets [Roll forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1 | 1 | |
Plan participants' contributions | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Benefits and expenses paid from plan assets | -1 | -1 | |
Acquisitions | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Unfunded status of defined benefit plan [Abstract] | |||
Underfunded status at end of year - Current | -1 | -2 | |
Underfunded status at end of year - Non-current | -8 | -9 | |
Underfunded status at end of year | -9 | -11 | |
Assumptions related to net benefit costs [Abstract] | |||
Discount rate (in hundredths) | 3.75% | 2.75% | |
Measurement date | 1/1/14 | 1/1/13 | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 3.25% | 3.75% | |
Health care cost trend rate (in hundredths) | 7.00% | 7.50% | |
Measurement date | 12/31/14 | 12/31/13 | |
Ultimate health care cost trend rate (in hundredths) | 5.00% | ||
Year that rate reaches ultimate trend rate | 2021 | ||
Future expected benefit payments [Abstract] | |||
Year ended December 31, 2015 | 1 | ||
Year ended December 31, 2016 | 1 | ||
Year ended December 31, 2017 | 1 | ||
Year ended December 31, 2018 | 1 | ||
Year ended December 31, 2019 | 1 | ||
Year ended December 31, 2020 - 2024 | 3 | ||
Foreign Pension Plans [Member] | |||
Assumptions related to net benefit costs [Abstract] | |||
Measurement date | 1/1/14 | 1/1/13 | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Measurement date | 12/31/14 | 12/31/13 | |
Foreign Pension Plans [Member] | Minimum [Member] | |||
Assumptions related to net benefit costs [Abstract] | |||
Discount rate (in hundredths) | 3.50% | 2.25% | |
Expected return on plan assets (in hundredths) | 2.25% | 3.50% | |
Rate of compensation increase (in hundredths) | 2.25% | 3.00% | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 2.25% | 3.50% | |
Rate of compensation increase (in hundredths) | 2.25% | 2.25% | |
Foreign Pension Plans [Member] | Maximum [Member] | |||
Assumptions related to net benefit costs [Abstract] | |||
Discount rate (in hundredths) | 5.25% | 6.75% | |
Expected return on plan assets (in hundredths) | 6.75% | 6.75% | |
Rate of compensation increase (in hundredths) | 4.50% | 4.50% | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 4.25% | 5.25% | |
Rate of compensation increase (in hundredths) | 5.00% | 4.50% | |
U.K. Pension Plan [Member] | |||
Actual asset investment allocations [Abstract] | |||
Defined benefit plan assets for plan benefits United Kingdom percentage (in hundredths) | 78.00% | ||
U.K. Pension Plan [Member] | Fixed Income Debt Securities [Member] | |||
Actual asset investment allocations [Abstract] | |||
Future target allocation (in hundredths) | 40.00% | ||
U.K. Pension Plan [Member] | Real Estate and Other [Member] | |||
Actual asset investment allocations [Abstract] | |||
Future target allocation (in hundredths) | 5.00% | ||
U.K. Pension Plan [Member] | Equity Securities [Member] | |||
Actual asset investment allocations [Abstract] | |||
Actual plan assets allocation (in hundredths) | 55.00% | 60.00% | 54.00% |
Future target allocation (in hundredths) | 55.00% | ||
U.K. Pension Plan [Member] | Fixed Income Debt Securities, Cash and Other [Member] | |||
Actual asset investment allocations [Abstract] | |||
Actual plan assets allocation (in hundredths) | 45.00% | 40.00% | 46.00% |
Foreign Postretirement Benefit Plans [Member] | |||
Assumptions related to net benefit costs [Abstract] | |||
Discount rate (in hundredths) | 0.00% | 0.00% | |
Expected return on plan assets (in hundredths) | 0.00% | 0.00% | |
Rate of compensation increase (in hundredths) | 0.00% | 0.00% | |
Measurement date | 0 | 0 | |
Assumptions related to end-of-period benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 0.00% | 0.00% | |
Rate of compensation increase (in hundredths) | 0.00% | 0.00% | |
Measurement date | 0 | 0 | |
Defined Contribution Plans [Member] | |||
Retirement Savings Plan [Abstract] | |||
Percentage of defined pay the Company contributes on behalf of each eligible employee's retirement plan account (in hundredths) | 3.00% | ||
Vesting period for the company's retirement contributions | 3 years | ||
Matching contribution percentage each employee is eligible to receive (of the first 6% of pay contributed) (in hundredths) | 100.00% | ||
Percentage of employee contribution eligible for the company's matching contribution (in hundredths) | 6.00% | ||
Expense under Retirement Savings Plan | 77 | 77 | 70 |
Expense with respect to these various defined contribution and government-mandated plans | $73 | $83 | $60 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity compensation plans currently available for future grants | 1 | ||
Total stock-based compensation expense | $54,000,000 | $54,000,000 | $44,000,000 |
Recognized tax benefit | 20,000,000 | 20,000,000 | 17,000,000 |
Summary of option activity [Rollforward] | |||
Outstanding at beginning of period (in shares) | 4,197,093 | ||
Granted (in shares) | 782,779 | ||
Exercised (in shares) | -1,064,138 | ||
Forfeited (in shares) | -3,246 | ||
Outstanding at end of period (in shares) | 3,912,488 | 4,197,093 | |
Vested or expected to vest at end of period (in shares) | 3,899,272 | ||
Exercisable at end of period (in shares) | 2,471,452 | ||
Option activity , additional disclosures [Abstract] | |||
Weighted average exercise price at beginning of period (in dollars per share) | $47.92 | ||
Weighted average exercise price granted (in dollars per share) | $57.71 | ||
Weighted average exercise price per exercised (in dollars per share) | $40.48 | ||
Weighted average exercise price forfeited (in dollars per share) | $64.97 | ||
Weighted average exercise price outstanding at end of period (in dollars per share) | $51.89 | $47.92 | |
Weighted average exercise price vested or expected to vest at end of period (in dollars per share) | $51.86 | ||
Weighted average exercise price exercisable at end of period (in dollars per share) | $47.32 | ||
Weighted average remaining contractual term outstanding at end of period (in years) | 6 years 3 months 7 days | ||
Weighted average remaining contractual term vested or expected to vest at end of period (in years) | 6 years 3 months 4 days | ||
Weighted average remaining contractual term exercisable at end of period (In years) | 4 years 7 months 17 days | ||
Aggregate intrinsic value outstanding at end of period | 13,000,000 | ||
Aggregate intrinsic value vested or expected to vest at end of period | 13,000,000 | ||
Aggregate intrinsic value exercisable at end of period | 13,000,000 | ||
Fair values and weighted-average assumptions used to value options [Abstract] | |||
Expected life (in years) | 3 years 3 months 18 days | 3 years 2 months 12 days | 3 years 2 months 12 days |
Risk-free interest rate (in hundredths) | 0.86% | 0.67% | 0.37% |
Volatility (in hundredths) | 33.80% | 34.30% | 39.40% |
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Grant-date fair value per option (in dollars per share) | $14.51 | $16.19 | $15.68 |
Intrinsic value of options exercised | 26,000,000 | 31,000,000 | 34,000,000 |
Average intrinsic value per share of options exercised (in dollars per share) | $24.17 | $26.30 | $23.39 |
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Shares granted (in shares) | 826,329 | 838,207 | 674,578 |
Restricted and deferred stock units and awards, additional disclosures [Abstract] | |||
Weighted average grant date fair value, granted (in dollars per share) | $59.63 | $57.95 | $50.44 |
Restricted and deferred stock units and awards [Abstract] | |||
Annual value of deferred stock units available for grants to non-employee directors | 250,000 | ||
Incremental portion of deferred stock units that vest quarterly over the year following the date of grant | one-fourth increments quarterly | ||
Period of time after the date of grant during which deferred stock units cannot be converted into common stock | three years | ||
Intrinsic value of units vesting | 34,000,000 | 46,000,000 | 38,000,000 |
Shares reserved for future grants of options, deferred stock units, restricted stock units and other awards (in shares) | 11,685,001 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 10,000,000 | 14,000,000 | 12,000,000 |
Terms of awards | Seven or ten years | ||
The incremental portion of options that vest annually on the anniversary date of grant | one-third increments each year | ||
Unrecognized share-based compensation cost [Abstract] | |||
Stock-based compensation cost not yet recognized under the straight-line method, Stock options | 14,000,000 | ||
Weighted-average remaining expense recognition period (in years) | 1 year 11 months 12 days | ||
Restricted and Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 44,000,000 | 40,000,000 | 32,000,000 |
The incremental portion of options that vest annually on the anniversary date of grant | one-third increments each year or three-year 100% | ||
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Nonvested shares, beginning of period (in shares) | 1,658,357 | ||
Shares granted (in shares) | 826,329 | ||
Shares vested (in shares) | -563,179 | ||
Shares forfeited (in shares) | -72,825 | ||
Nonvested shares, end of period (in shares) | 1,848,682 | 1,658,357 | |
Restricted and deferred stock units and awards, additional disclosures [Abstract] | |||
Weighted average grant date fair value, outstanding, beginning of period (in dollars per share) | $28.22 | ||
Weighted average grant date fair value, granted (in dollars per share) | $59.63 | ||
Weighted average grant date fair value, vested (in dollars per share) | $59.82 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | $57.22 | ||
Weighted average grant date fair value, outstanding at end of period (in dollars per share) | $31.89 | $28.22 | |
Unrecognized share-based compensation cost [Abstract] | |||
Stock-based compensation cost not yet recognized under the straight-line method, Restricted and deferred stock units | $46,000,000 | ||
Weighted-average remaining expense recognition period (in years) | 1 year 7 months 6 days | ||
Restricted and Deferred Stock Units with Performance Conditions [Member] | |||
Restricted and deferred stock units and awards activity [Roll Forward] | |||
Shares granted (in shares) | 174,697 | 185,992 | 211,244 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 21, 2014 | Apr. 11, 2014 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Principal outstanding, net of unamortized discount | $3,082,000,000 | $2,860,000,000 | ||||
Current maturities | -263,000,000 | -297,000,000 | ||||
Long-term maturities | 2,819,000,000 | 2,563,000,000 | ||||
Future maturities, 2015 | 249,000,000 | |||||
Future maturities, 2016 | 269,000,000 | |||||
Future maturities, 2017 | 250,000,000 | |||||
Future maturities, 2018 | 450,000,000 | |||||
Future maturities, thereafter | 1,800,000,000 | |||||
Interest expensed and paid [Abstract] | ||||||
Interest expensed | 149,000,000 | 115,000,000 | 104,000,000 | |||
Interest paid | 142,000,000 | 105,000,000 | 97,000,000 | |||
Commercial Paper [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (in hundredths) | 0.49% | |||||
Principal outstanding, net of unamortized discount | 201,000,000 | 0 | ||||
Maximum borrowing capacity | 500,000,000 | |||||
Number of days in which commercial paper matures | 364 days | |||||
Average term of outstanding commercial paper | 36 days | |||||
Weighted-average interest rate on other debt (in hundredths) | 0.49% | |||||
Senior Notes Payable Due 2014 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2-Jun-14 | |||||
Principal outstanding, net of unamortized discount | 0 | 250,000,000 | ||||
Senior Notes Payable Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 30-Apr-15 | |||||
Interest rate (in hundredths) | 1.60% | |||||
Principal outstanding, net of unamortized discount | 0 | 250,000,000 | ||||
Senior Notes Payable Due 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Dec-16 | |||||
Interest rate (in hundredths) | 1.15% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Senior Notes Payable Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Jun-17 | |||||
Interest rate (in hundredths) | 1.40% | |||||
Debt instrument, date of first required payment | 15-Dec-14 | |||||
Percentage of principal amount under a change of control repurchase event (in hundredths) | 99.95% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 0 | ||||
Senior Notes Payable Due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Jul-18 | |||||
Interest rate (in hundredths) | 6.38% | |||||
Principal outstanding, net of unamortized discount | 450,000,000 | 450,000,000 | ||||
Senior Notes Payable Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 1-Jun-21 | |||||
Interest rate (in hundredths) | 4.50% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Senior Notes Payable Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 30-Apr-22 | |||||
Interest rate (in hundredths) | 3.60% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Senior Notes Payable Due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Dec-23 | |||||
Interest rate (in hundredths) | 4.00% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Senior Notes Payable Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Jun-24 | |||||
Interest rate (in hundredths) | 3.70% | |||||
Debt instrument, date of first required payment | 15-Dec-14 | |||||
Percentage of principal amount under a change of control repurchase event (in hundredths) | 99.77% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 0 | ||||
Senior Notes Payable Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Jul-38 | |||||
Interest rate (in hundredths) | 7.00% | |||||
Principal outstanding, net of unamortized discount | 300,000,000 | 300,000,000 | ||||
Senior Notes Payable Due 2041 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 1-Jun-41 | |||||
Interest rate (in hundredths) | 5.95% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Senior Notes Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payment of principal and accrued interest | 253,000,000 | |||||
Unamortized original issue discount | -7,000,000 | -7,000,000 | ||||
Senior Notes Payable Due 2043 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 15-Dec-43 | |||||
Interest rate (in hundredths) | 5.13% | |||||
Principal outstanding, net of unamortized discount | 250,000,000 | 250,000,000 | ||||
Other Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (in hundredths) | 6.50% | 6.10% | ||||
Principal outstanding, net of unamortized discount | 67,000,000 | 57,000,000 | ||||
Weighted-average interest rate on other debt (in hundredths) | 6.50% | 6.10% | ||||
Obligations Under Capital Leases [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal outstanding, net of unamortized discount | 71,000,000 | 60,000,000 | ||||
Public offering [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Issuance date of unsecured senior notes | 20-Jun-14 | |||||
Issued amount (Senior Notes) | 500,000,000 | |||||
Amended Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 6-Jun-16 | |||||
Maximum borrowing capacity | 835,000,000 | |||||
Term of revolving credit facility | 5 years | |||||
New Line of Credit Multi Currency [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 11-Apr-17 | |||||
Maximum borrowing capacity | 750,000,000 | |||||
Letters of credit outstanding | 92,000,000 | |||||
Remaining capacity under revolving line of credit facility | 681,000,000 | |||||
Term of revolving credit facility | 3 years | |||||
Letters of credit issued | 69,000,000 | |||||
Line of Credit Multi Currency [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 170,000,000 | 40,000,000 | ||||
Remaining capacity under revolving line of credit facility | 37,000,000 | |||||
Letters of credit issued | 3,000,000 | |||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $200,000,000 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rental expenses | $115 | $111 | $86 |
Future minimum lease payments with respect to capital leases [Abstract] | |||
2015 | 17 | ||
2016 | 15 | ||
2017 | 12 | ||
2018 | 8 | ||
2019 | 6 | ||
Thereafter | 62 | ||
Future minimum lease payments | 120 | ||
Less: amount representing interest | -49 | ||
Lease obligations at December 31, 2014 | 71 | ||
Future minimum lease payments with respect to operating leases [Abstract] | |||
2015 | 103 | ||
2016 | 90 | ||
2017 | 78 | ||
2018 | 64 | ||
2019 | 57 | ||
Thereafter | 350 | ||
Future minimum lease payments | 742 | ||
Less: amount representing interest | 0 | ||
Lease obligations at December 31, 2014 | $742 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of income before income taxes [Abstract] | |||
U.S. operations | $294,000,000 | $219,000,000 | $664,000,000 |
Foreign operations | 786,000,000 | 636,000,000 | 178,000,000 |
Income from continuing operations before income taxes | 1,080,000,000 | 855,000,000 | 842,000,000 |
Current [Abstract] | |||
U.S. federal | 70,000,000 | 0 | 97,000,000 |
U.S. state and local | 4,000,000 | 11,000,000 | 7,000,000 |
Foreign | 231,000,000 | 166,000,000 | 137,000,000 |
Total Current Income Taxes | 305,000,000 | 177,000,000 | 241,000,000 |
Deferred [Abstract] | |||
U.S. federal | 0 | 31,000,000 | -37,000,000 |
U.S. state and local | -3,000,000 | 2,000,000 | -2,000,000 |
Foreign | -44,000,000 | -14,000,000 | -45,000,000 |
Total Deferred Income Taxes | -47,000,000 | 19,000,000 | -84,000,000 |
Income tax provision | 258,000,000 | 196,000,000 | 157,000,000 |
Effective income tax rate reconciliation [Abstract] | |||
U.S. federal statutory rate (in hundredths) | 35.00% | 35.00% | 35.00% |
State and local income taxes (in hundredths) | 0.00% | 1.00% | 0.40% |
Foreign statutory rate differential (in hundredths) | -10.70% | -11.60% | -10.20% |
Change in valuation allowance on deferred tax assets (in hundredths) | 3.40% | -1.70% | 6.60% |
Nondeductible expenses (in hundredths) | -0.10% | 1.10% | 0.90% |
Net U.S. tax on foreign source income (in hundredths) | -2.90% | -3.20% | -12.20% |
All other (in hundredths) | -0.80% | 2.30% | -1.90% |
Total (in hundredths) | 23.90% | 22.90% | 18.60% |
Total income taxes paid | 353,000,000 | 329,000,000 | 240,000,000 |
Deferred tax liabilities [Abstract] | |||
Plant and equipment | -190,000,000 | -171,000,000 | |
Intangible assets | -221,000,000 | -251,000,000 | |
Other | -9,000,000 | -16,000,000 | |
Total deferred tax liabilities | -420,000,000 | -438,000,000 | |
Deferred tax assets [Abstract] | |||
Inventory | 48,000,000 | 20,000,000 | |
Postretirement benefits other than pensions | 3,000,000 | 12,000,000 | |
Reserves and accruals | 160,000,000 | 93,000,000 | |
Net operating losses and tax credits | 259,000,000 | 246,000,000 | |
Pensions | 38,000,000 | 16,000,000 | |
Other | 27,000,000 | 17,000,000 | |
Total deferred tax assets | 535,000,000 | 404,000,000 | |
Valuation allowance | -79,000,000 | -59,000,000 | -84,000,000 |
Net deferred tax assets (liabilities) | 36,000,000 | -93,000,000 | |
Changes in unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of year | 103,000,000 | 121,000,000 | 148,000,000 |
Decreases in estimates for tax positions taken prior to the current year | 0 | 0 | -11,000,000 |
Increases due to tax positions taken during the current year | 6,000,000 | 3,000,000 | 0 |
Decreases relating to settlements with tax authorities | -10,000,000 | -19,000,000 | -10,000,000 |
Decreases resulting from the lapse of applicable statutes of limitation | 0 | 0 | -7,000,000 |
Net increases (decreases) due to translation and interest | -2,000,000 | -2,000,000 | 1,000,000 |
Balance at end of year | 97,000,000 | 103,000,000 | 121,000,000 |
Unrecognized tax benefits expected to settle within twelve months | 97,000,000 | ||
Valuation Allowance [Abstract] | |||
Balance at beginning of year | 59,000,000 | 84,000,000 | 30,000,000 |
Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year | 25,000,000 | 11,000,000 | 36,000,000 |
Change in valuation allowances related to prior years | -2,000,000 | -16,000,000 | 19,000,000 |
Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized | 0 | -19,000,000 | 0 |
Effect of translation | -3,000,000 | -1,000,000 | -1,000,000 |
Balance at ending of year | 79,000,000 | 59,000,000 | 84,000,000 |
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards regular income taxes expiration period | 2018 - Indefinite | ||
Tax benefit associated with certain stock benefit plan transactions | 6,000,000 | 10,000,000 | 12,000,000 |
Unremitted foreign subsidiary earnings considered permanently reinvested | 5,100,000,000 | ||
Tax holiday benefit in Singapore and Malaysia jurisdictions | 11,000,000 | 3,000,000 | 2,000,000 |
Minimum [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards state income taxes expiration year | 2018 | ||
Tax credit carryforward, expiration year | 2016 | ||
Maximum [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards state income taxes expiration year | 2034 | ||
Tax credit carryforward, expiration year | 2024 | ||
United States [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2011 | ||
United Kingdom [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2012 | ||
Canada [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2006 | ||
France [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2012 | ||
Germany [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2008 | ||
Norway [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2010 | ||
Singapore [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2010 | ||
Italy [Member] | |||
Income Tax Examination [Line Items] | |||
Earliest years remaining open to examinations | 2008 | ||
Domestic Tax Authority [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards state income taxes | 6,000,000 | ||
Operating loss carryforwards regular income taxes | 0 | ||
Foreign tax credits | 93,000,000 | ||
Foreign Tax Authority [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards state income taxes | 0 | ||
Operating loss carryforwards regular income taxes | 381,000,000 | ||
Foreign tax credits | $0 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity [Abstract] | |||
Common stock authorized for repurchase | $3.80 | ||
Common stock reserved for future issuance under employee benefit plans (in shares) | 17,447,056 | ||
Shares of preferred stock authorized to issue (in shares) | 10,000,000 | 10,000,000 | |
Par value of authorized preferred stock (in dollars per share) | $0.01 | $0.01 | |
Capital in excess of par value plus the retained earnings | $8.90 | ||
Class of Stock [Line Items] | |||
Balance (in shares) | 221,428,308 | 246,696,136 | 245,532,075 |
Purchase of treasury stock (in shares) | -27,970,492 | -26,955,623 | -412,800 |
Stock issued under stock compensation plans (in shares) | 1,514,629 | 1,687,795 | 1,576,861 |
Balance (in shares) | -194,972,445 | 221,428,308 | 246,696,136 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Balance (in shares) | 263,111,472 | 263,111,472 | 263,111,472 |
Purchase of treasury stock (in shares) | 0 | 0 | 0 |
Stock issued under stock compensation plans (in shares) | 0 | 0 | 0 |
Balance (in shares) | 263,111,472 | 263,111,472 | 263,111,472 |
Treasury Stock [Member] | |||
Class of Stock [Line Items] | |||
Balance (in shares) | -41,683,164 | -16,415,336 | -17,579,397 |
Purchase of treasury stock (in shares) | -27,970,492 | -26,955,623 | -412,800 |
Stock issued under stock compensation plans (in shares) | 1,514,629 | 1,687,795 | 1,576,861 |
Balance (in shares) | -68,139,027 | -41,683,164 | -16,415,336 |
Accumulated_Other_Elements_of_2
Accumulated Other Elements of Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of period | ($80) | ||
Foreign currency translation gain (loss) | -526 | -70 | 75 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | -76 | 14 | 10 |
Balance at end of period | -540 | -80 | |
Accumulated Foreign Currency Translation Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of period | -49 | 46 | -29 |
Foreign currency translation gain (loss) | -379 | -95 | 75 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 0 | ||
Amortization of actuarial (gains) losses, net of tax | 0 | 0 | 0 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Balance at end of period | -428 | -49 | 46 |
Prior Service Credits and Net Actuarial Losses [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of period | -45 | -87 | -56 |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | -31 | 40 | -33 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | -3 | ||
Amortization of actuarial (gains) losses, net of tax | 1 | 2 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Balance at end of period | -78 | -45 | -87 |
Accumulated Gain (Loss) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of period | 14 | 11 | -6 |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | 0 | 0 | 0 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | 0 | ||
Amortization of actuarial (gains) losses, net of tax | 0 | 0 | 0 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | -52 | 6 | 10 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 4 | -3 | 7 |
Balance at end of period | -34 | 14 | 11 |
Total [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of period | -80 | -30 | -91 |
Foreign currency translation gain (loss) | -379 | -95 | 75 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | -31 | 40 | -33 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | -3 | ||
Amortization of actuarial (gains) losses, net of tax | 1 | 2 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | -52 | 6 | 10 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 4 | -3 | 7 |
Balance at end of period | -540 | -80 | -30 |
Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Foreign currency translation gain (loss) | -379 | -95 | 75 |
Actuarial gains (losses) recognized in other comprehensive income, net of tax | -31 | 40 | -33 |
Curtailment and settlement gains (losses) recognized in other comprehensive income, net of tax | -3 | ||
Amortization of actuarial (gains) losses, net of tax | 1 | 2 | 2 |
Gain (loss) on derivatives recognized in other comprehensive income, net of tax | -52 | 6 | 10 |
(Gain) loss on derivatives reclassified from accumulated other comprehensive income, net of tax | 4 | -3 | 7 |
Other Comprehensive Income (Loss) attributable to Cameron International Corporation | ($460) | ($50) | $61 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | Segment | ||||||||||
Business Segments [Abstract] | |||||||||||
Number of business segments | 4 | 4 | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Research and product development costs | $128 | $83 | $63 | ||||||||
Percent of total research and development costs incurred by DPS (in hundredths) | 58.00% | 44.00% | 47.00% | ||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,804 | 2,678 | 2,570 | 2,329 | 2,731 | 2,317 | 2,134 | 1,956 | 10,381 | 9,138 | 7,795 |
Depreciation and amortization | 348 | 298 | 238 | ||||||||
Other costs | 73 | 92 | 33 | ||||||||
Consolidated income from continuing operations before income taxes | 1,080 | 855 | 842 | ||||||||
Capital expenditures | 385 | 520 | 427 | ||||||||
Total assets | 12,892 | 14,249 | 12,892 | 14,249 | 11,158 | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 10,381 | 9,138 | 7,795 | ||||||||
Long-lived assets | 5,153 | 5,866 | 5,153 | 5,866 | 4,025 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 4,689 | 4,311 | 4,058 | ||||||||
Long-lived assets | 2,367 | 2,670 | 2,367 | 2,670 | 2,532 | ||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 964 | 822 | 612 | ||||||||
Long-lived assets | 219 | 197 | 219 | 197 | 170 | ||||||
Other Foreign Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 4,728 | 4,005 | 3,125 | ||||||||
Long-lived assets | 2,567 | 2,999 | 2,567 | 2,999 | 1,323 | ||||||
Operating Segments [Member] | Subsea [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,067 | 2,813 | 2,061 | ||||||||
Depreciation and amortization | 113 | 85 | 57 | ||||||||
Segment operating income before interest and income taxes | 207 | 152 | 72 | ||||||||
Capital expenditures | 70 | 80 | 82 | ||||||||
Total assets | 5,571 | 5,897 | 5,571 | 5,897 | 3,364 | ||||||
Operating Segments [Member] | Surface [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,411 | 2,077 | 1,859 | ||||||||
Depreciation and amortization | 126 | 106 | 85 | ||||||||
Segment operating income before interest and income taxes | 427 | 367 | 315 | ||||||||
Capital expenditures | 125 | 156 | 132 | ||||||||
Total assets | 2,756 | 2,705 | 2,756 | 2,705 | 2,307 | ||||||
Operating Segments [Member] | Drilling [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,049 | 2,327 | 1,807 | ||||||||
Depreciation and amortization | 60 | 60 | 46 | ||||||||
Segment operating income before interest and income taxes | 474 | 311 | 329 | ||||||||
Capital expenditures | 38 | 111 | 97 | ||||||||
Total assets | 3,011 | 3,076 | 3,011 | 3,076 | 2,413 | ||||||
Operating Segments [Member] | V&M [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,125 | 2,105 | 2,168 | ||||||||
Depreciation and amortization | 49 | 47 | 50 | ||||||||
Segment operating income before interest and income taxes | 393 | 414 | 396 | ||||||||
Capital expenditures | 49 | 58 | 30 | ||||||||
Total assets | 1,633 | 1,765 | 1,633 | 1,765 | 1,743 | ||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | -145 | -162 | -126 | ||||||||
Interest, net | -129 | -100 | -90 | ||||||||
Other costs | -73 | -92 | -33 | ||||||||
Capital expenditures | 96 | 102 | 69 | ||||||||
Total assets | 581 | 844 | 581 | 844 | 1,376 | ||||||
Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital expenditures | 7 | 13 | 17 | ||||||||
Total assets | 217 | 616 | 217 | 616 | 615 | ||||||
Operating segments after intersegment earnings before corporate allocation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income before interest and income taxes | 1,427 | 1,209 | 1,091 | ||||||||
Eliminations of intersegment earnings [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | -271 | -184 | -100 | ||||||||
Segment operating income before interest and income taxes | -74 | -35 | -21 | ||||||||
Total assets | ($877) | ($654) | ($877) | ($654) | ($660) | ||||||
OneSubsea [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percnetage | 60.00% | 60.00% | |||||||||
Minority ownership percentage (in hundredths) | 40.00% | 40.00% |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings per share attributable to Cameron stockholders [Abstract] | |||||||||||
Net income attributable to Cameron stockholders | $254 | $225 | $221 | $111 | $221 | $189 | $140 | $149 | $811 | $699 | $751 |
Average shares outstanding (basic) (in shares) | 204 | 242 | 246 | ||||||||
Common stock equivalents (in shares) | 1 | 2 | 2 | ||||||||
Shares utilized in diluted earnings per share calculation (in shares) | 205 | 244 | 248 | ||||||||
Earnings per share attributable to Cameron stockholders [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | $1.30 | $1.12 | $1.08 | $0.51 | $0.96 | $0.78 | $0.57 | $0.60 | $3.98 | $2.89 | $3.05 |
Diluted earnings per share (in dollars per share) | $1.28 | $1.11 | $1.08 | $0.51 | $0.94 | $0.78 | $0.57 | $0.60 | $3.96 | $2.87 | $3.03 |
Summary_of_Noncash_Operating_I2
Summary of Non-cash Operating, Investing and Financing Activities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Non-cash Operating, Investing and Financing Activities [Abstract] | |||
Tax benefit of stock compensation plan transactions | $6 | $10 | $12 |
Change in fair value of derivatives accounted for as cash flow hedges, net of tax | -76 | 14 | 10 |
Actuarial gain (loss), net, related to defined benefit pension and postretirement benefit plans | ($35) | $13 | ($34) |
OffBalance_Sheet_Risk_and_Guar2
Off-Balance Sheet Risk and Guarantees and Concentrations of Credit Risk (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract] | |
Contingently liable for bank guarantees and standby letters of credit issued on the company's behalf | $1,100 |
Liability to financial institutions for financial letters of credit and other guarantees issued on the Company's behalf | 52 |
Liability for insurance bonds issued on the company's behalf | $28 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and cash equivalents: [Abstract] | ||
Cash | $616,000,000 | $618,000,000 |
Money market funds | 842,000,000 | 1,172,000,000 |
Commercial paper | 13,000,000 | 4,000,000 |
U.S. treasury securities | 5,000,000 | 0 |
U.S. corporate obligations | 4,000,000 | 0 |
Non-U.S. bank and other obligations | 33,000,000 | 19,000,000 |
Short-term investments: [Abstract] | ||
Commercial paper | 11,000,000 | 0 |
U.S. Treasury securities | 51,000,000 | 41,000,000 |
U.S. corporate obligations | 51,000,000 | 0 |
Non-qualified plan assets [Abstract] | ||
Money market funds | 1,000,000 | 1,000,000 |
Domestic bond funds | 3,000,000 | 3,000,000 |
Domestic equity funds | 5,000,000 | 5,000,000 |
International equity funds | 3,000,000 | 3,000,000 |
Blended equity funds | 5,000,000 | 4,000,000 |
Common stock | 2,000,000 | 2,000,000 |
Derivatives, net asset (liability) [Abstract] | ||
Foreign currency contracts | -99,000,000 | 19,000,000 |
Total financial instruments | 1,546,000,000 | 1,891,000,000 |
Fair value of the fixed-rate debt | 2,900,000,000 | 2,700,000,000 |
Face value of the fixed-rate debt | 2,700,000,000 | 2,500,000,000 |
Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Cash and cash equivalents: [Abstract] | ||
Cash | 616,000,000 | 618,000,000 |
Money market funds | 842,000,000 | 1,172,000,000 |
Commercial paper | 0 | 0 |
U.S. treasury securities | 5,000,000 | 0 |
U.S. corporate obligations | 4,000,000 | 0 |
Non-U.S. bank and other obligations | 33,000,000 | 19,000,000 |
Short-term investments: [Abstract] | ||
Commercial paper | 0 | 0 |
U.S. Treasury securities | 51,000,000 | 41,000,000 |
U.S. corporate obligations | 51,000,000 | 0 |
Non-qualified plan assets [Abstract] | ||
Money market funds | 1,000,000 | 1,000,000 |
Domestic bond funds | 3,000,000 | 3,000,000 |
Domestic equity funds | 5,000,000 | 5,000,000 |
International equity funds | 3,000,000 | 3,000,000 |
Blended equity funds | 5,000,000 | 4,000,000 |
Common stock | 2,000,000 | 2,000,000 |
Derivatives, net asset (liability) [Abstract] | ||
Foreign currency contracts | 0 | 0 |
Total financial instruments | 1,621,000,000 | 1,868,000,000 |
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 | 13,000,000 | 4,000,000 |
U.S. treasury securities | 0 | 0 |
U.S. corporate obligations | 0 | 0 |
Non-U.S. bank and other obligations | 0 | 0 |
Short-term investments: [Abstract] | ||
Commercial paper | 11,000,000 | 0 |
U.S. Treasury securities | 0 | 0 |
U.S. corporate obligations | 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 | -99,000,000 | 19,000,000 |
Total financial instruments | ($75,000,000) | $23,000,000 |
Derivative_Contracts_Details
Derivative Contracts (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Buy Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | $214 |
Buy Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 428 |
Buy Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 1,016 |
Buy Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 115 |
Buy U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 60 |
Buy U.S. dollar [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 87 |
Sell Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -11 |
Sell Euro [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
Sell Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -29 |
Sell Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -140 |
Sell Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -23 |
Sell U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -682 |
2015 [Member] | Buy Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 200 |
2015 [Member] | Buy Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 377 |
2015 [Member] | Buy Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 895 |
2015 [Member] | Buy Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 110 |
2015 [Member] | Buy U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 60 |
2015 [Member] | Buy U.S. dollar [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 87 |
2015 [Member] | Sell Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -10 |
2015 [Member] | Sell Euro [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2015 [Member] | Sell Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -29 |
2015 [Member] | Sell Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -96 |
2015 [Member] | Sell Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -22 |
2015 [Member] | Sell U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -635 |
2016 [Member] | Buy Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 14 |
2016 [Member] | Buy Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 51 |
2016 [Member] | Buy Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 117 |
2016 [Member] | Buy Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 5 |
2016 [Member] | Buy U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2016 [Member] | Buy U.S. dollar [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2016 [Member] | Sell Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -1 |
2016 [Member] | Sell Euro [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2016 [Member] | Sell Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2016 [Member] | Sell Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -44 |
2016 [Member] | Sell Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -1 |
2016 [Member] | Sell U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | -47 |
2017 [Member] | Buy Euro [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2017 [Member] | Buy Malaysian ringgit [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2017 [Member] | Buy Norwegian krone [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 4 |
2017 [Member] | Buy Pound Sterling [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2017 [Member] | Buy U.S. dollar [Member] | Foreign exchange forward contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | 0 |
2017 [Member] | Buy U.S. dollar [Member] | Foreign exchange option contracts [Member] | |
Derivative [Line Items] | |
Notional Amount | $0 |
Fair_Value_of_Derivative_Finan
Fair Value of Derivative Financial Instruments, Balance Sheet Classification (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ||
Assets | $10 | $37 |
Liabilities | 109 | 18 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
After-tax loss on cash flow hedges included in accumulated other elements of comprehensive income and in noncontrolling interests | 47 | |
Recognized as a reduction in earnings in 2015 | 38 | |
Derivatives not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 6 |
Liabilities | 14 | 6 |
Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 6 |
Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Non-Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 14 | 6 |
Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 0 |
Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 9 | 31 |
Liabilities | 95 | 12 |
Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 8 | 28 |
Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Non-Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1 | 3 |
Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 83 | 10 |
Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | Non-Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $12 | $2 |
Derivative_Instruments_Gain_Lo
Derivative Instruments, Gain (Loss) by Hedging Relationship, Income Statement Location (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total pre-tax gain (loss) | ($26) | $7 | $18 |
Cost of Sale [Member] | Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total pre-tax gain (loss) | -11 | 7 | 2 |
Cost of Sale [Member] | Derivatives Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total pre-tax gain (loss) | -7 | 1 | 0 |
Other Costs [Member] | Derivatives not Designated as Hedges [Member] | Foreign Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total pre-tax gain (loss) | ($8) | ($1) | $16 |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Site | |
Homeowner | |
Country | |
Contingencies [Abstract] | |
Accrued liability for claims of other litigation | $17 |
Number of countries where company has legal entities | 50 |
Customs duties, penalties and interest by the government of Brazil | 50 |
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 |
Accrued environmental loss contingencies, noncurrent | 3 |
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 | $7.10 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 20, 2014 |
Subsequent Event [Line Items] | ||||
Revenues from discontinued operations | $428 | $701 | $707 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Date of definitive agreement to sell Reciprocating Compression business | 20-Jan-14 | |||
Cash consideration | 550 | |||
Subsequent Event [Member] | Reciprocating Compression business [Member] | ||||
Subsequent Event [Line Items] | ||||
Revenues from discontinued operations | 302 | |||
Subsequent Event [Member] | Centrifugal Compression business [Member] | ||||
Subsequent Event [Line Items] | ||||
Revenues from discontinued operations | $398 |
Unaudited_Quarterly_Operating_2
Unaudited Quarterly Operating Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unaudited Quarterly Operating Results [Abstract] | |||||||||||
Revenues | $2,804 | $2,678 | $2,570 | $2,329 | $2,731 | $2,317 | $2,134 | $1,956 | $10,381 | $9,138 | $7,795 |
Revenues less cost of sales (exclusive of depreciation and amortization) | 795 | 763 | 720 | 639 | 758 | 668 | 620 | 574 | |||
Other costs (credits) | 11 | 19 | -6 | 49 | 11 | 14 | 36 | 31 | |||
Net income | 262 | 238 | 233 | 115 | 243 | 192 | 140 | 149 | 848 | 724 | 751 |
Net income attributable to noncontrolling interests | 8 | 13 | 12 | 4 | 22 | 3 | 0 | 0 | 37 | 25 | 0 |
Net income attributable to Cameron stockholders | $254 | $225 | $221 | $111 | $221 | $189 | $140 | $149 | $811 | $699 | $751 |
Earnings per share attributable to Cameron stockholders: [Abstract] | |||||||||||
Basic earnings per share (in dollars per share) | $1.30 | $1.12 | $1.08 | $0.51 | $0.96 | $0.78 | $0.57 | $0.60 | $3.98 | $2.89 | $3.05 |
Diluted earnings per share (in dollars per share) | $1.28 | $1.11 | $1.08 | $0.51 | $0.94 | $0.78 | $0.57 | $0.60 | $3.96 | $2.87 | $3.03 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | $21 | $8 | $10 | |||
Additions Charged to cost and expense | 10 | 14 | 1 | |||
Charged to other accounts | 8 | 0 | 0 | |||
Deductions (a) | -5 | [1] | -1 | [1] | -3 | [1] |
Translation | -2 | 0 | 0 | |||
Balance at end of period | 32 | 21 | 8 | |||
Allowance for obsolete and excess inventory [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 109 | 89 | 82 | |||
Additions Charged to cost and expense | 65 | 28 | 21 | |||
Charged to other accounts | -3 | 4 | -2 | |||
Deductions (a) | -21 | [1] | -12 | [1] | -12 | [1] |
Translation | -5 | 0 | 0 | |||
Balance at end of period | $145 | $109 | $89 | |||
[1] | Discontinued operations, write-offs of uncollectible receivables, deductions for collections of previously reserved receivables and write-offs of obsolete inventory. |