e10vq

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BQsW6v9uCJEcFAEOojHW0Ie8BYFGwISnhoDdhnpHfsU1AH2JQjd/oNIJvxFGsxW5 7N/Xlqnm3nH3jOvPcV0XdA== 0000950123-09-032328.txt : 20090810 0000950123-09-032328.hdr.sgml : 20090810 20090807194920 ACCESSION NUMBER: 0000950123-09-032328 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 34 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090810 DATE AS OF CHANGE: 20090807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL OILWELL VARCO INC CENTRAL INDEX KEY: 0001021860 STANDARD INDUSTRIAL CLASSIFICATION: OIL & GAS FILED MACHINERY & EQUIPMENT [3533] IRS NUMBER: 760475815 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12317 FILM NUMBER: 09997213 BUSINESS ADDRESS: STREET 1: 10000 RICHMOND AVENUE STREET 2: 6TH FLOOR CITY: HOUSTON STATE: TX ZIP: 77042-4200 BUSINESS PHONE: 7133467500 MAIL ADDRESS: STREET 1: 10000 RICHMOND AVENUE STREET 2: 6TH FLOOR CITY: HOUSTON STATE: TX ZIP: 77042-4200 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL OILWELL INC DATE OF NAME CHANGE: 19960829 10-Q 1 h67433e10vq.htm FORM 10-Q e10vq

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2009


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-12317

NATIONAL OILWELL VARCO, INC.

(Exact name of registrant as specified in its charter)


Delaware		76-0475815

(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7909 Parkwood Circle Drive
Houston, Texas
77036-6565

(Address of principal executive offices)

(713) 346-7500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

As of August 3, 2009 the registrant had 418,199,258 shares of common stock, par value $.01 per share, outstanding.

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION
	Item 1. Financial Statements
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosures About Market Risk
	Item 4. Controls and Procedures
PART II — OTHER INFORMATION
	Item 4. Submission of Matters to a Vote of Security Holders
	Item 6. Exhibits
SIGNATURE
INDEX TO EXHIBITS
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)


	June 30,		December 31,
	2009		2008
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,286	$	1,543
Receivables, net		2,603		3,136
Inventories, net		3,825		3,806
Costs in excess of billings		590		618
Deferred income taxes		215		271
Prepaid and other current assets		391		283

Total current assets		9,910		9,657

Property, plant and equipment, net		1,758		1,677
Deferred income taxes		195		126
Goodwill		5,466		5,225
Intangibles, net		4,134		4,300
Investment in unconsolidated affiliate		387		421
Other assets		89		73

Total assets	$	21,939	$	21,479


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	760	$	852
Accrued liabilities		2,082		2,376
Billings in excess of costs		2,081		2,161
Current portion of long-term debt and short-term borrowings		8		4
Accrued income taxes		236		230

Total current liabilities		5,167		5,623

Long-term debt		873		870
Deferred income taxes		2,150		2,134
Other liabilities		144		128

Total liabilities		8,334		8,755


Commitments and contingencies

Stockholders’ equity:
Common stock — par value $.01; 418,192,372 and 417,350,924 shares issued and outstanding at June 30, 2009 and December 31, 2008		4		4
Additional paid-in capital		8,027		7,989
Accumulated other comprehensive loss		—		(161	)
Retained earnings		5,486		4,796

Total Company stockholders’ equity		13,517		12,628
Noncontrolling interests		88		96

Total stockholders’ equity		13,605		12,724

Total liabilities and stockholders’ equity	$	21,939	$	21,479

See notes to unaudited consolidated financial statements.

NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Revenue	$	3,010		$	3,325		$	6,491		$	6,010
Cost of revenue		2,135			2,344			4,577			4,232

Gross profit		875			981			1,914			1,778
Selling, general and administrative		334			274			653			502
Intangible asset impairment		147			—			147			—
Transaction costs		8			16			8			16

Operating profit		386			691			1,106			1,260
Interest and financial costs		(13	)		(24	)		(26	)		(34	)
Interest income		2			10			4			26
Equity income in unconsolidated affiliate		16			17			44			17
Other income (expense), net		(38	)		(14	)		(74	)		(1	)

Income before income taxes		353			680			1,054			1,268
Provision for income taxes		131			255			359			443

Net income		222			425			695			825
Net income attributable to noncontrolling interests		2			4			5			6

Net income attributable to Company	$	220		$	421		$	690		$	819


Net income attributable to Company per share:
Basic	$	0.53		$	1.05		$	1.66		$	2.16

Diluted	$	0.53		$	1.04		$	1.65		$	2.15


Weighted average shares outstanding:
Basic		416			402			416			379

Diluted		418			404			417			381

See notes to unaudited consolidated financial statements.

NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In millions)


	Six Months Ended
	June 30,
	2009			2008
Cash flows from operating activities:
Net income	$	695		$	825
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		238			168
Excess tax benefit from exercise of stock options		—			(36	)
Equity income in unconsolidated affiliate		(44	)		(17	)
Dividend from unconsolidated affiliate		86			—
Intangible asset impairment		147			—
Other		(5	)		43
Change in operating assets and liabilities, net of acquisitions:
Receivables		590			(507	)
Inventories		75			(297	)
Costs in excess of billings		28			38
Prepaid and other current assets		(108	)		74
Accounts payable		(152	)		22
Billings in excess of costs		(80	)		556
Other assets/liabilities, net		(185	)		375

Net cash provided by operating activities		1,285			1,244


Cash flows from investing activities:
Purchases of property, plant and equipment		(143	)		(160	)
Business acquisitions, net of cash acquired		(389	)		(2,945	)
Business divestitures, net of cash disposed		—			784
Dividend from unconsolidated affiliate		8			113
Other, net		—			(1	)

Net cash used in investing activities		(524	)		(2,209	)


Cash flows from financing activities:
Borrowings against lines of credit and other debt		—			2,577
Payments against lines of credit and other debt		(34	)		(1,928	)
Proceeds from exercise of stock options		1			77
Excess tax benefit from exercise of stock options		—			36

Net cash provided by (used in) financing activities		(33	)		762
Effect of exchange rates on cash		15			13

Increase in cash equivalents		743			(190	)
Cash and cash equivalents, beginning of period		1,543			1,842

Cash and cash equivalents, end of period	$	2,286		$	1,652


Supplemental disclosures of cash flow information:
Cash payments during the period for:
Interest	$	27		$	30
Income taxes	$	409		$	376

See notes to unaudited consolidated financial statements.

NATIONAL OILWELL VARCO, INC.
Notes to Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with our 2008 Annual Report on Form 10-K.

In our opinion, the consolidated financial statements include all adjustments, all of which are of a normal, recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated subsequent events for potential recognition or disclosure in the consolidated financial statements included through August 7, 2009.

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. The carrying values of other financial instruments approximate their respective fair values.

2. Grant Prideco Merger and Other Acquisitions

The Grant Prideco merger was accounted for as a purchase business combination. Assets acquired and liabilities assumed were recorded at their fair values as of April 21, 2008. The total purchase price is $7,199 million, including Grant Prideco stock options assumed and acquisition related transaction costs and is comprised of (in millions):


Consideration given to acquire the outstanding common stock of Grant Prideco:
Shares issued totaled approximately 56.9 million shares at $72.74 per share	$	4,135
Cash paid at $23.20 per share		2,932
Grant Prideco stock options assumed		55
Merger related transaction costs		77

Total purchase price	$	7,199

Purchase Price Allocation

The following table, set forth below, displays the total purchase price allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their fair values as of April 21, 2008 (in millions):


Cash and cash equivalents	$	171
Receivables		420
Assets held for sale, net		784
Inventories		611
Prepaid and other current assets		210
Property, plant and equipment		392
Goodwill		2,772
Intangibles		3,696
Investment in unconsolidated affiliate		512
Other assets		98
Accounts payable and accrued liabilities		(316	)
Accrued income taxes		(624	)
Long-term debt		(176	)
Deferred income taxes		(1,305	)
Minority interest		(25	)
Other liabilities		(21	)

Total purchase price	$	7,199

Unaudited Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of National Oilwell Varco and Grant Prideco, on a pro forma basis, as though the companies had been combined as of the beginning of 2008. The pro forma financial information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the merger had taken place at the beginning of 2008. The pro forma financial information for the three and six month periods ended June 30, 2008 includes the business combination accounting effect on historical Grant Prideco revenues, adjustments to depreciation on acquired property, amortization charges from acquired intangible assets, financing costs on new debt in connection with the merger and related tax effects. (in millions, except per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
Total revenues	$	3,010	$	3,444	$	6,491	$	6,613

Net income attributable to Company	$	220	$	446	$	690	$	898

Basic net income attributable to Company per share	$	0.53	$	1.08	$	1.66	$	2.17

Diluted net income attributable to Company per share	$	0.53	$	1.07	$	1.65	$	2.16

Other Acquisitions

In the three and six months ended June 30, 2009, the Company completed five acquisitions for an aggregate purchase price of $389 million, net of cash acquired. These acquisitions included:

	•		The shares of ASEP Group Holding B.V., a Netherlands-based manufacturer of well service equipment.

	•		The shares of ANS (1001) Ltd. (“Anson”), a U.K.-based manufacturer of pumps and fluid expendibles.

	•		The business and assets of Spirit Drilling Fluids Ltd., a U.S.-based company that provides drilling fluids and related well-site services to exploration and production companies.

	•		The business and assets of Spirit Minerals L.P., a U.S.-based company that mines, processes and distributes barite to the oil and gas drilling fluid industry.

From the dates of acquisition, the results of operations from ASEP are included in the Rig Technology segment and the results of operations from Anson, Spirit Drilling Fluids, and Spirit Minerals are included in the Petroleum Services & Supplies segment.

The following table summarizes the preliminary purchase price allocation of the assets acquired and liabilities assumed at the date of acquisition of the 2009 acquisitions (in millions):


	Total
Current assets, net of cash acquired	$	213
Property, plant and equipment		57
Intangible assets		85
Goodwill		198


Total assets acquired		553


Current liabilities		113
Long-term debt		42
Other liabilities		9


Total liabilities		164


Cash consideration, net of cash acquired	$	389

3. Asset Impairment

Generally accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that such assets might be impaired.

During the second quarter of 2009, the worldwide average rig count was 2,009 rigs, down 41% from the fourth quarter 2008 average of 3,395 and down 25% from the first quarter 2009 average of 2,681. The second quarter 2009 average rig count represented the lowest quarterly average in the past six years. In addition, the Company’s updated forecast was behind the Company’s previous forecast completed at the beginning of 2009. While operating profit for the first quarter of 2009 was in line with the Company’s first quarter 2009 operating profit forecast, the Company’s consolidated operating profit for the second quarter of 2009 was below its second quarter 2009 forecast. As a result of the substantial decline in the worldwide rig count, and the decline in actual/forecasted results compared to the original 2009 forecast, the Company concluded that events or circumstances had occurred indicating that goodwill and other indefinite-lived intangible assets might be impaired as described under SFAS 142.

Therefore, the Company performed its interim impairment test of goodwill for all its reporting units at the end of the second quarter of 2009. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of that reporting unit as a whole. Fair value of the reporting units is determined in accordance with SFAS 157 using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on internal management estimates, forecasts and judgments, using a combination of three methods: discounted cash flow, comparable companies, and representative transactions. While the Company primarily uses the discounted cash flow method to assess fair value, the Company uses the comparable companies and representative transaction methods to validate the discounted cash flow analysis and further support management’s expectations, where possible.

The discounted cash flow is based on management’s short-term and long-term forecast of operating performance for each reporting unit. The two main assumptions used in measuring goodwill impairment, which bear the risk of change and could impact the Company’s goodwill impairment analysis, include the cash flow from operations from each of the Company’s individual business units and the weighted average cost of capital. The starting point for each of the reporting unit’s cash flow from operations is the detailed annual plan or updated forecast. The detailed planning and forecasting process takes into consideration a multitude of factors including worldwide rig activity, inflationary forces, pricing strategies, customer analysis, operational issues, competitor analysis, capital spending requirements, working capital needs, customer needs to replace aging equipment, increased complexity of drilling, new technology, and existing backlog among other items which impact the individual reporting unit projections. Cash flows beyond the specific operating plans were estimated using a terminal value calculation, which incorporated historical and forecasted financial cyclical trends for each reporting unit and considered long-term earnings growth rates. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate. During times of volatility, significant judgment must be applied to determine whether credit changes are a short-term or long-term trend.

Projections for the remainder of 2009 also reflected declines compared to the original 2009 annual forecast. The Company updated its 2009 operating forecast, long-term forecast, and discounted cash flows based on this information. The goodwill impairment analysis that we performed during the second quarter of 2009 did not result in goodwill impairment as of June 30, 2009.

Other indefinite-lived intangible assets, representing trade names management intends to use indefinitely, were valued using significant unobservable inputs (level 3) and are tested for impairment using the Relief from Royalty Method, a form of the Income Approach. An impairment is measured and recognized based on the amount the book value of the indefinite-lived intangible assets exceeds its estimated fair value as of the date of the impairment test. Included in the impairment test are assumptions, for each trade name, regarding the related revenue streams attributable to the trade names which are determined consistent with the forecasting process described above, the royalty rate, and the discount rate applied. Based on the Company’s indefinite-lived intangible asset impairment analysis performed during the second quarter of 2009, the Company incurred an impairment charge of $147 million in the Petroleum Services & Supplies segment related to a partial impairment of the Company’s Grant Prideco trade name. The impairment charge was primarily the result of the substantial decline in worldwide rig counts through June 2009, declines in current forecasts in rig activity for the remainder of 2009, 2010, and 2011 compared to rig count forecast at the beginning of 2009, and a current decline in the revenue forecast for the drill pipe business unit for the next three years (2009, 2010, and 2011).

4. Inventories, net

Inventories consist of (in millions):


	June 30,		December 31,
	2009		2008
Raw materials and supplies	$	782	$	739
Work in process		1,507		1,326
Finished goods and purchased products		1,536		1,741

Total	$	3,825	$	3,806

5. Accrued Liabilities

Accrued liabilities consist of (in millions):


	June 30,		December 31,
	2009		2008
Compensation	$	185	$	258
Customer prepayments and billings		547		912
Warranty		162		114
Interest		12		11
Taxes (non income)		57		76
Insurance		56		50
Accrued purchase orders		743		688
Fair value of derivatives		83		59
Other		237		208

Total	$	2,082	$	2,376

Service and Product Warranties

The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with SFAS 5. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered.

The changes in the carrying amount of service and product warranties are as follows (in millions):


Balance, December 31, 2008	$	114


Net provisions for warranties issued during the year		75
Amounts incurred		(29	)
Foreign currency translation		2


Balance, June 30, 2009	$	162

6. Costs and Estimated Earnings on Uncompleted Contracts

Costs and estimated earnings on uncompleted contracts consist of (in millions):


	June 30,			December 31,
	2009			2008
Costs incurred on uncompleted contracts	$	5,734		$	4,776
Estimated earnings		2,987			2,277

		8,721			7,053
Less: Billings to date		10,212			8,596

	$	(1,491	)	$	(1,543	)


Costs and estimated earnings in excess of billings on uncompleted contracts	$	590		$	618
Billings in excess of costs and estimated earnings on uncompleted contracts		(2,081	)		(2,161	)


	$	(1,491	)	$	(1,543	)

7. Comprehensive Income

The components of comprehensive income are as follows (in millions):


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2009			2008		2009			2008
Net income	$	222		$	425	$	695		$	825
Currency translation adjustments, net of tax		112			11		57			38
Changes in derivative financial instruments, net of tax		83			—		105			21
Changes in defined benefit plans, net of tax		(1	)		1		(1	)		—

Comprehensive income		416			437		856			884
Comprehensive income attributable to noncontrolling interest		2			4		5			6

Comprehensive income attributable to Company	$	414		$	433	$	851		$	878

The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income in accordance with SFAS 52, “Foreign Currency Translation.” For the three months ended June 30, 2009, a majority of these local currencies strengthened against the U.S. dollar resulting in a net increase to Other Comprehensive Income of $112 million (net of tax of $60 million) upon the translation of their financial statements from their local currency to the U.S. dollar.

The effect of changes in the exchange rates for derivatives designated as Cash Flow hedges are accumulated in Other Comprehensive Income, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in Other Comprehensive Income from period to period will be the result of the combination of changes in currency rates for open derivatives and the outflow of accumulated Other Comprehensive Income on previously matured derivatives. The accumulated effects of these scenarios have caused an increase in Other Comprehensive Income of $83 million (net of tax of $30 million) for the three months ended June 30, 2009.

8. Business Segments

Operating results by segment are as follows (in millions). The 2008 actual results include Grant Prideco operations from the acquisition date of April 21, 2008:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Revenue:
Rig Technology	$	1,917		$	1,911		$	4,116		$	3,514
Petroleum Services & Supplies		913			1,124			1,927			1,954
Distribution Services		305			425			713			791
Elimination		(125	)		(135	)		(265	)		(249	)

Total Revenue	$	3,010		$	3,325		$	6,491		$	6,010


Operating Profit:
Rig Technology (a)	$	534		$	506		$	1,140		$	912
Petroleum Services & Supplies (b)(c)		(51	)		221			113			416
Distribution Services		10			25			35			44
Unallocated expenses and eliminations (d)		(99	)		(45	)		(174	)		(96	)
Transaction costs		(8	)		(16	)		(8	)		(16	)

Total Operating Profit	$	386		$	691		$	1,106		$	1,260


Operating Profit %:
Rig Technology (a)		27.9	%		26.5	%		27.7	%		26.0	%
Petroleum Services & Supplies (b)(c)		(5.6	%)		19.7	%		5.9	%		21.3	%
Distribution Services		3.3	%		5.8	%		4.9	%		5.5	%
Total Operating Profit %		12.8	%		20.8	%		17.0	%		21.0	%


(a)		Under purchase accounting related to 2009 acquisitions, a fair value step up adjustment of $5 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $2 million of these inventory charges for both the three and six months ended June 30, 2009.

(b)		The Company recorded a $147 million impairment charge to other indefinite-lived intangible assets during the three and six months ended June 30, 2009.

(c)		Under purchase accounting related to the 2008 Grant Prideco acquisition, a fair value step up adjustment of $89 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $46 million of these inventory charges for the three and six months ended June 30, 2008.

(d)		The Company recorded a $46 million charge related to its Voluntary Early Retirement Program for the three and six months ended June 30, 2009.

The Company had revenues of 15.6% of total revenue from one of its customers for the six months ended June 30, 2009. This customer is a shipyard acting as a general contractor for its customers, who are drillship owners and drilling contractors. This shipyard’s customers have specified that the Company’s drilling equipment be installed on their drillships and have required the shipyard to issue contracts to the Company. There were no customers that represented 10% or greater of total revenue for the six months ended June 30, 2008.

9. Debt

Debt consists of (in millions):


	June 30,		December 31,
	2009		2008
Senior Notes, interest at 6.5% payable semiannually, principal due on March 15, 2011	$	150	$	150

Senior Notes, interest at 7.25% payable semiannually, principal due on May 1, 2011		206		208

Senior Notes, interest at 5.65% payable semiannually, principal due on November 15, 2012		200		200

Senior Notes, interest at 5.5% payable semiannually, principal due on November 19, 2012		151		151

Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015		151		151

Other		23		14

Total debt		881		874
Less current portion		8		4

Long-term debt	$	873	$	870

Senior Notes

In connection with the merger of Grant Prideco, the Company completed an exchange offer relative to the $175 million of 6.125% Senior Notes due 2015 previously issued by Grant Prideco. On April 21, 2008, $151 million of Grant Prideco Senior Notes were exchanged for National Oilwell Varco Senior Notes. The National Oilwell Varco Senior Notes have the same interest rate, interest payment dates, redemption terms and maturity as the Grant Prideco Senior Notes. In November 2008, the Company repurchased $23 million of the unexchanged Grant Prideco Senior Notes.

Revolving Credit Facilities

On April 21, 2008, the Company replaced its existing $500 million unsecured revolving credit facility with an aggregate of $3 billion of unsecured credit facilities and borrowed $2 billion to finance the cash portion of the Grant Prideco acquisition. These facilities consisted of a $2 billion, five-year revolving credit facility and a $1 billion, 364-day revolving credit facility. At June 30, 2009, there were no borrowings against these facilities, and there were $636 million in outstanding letters of credit issued under these facilities, resulting in $1,364 million of funds available under this revolving credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 0.26% subject to a ratings-based grid, or the prime rate. In early February 2009, we terminated early the $1 billion, 364-day revolving credit facility, which matured April 20, 2009.

The Company also had $2,414 million of additional outstanding letters of credit at June 30, 2009, primarily in Norway, that are essentially under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds and performance bonds. The Senior Notes contain reporting covenants and the credit facility contains a financial covenant regarding maximum debt to capitalization. We were in compliance with all covenants at June 30, 2009.

Other

Other debt includes approximately $5 million in promissory notes due to former owners of businesses acquired.

10. Tax

The effective tax rate for the three and six months ended June 30, 2009 was 37.3% and 34.1%, respectively, compared to 37.5% and 34.9% for the same periods in 2008. The second quarter 2009 tax rate, which was higher than periods preceding this quarter, was primarily affected by $21 million of additional tax provisions recognized in the period on prior year income in Norway. These additional taxes resulted from foreign currency gains on dollar-denominated accounts that were realized for Norwegian tax purposes. The Company expects its income tax rate to return to the 32% to 33% range for the remainder of the year.

The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Federal income tax at U.S. federal statutory rate	$	124		$	238		$	369		$	444

Foreign income tax rate differential		(26	)		(23	)		(58	)		(43	)
State income tax, net of federal benefit		2			11			8			17
Foreign dividends, net of foreign tax credits		6			33			7			35
Benefit of U.S. Manufacturing Deduction		(3	)		(3	)		(7	)		(5	)
Nondeductible expenses		4			2			12			5
Prior year tax on revaluation gains in Norway		21			—			21			—
Other		3			(3	)		7			(10	)

Provision for income taxes	$	131		$	255		$	359		$	443

The Company accounts for uncertainty in income taxes in accordance with Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – An Interpretation of FASB No. 109” (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance with FASB Statement No. 109, “Accounting for Income Taxes” and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a return. Under FIN 48, the impact of an uncertain income tax position, in management’s opinion, on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has a less than 50% likelihood of being sustained.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


Balance at January 1, 2009	$	61


Additions for tax positions of prior years		3
Settlements		(11	)


Balance at June 30, 2009	$	53

The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company has significant operations in the U.S., Canada, the U. K., the Netherlands and Norway. Tax years that remain subject to examination by major tax jurisdiction vary by legal entity, but are generally open in the U.S. for the tax years after 2003 and outside the U.S. for tax years ending after 2001.

To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements.

11. Stock-Based Compensation

The Company has a stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”). The Plan provides for the granting of stock options, performance-based share awards, restricted stock, phantom shares, stock payments and stock appreciation rights. During the quarter, the Company with approval from shareholders increased the number of shares authorized under the Plan from 15 million to 26 million. As of June 30, 2009, 11,890,826 shares remain available for future grants under the Plan, all of which are available for grants of stock options, performance-based share awards, restricted stock awards, phantom shares, stock payments and stock appreciation rights. Total stock-based compensation for all share-based compensation arrangements under the Plan was $15 million and $31 million for the three and six months ended June 30, 2009, respectively, and $16 million and $29 million for the three and six months ended June 30, 2008, respectively. The total income tax benefit recognized in the Consolidated Statements of Income for all stock-based

compensation arrangements under the Plan was $7 million and $12 million for the three and six months ended June 30, 2009, respectively, and $7 million and $11 million for the three and six months ended June 30, 2008, respectively.

During the six months ended June 30, 2009, the Company granted 3,234,400 stock options and 762,692 restricted stock awards, which includes 309,000 performance-based restricted stock awards. Out of the total number of stock options granted, 3,206,400 were granted on February 20, 2009 with an exercise price of $25.96. These options generally vest over a three-year period from the grant date. The remaining 28,000 options were granted May 13, 2009 to the non-employee members of the board of directors at an exercise price of $33.57. These options generally vest over a three-year period from the grant date. Out of the total number of restricted stock awards granted, 434,400 were granted on February 20, 2009 and vest on the third anniversary of the date of grant. On May 13, 2009, 19,292 restricted stock awards were granted to the non-employee members of the board of directors. These restricted stock awards vest in equal thirds over three years on the anniversary of the grant date. The performance-based restricted stock awards of 309,000 were granted on February 20, 2009. The performance-based restricted stock awards granted will be 100% vested 36 months from the date of grant, subject to the performance condition of the Company’s average operating income growth, measured on a percentage basis, from January 1, 2009 through December 31, 2011 exceeding the median operating income level growth of a designated peer group over the same period.

12. Derivative Financial Instruments

The Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended (”SFAS 133”), which requires companies to recognize all of its derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk, and interest rate risk. Forward contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk on forecasted revenue and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge). In addition the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings.

In accordance with SFAS 133 the Company records all derivative financial instruments at their fair value in our consolidated balance sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments we hold are designated as either cash flow or fair value hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. We may also use interest rate contracts to mitigate our exposure to changes in interest rates on anticipated long-term debt issuances.

At June 30, 2009, the Company has determined that its financial assets of $114 million and liabilities of $95 million (primarily currency related derivatives) are level 2 in the fair value hierarchy. At June 30, 2009, the fair value of the Company’s foreign currency forward contracts totaled $16 million.

As of June 30, 2009, the Company did not have any interest rate swaps and our financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when our financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes.

Cash Flow Hedging Strategy

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion) or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statements of Income during the current period.

To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted sales and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign

currencies, the decrease in present value of future foreign currency revenue and costs is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts.

As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and costs:


	Currency
Foreign Currency	Denomination
	(in millions)
British Pound Sterling	£	47
Danish Krone	DKK	197
Euro	€	279
Norwegian Krone	NOK	7,717
U.S. Dollar	$	181

Fair Value Hedging Strategy

For derivative instruments that are designated and qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is subject to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings (e.g., in “revenue” when the hedged item is a contracted sale).

The Company enters into forward exchange contracts to hedge certain firm commitments of revenue and costs that are denominated in currencies other than the functional currency of the operating unit. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to customers will be adversely affected by changes in the exchange rates.

As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency fair values of firm commitments of revenues and costs:


	Currency
Foreign Currency	Denomination
	(in millions)
Korean Won	KRW	1,917
U.S. Dollar	$	64

Non-designated Hedging Strategy

For derivative instruments that are non-designated, the gain or loss on the derivative instrument subject to the hedged risk (i.e. nonfunctional currency monetary accounts) are recognized in the same line item associated with the hedged item in current earnings.

The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the nonfunctional currency monetary accounts will be adversely affected by changes in the exchange rates.

As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts:


	Currency
Foreign Currency	Denomination
	(in millions)
British Pound Sterling	£	2
Danish Krone	DKK	15
Euro	€	150
Norwegian Krone	NOK	2,280
Swedish Krone	SEK	5
U.S. Dollar	$	67

As of June 30, 2009, the Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions):


	June 30, 2009
	Asset Derivatives			Liability Derivatives
	Balance Sheet	Fair		Balance Sheet	Fair
	Location	Value		Location	Value
Derivatives designated as hedging instruments under SFAS 133

Foreign exchange contracts	Prepaid and other current assets	$	63	Accrued liabilities	$	37
Foreign exchange contracts	Other Assets		11	Other Liabilities		11


Total derivatives designated as hedging instruments under SFAS 133		$	74		$	48


Derivatives not designated as hedging instruments under SFAS 133

Foreign exchange contracts	Prepaid and other current assets	$	34	Accrued liabilities	$	46
Foreign exchange contracts	Other Assets		3	Other Liabilities		1


Total derivatives not designated as hedging instruments under SFAS 133		$	37		$	47


Total derivatives		$	111		$	95

The Effect of Derivative Instruments on the Consolidated Statement of Income
Periods Ended June 30, 2009
($ in millions)

Location of Gain (Loss)

Recognized in Income on

Amount of Gain (Loss)

Location of Gain (Loss)

Derivative (Ineffective

Recognized in Income on

Reclassified from

Amount of Gain (Loss)

Portion and Amount

Derivative (Ineffective

Derivatives in SFAS 133

Amount of Gain (Loss)

Accumulated OCI into

Reclassified from

Excluded from

Portion and Amount

Cash Flow Hedging

Recognized in OCI on

Income

Accumulated OCI into

Effectiveness

Excluded from

Relationships

Derivative (Effective Portion) (a)

(Effective Portion)

Income (Effective Portion)

Testing)

Effectiveness Testing) (b)

June 30, 2009

Three Months
Ended

Six Months
Ended

Three Months
Ended

Six Months
Ended

Three Months
Ended

Six Months
Ended

Foreign exchange contracts

Revenue

Other income
(expense), net

(18

)

(24

)

Foreign exchange contracts

—

Cost of revenue

(16

)

(44

)

Total

)

(34

)

(18

)

(24

)

Derivatives in SFAS 133

Location of Gain (Loss)

Amount of Gain (Loss)

SFAS 133

Location of Gain (Loss)

Recognized in Income on

Fair Value

Recognized in Income

Recognized in Income on

Fair Value Hedge

Recognized in Income on

Related Hedged

Hedging Relationships

on Derivative

Derivative

Relationships

Related Hedged Item

Items

June 30, 2009

Three Months
Ended

Six Months
Ended

Three Months
Ended

Six Months
Ended

Foreign exchange contracts

Revenue

)

Firm commitments

Revenue

)

Foreign exchange contracts

Cost of revenue

—

)

Firm commitments

Cost of revenue

—

Total

)

Derivatives Not Designated as

Location of Gain (Loss)

Amount of Gain (Loss)

Hedging Instruments under

Recognized in Income

Recognized in Income on

SFAS 133

on Derivative

Derivative (a)

Foreign exchange contracts

Other income (expense), net

Total


(a)		The Company expects that $(38) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.

(b)		The amount of gain (loss) recognized in income represents $(18) million and $(27) million related to the ineffective portion of the hedging relationships for the three and six months ended June 30, 2009, respectively, and nil and $3 million related to the amount excluded from the assessment of the hedge effectiveness for the three and six months ended June 30, 2009.

We assess the functional currencies of our operating units to ensure that the appropriate currencies are utilized in accordance with the guidance of SFAS No. 52, Foreign Currency Translation. Effective January 1, 2008, we changed the functional currency of our Rig Technology unit in Norway from the Norwegian krone to the U.S. dollar to more appropriately reflect the primary economic environment in which they operate. This change was precipitated by significant changes in the economic facts and circumstances, including the increased order rate for large drilling platforms and components technology, the use of our Norway unit as our preferred project manager of these projects, increasing revenue and cost base in U.S. dollars, and the implementation of an international cash pool denominated in U.S. dollars. As a Norwegian krone functional unit, Norway was subject to increasing foreign currency exchange risk as a result of these changes in its economic environment and was dependent upon significant hedging transactions to offset its non-functional currency positions.

At December 31, 2007, our Norway operations had foreign currency forward contracts with notional amounts aggregating $2,551 million with a fair value of $91 million to mitigate foreign currency exchange risk against the U.S. dollar, our reporting currency. Effective with the change in the functional currency, the Company terminated these hedges. The related net gain position of $109 million associated with the terminated hedges was deferred and is being recognized into earnings in the future period(s) the forecasted transactions affect earnings, of which $23 million remains to be recognized into earnings at June 30, 2009. The Company has, subsequent to January 1, 2008, entered into new hedges to cover the exposures as a result of the change to U.S. dollar functional. At June 30, 2009, our Norway operations had derivatives with $2,709 million in notional value with a fair value asset of $33 million.

13. Net Income Attributable to Company Per Share

The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
Numerator:
Net income attributable to Company	$	220	$	421	$	690	$	819

Denominator:
Basic—weighted average common shares outstanding		416		402		416		379
Dilutive effect of employee stock options and other unvested stock awards		2		2		1		2

Diluted outstanding shares		418		404		417		381


Net income attributable to Company per share:
Basic	$	0.53	$	1.05	$	1.66	$	2.16

Diluted	$	0.53	$	1.04	$	1.65	$	2.15

In addition, the Company had stock options outstanding that were anti-dilutive totaling 4 million and 10 million shares for the three and six months ended June 30, 2009, respectively, and 1 million shares for both the three and six months ended June 30, 2008, respectively.

14. Recently Issued Accounting Standards

In February 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position (“FSP”) SFAS 157-2, “Effective Date of FASB Statement No. 157” (“FSP 157-2”), which defers the effective date of SFAS No. 157, “Fair Value Measurements” (“SFAS 157”), as it related to non-financial assets and non-financial liabilities, to fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The Company, as of January 1, 2009, adopted the provisions of this statement and included the appropriate disclosures surrounding non-financial assets and liabilities, as applicable.

In December 2007, the FASB issued SFAS No. 141R, “Business Combinations” (“SFAS 141R”). SFAS 141R provides revised guidance on how acquirers recognize and measure the consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling interests, and goodwill acquired in a business combination. SFAS 141R also expands required disclosures surrounding the nature and financial effects of business combinations. SFAS 141R is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. On January 1, 2009, the Company adopted SFAS 141R. The Company expects that this new standard will impact certain aspects of its accounting for business combinations on a prospective basis, including the determination of fair values assigned to certain purchased assets and liabilities.

In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (“SFAS 160”). SFAS 160 establishes requirements for ownership interests in subsidiaries held by parties other than the Company (previously called minority interests) be clearly identified, presented, and disclosed in the consolidated statement of financial position within equity, but separate from the parent’s equity. All changes in the parent’s ownership interests are required to be accounted for consistently as equity transactions and any noncontrolling equity investments in deconsolidated subsidiaries must be measured initially at fair value. SFAS 160 is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. However, presentation and disclosure requirements must be retrospectively applied to comparative financial statements.

On January 1, 2009, the Company adopted SFAS 160, and reclassified noncontrolling interests in the amounts of $88 million and $96 million from the mezzanine section to equity in the June 30, 2009 and December 31, 2008 balance sheets, respectively.

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“SFAS 161”). SFAS 161 amends and expands the disclosure requirements for derivative instruments and hedging activities, with the intent to provide users of financial statements with an enhanced understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for, and how derivative instruments and related hedged items affect an entity’s financial statements. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. On January 1, 2009, the Company adopted SFAS 161. See Note 11. “Derivative Financial Instruments”, in the notes to the consolidated financial statements.

In April 2008, the FASB issued FASB Staff Position (“FSP”) SFAS 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP SFAS 142-3”). FSP SFAS 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, “Goodwill and Other Intangible Assets”. The objective of this FSP is to improve the consistency between the useful life of a recognized intangible asset under Statement No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R and other U.S. GAAP principles. FSP SFAS 142-3 is effective for fiscal years beginning after December 15, 2008. On January 1, 2009, the Company adopted FSP SFAS 142-3. There was no significant impact to the Company’s consolidated financial statements from the adoption of FSP SFAS 142-3.

In April 2009 the FASB issued FSP 141R-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (“FSP 141R-1”). FSP 141R-1 amends the provisions in SFAS 141R for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. The FSP eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and measurement criteria in SFAS 141R and instead carries forward most of the provisions in SFAS 141 for acquired contingencies. FSP 141R-1 is effective for contingent assets and contingent liabilities acquired in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company expects FSP 141R-1 will have a future impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, term and size of the acquired contingencies.

In April 2009, the FASB issued FSP SFAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP SFAS 107-1”). FSP SFAS 107-1 extends the disclosure requirements regarding the fair value of financial instruments under SFAS No. 107, “Disclosures about Fair Value of Financial Instruments” (“SFAS No. 107”), to interim financial statements of publicly traded companies. FSP SFAS 107-1 is effective for interim reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. Early adoption of this FSP is permitted only if the entity also elects to early adopt FSP SFAS 157-4 and FSP SFAS 115-2. On June 1, 2009, the Company adopted FSP SFAS 107-1. There was no significant impact to the Company’s consolidated financial statements from the adoption of FSP SFAS 107-1.

In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”). SFAS 165 requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. SFAS 165 is effective for fiscal years and interim periods ending after June 15, 2009. On June 1, 2009, the Company adopted SFAS 165. There was no significant impact to the Company’s consolidated financial statements from the adoption of SFAS 165.

In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (SFAS 168”), which amends SFAS 162, “The Hierarchy of Generally Accepted Accounting Principles.” SFAS 168 will become the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date, SFAS 168 will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in SFAS 168 will become non-authoritative. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Company is currently assessing the impact SFAS 168 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction

National Oilwell Varco, Inc. (the “Company”) is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry. The following describes our business segments:

Rig Technology

Our Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. The segment offers a comprehensive line of highly-engineered equipment that automates complex well construction and management operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; and cranes. Demand for Rig Technology products is primarily dependent on capital spending plans by drilling contractors, oilfield service companies, and oil and gas companies, and secondarily on the overall level of oilfield drilling activity, which drives demand for spare parts for the segment’s large installed base of equipment. We have made strategic acquisitions and other investments during the past several years in an effort to expand our product offering and our global manufacturing capabilities, including adding additional operations in the United States, Canada, Norway, the United Kingdom, China, Belarus, India, Turkey, the Netherlands, and Singapore.

Petroleum Services & Supplies

Our Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service pipelines, flowlines and other oilfield tubular goods. The segment manufactures, rents and sells a variety of products and equipment used to perform drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. Demand for these services and supplies is determined principally by the level of oilfield drilling and workover activity by drilling contractors, major and independent oil and gas companies, and national oil companies. Oilfield tubular services include the provision of inspection and internal coating services and equipment for drill pipe, line pipe, tubing, casing and pipelines; and the design, manufacture and sale of coiled tubing pipe and advanced composite pipe for application in highly corrosive environments. The segment sells its tubular goods and services to oil and gas companies; drilling contractors; pipe distributors, processors and manufacturers; and pipeline operators. This segment has benefited from several strategic acquisitions and other investments completed during the past few years, including adding additional operations in the United States, Canada, the United Kingdom, China, Kazakhstan, Mexico, Russia, Argentina, India, Bolivia, the Netherlands, Singapore, Malaysia, Vietnam, and the United Arab Emirates.

Distribution Services

Our Distribution Services segment provides maintenance, repair and operating supplies (“MRO”) and spare parts to drill site and production locations worldwide. In addition to its comprehensive network of field locations supporting land drilling operations throughout North America, the segment supports major offshore drilling contractors through locations in Mexico, the Middle East, Europe, Southeast Asia and South America. Distribution Services employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe. Demand for the segment’s services is determined primarily by the level of drilling, servicing, and oil and gas production activities.

Critical Accounting Estimates

In our annual report on Form 10-K for the year ended December 31, 2008, we identified our most critical accounting policies. In preparing the financial statements, we make assumptions, estimates and judgments that affect the amounts reported. We periodically evaluate our estimates and judgments that are most critical in nature which are related to revenue recognition under long-term construction contracts; allowance for doubtful accounts; inventory reserves; impairments of long-lived assets (excluding goodwill and other indefinite-lived intangible assets); goodwill and other indefinite-lived intangible assets and income taxes. Our estimates are based on historical experience and on our future expectations that we believe are reasonable. The combination of these factors forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results are likely to differ from our current estimates and those differences may be material.

Goodwill and Other Indefinite – Lived Intangible Assets

The Company has approximately $5.5 billion of goodwill and $0.6 billion of other intangible assets with indefinite lives on its consolidated balance sheet as of June 30, 2009. The Company tests goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that goodwill or other indefinite-lived intangible assets might be impaired. The annual impairment test is performed during the fourth quarter of each year. Based on its analysis, the Company did not report any impairment of goodwill and other indefinite-lived intangible assets for the year ended December 31, 2008. As described below, the Company concluded that an indicator of impairment did occur in the second quarter of 2009 and updated its impairment testing at June 30, 2009. Based on its updated analysis, the Company concluded that it did not incur an impairment of goodwill for the period ending June 30, 2009. However, based on the Company’s indefinite-lived intangible asset impairment analysis performed during the second quarter of 2009, the Company concluded that it did incur an impairment charge to certain indefinite-lived intangible assets of $147 million at June 30, 2009. The $147 million impairment charge is included in the Company’s consolidated income statement for the quarter and six months ended June 30, 2009.

The Company performed a sensitivity analysis on the projected results and goodwill impairment analysis assuming revenue for each individual reporting unit decreased an additional 20% from the current projections for each of the next three years (2009, 2010, and 2011), while holding all other factors constant, and no goodwill impairment was identified for any of the reporting units. Additionally, if the Company were to increase its discount rate 100 basis points, while keeping all other assumptions constant, there would be no impairments in any of the reporting units. While the Company does not believe that these events (20% drop in additional revenue for the next three years or 100 basis point increases in weighted average costs of capital) or changes are likely to occur, it is reasonably possible these events could transpire if market conditions worsen and if the market fails to recover in 2010 and/or 2011. Any significant changes to these assumptions and factors could have a material impact on the Company’s goodwill impairment analysis. Inherent in our projections are key assumptions relative to how long the current downward cycle might last. While we believe these assumptions are reasonable and appropriate, we will continue to monitor these, and update our impairment analysis if the cycle downturn continues for longer than expected.

Other indefinite-lived intangible assets, representing trade names management intends to use indefinitely, were valued using significant unobservable inputs (level 3) and are tested for impairment using the Relief from Royalty Method, a form of the Income Approach. An impairment is measured and recognized based on the amount the book value of the indefinite-lived intangible assets exceeds its estimated fair value as of the date of the impairment test. Included in the impairment test are assumptions, for each trade name, regarding the related revenue streams attributable to the trade names which are determined consistent with the forecasting process described above, the royalty rate, and the discount rate applied. Based on the Company’s indefinite-lived intangible asset impairment analysis performed during the second quarter of 2009, the Company incurred an impairment charge of $147 million in the Petroleum Services & Supplies segment related to a partial impairment of the Company’s Grant Prideco trade name. The impairment charge was primarily the result of the substantial decline in worldwide rig counts through June 2009, declines in current forecasts in rig activity for the remainder of 2009, 2010, and 2011 compared to rig count forecast at the beginning of 2009 and a current decline in the revenue forecast for the drill pipe business unit for the next three years (2009, 2010, and 2011).

The Company performed a sensitivity analysis on the projected results and indefinite-lived intangible asset impairment assuming revenue for each individual trade name decreased an additional 20% from the current projections for each of the next three years (2009, 2010, and 2011), while holding all other factors constant, and a pre-tax non-cash impairment charge of approximately $79 million would be incurred under those assumptions. If the discount rate applied to the fair value calculation increased by 100 basis points, and all other assumptions remained constant, a pre-tax, non-cash impairment charge of approximately $36 million would be incurred under those assumptions.

The Company will continue to closely monitor indicators of impairment, which could include, but are not limited to, further declines in worldwide rig activity, further declines in commodity prices or futures, or further significant economic declines. If such further deterioration of indicators occurs, and the Company believes that these negative trends are likely to persist for a prolonged period of time, then the Company’s expected future earnings and cash flows from operations would be adversely impacted. This may result in impairment to either or both goodwill and indefinite-lived intangible assets, and such impairment may be material.

EXECUTIVE SUMMARY

National Oilwell Varco generated earnings of $220 million or $0.53 per fully diluted share in its second quarter ended June 30, 2009, on revenues of $3,010 million. Compared to the second quarter of 2008, revenue declined nine percent and net income attributable to the Company declined 48 percent, and compared to the first quarter of 2009, revenue declined 14 percent and net income attributable to the Company declined 53 percent. These declines were due to lower market activity, the effect of asset impairment, transaction, and voluntary retirement charges, and a higher income tax rate recognized in the second quarter of 2009 that did not occur in the prior periods.

During the second quarter of 2009, the Company recognized a $147 million pre-tax, or $0.23 per share after-tax, impairment charge on its carrying value of an intangible trade name acquired in its Grant Prideco acquisition. During the second quarter the Company retested all its carrying values for goodwill and intangible assets, which was performed due to deterioration seen in the rig count and performance of certain of its business units compared to forecasts. Additionally, the Company recognized $56 million in pre-tax charges ($0.09 per share after-tax) related to acquisitions made in the quarter, and the results of a voluntary retirement program offered to its long-tenured employees. Legal, due diligence and other costs associated with acquisitions that were previously capitalized under GAAP are now expensed under FAS141R. The Company’s voluntary retirement program charge was $46 million, consisting of separation and accrued medical benefits and options vesting charges, and is expected to result in annual savings of approximately $33 million per year. Second quarter 2009 net income was also affected by an income tax rate of 37 percent, higher than periods preceding this quarter, due to $21 million of additional tax provisions recognized in the period on prior year income in Norway. These additional taxes resulted from foreign currency gains on dollar-denominated accounts that were realized for Norwegian tax purposes. The Company expects its effective income tax rate to return to the 32 percent to 33 percent range for the remainder of the year.

Operating profit was $386 million or 12.8 percent of sales for the second quarter. Excluding the impairment, transaction, and voluntary retirement charges, second quarter operating profit was $589 million or 19.6 percent of sales, compared to $720 million or 20.7 percent of sales in the first quarter of 2009, and $778 million or 22.6 percent of sales in the second quarter of 2008 (excluding transaction charges and including a full quarter contribution from the Grant Prideco acquisition in the second quarter of 2008).

Grant Prideco Acquisition

On April 21, 2008 the Company completed its acquisition of Grant Prideco, Inc. for a combination of approximately $3.0 billion in cash and the issuance of 56.9 million shares of National Oilwell Varco common stock. The Grant Prideco merger further strengthened National Oilwell Varco’s position as manufacturer to the oilfield. Its drill bits and reamers have been integrated into the Company’s offering of drilling motors, non-magnetic drill collars, jars and shock tools, to complement its comprehensive package of bottomhole assembly tools used to drill complex wellpaths. Additionally, Grant Prideco’s drillpipe products are purchased and consumed by the Company’s existing drilling contractor customer base. The Company believes that consumption of drillpipe per foot of hole drilled, or per rig running, has been increasing due to the rising complexity of wellpath designs. Overall the acquisition better positioned National Oilwell Varco to capitalize on continued application of horizontal, directional and extended-reach drilling, through both drillpipe and drill bit product sales. Integration of the business has proceeded well. The Company is introducing new drillpipe tracking products, and expanding OEM drillpipe repair and maintenance offerings through its worldwide network of pipe service operations. The Company is also consolidating a number of bit and downhole tool sales facilities worldwide, and leveraging combined manufacturing and marketing capabilities.

Oil & Gas Equipment and Services Market

Worldwide developed economies turned down sharply late in 2008 as looming housing-related asset write-downs at major financial institutions paralyzed credit markets and sparked a serious global banking crisis. Major central banks have responded vigorously, but credit and financial markets have not yet fully recovered, and a credit-driven worldwide economic recession deepened during the second quarter. Asset and commodity prices, including oil and gas prices, have declined sharply. After rising steadily for six years to peak at around $140 per barrel earlier in 2008, oil prices collapsed back to average $43 per barrel range during the first quarter of 2009. Higher oil and gas prices over the past several years have led to high levels of exploration and development drilling in many oil and gas basins around the globe, but this slowed sharply with falling oil and gas prices. The count of rigs actively drilling in the U.S. as measured by Baker Hughes (a good measure of the level of oilfield activity and spending) peaked at 2,031 rigs in September, 2008, but has decreased to 943 rigs as of July 24, 2009. Many oil and gas operators reliant on external financing to fund their drilling programs are curtailing their drilling activity. So far this

appears to be having the greatest impact on gas drilling across North America. Most international activity is driven by oil exploration and production by national oil companies, which has historically been less susceptible to short-term commodity price swings, but the international rig count is showing some modest declines nonetheless, falling from its September 2008 peak of 1,108 to 967 in June 2009. During the second quarter of 2009 the Company saw its Petroleum Services & Supplies and its Distribution Services margins affected most acutely by a drilling downturn, through both volume and price declines, while the Company’s Rig Technology segment was less impacted owing to its high level of backlog.

Recent downturns follow an extended period of high drilling activity, which fueled strong demand for oilfield services between 2003 and 2008. Incremental drilling activity through the upswing shifted toward harsh environments, employing increasingly sophisticated technology to find and produce reserves. Higher utilization of drilling rigs tested the capability of the world’s fleet of rigs, much of which is old and of limited capability. Technology has advanced significantly since most of the existing rig fleet was built. The industry invested little during the late 1980’s and 1990’s on new drilling equipment, but drilling technology progressed steadily nonetheless, as the Company and its competitors continued to invest in new and better ways of drilling. As a consequence, the safety, reliability, and efficiency of new, modern rigs surpass the performance of most of the older rigs at work today. Drilling rigs are now being pushed to drill deeper wells, more complex wells, highly deviated wells and horizontal wells, tasks which require larger rigs with more capabilities. The drilling process effectively consumes the mechanical components of a rig, which wear out and need periodic repair or replacement. This process was accelerated by very high rig utilization and wellbore complexity. Drilling consumes rigs; more complex and challenging drilling consumes rigs faster.

The industry responded by launching many new rig construction projects since 2005, to retool the existing fleet of jackup rigs (according to ODS, 74 percent of the existing 446 jackup rigs are more than 25 years old); to replace older mechanical and DC electric land rigs with improved AC power, electronic controls, automatic pipe handling and rapid rigup and rigdown technology; and to build out additional deepwater floating drilling rigs, including semisubmersibles and drillships, to employ recent advancements in deepwater drilling to exploit unexplored deepwater basins. We believe that the newer rigs offer considerably higher efficiency, safety, and capability, and that many will effectively replace a portion of the existing fleet, and that declining dayrates may accelerate the retirement of older rigs. As a result of these trends the Company’s Rig Technology segment grew its backlog of capital equipment orders from $0.9 billion at March 31, 2005, to $11.8 billion at September 30, 2008. However, as a result of the credit crisis and slowing drilling activity, orders have declined below amounts flowing out of backlog as revenue, causing the backlog to decline to $8.7 billion by June 30, 2009.

The land rig backlog comprised 12 percent and equipment destined for offshore operations comprised 88 percent of the total backlog as of June 30, 2009. Equipment destined for international markets totaled 92 percent of the backlog. The Company believes that its existing contracts for rig equipment are very strong in that they carry significant down payment and progress billing terms favorable to the ultimate completion of these projects and generally do not allow customers to cancel projects for convenience. During the second quarter of 2009, the Company removed $108 million in orders on which its customers had defaulted, and booked a gain of $16 million related to down payments and progress billings it had received. We do not expect the credit crisis or softer market to result in additional material cancelation of contracts or abandonment of major projects; however, there can be no assurance that such discontinuance of projects will not occur. The Company had approximately $320 million of projects in its June 30, 2009 backlog that it considers at risk.

Segment Performance

Rig Technology generated $1,917 million in revenue and $536 million in operating profit in the second quarter of 2009, yielding a record operating margin for the segment of 28.0 percent (excluding transaction and voluntary retirement charges). The segment generated 25 percent operating leverage or flowthrough (the decrease in operating profit divided by the decrease in revenue) on 13 percent lower revenue from the first quarter of 2009, and posted $30 million higher operating profit on $7 million higher revenues when compared to the second quarter of 2008. Revenue out of backlog of $1,434 million declined 15 percent sequentially and increased seven percent compared to the second quarter of last year. As of June 30, 2009 the scheduled outflow of revenue from backlog is expected to be in the range of $2.5 billion for the remainder of 2009, $4.7 billion in 2010, and $1.5 billion for 2011. From 2005 through the current quarter, the segment has delivered a total of 59 newly built offshore rig packages. Aftermarket spare parts and services revenue, and sales of smaller capital items which do not qualify for the backlog, declined five percent from the first quarter of 2009. Demand for rigs and equipment is strongest in Brazil, the Middle East, Mexico, and the North Sea (for platform cranes and winches). Additionally, we are seeing rising interest for equipment for Iraq and China, and completed a workover rig sale into Russia during the second quarter. Generally, demand for equipment in North America is very slow; although the Company’s first new Drake rig delivered into the Marcellus shale play is performing well.

The Petroleum Services & Supplies segment generated revenues of $913 million and operating profit of $96 million or 10.5 percent of sales in the second quarter of 2009 (excluding impairment, transaction, and voluntary retirement charges). Revenues declined 10 percent from the first quarter of 2009 and 27 percent from the second quarter of 2008 (on a combined adjusted basis for a full quarter contribution from Grant Prideco). Decremental operating leverage was 67 percent from the first quarter of 2009 and 60 percent from the second quarter of 2008. Excluding the impact of acquisitions made during the second quarter revenues fell 13 percent sequentially, and decremental operating leverage was 55 percent. The business faced very challenging market conditions and lower pricing in the second quarter, particularly in North America, where U.S. rig counts fell 29 percent and Canadian rig counts fell 73 percent from the first quarter of 2009. Pricing fell as much as 30 percent to 40 percent across some product lines, although the discounts varied widely depending upon product and region. Consumable products sales were down sharply as drilling contractors cannibalized idle equipment from stacked rigs, rather than place orders with the Company, as they reduced operating and capital expenditures in view of lower rig dayrates. International markets held up better, with pricing down 5 to 20 percent as the rig count declined four percent sequentially. Nevertheless, the group posted 9 percent sequential international sales gains, half of which was due to acquisitions. Sales and rentals of downhole tools and bits, composite pipe, and coiled tubing saw large double-digit percent declines, while other products were down only modestly from the first quarter to the second. Virtually all products and services posted sequential drops in North America, which declined to less than half of the group’s mix during the second quarter in the aggregate. Drillpipe sales were roughly flat sequentially, but margins improved on a better mix of premium high-torque pipe and lower costs.

Distribution Services segment revenues were $305 million during the second quarter of 2009, a decrease of 25 percent from the first quarter of 2009 and a decrease of 28 percent from the second quarter of 2008. Sequential decremental operating leverage was 15 percent, and year-over-year operating leverage was 13 percent on the revenue declines, higher than the segment has typically experienced due to pricing pressure accompanying the volume declines. Pricing for the group’s North American operation declined two to three percent from the first quarter. The group has successfully increased its international presence to about a third of its sales over the past few years, but it still remains dependent on North America for a majority of its business. The softer year-over-year and sequential results are a result of the considerably softer market conditions seen in North America during the second quarter of 2009, which declined 31 percent in sales from the first quarter of 2009. Nevertheless diligent attention to costs and efficiency enabled the group to post 3.3 percent operating margins in the second quarter, excluding voluntary retirement charges. The group continues to expand store coverage of emerging Marcellus, Haynesville, and South Texas Eagle Ford shale plays, while also expanding its presence in Brazil, Mexico, and Central Asia.

Outlook

The serious credit market crisis, global recession, and lower commodity prices are presenting challenging prospects to our business. Consequently we remain cautious in our outlook for the remainder of 2009, and believe we will see orders for new rigs fall in 2009 (although we are nevertheless optimistic that drilling contractors will place orders for new build floating rigs during the year for the Brazilian deepwater market). Drilling activity, particularly by independent gas producers reliant on external financing, has fallen sharply and we do not know when it will recover.

Our outlook for the Company’s Petroleum Services & Supplies segment and Distribution Services segment remains guarded. We expect revenues for Petroleum Services & Supplies to fall slightly, and revenues for Distribution Services to rise slightly in the third quarter of 2009, and margins for both to remain approximately stable, as cost reduction initiatives offset continued pricing pressure. We do not foresee a meaningful recovery in gas drilling in North America this year, but believe the likelihood for such a recovery rises in 2010 and 2011 as gas production is expected to begin to decline and/or recent lower demand is expected to recover. Our outlook for international markets, which are more driven by national oil company activity, are historically less volatile and expected to see better market conditions. The Rig Technology segment is expected to be less affected by the downturn due to the strength of its backlog.

The Company believes it is nevertheless well positioned to manage through this uncertain period, and should benefit from its strong balance sheet and capitalization, access to credit, and a high level of contracted orders which are expected to continue to generate earnings well into the downturn. The Company has a long history of cost-control and downsizing in response to depressed market conditions, and of executing strategic acquisitions during difficult periods. Such a period may present opportunities to the Company to effect new organic growth and acquisition initiatives, and we remain hopeful that a downturn will generate new opportunities.

Operating Environment Overview

The Company’s results are dependent on, among other things, the level of worldwide oil and gas drilling, well remediation activity, the prices of crude oil and natural gas, capital spending by other oilfield service companies and drilling contractors, pipeline maintenance activity, and worldwide oil and gas inventory levels. Key industry indicators for the second quarter of 2009 and 2008, and the first quarter of 2009 include the following:


							%			%
							2Q09 v			2Q09 v
	2Q09*		2Q08*		1Q09*		2Q08			1Q09
Active Drilling Rigs:
U.S.		936		1,864		1,326		(49.8	%)		(29.4	%)
Canada		90		169		329		(46.7	%)		(72.6	%)
International		983		1,084		1,026		(9.3	%)		(4.2	%)

Worldwide		2,009		3,117		2,681		(35.5	%)		(25.1	%)

West Texas Intermediate Crude Prices (per barrel)	$	59.44	$	124.05	$	42.91		(52.1	%)		38.5	%

Natural Gas Prices ($/mmbtu)	$	3.71	$	11.38	$	4.57		(67.4	%)		(18.8	%)


*		Averages for the quarters indicated. See sources below.

The following table details the U.S., Canadian, and international rig activity and West Texas Intermediate Oil prices for the past nine quarters ended June 30, 2009 on a quarterly basis:

Source: Rig count: Baker Hughes, Inc. (www.bakerhughes.com); West Texas Intermediate Crude and Natural Gas Prices: Department of Energy, Energy Information Administration (www.eia.doe.gov).

The worldwide and U.S. quarterly average rig count decreased 36% (from 3,117 to 2,009) and 50% (from 1,864 to 936), respectively, in the second quarter of 2009 compared to the second quarter of 2008. The average per barrel price of West Texas Intermediate Crude decreased 52% (from $124.05 per barrel to $59.44 per barrel) and natural gas prices decreased 67% (from $11.38 per mmbtu to $3.71 per mmbtu) in the second quarter of 2009 compared to the second quarter of 2008.

U.S. rig activity at July 24, 2009 was 943 rigs compared to the second quarter average of 936 rigs. The price for West Texas Intermediate Crude was at $66.96 per barrel as of July 24, 2009, increasing 13% from the second quarter 2009 average.

Results of Operations

Operating results by segment are as follows (in millions). The 2008 actual results include Grant Prideco operations from the acquisition date of April 21, 2008:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Revenue:
Rig Technology	$	1,917		$	1,911		$	4,116		$	3,514
Petroleum Services & Supplies		913			1,124			1,927			1,954
Distribution Services		305			425			713			791
Elimination		(125	)		(135	)		(265	)		(249	)

Total Revenue	$	3,010		$	3,325		$	6,491		$	6,010


Operating Profit:
Rig Technology (a)	$	534		$	506		$	1,140		$	912
Petroleum Services & Supplies (b)(c)		(51	)		221			113			416
Distribution Services		10			25			35			44
Unallocated expenses and eliminations (d)		(99	)		(45	)		(174	)		(96	)
Transaction costs		(8	)		(16	)		(8	)		(16	)

Total Operating Profit	$	386		$	691		$	1,106		$	1,260


Operating Profit %:
Rig Technology (a)		27.9	%		26.5	%		27.7	%		26.0	%
Petroleum Services & Supplies (b)(c)		(5.6	%)		19.7	%		5.9	%		21.3	%
Distribution Services		3.3	%		5.8	%		4.9	%		5.5	%
Total Operating Profit %		12.8	%		20.8	%		17.0	%		21.0	%


(a)		Under purchase accounting related to 2009 acquisitions, a fair value step up adjustment of $5 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $2 million of these inventory charges for both the three and six months ended June 30, 2009.

(b)		The Company recorded a $147 million impairment charge to other indefinite-lived intangible assets during the three and six months ended June 30, 2009.

(c)		Under purchase accounting related to the 2008 Grant Prideco acquisition, a fair value step up adjustment of $89 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $46 million of these inventory charges for the three and six months ended June 30, 2008.

(d)		The Company recorded a $46 million charge related to its Voluntary Early Retirement Program for the three and six months ended June 30, 2009.

Rig Technology

Three Months Ended June 30, 2009 and 2008. Rig Technology revenue in the second quarter of 2009 was $1,917 million, an increase of $6 million compared to the same period in 2008. Backlog was $8.7 billion, down 19.5% from the same period last year. Revenue out of backlog increased 7.2%, offset by a 15.6% decrease in non-backlog revenue from the prior year period reflecting a continued decrease in capital spending by North American land drillers and pressure pumpers.

Operating profit from Rig Technology was $534 million for the second quarter ended June 30, 2009, an increase of $28 million (5.5%) over the same period of 2008. Operating profit percentage increased to 27.9%, up from 26.5% for the same prior year period primarily driven by a $16 million gain from a payment received on cancelled rig package.

Six Months Ended June 30, 2009 and 2008. Revenue for the first half of 2009 was $4,116 million, an increase of $602 million (17.1%) compared to the same period in 2008. Revenue out of backlog increased 26.4% offset by a 4.8% decrease in non-backlog revenue from the prior year period, largely due to lower spare parts and small capital equipment sales.

Operating profit for the first six months of 2009 was $1,140 million, an increase of $228 million (25.0%) over the same period of 2008. Operating profit percentage increased to 27.7%, up from 26.0% for the same prior year period primarily driven by lower commodity prices and improved manufacturing efficiencies.

Petroleum Services & Supplies

Three Months Ended June 30, 2009 and 2008. Revenue from Petroleum Services & Supplies was $913 million for the second quarter of 2009 compared to $1,124 million for the second quarter of 2008, a decrease of $211 million (18.8%). The decrease was primarily attributable to continued decline in North American rig count activity as well as an unusually severe Canada seasonal break-up with average rig utilization at 11% for the second quarter of 2009.

Operating (loss) profit from Petroleum Services & Supplies was $(51) million for the second quarter of 2009 compared to $221 million for the same period in 2008, a decrease of $272 million (123.1%), and operating profit percentage decreased to (5.6%) down from 19.7% in the same period of 2008. The primary reason for the decrease is due to a $147 million impairment charge on the carrying value of a trade name associated with this segment. (See Note 3. for further detail). In addition, decremental operating profit is a result of the dramatic decline in drilling activity beginning in late third quarter 2008. North American rig count has decreased 58% since September 2008, and 52% since December 2008.

Six Months Ended June 30, 2009 and 2008. Revenue from Petroleum Services & Supplies was $1,927 million for the first six months of 2009 compared to $1,954 million for the first six months of 2008, a decrease of $27 million (1.4%). The decrease was primarily attributable to a 38% decline in North American average rig count activity during the first half of 2009 over the comparable 2008 period, partially offset by contributions from Grant Prideco which was acquired on April 21, 2008.

Operating profit from Petroleum Services & Supplies was $113 million for the first half of 2009 compared to $416 million for the same period in 2008, a decrease of $303 million (72.8%). Operating profit percentage decreased to 5.9% down from 21.3% in the same prior year period. The primary reason for the decrease is due to a $147 million impairment charge on the carrying value of a trade name associated with this segment. (See Note 3. for further detail). In addition, the decrease was largely due to reduced North American rig count activity combined with strong price competition; however, this was partly offset by lower inflationary costs, particularly steel, labor and fuel. The decrease in operating profit was also partially offset by contributions from Grant Prideco which was acquired on April 21, 2008.

Distribution Services

Three Months Ended June 30, 2009 and 2008. Revenue from Distribution Services was $305 million, a decrease of $120 million (28.2%) during the second quarter of 2009 over the comparable 2008 period. The number of drilling rigs actively searching for oil and gas is a key metric for this business segment. U.S. sales declined 45%, less than average North American rig count decline of 50% for the second quarter of 2009 over the comparable period in 2008.

Operating profit of $10 million in the second quarter of 2009 decreased $15 million from the second quarter of 2008. Operating profit percentage decreased to 3.3%, from 5.8% for the same prior year period as a result of reduced North American drilling activity.

Six Months Ended June 30, 2009 and 2008. Revenue from Distribution Services was $713 million, a decrease of $78 million (9.9%) during the first half of 2009 over the comparable 2008 period. The decrease in revenue is mainly concentrated in the North American region as average drilling activity declined 38% for the first half of 2009 over the comparable 2008 period. However, international revenues increased 25% over the same period in 2008 as a result of improved strategic alliances with drilling contractors and the success of the RigStore™ initiative that provides innovative supply chain solutions to install, staff and manage supply stores on offshore drilling rigs.

Operating profit of $35 million in the first six months of 2009 decreased $9 million over the first six months of 2008. Operating profit percentage decreased to 4.9%, from 5.5% for the same prior year period as a result of strong price competition and volume declines as North American rig activity continues to decline.

Unallocated expenses and eliminations

Unallocated expenses and eliminations were $99 million and $174 for the three and six months ended June 30, 2009, respectively, compared to $45 million and $96 million for the same periods in 2008. This increase is primarily due to greater

intercompany profit elimination related to sales between the segments. In addition, voluntary retirement costs were $46 million for the three and six months ending June 30, 2009 and were comprised of $39 million in severance and $7 million in stock based compensation.

Transaction costs

Transaction costs were $8 million for both the three and six months ending June 30, 2009. The transaction costs related to restructuring and other costs due to recent acquisitions. Transaction costs of $16 million for the three and six months ended June 30, 2008 were comprised of $6 million for accelerated vesting of stock-based compensation, $4 million for bridge loan fees, and $6 million related to transaction costs for the disposition of certain tubular businesses of Grant Prideco in May 2008.

Interest and financial costs

Interest and financial costs were $13 million and $26 million for the three and six months ended June 30, 2009, compared to $24 million and $34 million for the same periods in 2008. The primary reasons for the decrease in interest and financial costs were a direct result of the repayment of borrowings on the Company’s credit facility used to purchase Grant Prideco, the repayment of the Company’s 7.5% Senior Notes and the repayment of a portion of the Company’s 6.125% Senior Notes. These repayments occurred during 2008 causing lower debt levels in 2009.

Other income (expense), net

Other income (expense), net was expense, net of $38 million and $74 million for the three and six months ended June 30, 2009 compared to expense, net of $14 million and $1 million for the same periods in 2008. This is mainly due to an increase in foreign exchange charges and a decrease in interest income for the three and six months ending June 30, 2009.

Provision for income taxes

The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Federal income tax at U.S. federal statutory rate	$	124		$	238		$	369		$	444
Foreign income tax rate differential		(26	)		(23	)		(58	)		(43	)
State income tax, net of federal benefit		2			11			8			17
Foreign dividends, net of foreign tax credits		6			33			7			35
Benefit of U.S. Manufacturing Deduction		(3	)		(3	)		(7	)		(5	)
Nondeductible expenses		4			2			12			5
Prior year tax on revaluation gains in Norway		21			—			21			—
Other		3			(3	)		7			(10	)

Provision for income taxes	$	131		$	255		$	359		$	443

Liquidity and Capital Resources

Overview

At June 30, 2009, the Company had cash and cash equivalents of $2,286 million, and total debt of $881 million. At December 31, 2008, cash and cash equivalents were $1,543 million and total debt was $874 million. A portion of the consolidated cash balances are maintained in accounts in various foreign subsidiaries and, if such amounts were transferred among countries or repatriated to the U.S., such amounts may be subject to additional tax obligations. The Company’s outstanding debt at June 30, 2009 consisted of $200 million of 5.65% Senior Notes due 2012, $200 million of 7.25% Senior Notes due 2011, $150 million of 6.5% Senior Notes due 2011, $150 million of 5.5% Senior Notes due 2012, $151 million of 6.125% Senior Notes due 2015, and other debt of $30 million.

The Company had $2,414 million of additional outstanding letters of credit at June 30, 2009, primarily in Norway, that are essentially under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds and performance bonds. The Senior Notes contain reporting covenants and the credit facility contains a financial covenant regarding maximum debt to capitalization. We were in compliance with all covenants at June 30, 2009.

There were no borrowings against the Company’s unsecured credit facilities, and there were $636 million in outstanding letters of credit issued under such facilities, resulting in $1,364 million of funds available under the Company’s unsecured revolving credit facilities at June 30, 2009.

Operating Activities

For the first six months of 2009, cash provided by operating activities increased $41 million to $1,285 million compared to cash provided by operating activities of $1,244 million in the same period of 2008. Before changes in operating assets and liabilities, net of acquisitions, cash was provided by operations primarily through net income of $695 million plus non-cash charges of $385 million and dividends from unconsolidated affiliates of $86 million less $44 million in equity income from the Company’s unconsolidated affiliate. Net changes in operating assets and liabilities, net of acquisitions, contributed another $168 million in cash provided by operating activities, a $93 million decrease from the same period in 2008. The decrease is primarily due to lower receivables, inventory and accounts payable.

Investing Activities

For the first six months of 2009, cash used in investing activities was $524 million compared to cash used in investing of $2,209 million for the same period of 2008. The primary reason for the decrease in cash used in investing activities for the first six months of 2009 related to a decrease in size of business acquisitions, net of cash acquired, to approximately $389 million compared to $2,945 million used in the same period of 2008 which included the purchase of the business and operating assets of Grant Prideco, offset by the approximately $784 million received related to the disposition of certain Grant Prideco tubular businesses. In addition, the Company decreased its capital expenditures for the first six months of 2009 by $17 million, received $19 million less in dividends from its unconsolidated affiliate compared to the same period in 2008 and included $86 million of the dividends from unconsolidated affiliate received in 2009 in operating activities.

Financing Activities

For the first six months of 2009, cash used in financing activities was $33 million compared to cash provided by financing activities of $762 million for the same period of 2008. The cash used in financing activities for the first six months of 2009 related to $34 million cash payments on debt primarily acquired in the second quarter 2009 acquisitions, offset by cash proceeds from exercised stock options in the amount of $1 million. The borrowings and payments of debt in the first six months of 2008 primarily relates to the financing of the Grand Prideco acquisition. For the first six months of 2009, the Company used its cash on hand to fund its acquisitions.

The effect of the change in exchange rates on cash flows was a positive $15 million and $13 million for the six months ended June 30, 2009 and 2008, respectively.

The Company’s cash balance as of June 30, 2009 was $2,286 million. We believe that cash on hand, cash generated from operations and amounts available under the credit facilities and from other sources of debt will be sufficient to fund operations, working capital needs, capital expenditure requirements and financing obligations. We also believe any significant increases in capital expenditures caused by any need to increase manufacturing capacity can be funded from operations or through debt financing.

We intend to pursue additional acquisition candidates, but the timing, size or success of any acquisition effort and the related potential capital commitments cannot be predicted. We expect to fund future cash acquisitions primarily with cash flow from operations and borrowings, including the unborrowed portion of the credit facility or new debt issuances, but may also issue additional equity either directly or in connection with acquisitions. There can be no assurance that additional financing for acquisitions will be available at terms acceptable to us.

Recently Issued Accounting Standards

acquired in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company expects FSP 141R-1 will have a future impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, term and size of the acquired contingencies.

Forward-Looking Statements

Some of the information in this document contains, or has incorporated by reference, forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements typically are identified by use of terms such as “may,” “will,” “expect,” “anticipate,” “estimate,” and similar words, although some forward-looking statements are expressed differently. All statements herein regarding expected merger synergies are forward-looking statements. You should be aware that our actual results could differ materially from results anticipated in the forward-looking statements due to a number of factors, including but not limited to changes in oil and gas prices, customer demand for our products, difficulties encountered in integrating mergers and acquisitions, and worldwide economic activity. You should also consider carefully the statements under “Risk Factors,” as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2008, which address additional factors that could cause our actual results to differ from those set forth in the forward-looking statements. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements. We undertake no obligation to update any such factors or forward-looking statements to reflect future events or developments.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to changes in foreign currency exchange rates and interest rates. Additional information concerning each of these matters follows:

Foreign Currency Exchange Rates

We have extensive operations in foreign countries. The net assets and liabilities of these operations are exposed to changes in foreign currency exchange rates, although such fluctuations generally do not affect income since their functional currency is typically the local currency. These operations also have net assets and liabilities not denominated in the functional currency, which exposes us to changes in foreign currency exchange rates that do impact income. We recorded a foreign exchange loss in our income statement of approximately $56 million in the first six months of 2009, compared to a $7 million foreign currency gain in the same period of the prior year. The gain/losses are primarily due to exchange rate fluctuations related to monetary asset balances denominated in currencies other than the functional currency and adjustments to our hedged positions as a result of the current economic environment. Strengthening of currencies against the U.S. dollar may create losses in future periods to the extent we maintain net assets and liabilities not denominated in the functional currency of the countries using the local currency as their functional currency.

Some of our revenues in foreign countries are denominated in U.S. dollars, and therefore, changes in foreign currency exchange rates impact our earnings to the extent that costs associated with those U.S. dollar revenues are denominated in the local currency. Similarly some of our revenues are denominated in foreign currencies, but have associated U.S. dollar costs, which also gives rise to foreign currency exchange rate exposure. In order to mitigate that risk, we may utilize foreign currency forward contracts to better match the currency of our revenues and associated costs. We do not use foreign currency forward contracts for trading or speculative purposes.

The following table details the Company’s foreign currency exchange risk grouped by functional currency and their expected maturity periods as of June 30, 2009 (in millions, except contract rates):


	As of June 30, 2009											December 31,
Functional Currency	2009			2010			2011		Total			2008
CAD Buy USD/Sell CAD:
Notional amount to buy (in Canadian dollars)		323			—			—		323			527
Average CAD to USD contract rate		1.2034			—			—		1.2034			1.1843
Fair Value at June 30, 2009 in U.S. dollars		(11	)		—			—		(11	)		14

Sell USD/Buy CAD:
Notional amount to sell (in Canadian dollars)		71			52			—		123			241
Average CAD to USD contract rate		1.0700			1.0961			—		1.0809			1.1196
Fair Value at June 30, 2009 in U.S. dollars		(5	)		(2	)		—		(7	)		(18	)

EUR Buy USD/Sell EUR:
Notional amount to buy (in euros)		66			—			—		66			11
Average USD to EUR contract rate		1.3570			—			—		1.3570			1.4397
Fair Value at June 30, 2009 in U.S. dollars		(3	)		—			—		(3	)		—

Sell USD/Buy EUR:
Notional amount to buy (in euros)		81			50			1		132			245
Average USD to EUR contract rate		1.3846			1.3317			1.4431		1.3647			1.3986
Fair Value at June 30, 2009 in U.S. dollars		2			4			—		6			1

GBP Buy USD/Sell GBP:
Notional amount to buy (in British Pounds Sterling)		43			—			—		43			—
Average USD to GBP contract rate		1.5026			—			—		1.5026			—
Fair Value at June 30, 2009 in U.S. dollars		(6	)		—			—		(6	)		—


	As of June 30, 2009												December 31,
Functional Currency	2009			2010			2011			Total			2008
Sell USD/Buy GBP:
Notional amount to buy (in British Pounds Sterling)		10			2			—			12			34
Average USD to GBP contract rate		1.5289			1.5313			—			1.5293			1.5647
Fair Value at June 30, 2009 in U.S. dollars		1			—			—			1			(4	)

USD Buy DKK/Sell USD:
Notional amount to buy (in U.S. dollars)		35			10			—			45			47
Average DKK to USD contract rate		5.6200			5.4569			—			5.5853			5.4968
Fair Value at June 30, 2009 in U.S. dollars		2			—			—			2			2

Buy EUR/Sell USD:
Notional amount to buy (in U.S. dollars)		656			15			7			678			749
Average USD to EUR contract rate		1.3578			1.3454			1.4033			1.3580			1.3791
Fair Value at June 30, 2009 in U.S. dollars		23			1			—			24			14

Buy GBP/Sell USD:
Notional amount to buy (in U.S. dollars)		84			—			—			84			108
Average USD to GBP contract rate		1.4879			—			—			1.4879			1.5623
Fair Value at June 30, 2009 in U.S. dollars		9			—			—			9			(8	)

Buy NOK/Sell USD:
Notional amount to buy (in U.S. dollars)		639			504			156			1,299			1,325
Average NOK to USD contract rate		6.3095			6.4452			6.4598			6.3802			6.5338
Fair Value at June 30, 2009 in U.S. dollars		(15	)		(4	)		—			(19	)		(101	)

Sell EUR/Buy USD:
Notional amount to sell (in U.S. dollars)		144			4			3			151			76
Average USD to EUR contract rate		1.3704			1.2981			1.2715			1.3657			1.3777
Fair Value at June 30, 2009 in U.S. dollars		(4	)		—			—			(4	)		(2	)

Sell NOK/Buy USD:
Notional amount to sell (in U.S. dollars)		442			99			—			541			589
Average NOK to USD contract rate		6.1562			6.0427			—			6.1358			5.8647
Fair Value at June 30, 2009 in U.S. dollars		21			7			—			28			104

Other Currencies
Fair Value at June 30, 2009 in U.S. dollars		(1	)		(1	)		(2	)		(4	)		—

Total Fair Value		13			5			(2	)		16			2

The Company had other financial market risk sensitive instruments denominated in foreign currencies totaling $71 million as of June 30, 2009 excluding trade receivables and payables, which approximate fair value. These market risk sensitive instruments consisted of cash balances and overdraft facilities. The Company estimates that a hypothetical 10% movement of all applicable foreign currency exchange rates on these other financial market risk sensitive instruments could affect net income by $5 million.

The counterparties to forward contracts are major financial institutions. The credit ratings and concentration of risk of these financial institutions are monitored on a continuing basis. In the event that the counterparties fail to meet the terms of a foreign currency contract, our exposure is limited to the foreign currency rate differential.

Interest Rate Risk

At June 30, 2009 our long term borrowings consisted of $150 million in 6.5% Senior Notes, $200 million in 7.25% Senior Notes, $200 million in 5.65% Senior Notes, $150 million in 5.5% Senior Notes and $151 million in 6.125% Senior Notes. We occasionally have borrowings under our other credit facilities, and a portion of these borrowings could be denominated in multiple currencies which could expose us to market risk with exchange rate movements. These instruments carry interest at a pre-agreed upon percentage point spread from either LIBOR, NIBOR or EURIBOR, or at the prime interest rate. Under our credit facilities, we may, at our option, fix the interest rate for certain borrowings based on a spread over LIBOR, NIBOR or EURIBOR for 30 days to 6 months. Our objective is to maintain a portion of our debt in variable rate borrowings for the flexibility obtained regarding early repayment without penalties and lower overall cost as compared with fixed-rate borrowings.

Item 4. Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. The Company’s disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by the Company in the reports it files under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures and is recorded, processed, summarized and reported within the time period specified in the rules and forms of the Securities and Exchange Commission. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective as of the end of the period covered by this report at a reasonable assurance level.

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

The annual meeting of stockholders was held on May 13, 2009. Stockholders elected three directors nominated by the board of directors for terms expiring in 2012 by the following votes: Merrill A. Miller, Jr. — 320,898,593 votes for, 34,321,668 votes against and 469,422 votes abstaining; Greg L. Armstrong — 322,772,904 votes for, 32,447,165 votes against and 469,614 votes abstaining; and David D. Harrison — 322,747,027 votes for, 32,468,059 votes against and 474,599 votes abstaining. There were no nominees to office other than the directors elected.

A proposal to ratify the appointment of Ernst & Young LLP as the Company’s independent auditors for the fiscal year ending December 31, 2009 was voted on by the stockholders as follows: 351,767,214 votes for, 3,152,700 votes against and 773,277 votes abstaining.

A proposal to approve an amendment to the National Oilwell Varco, Inc. Long-Term Incentive Plan was voted on by the stockholders as follows: 262,482,635 votes for, 50,278,092 votes against and 533,197 votes abstaining.

Item 6. Exhibits

Reference is hereby made to the Exhibit Index commencing on page 36.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



Date: August 7, 2009		By: /s/ Clay C. Williams
		Clay C. Williams
		Executive Vice President and Chief Financial Officer (Duly Authorized Officer, Principal Financial and Accounting Officer)

INDEX TO EXHIBITS

(a) Exhibits


2.1		Amended and Restated Agreement and Plan of Merger, effective as of August 11, 2004 between National-Oilwell, Inc. and Varco International, Inc. (4).

2.2		Agreement and Plan of Merger, effective as of December 16, 2007, between National Oilwell Varco, Inc., NOV Sub, Inc., and Grant Prideco, Inc. (8).

3.1		Amended and Restated Certificate of Incorporation of National-Oilwell, Inc. (Exhibit 3.1) (1).

3.2		Amended and Restated By-laws of National Oilwell Varco, Inc. (Exhibit 3.1) (9).

10.1		Employment Agreement dated as of January 1, 2002 between Merrill A. Miller, Jr. and National Oilwell. (Exhibit 10.1) (2).

10.2		Employment Agreement dated as of January 1, 2002 between Dwight W. Rettig and National Oilwell, with similar agreement with Mark A. Reese. (Exhibit 10.2) (2).

10.3		Form of Amended and Restated Executive Agreement of Clay C. Williams. (Exhibit 10.12) (3).

10.4		National Oilwell Varco Long-Term Incentive Plan (5)*.

10.5		Form of Employee Stock Option Agreement (Exhibit 10.1) (6).

10.6		Form of Non-Employee Director Stock Option Agreement (Exhibit 10.2) (6).

10.7		Form of Performance-Based Restricted Stock (18 Month) Agreement (Exhibit 10.1) (7).

10.8		Form of Performance-Based Restricted Stock (36 Month) Agreement (Exhibit 10.2) (7).

10.9		Five-Year Credit Agreement, dated as of April 21, 2008, among National Oilwell Varco, Inc., the financial institutions signatory thereto, including Wells Fargo Bank, N.A., in their capacities as Administrative Agent, Co-Lead Arranger and Joint Book Runner, DnB Nor Bank ASA, as Co-Lead Arranger and Joint Book Runner, and Fortis Capital Corp., The Bank of Nova Scotia and The Bank of Tokyo – Mitsubishi UFJ, Ltd., as Co-Documentation Agents. (Exhibit 10.1) (10).

10.10		First Amendment to Employment Agreement dated as of December 22, 2008 between Merrill A. Miller, Jr. and National Oilwell Varco (Exhibit 10.1) (11).

10.11		Second Amendment to Executive Agreement, dated as of December 22, 2008, of Clay Williams and National Oilwell Varco (Exhibit 10.2) (11).

10.12		First Amendment to Employment Agreement dated as of December 22, 2008 between Mark A. Reese and National Oilwell Varco (Exhibit 10.3) (11).

10.13		First Amendment to Employment Agreement dated as of December 22, 2008 between Dwight W. Rettig and National Oilwell Varco (Exhibit 10.4) (11).

10.14		Employment Agreement dated as of December 22, 2008 between Robert W. Blanchard and National Oilwell Varco (Exhibit 10.5) (11).

10.15		First Amendment to National Oilwell Varco Long-Term Incentive Plan (12)*.


31.1		Certification pursuant to Rule 13a-14a and Rule 15d-14(a) of the Securities and Exchange Act, as amended

31.2		Certification pursuant to Rule 13a-14a and Rule 15d-14(a) of the Securities and Exchange Act, as amended

32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from our Quarterly Report on Form 10-Q for the interim period ended June 30, 2009 formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to the Consolidated Financial Statements, tagged as block text. (13)


*		Compensatory plan or arrangement for management or others

(1)		Filed as an Exhibit to our Quarterly Report on Form 10-Q filed on August 11, 2000.

(2)		Filed as an Exhibit to our Annual Report on Form 10-K filed on March 28, 2002.

(3)		Filed as an Exhibit to Varco International, Inc.’s Quarterly Report on Form 10-Q filed on May 6, 2004.

(4)		Filed as Annex A to our Registration Statement on Form S-4 filed on September 16, 2004.

(5)		Filed as Annex D to our Amendment No. 1 to Registration Statement on Form S-4 filed on January 31, 2005.

(6)		Filed as an Exhibit to our Current Report on Form 8-K filed on February 23, 2006.

(7)		Filed as an Exhibit to our Current Report on Form 8-K filed on March 27, 2007.

(8)		Filed as Annex A to our Registration Statement on Form S-4 filed on January 28, 2008.

(9)		Filed as an Exhibit to our Current Report on Form 8-K filed on February 21, 2008.

(10)		Filed as an Exhibit to our Current Report on Form 8-K filed on April 22, 2008.

(11)		Filed as an Exhibit to our Current Report on Form 8-K filed on December 23, 2008.

(12)		Filed as Appendix I to our Proxy Statement filed on April 1, 2009.

(13)		As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

We hereby undertake, pursuant to Regulation S-K, Item 601(b), paragraph (4) (iii), to furnish to the U.S. Securities and Exchange Commission, upon request, all constituent instruments defining the rights of holders of our long-term debt not filed herewith.

EX-31.1 2 h67433exv31w1.htm EX-31.1 exv31w1

Exhibit 31.1

CERTIFICATION

I, Merrill A. Miller, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of National Oilwell Varco, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date: August 7, 2009		By: /s/ Merrill A. Miller, Jr.
		Merrill A. Miller, Jr.
		Chairman, President and Chief Executive Officer

EX-31.2 3 h67433exv31w2.htm EX-31.2 exv31w2

Exhibit 31.2

CERTIFICATION

I, Clay C. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of National Oilwell Varco, Inc.;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date: August 7, 2009		By: /s/ Clay C. Williams
		Clay C. Williams
		Executive Vice President and Chief Financial Officer

EX-32.1 4 h67433exv32w1.htm EX-32.1 exv32w1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of National Oilwell Varco, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Merrill A. Miller, Jr., Chairman, President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The certification is given to the knowledge of the undersigned.

EX-32.2 5 h67433exv32w2.htm EX-32.2 exv32w2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of National Oilwell Varco, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Clay C. Williams, Executive Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The certification is given to the knowledge of the undersigned.

EX-101.INS 6 nov-20090630.xml EX-101 INSTANCE DOCUMENT 0001021860 2008-01-01 2008-12-31 0001021860 2007-12-31 0001021860 2009-06-30 0001021860 2008-12-31 0001021860 2009-04-01 2009-06-30 0001021860 2008-04-01 2008-06-30 0001021860 2008-01-01 2008-06-30 0001021860 2008-06-30 0001021860 2009-08-03 0001021860 2009-01-01 2009-06-30 iso4217:USD xbrli:shares xbrli:shares iso4217:USD

<html> <head></head> <body>   <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Basis of Presentation</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with our 2008 Annual Report on Form 10-K. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the consolidated financial statements include all adjustments, all of which are of a normal, recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated subsequent events for potential recognition or disclosure in the consolidated financial statements included through August 7, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value of Financial Instruments</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. The carrying values of other financial instruments approximate their respective fair values. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Debt</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Debt consists of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 6.5% payable semiannually, principal due on March 15, 2011 </div></td> <td> </td> <td align="left">$</td> <td align="right">150</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">150</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 7.25% payable semiannually, principal due on May 1, 2011 </div></td> <td> </td> <td> </td> <td align="right">206</td> <td> </td> <td> </td> <td> </td> <td align="right">208</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 5.65% payable semiannually, principal due on November 15, 2012 </div></td> <td> </td> <td> </td> <td align="right">200</td> <td> </td> <td> </td> <td> </td> <td align="right">200</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 5.5% payable semiannually, principal due on November 19, 2012 </div></td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 </div></td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total debt </div></td> <td> </td> <td> </td> <td align="right">881</td> <td> </td> <td> </td> <td> </td> <td align="right">874</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Less current portion </div></td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td align="left">$</td> <td align="right">873</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">870</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Senior Notes</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the merger of Grant Prideco, the Company completed an exchange offer relative to the $175 million of 6.125% Senior Notes due 2015 previously issued by Grant Prideco. On April 21, 2008, $151 million of Grant Prideco Senior Notes were exchanged for National Oilwell Varco Senior Notes. The National Oilwell Varco Senior Notes have the same interest rate, interest payment dates, redemption terms and maturity as the Grant Prideco Senior Notes. In November 2008, the Company repurchased $23 million of the unexchanged Grant Prideco Senior Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revolving Credit Facilities</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">On April 21, 2008, the Company replaced its existing $500 million unsecured revolving credit facility with an aggregate of $3 billion of unsecured credit facilities and borrowed $2 billion to finance the cash portion of the Grant Prideco acquisition. These facilities consisted of a $2 billion, five-year revolving credit facility and a $1 billion, 364-day revolving credit facility. At June 30, 2009, there were no borrowings against these facilities, and there were $636 million in outstanding letters of credit issued under these facilities, resulting in $1,364 million of funds available under this revolving credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 0.26% subject to a ratings-based grid, or the prime rate. In early February 2009, we terminated early the $1 billion, 364-day revolving credit facility, which matured April 20, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company also had $2,414 million of additional outstanding letters of credit at June 30, 2009, primarily in Norway, that are essentially under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds and performance bonds. The Senior Notes contain reporting covenants and the credit facility contains a financial covenant regarding maximum debt to capitalization. We were in compliance with all covenants at June 30, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Other debt includes approximately $5 million in promissory notes due to former owners of businesses acquired. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>12. Derivative Financial Instruments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended (”SFAS 133”), which requires companies to recognize all of its derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk, and interest rate risk. Forward contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk on forecasted revenue and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge). In addition the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with SFAS 133 the Company records all derivative financial instruments at their fair value in our consolidated balance sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments we hold are designated as either cash flow or fair value hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. We may also use interest rate contracts to mitigate our exposure to changes in interest rates on anticipated long-term debt issuances. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At June 30, 2009, the Company has determined that its financial assets of $114 million and liabilities of $95 million (primarily currency related derivatives) are level 2 in the fair value hierarchy. At June 30, 2009, the fair value of the Company’s foreign currency forward contracts totaled $16 million. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company did not have any interest rate swaps and our financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when our financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Cash Flow Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion) or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statements of Income during the current period. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted sales and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign currencies, the decrease in present value of future foreign currency revenue and costs is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">British Pound Sterling </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">£</td> <td align="right" valign="top">47</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Danish Krone </div></td> <td> </td> <td>DKK </td> <td nowrap="nowrap" align="right" valign="top"> 197</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Euro </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top"><font face="'Times New Roman',times,serif">€</font></td> <td align="right" valign="top">279</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Norwegian Krone </div></td> <td> </td> <td>NOK </td> <td align="right" valign="top"> 7,717</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">181</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are designated and qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is subject to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings (e.g., in “revenue” when the hedged item is a contracted sale). </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into forward exchange contracts to hedge certain firm commitments of revenue and costs that are denominated in currencies other than the functional currency of the operating unit. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to customers will be adversely affected by changes in the exchange rates. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency fair values of firm commitments of revenues and costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Korean Won </div></td> <td> </td> <td>KRW </td> <td nowrap="nowrap" align="right" valign="top"> 1,917</td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">64</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Non-designated Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are non-designated, the gain or loss on the derivative instrument subject to the hedged risk (i.e. nonfunctional currency monetary accounts) are recognized in the same line item associated with the hedged item in current earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the nonfunctional currency monetary accounts will be adversely affected by changes in the exchange rates. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">British Pound Sterling </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">£</td> <td align="right" valign="top">2</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Danish Krone </div></td> <td> </td> <td>DKK </td> <td nowrap="nowrap" align="right" valign="top"> 15</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Euro </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top"><font face="'Times New Roman',times,serif">€</font></td> <td align="right" valign="top">150</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Norwegian Krone </div></td> <td nowrap="nowrap" valign="top"> </td> <td>NOK </td> <td nowrap="nowrap" align="right" valign="top">2,280 </td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Swedish Krone </div></td> <td> </td> <td>SEK </td> <td nowrap="nowrap" align="right" valign="top"> 5</td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">67</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="34%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="18%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Asset Derivatives</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Liability Derivatives</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Prepaid and other current assets</td> <td> </td> <td align="left">$</td> <td align="right">63</td> <td> </td> <td> </td> <td align="left" valign="top">Accrued liabilities</td> <td> </td> <td align="left">$</td> <td align="right">37</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Other Assets</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td align="left" valign="top">Other Liabilities</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">74</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">48</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Prepaid and other current assets</td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> <td> </td> <td align="left" valign="top">Accrued liabilities</td> <td> </td> <td align="left">$</td> <td align="right">46</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Other Assets</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td align="left" valign="top">Other Liabilities</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives not designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">37</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">47</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">111</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">95</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>The Effect of Derivative Instruments on the Consolidated Statement of Income<br /> Periods Ended June 30, 2009<br /> ($ in millions)</b> </div> <div align="center"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Derivative (Ineffective</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Portion and Amount</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Derivative (Ineffective</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives in SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated OCI into</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Excluded from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Portion and Amount</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Cash Flow Hedging</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in OCI on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Accumulated OCI into</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Effectiveness</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Excluded from</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative (Effective Portion) (a)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Income (Effective Portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Testing)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Effectiveness Testing) (b)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months<br /> Ended</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">74</td> <td> </td> <td> </td> <td colspan="3" align="center">Revenue</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td colspan="3" align="center">Other income<br />(expense), net</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(16</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(44</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">74</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(34</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="23%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives in SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Fair Value</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fair Value Hedge</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related Hedged</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Hedging Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>on Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Related Hedged Item</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Items</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months<br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Revenue</td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Firm commitments</td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Revenue</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">(1</td> <td>)</td> <td> </td> <td colspan="3" align="center">Firm commitments</td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">1</td> <td nowrap="nowrap"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center" style="margin-right: 40%"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="60%">  <tr valign="bottom"> <td width="18%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives Not Designated as</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Hedging Instruments under</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>on Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative (a)</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Other income (expense), net</td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>The Company expects that $(38) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>The amount of gain (loss) recognized in income represents $(18) million and $(27) million related to the ineffective portion of the hedging relationships for the three and six months ended June 30, 2009, respectively, and nil and $3 million related to the amount excluded from the assessment of the hedge effectiveness for the three and six months ended June 30, 2009.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">We assess the functional currencies of our operating units to ensure that the appropriate currencies are utilized in accordance with the guidance of SFAS No. 52, <i>Foreign Currency Translation</i>. Effective January 1, 2008, we changed the functional currency of our Rig Technology unit in Norway from the Norwegian krone to the U.S. dollar to more appropriately reflect the primary economic environment in which they operate. This change was precipitated by significant changes in the economic facts and circumstances, including the increased order rate for large drilling platforms and components technology, the use of our Norway unit as our preferred project manager of these projects, increasing revenue and cost base in U.S. dollars, and the implementation of an international cash pool denominated in U.S. dollars. As a Norwegian krone functional unit, Norway was subject to increasing foreign currency exchange risk as a result of these changes in its economic environment and was dependent upon significant hedging transactions to offset its non-functional currency positions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2007, our Norway operations had foreign currency forward contracts with notional amounts aggregating $2,551 million with a fair value of $91 million to mitigate foreign currency exchange risk against the U.S. dollar, our reporting currency. Effective with the change in the functional currency, the Company terminated these hedges. The related net gain position of $109 million associated with the terminated hedges was deferred and is being recognized into earnings in the future period(s) the forecasted transactions affect earnings, of which $23 million remains to be recognized into earnings at June 30, 2009. The Company has, subsequent to January 1, 2008, entered into new hedges to cover the exposures as a result of the change to U.S. dollar functional. At June 30, 2009, our Norway operations had derivatives with $2,709 million in notional value with a fair value asset of $33 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Net Income Attributable to Company Per Share</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Numerator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net income attributable to Company </div></td> <td> </td> <td align="left">$</td> <td align="right">220</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">421</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">690</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">819</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Denominator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic—weighted average common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> <td> </td> <td> </td> <td align="right">402</td> <td> </td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> <td> </td> <td> </td> <td align="right">379</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Dilutive effect of employee stock options and other unvested stock awards </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted outstanding shares </div></td> <td> </td> <td> </td> <td align="right">418</td> <td> </td> <td> </td> <td> </td> <td align="right">404</td> <td> </td> <td> </td> <td> </td> <td align="right">417</td> <td> </td> <td> </td> <td> </td> <td align="right">381</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Company per share: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.05</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.66</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.04</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.65</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.15</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the Company had stock options outstanding that were anti-dilutive totaling 4 million and 10 million shares for the three and six months ended June 30, 2009, respectively, and 1 million shares for both the three and six months ended June 30, 2008, respectively. </div> </div> </body> </html>

false --12-31 2009-06-30 10-Q 0001021860 418199258 Yes Large Accelerated Filer 37000000000 NATIONAL OILWELL VARCO, INC. Yes Yes 556000000 -80000000 38000000 28000000 113000000 8000000 1268000000 680000000 1054000000 353000000 283000000 391000000

852000000

760000000

230000000

236000000

2376000000

2082000000

-161000000

7989000000

8027000000

43100000

-5000000

21479000000

21939000000

9657000000

9910000000

2161000000

2081000000

1841800000

1651500000

1543000000

2286000000

-190300000

743000000

0.01

417350924

418192372

417350924

418192372

4000000

4232000000

2344000000

4577000000

2135000000

618000000

590000000

4000000

8000000

271000000

215000000

126000000

195000000

2134000000

2150000000

168000000

238000000

2.16

1.05

1.66

0.53

2.15

1.04

1.65

0.53

13000000

15000000

86000000

421000000

387000000

36000000

-36400000

5225000000

5466000000

1778000000

981000000

1914000000

875000000

147000000

17000000

44000000

16000000

376000000

409000000

443000000

255000000

359000000

131000000

22000000

-152000000

-507000000

590000000

-297000000

75000000

375000000

-185000000

74000000

-108000000

4300000000

4134000000

34000000

24000000

26000000

13000000

30000000

27000000

3806000000

3825000000

26000000

10000000

4000000

2000000

8755000000

8334000000

21479000000

21939000000

5623000000

5167000000

870000000

873000000

96000000

88000000

762000000

-33000000

-2209000000

-524000000

1243700000

1285000000

819000000

421000000

690000000

220000000

6000000

4000000

5000000

2000000

1260000000

691000000

1106000000

386000000

73000000

89000000

16000000

8000000

128000000

144000000

-1000000

-14000000

-74000000

-38000000

1000000

2945000000

389000000

160000000

143000000

784000000

2577000000

77000000

1000000

825000000

425000000

695000000

222000000

1677000000

1758000000

3136000000

2603000000

1928000000

34000000

4796000000

5486000000

6010000000

3325000000

6491000000

3010000000

502000000

274000000

653000000

334000000

12628000000

13517000000

12724000000

13605000000

381000000

404000000

417000000

418000000

379000000

402000000

416000000

EX-101.SCH 7 nov-20090630.xsd EX-101 SCHEMA DOCUMENT 0603 - Disclosure - Asset Impairment link:presentationLink link:calculationLink link:definitionLink 0602 - Disclosure - Grant Prideco Merger and Other Acquisitions link:presentationLink link:calculationLink link:definitionLink 00 - Document - Document and Company Information link:presentationLink link:calculationLink link:definitionLink 0614 - Disclosure - Recently Issued Accounting Standards link:presentationLink link:calculationLink link:definitionLink 0613 - Disclosure - Net Income Attributable to Company Per Share link:presentationLink link:calculationLink link:definitionLink 0612 - Disclosure - Derivative Financial Instruments link:presentationLink link:calculationLink link:definitionLink 0611 - Disclosure - Stock Based Compensation link:presentationLink link:calculationLink link:definitionLink 0610 - Disclosure - Tax link:presentationLink link:calculationLink link:definitionLink 0609 - Disclosure - Debt link:presentationLink link:calculationLink link:definitionLink 0608 - Disclosure - Business Segments link:presentationLink link:calculationLink link:definitionLink 0607 - Disclosure - Comprehensive Income link:presentationLink link:calculationLink link:definitionLink 0606 - Disclosure - Costs and Estimated Earnings on Uncompleted Contracts link:presentationLink link:calculationLink link:definitionLink 0605 - Disclosure - Accrued Liabilities link:presentationLink link:calculationLink link:definitionLink 0604 - Disclosure - Inventories net link:presentationLink link:calculationLink link:definitionLink 0601 - Disclosure - Basis of Presentation link:presentationLink link:calculationLink link:definitionLink 011 - Statement - Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 03 - Statement - Consolidated Statements of Cash Flows link:presentationLink link:calculationLink link:definitionLink 02 - Statement - Consolidated Statements of Income link:presentationLink link:calculationLink link:definitionLink 01 - Statement - Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 nov-20090630_cal.xml EX-101 CALCULATION LINKBASE DOCUMENT EX-101.LAB 9 nov-20090630_lab.xml EX-101 LABELS LINKBASE DOCUMENT Balance Sheets [Abstract] Balance Sheets. Statements of Income [Abstract] Statements of Income. Statements of Cash Flows [Abstract] Statements of Cash Flows. LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities and Stockholders' Equity [Abstract] ASSETS Assets [Abstract] Current assets: Assets, Current [Abstract] Stockholders' equity: Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] Current liabilities: Liabilities, Current [Abstract] Weighted average shares outstanding: Weighted Average Shares Outstanding Abstract Weighted average shares outstanding. Net income attributable to Company per share: Earnings Per Share [Abstract] Supplemental disclosures of cash flow information: Supplemental Cash Flow Information [Abstract] Cash flows from financing activities: Net Cash Provided by (Used in) Financing Activities [Abstract] Cash flows from investing activities: Net Cash Provided by (Used in) Investing Activities [Abstract] Cash flows from operating activities: Net Cash Provided by (Used in) Operating Activities [Abstract] Change in operating assets and liabilities, net of acquisitions: Increase (Decrease) in Operating Capital [Abstract] Adjustments to reconcile net income to net cash provided by operating activities: Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] Income taxes Income Taxes Paid, Net, Total Income Taxes Paid, Net Interest Interest Paid, Net, Total Interest Paid, Net Cash payments during the period for: Cash Payments During The Period For Abstract Cash payments during the period for. Cash and Cash Equivalents, at Carrying Value, Total Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period Cash and Cash Equivalents, at Carrying Value Increase in cash equivalents Cash and Cash Equivalents, Period Increase (Decrease), Total Cash and Cash Equivalents, Period Increase (Decrease) Effect of exchange rates on cash Effect of exchange rates on cash Effect of Exchange Rate on Cash and Cash Equivalents Net cash provided by (used in) financing activities Net Cash Provided by (Used in) Financing Activities, Total Net Cash Provided by (Used in) Financing Activities Excess tax benefit from exercise of stock options Excess Tax Benefit from Share-based Compensation, Operating Activities Proceeds from exercise of stock options Proceeds from Stock Options Exercised Payments against lines of credit and other debt Repayments of Long-term Debt, Total Repayments of Long-term Debt Borrowings against lines of credit and other debt Proceeds from Issuance of Long-term Debt, Total Proceeds from Issuance of Long-term Debt Net cash used in investing activities Net Cash Provided by (Used in) Investing Activities Business acquisitions, net of cash acquired Payments to Acquire Businesses, Net of Cash Acquired Purchases of property, plant and equipment Payments to Acquire Property, Plant, and Equipment Purchases of property, plant and equipment Net cash provided by operating activities Net Cash Provided by (Used in) Operating Activities Other assets/liabilities, net Increase (Decrease) in Other Operating Assets and Liabilities, Net Billings in excess of costs Billings In Excess Of Costs Billings in excess of costs. Accounts payable Increase (Decrease) in Accounts Payable, Total Increase (Decrease) in Accounts Payable Prepaid and other current assets Increase (Decrease) in Prepaid, Deferred Expense and Other Assets, Total Increase (Decrease) in Prepaid, Deferred Expense and Other Assets Costs in excess of billings Costs In Excess Of Billings Costs in excess of billings. Inventories Increase (Decrease) in Inventories, Total Increase (Decrease) in Inventories Receivables Increase (Decrease) in Accounts Receivable Other Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities, Other Equity income in unconsolidated affiliate Income (Loss) from Equity Method Investments, Total Income (Loss) from Equity Method Investments Excess tax benefit from exercise of stock options Depreciation and amortization Depreciation, Depletion and Amortization, Nonproduction, Total Depreciation, Depletion and Amortization, Nonproduction Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total Net income Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Diluted Weighted Average Number of Shares Outstanding, Diluted Basic Weighted Average Number of Shares Outstanding, Basic Diluted Earnings Per Share, Diluted Basic Earnings Per Share, Basic Net income attributable to Company Net Income (Loss) Attributable to Parent Net income attributable to noncontrolling interests Net Income (Loss) Attributable to Noncontrolling Interest Net income Provision for income taxes Income Tax Expense (Benefit) Income before income taxes Income Before Income Taxes Income before income taxes. Other income (expense), net Other Nonoperating Income (Expense) Interest income Investment Income, Interest Operating profit Operating Income (Loss), Total Operating Income (Loss) Selling, general and administrative Selling, General and Administrative Expense Gross profit Gross Profit, Total Gross Profit Revenue Sales Revenue, Net, Total Sales Revenue, Net Cost of revenue Cost of Goods and Services Sold Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Total stockholders' equity Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Noncontrolling interests Noncontrolling interests Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance Stockholders' Equity Attributable to Noncontrolling Interest Total Company stockholders' equity Stockholders' Equity Attributable to Parent, Total Stockholders' Equity Attributable to Parent, Beginning Balance Stockholders' Equity Attributable to Parent, Ending Balance Stockholders' Equity Attributable to Parent Retained earnings Retained Earnings (Accumulated Deficit), Beginning Balance Retained Earnings (Accumulated Deficit), Ending Balance Retained Earnings (Accumulated Deficit) Accumulated other comprehensive loss Accumulated Other Comprehensive Income (Loss), Net of Tax, Total Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance Accumulated Other Comprehensive Income (Loss), Net of Tax Additional paid-in capital Additional Paid in Capital, Common Stock, Beginning Balance Additional Paid in Capital, Common Stock, Ending Balance Additional Paid in Capital, Common Stock Common stock - par value $.01; 418,192,372 and 417,350,924 shares issued and outstanding at June 30, 2009 and December 31, 2008 Common Stock, Value, Issued, Total Common Stock, Value, Issued, Beginning Balance Common Stock, Value, Issued, Ending Balance Common Stock, Value, Issued Total liabilities Liabilities Other liabilities Other Liabilities, Noncurrent Deferred income taxes Deferred Tax Liabilities, Noncurrent Long-term debt Long-term Debt, Excluding Current Maturities, Total Long-term Debt, Excluding Current Maturities Total current liabilities Liabilities, Current, Total Liabilities, Current Accrued income taxes Accrued Income Taxes, Current Current portion of long-term debt and short-term borrowings Debt, Current, Total Debt, Current Billings in excess of costs Billings in Excess of Cost Accrued liabilities Accrued Liabilities, Current, Total Accrued Liabilities, Current Accounts payable Accounts Payable, Current, Total Accounts Payable, Current Balance Sheets (Parenthetical) [Abstract] Balance Sheets (Parenthetical). Common stock, shares outstanding Common Stock, Shares, Outstanding, Beginning Balance Common Stock, Shares, Outstanding, Ending Balance Common Stock, Shares, Outstanding Common stock, shares issued Common Stock, Shares, Issued, Total Common Stock, Shares, Issued Common stock, par value Common Stock, Par or Stated Value Per Share Basis of Presentation [Abstract] Basis of Presentation. Inventories, net [Abstract] Inventories, net. Accrued Liabilities [Abstract] Accrued Liabilities. Costs and Estimated Earnings on Uncompleted Contracts [Abstract] Costs and Estimated Earnings on Uncompleted Contracts. Comprehensive Income [Abstract] Comprehensive Income. Business Segments [Abstract] Business Segments. Debt [Abstract] Debt. Tax [Abstract] Tax. Stock-Based Compensation [Abstract] Stock-Based Compensation. Net Income Attributable to Company Per Share [Abstract] Net Income Attributable to Company Per Share. Derivative Financial Instruments [Abstract] Derivative Financial Instruments. Recently Issued Accounting Standards [Abstract] Recently Issued Accounting Standards. Basis of Presentation Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Inventories, net Inventory Disclosure [Text Block] Costs and Estimated Earnings on Uncompleted Contracts Costs And Estimated Earnings On Uncompleted Contracts Text Block Costs and Estimated Earnings on Uncompleted Contracts. Document and Company Information [Abstract] Document and Company Information. Prepaid and other current assets Prepaid And Other Current Assets Prepaid and other current assets. Cash and cash equivalents Receivables, net Receivables, Net, Current, Total Receivables, Net, Current Inventories, net Inventory, Net, Total Inventory, Net Costs in excess of billings Costs in Excess of Billings on Uncompleted Contracts or Programs Expected to be Collected within One Year Deferred income taxes Deferred Tax Assets, Net, Current, Total Deferred Tax Assets, Net, Current, Beginning Balance Deferred Tax Assets, Net, Current, Ending Balance Deferred Tax Assets, Net, Current Prepaid and other current assets Total current assets Assets, Current, Total Assets, Current Property, plant and equipment, net Property, Plant and Equipment, Net, Total Property, Plant and Equipment, Net, Beginning Balance Property, Plant and Equipment, Net, Ending Balance Property, Plant and Equipment, Net Deferred income taxes Deferred Tax Assets, Net, Noncurrent, Total Deferred Tax Assets, Net, Noncurrent Goodwill Goodwill, Beginning Balance Goodwill, Ending Balance Goodwill Intangibles, net Indefinite-Lived Intangible Assets (Excluding Goodwill), Total Indefinite-Lived Intangible Assets (Excluding Goodwill) Investment in unconsolidated affiliate Equity Method Investments Other assets Other Assets, Noncurrent Total assets Assets Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Statement [Table] Statement [Line Items] Commitments and Contingencies Accrued Liabilities [Abstract] Accounts Payable and Accrued Liabilities Disclosure [Text Block] Comprehensive Income Note [Text Block] Segment Reporting Disclosure [Text Block] Debt Disclosure [Text Block] Income Tax Disclosure [Text Block] Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Derivative Instruments and Hedging Activities Disclosure [Text Block] Earnings Per Share [Text Block] Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] Interest and financial costs Interest Expense, Total Interest Expense Interest and financial costs Equity income in unconsolidated affiliate Purchases of property, plant and equipment Business acquisitions, net of cash acquired Borrowings against lines of credit and other debt Payments against lines of credit and other debt Excess tax benefit from exercise of stock options Excess tax benefit from exercise of stock options Excess Tax Benefit from Share-based Compensation, Financing Activities Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) Equity Method Investment, Dividends or Distributions Proceeds from Divestiture of Businesses, Net of Cash Divested Payments for (Proceeds from) Other Investing Activities Accrued Liabilities Comprehensive Income Business Segments Debt Tax Stock-Based Compensation Derivative Financial Instruments Net Income Attributable to Company Per Share Recently Issued Accounting Standards Total liabilities and stockholders' equity Statements of Income [Abstract] Selling, general and administrative Intangible asset impairment Business divestitures, net of cash disposed Proceeds from Divestiture of Businesses, Net of Cash Divested, Total Other, net Business acquisitions, net of cash acquired Dividend from unconsolidated affiliate Intangible Asset Impairment Goodwill and Intangible Assets Disclosure [Text Block] Major Customer Schedule of Entity-Wide Information by Major Customers by Reporting Segments [Text Block] Other, net Grant Prideco Merger and Other Acquisitions [Abstract] Grant Prideco Merger and Other Acquisitions [Abstract] Grant Prideco Merger and Other Acquisitions. Grant Prideco Merger and Other Acquisitions Grant Prideco Merger and Other Acquisitions Text Block Grant Prideco Merger and Other Acquisitions. Transaction costs Other Cost and Expense, Operating Commitments and contingencies Other, net Accrued Liabilities Disclosure [Abstract] Dividend from unconsolidated affiliate Investment Income, Dividend Dividend from unconsolidated affiliate Dividend from Unconsolidated Affiliates Classified As Investing Activities This item represents disclosure of the amount of dividends or other distributions received from unconsolidated subsidiaries, certain corporate joint ventures, and certain noncontrolled corporation; these investments are accounted for under the equity method of accounting. This element represents distributions that constitute a return of investment, which are classified as investing activities. Asset Impairment [Abstract] Asset Impairment [Abstract] Asset Impairment Abstract. Asset Impairment Asset Impairment Text Block Asset Impairment. EX-101.PRE 10 nov-20090630_pre.xml EX-101 PRESENTATION LINKBASE DOCUMENT EX-101.DEF 11 nov-20090630_def.xml EX-101 DEFINITION LINKBASE DOCUMENT GRAPHIC 12 h67433h6743301.gif GRAPHIC begin 644 h67433h6743301.gif M1TE&.#EAX@$^`=4L`#\_/W]_?[^_OT!`0)65E?#P\.#@X*"@H-#0T'!P<&!@ M8)"0D%!04+"PL&]O;S`P,!`0$"`@(`\/#Q\?'R\O+^_O[Y^?GTI*2E]?7]_? MW\_/SX^/CZ^OKR4E)4]/3QL;&PD)"369F9HN+B\#` MP("`@````/_______P`````````````````````````````````````````` M`````````````````````````````````"'Y!`$``"P`+`````#B`3X!``;_ M0)9P2"P:C\BD$PNF\_HM'I=1:C>\+A\ M3J_;[_B\?L_O^_^`@8*#A(6&AXB)BHMU#T8F9J;E8]O**"A MHJ.DI::GJ*FJJZRMKJ^PL;*SM+6VM[BYNKN\H@MOGBILP\3%QL?(R)4VD7EX^CIZNOL:^=#[^WR\_3U]N;<^,[W M_/W^_]3BL1`(L*#!@PBW""28L*'#AQ`'YB/",*+%BQC;+9R8L:/'C]XV[@-) MLJ1)8R)/JES)K4C),G4*5 M.A+>5+1>U"8))=2(@5!"V,+!4F#4$<%WG_6E$C?)7[^B"F0#M9A(85"2Q\HI M.^0O7XMG\7[!RC/!`0AQ%$@64D!!'`@I$`LSP/,`[9T^J)$4(3IS9T%&.0KD**XG`$-BAS'F0"%]3<#5@M)($;*LJ\^) MD$)\PM"BNV"E@WK.@"&_]TBD15`(=S0,!<0_#%M\5\?#!W0!\$ MQM$?'4W-F$<#!D*%1PKUM<4"8BL>-M<0LK55P(1U*/`A'P.ZP4=42;[FGD$M MNI@%C'LT1:(>-<)Q(W\LH%A'!#V2]2-BDB&FA&P.5@D,@W>4U0<#+-")1W!= MLGA755HR]A9]7\*1P)!TG+=5FBJ,^1\+B3*I@I1U0,"HC7I2*0<$;QX9&!YE MSO&`F7A"FB@=]^FI@@*2JH!"`^LI"L=][_V96*!6<'E@`:@BNI5L8;[AJ(V\ MRA&!KT("&^Q_L,HQ8)#@=8H>DJ#BJ">GIF[5JZHHP*EG4_;Y61=5M^(JZ%;9 M'IC_[JS(M@4LH\.*R6B[W"A[J9@&S''H'*4B`2<1 M^RI8Z[C[F7O5H.'V"NR[.,*;[QQ`H6OOCRQ`J\)]9";Q+[5U#HQ>KPB3Q>VU M&ZO[<#`2OTBQ@A8KA3%_\*X+!P,\BO(INI="H$!_]$80LYC2;@9P'0.DL`"C M$;0:%W2QF8'499D1V%VM&A[M?-_/7--7VY#>[4LK4,T:^.T M_N)]\K(%`BZZUNC).<#<""&>^!.+_]VXNVIGC*,0ASC"*N1"$KXKN MW9SC+MZ]'CL';<<_0ZQ_.^=!Z\L MW\;R-(!0QJN+?!R]!6QXZF(_G^O-ZKX^V.,V]@Q/VW`(M;V-1@B8(YK&OJ>! MKV<52B#Z*I8UP>%M`=][PP#A!S%`R2\)T1,=]18ENY(1`8)U&-#_F%8$5':KG)#(!\#B,?!X#@P>"UIC![`!Q'D7Q"#]SC8]G54/D*!'C5!8 MV[C#H0C8(`-:CH5,.@]<:H+C,UY8B- M,D*Q[!`6%!8094]<%KA6]D+U6?^1?=_JG:NTJ`\N2B&#]@,&_N"@`'BM$0[' M0LP9WZ*_(K0*#N\+7PIQ1P0A1I&.4X0A6;Q%)KP5!(=^;(X770=&K[1*"*CJ MF0^-2`>A-)((1?1D`#WWEB?]1X^HK".[N`4GR>G-;P[Z9/Q"R;I12D]!LDE2 M+C/ZMFGN(2@0= M1D&:M1-ZQA2=YL!DSWHJ+P]+O-<^CW!(AKJQB7!@S=0&5Y MPV$^=`G_@`Q713?U/=XM[WMA0<`C?SF$E3;J>O"(C1UN]]%/.%&DK+GGS\1C M4%JIJFUE\2D<*-?0+;YT"=NA2:FR.I.F<%4F;032SQ`0&YSTRP"Q5,"%<"/0 M:4*`-WZ!$%>[Q=9KXB&22"@K3BJCUYETCR(*$!G0M+.30WUU`$MD`7%FA0+E M[+4S"4!1!!)@P[!54)U7!<-CH(``U#7A,MK,`C95,$%WH""T5RC,%/[B67$Y M-+-6P68$6@O;9+"SMAU!Z!LB,``&'`"UN#W&;8-+W.)"8;A<0`'2*'*Z2"G"`JAJ@!0X%[KML4QLJBL$H,"U"\C5_T(!4,-/Y1%1 M!=EY``3(!NOWPT_(5X85,*".86X!TKE/OC!\K"%LF`4= M=DT!8$75+#CX"@L8`"3X^92KZ3B-28%4X()IA+Z:[\A(3K*2E\SD)COYR5". MLI2G3.4J6_G*-$DL$MPP`!$1X6\L0``$>'6?'2/JRT,.LIF3ZU(S*.\`OR#O M@O8X,C,'^6\]1H)REXQTWNX-9,#;I+9`NE=0 M@0UX```>V$`%YGWN#`A``/P..+Q5``!Q"P`#I';`N[L=[Q4`@.#@%@"[UZV! M<6N`U!47N,8UWFL]/Z`ZX!S(4]BSF$1;^U!!/K!BC;-@]+89#1?R26^ITES> M@5>ZX_7P?C;.\Y[[G-QTD/<*WA"`=%>``G(H^,^['8`W+-W<#U>ZNN4@`0YT MF^@.A_C4Y8#_`8._`>!/#[NW.WX$`]S$:))Q[.F0M,3G1A?&]YFNG,U;:,^D M`K7.?E&AK\!ML?O][^)^`P8$8($W3&#<`LBXN!^N`@$@`.D]K:_%8]N?^][ M!4U7`;@UD'AQ5^#?8`?WYQ?>;)OH``'+"`!%4C@\@.7.M.)[H#6J\#J M_>Z\Y'6_^]`#_NI[_.<:`O:&`;VVGY9VL_%=KOG?.]_O6,]Z\[$N`-M/X.O? MUL`;9&_UB\-A`E87`/8SC_DW..`-$M!`YN'P>-NKX/!;1[^\Q:\"#-A>Z.=' MO]:][8$W++SP*K`!0Z<"17=Z6]=M'$!T]+A(0`/VG M`KZW`6\@=-]V?1,0`(SG;^/G=)DW`1F(`180@:26@`07`/8';CZX;A$(A*[' M>(<'@!X0`*TG>RO0>B[8;17P!AXP@`6X?[/7?$JX`?2W?0Z8`:W7@QA@@T@W M>`]W>#P8``XP`;[W=QRH#`,`@N0F@GKV3AH@X^8?YJH=08X=F2X?6*8 M=5J8>79H>U(H@"O@@/EW>1HPBO\VBMI'%P?_%H2: M%WVI"'RRQXI8MX[?"`<2,'_5Z(#KN'[F6($2X``H.(S(4(Q,YWX`4''):%5] M9`_-^(P*"70$V(L4<'E$1XTV^&WTUW7>5@&9Z(K;J'F9>'H9F0$8$($J0'J4 M2`$6H(L;V8K>^&V,=WE*6'3O2(;?N&X6<'F/6(M?=X]?!WH"`(P!D($J,(YZ M&'S2`)`;,`$UN0(:T(0%>9!.20$N9!2^6U8-XIA*(9GN`*-"&X1*(`8.9!O M8'5?&(`+N`)OR)'_W>B1;[!O&B!T6]EMCRB)*;F)W4:7WP:`&%`!&9"![Q:3 MK]B-%%F/7\>+W68!`$B+6HEY^Y8!T?=[_G@,`,D!P9B834F"!@F5@#F5FJF* M('B6,$F`IR@'>9B&<%!PC)>(K@>,=/"-#`=Q`$B$33!6BA]<0""?NF$F0F7@FF#++A]2"<`C$```(`!NAAN&E"#$N!X]!8`UR> MD6>=2F>>_+@"M>=Z'.`!,CB?X,9Z!(>?&G!Q`ZF5D<>?KF>'`+"?3AB!_ZH' M;P`@;_HYH`N:?1A'CAM:`2$)AAF`D1$X`5WWH8V7AT.Y=Y`)@OA9:M@Y@MJI MC!K1G=Y9H^/F`&C(`4@G`3;:HSY:B(]I#`#IA6CH;@P'H\MXF29(HS_:HQ7H MGTT:I5*Z=$%:#$.:=79(B]F9I$^YI,TWI3Z:BS0YF6!:IF;*D"HJI'ZHB1+G M`""XI1&CI(/(I&=:IP(WBG*PIG:ZIP)7I<1PI=!Y?6`'IWG7!L'1!'\A'H6A M[1(F[1*B[06&P?X)K%X\*#LI@(DX``F<`%8F[478`(. M$`(]N+1@&[9B.[9(6Z7_7=$48Q&R_>$:`Q*L(8#34L'%("> ME4@`%T`'%Z"YO>FX81>DD'`3!L`?*Y MZK8[21`DA\(J+(!02M.[;@.N*'NLC0NZ4GIT\DAYY)8!'."#E3L''R`"G.NY MQBMVGT=_4V-=ZZ4"\U5RN"L=I[NZ'Y)FPK!F`-.R[':M>>NI>66[UHB[>V&O M[,$[H#"OIQ6O]DJ\JEJ]98J\&BAPS.N\?="Y%^"^Y<:3"(S`+UNIUUM\^>L7 M_V+58N(Z!*[A$^$ZOJU;OI-VOM]VO<`$`OTR@/#5+#L7+ MOS;JOZZGO!L7P*AY!P1LP`R9!SCLJ$&ZK4,B7Q@\0Q4\OHE[$XI;`$$VM]/) MLBP9NW@[NYBU(+*'`?`)FIB'PFQ0KB[\PD!)`0M,I5@KO7-PPQSG``1PQFB< MQM1KKJ(;!S[!((;++B5[9B=;?"G[!GZ;K_GF`2^ZOI;)!"/,DDWG@TR'Q>[0 MPEL\;_Z6P`DLPQ;G?@_IF&:\N6.\Q@&7N6JLQ@7L'"XNIU-$,@46<(+5\O(H,6X/&\`T+G' MC,;G=VZ]#`>1['R92P)T,`*6S&^8',[M'*O1R@9#F@$'^J";ZLV(84,(^N M_,<>K036S'!4?&_I!]`H(=`#/6[?#,]G?-#C!H""!Z03?<8?\`8B$,_0.-.9 M7-'RO,S$"(("`'Z:YZ8=O<_L>P0A[7"#YX,`('&&K`;ZI^1HN8_+;2+)W7A1D'0MF/.DT`7?T&';##@1?:R&S:>WK8:7"EB[?6C5U" M2K=N%3C;3YT&E"UVZ#H'C@QU>]#;!!W6G`VY0:F0@WW&)P`"I5G&85W8EHO42O=O%L!NM"C9PY#;81<`'^``XCW>Y"W>$QEPFFW0YYW9=YW) M>4W*A^!&W4<]X*U9B?M8R-6,&A%08R"T-]XQ,D)!&RJ`)HR[OX7(X`X. MX>EVX7B-Y+DLX6E\T!Z:O,&]V40NV"&@M5@NQB-YXO"UDQNX4[N MT!4^U<*M>3"MR?I=IV!.!H#JHD7-I1^=!"%M@QM` M`;K'W4AP(A(,O%?#`&YP1IP2I=Z_]V?>B)#MSP-N@M M7>7G%NC>=I:O)]'YS-^D7F1O$$EY5F<&*ZYTFZID M*[8`,.LL77]@.P&^3@#G1\5+2^Z'#I2-=[3J3N5A*^SD"`?5FK23CLQ?V^WZ MON_K=NEC`*@$B*.;WJF=WK[>AL`9-^U%\!?$NAC7_F.KN[./D`(!LK&K-@'@ M#L\JX.BR)@'E?GX<'VL>']8F$`<8ZVHC3^6U)N\S3G"RM@?/:?$RCVK^+@;3 MVJ9JK<^<#M(XK/`])1G2@]#U;_]][NSU ME7ZFT8J[V]53O546;A=>\9ISY77YA[&FF:J#;&_42V#-RND`R@OW818AN?$` M>U,`$+(8![!<(@>O?J^0?Q[N3E_XA[[[T^WDAV_UZ#VIJ,?XY8:/8!]XD&_V MV]9?X`I@0I!@+4=@UV9HV89@+`,#KXY;[&N_[+P[U\L^2$NX`58_2\$;\@0D$*^&06"2J!,9B`#!1J2A* M*5(Z9%:Q_UGMEJM\HEAA\=B@>D04"]9AH!J$%:I"0W4H)UCG<>3!2J@,XN;J MQL(&`HB(%DD52@I4P"&'"0H```,$T+$$Q55RN?I`(^ M'&1G:66IND8["'9Y>W=O<0$N?(D=@+N$"4B>F)L_5'"'`!"Q!*"C5XZ5F#:8 MD[:TC:ZPR+()7,I7/,T%%5HD0X``3Q3,,_7GR:,P[^K%4_\Q;VK4>POU M\:OJCYJ0"9^^;BIX\1*DA*P86F%&C91%MV\MO0)ITF856+7PHL0&X&7>6@3#3VSC!NZ>3,Z5F?*LH`JB(X=%7CT M(`##QP\@TH2X$@$U6ZQ3LY-NAUZ5MI&%%19XMGT[7&'HWUQ1@1D&S%@T"'_PL`=`"/K(;[_^8L-BK-S(HHBW%3R8!@#S)IN(N`O)D@NY7\*S M"Z@J)%/"L2JLZ9"("CAP0#OK5-CDN\;_NE/BQ MU$`["BZK$,,U(T8D3O)!.`B3>;<7$[P6(T8L8?:^0I@_)T M+-3'17_41R$+V:SH'P5M`Q,W2W4C66VV97F&`@HQJIU-H&%2HS1R*$$Y@X4)=0M0A6 M(;;X"')E0Z0HHT`.P#=K-MAS5@\V2+->7>^%SEQ]:^JWD>N$I3,SC:NH@+:= M=WZY6&0EQI!@"@+`@((-$C:HVDB6QO;#@9;8-NCBO*T8W&C$795C:1"QYK"C M5Y2.W93M]'F%>5V>J65^;SZ7&=]`E+D+:T*XP.Z[\2X,9T:!GGHX@N&=0-AI MF;ZV%<,S>1J[4"3RN]N6L[YXZU'VSF;R%63RFL_K4$Y3BI7=QE7MF-M.Y(D) MAI6;"VL>32DB"C;3(#98YSK8]4AVXV,%P51P&0\09'V'V]UN/G04 M`'#``XU#"S,B8*VFL(`!9E"!&A;@0P80-X0GKB!LS?'_DQ*C"*,ITDA[0LC)3CR8KVAL MT23?`]\1`@9&VL7H(0]3G]+0^+[$06P"$H"6#2GR!P2U(@)1\E]5[/&.?(BO M37+Z(Q<"*80&B,S`WU"]RII4(4V@Y;27,6D+/`QHWS#C"YD M4,,^5(&'3!"!VE1`,@`($&!#"(]&'`.1\!@0CDAXUQ)N@TQ=AAZG(X#+RL4;X5;`DU\AE1I:+DX4F;2T+"13NZY/:/*.#>**! M[$P@.S4,GEL@8$!N]7$RN06D>=.E4P^4<;#`))$%O91(XDKR54^(41:W1__5 MC3CSF5J-;CVZ4@&(:#9IUK4H[X2@7=J4]8VF,,`0)4;>7%J.K[?4KJU\XELA MH$NX[Q6FAXE)7Q'1S+$B7AUS*]E%]?C7#V/(W_["4(`%W`<2^9MC`:?9%>V8 M3S:1W_WM&*Z>NPFP3,&"O8RX-.Q&X(.XPE:F86-/MM,2+ MWM[![ADR4#@W&Y4=0P'2*M='F`$K*"C-'?IG1SS_]D&/LP@+;$576U&+U!'D-Z) M)S_7WDM/>^#VRF"WC<#!;!?WQ)I>U,>0,D!*U-D,#5@(@>2IM%8V>EU[2DZI`SI>E!MF(8)ZO_MBS*>\=RXG< M8&G"_(C(EFC(F+Q3)TL/_\H%9YFT#4[M;V7AD2W29='QA/=%?;&<*#A#!,KP M`!3$X0#J>*N=WR%7NO;PKA!X%#4@&%H!;.`KU9WW=3$J&WN[_+]DWS<2G;@N M;^J\[:2WM.DQ/5]CN\DR0D?XLX?^+[Y3/`)+C&_UCX])/AM3`("?-;>V??O_91RSYBV",#D7O MK@\`^>;HQ@`/'"K][&3]#$RL9N;0BFRKY&]7*__7@7["`[U/I#[ M8O]/";[O1@B094[0BQ`PT1BP51SP\M1(":`&T5ZNB!+H\[B``VI.`_$OYS@P M[MPN=.3.:KC`T'0B!7_+`/=N!?^K!0.`HEY0WA!,&IC!NR:P$`P`!:I.#%2# M#%"`?ZHD@%BA`K6&"S+``72*!SVP`(,09JSO[8;PY[8-3I20#5^O_)@PNEH0 MWBQ/"A2Z;@QX8S8D\/S$`*7:<>,&0-UZ M[]Q4BA++Z[8TH!.:([0F#!I+3QJKD1K=T!KO4`H4`76N\;V\<2A8K!7YK"7@ M1OD>L/F&@.94P`.^B1VK)`)RZ!W!P`WDD=V@*PL-D6=`@;MTY!-H8Q.?0"51 M\EA4TB1E$@!.Z3%B-:#1-( MTKY"C0D8:"!8TEU";=2.!=3:__(ND4]M[/(N0RTO'X,O`=,OWPLP^7)'D(\P M^[(ET>,P$1/M#+,Q[^E&_((6/F`:VI(J%[`[]&2BXNT/9=%I*,L!C,(66<$` MQC(,&B`>Y8$>W``8ZZ'-B+$>C?%8:/(P)""T5J\,VW##_)'_/''[_B\A6<\F M)LP.ZMO(S8[`1%@S^I,NT%*`C>T@%%I'I5,`1*R$2 MU:`8;>O[F@%:-A$`+*#9N%'Z!)(WUW`:`7(@54_?NH`\#LT^&PX5]64R9^$# MF!,<,U,VUBXZ/1/8T./\5`.`#,`^N%!\LA`,_6>59-.VJ$\ZD`_@"O+NWC`5 M.Y0^Y_^3-P_N.(_EF$A4(?F3-S/!;O#GSI3=[B2(NU"(\7``-HLPNSQ M"B[T/'<-]"R1Y_[Q-WU32(OT&"N1BA!%/\=/.$-01%@4WS#!%4$&%LV1^;S. M^:2TV&RI1R]RD/HQ/CUT-YT([N0S.#=T"FI%0Y-T>[PQ>IXL?+94NJ@A'ZTG M(J/P0.GMW>X-WV"N1W,$3)$L;8;42/W/4)\47TX41*X-_)AT#M\4OC`G2N>4 M^%04.O-41J?P[%HN+.-O1^OO,#B4WX*44%&43.$TOGJN5.604(R0/>]QDL1O M#DWU8O)P"TUH4@2`,1W#0#4501WI_3S5R$`U]$2U$Y.,52__*!J)]%!K-5&1 M-%8S37,"I3A1,$7+=`5LAZ6@:`KRT$)4JRQTC_"CSM;U!"LTG,RP.1@ M$.70\6DV;U@IL%COSS9'%4AQL%D[\$-%U%^SE2`7U69D!;E:M4G3-.YVT$1! M1ZM28/?"*[54H$F4Q?#R83S#0/$FMJX:[_%((E,Q;PH;018X@$(($?J*55G3 MM#?S#F!3->!6=5_;D_O&*"8OPUK'-&'A<&%/L6$1T/`>X``L[@QLC.D^$NI@ MR?&F#E?I]&-C44]!I M`&>3T$D5=CHFM0A(SFL60`R#A#OG_^HIW&#W#*`LT^TLYY$)&;!=I0%D#PQ8 M5Z!=]600K]9QLK;3Z"]:H919$15LO_9,%?51P<5LDP!MX1-;OP-SVY8((,Z. M)`X24O,)WN`=Z"`%])87K4(D;RT1KLU*W_49Y-KE9!E^Q55 M)?5Q@;-RR18S/%=S*8USH6&WJL]GA\_-ZJ'.\B"'Z&`!7NTT%N(`"D#6\BB' M]FC/CB``#*8<9Q=+XU4:/*$)^I38%G?A]-4]PU;_)C<@XS=X=5-GD\ML?0-Y MY;=XU<9L>Y92E89(L)<.]J/-WDRN=O$=Z,S.\&QC7Y<*=2U]?#5D@94F5;)^ M$M=OVC=?D?]-96&V4+N68?M%T8"T0@`$@0D!H5K%@R=XD"9SW?AH`/L2+ M/F"L2F8,07!L#22./L0+?(>`Y,X&=Y[V5V=16Q^BITX6C#H8667.<9U-A-GN M2*O864$8>2D,@$^'32&7"+F`>4_')'-DAD^H*HG`&.PK1BT8B:-V%*BKB<-@ M`8+X2517=<$`2J2D2JXD2_)J8`55BLOEBZ\86@M95BF?9BFL9BV6Y3;EO6TV%B8`E?2!5"6&X);RX8[PU7?7_\$4M($+( M5SKAM78+34),]OS8@./E@6^JH`S:>PBE0BN@,G>E0J^OHNNG^7P*HF6BC]K47HYZ:ZH48\ MVE0X(!-GJ!N@8]=BJCDUJ7:&0&4$]YG[&2CN):"M^4G6*A^:A&]=%R'<:2=, M\B6'Y2:5TJA!!*F)TB=?A:F!TJGM12EW1JI9AJII0RBQ6AV;\B2542:9,C.< MTJM;(B:U`SJDDF=@&HQ0*`#,I)FA=G!G_Q$)2`6@-1(J)A1!MA?XL%>;^X"; M*]2;/;AQ05AXQWE^012Q_U5@!7O^N%'9F@$#8)6C#_:OXMDG7I:>Z]D5=0(` M:)J3Y?J-FXA>VXD[[R,?\E8^=@^5_P-[!Z0/NME_83F*"WN*#SMR2?B0UN9AED3)XBR$R@#DO$)ULN0 MX]16D_N2O4(`*D`TV3BT!1P"#?EL3PR.S!?]XL[LC`V`*ZRIXP>%1+7`#!VO%)VP67[FQ7[PM]3;,DY M#F]P;!594!86`$HZ,R:@ER0`F'&9DN6TGNV9"@/``2C8NSW$FGW)WOW'[K7,]G?==Y6\*M@25W@H6!?(5_MF.U]KMW=#YB`$@H$EB;/<> M`4>"+7*A+.-;.-B' M+_#08#P9H(<>X0#L:GOOB+O[.H>V&1`BV$X;$+3'_>6MQ=SG7-=O^7?9?=-I M7)=/N-,]U.>W?>LI:_C480!`ZL[BL2I6]YI;_]>@A=A+7-[JW4+.MU;K(?Z\ MTWVQNQ[7>5[G956&V;;>GS5TDR+DF&(J%*I M]]//K3R_,6GX_`X^Q@GN2=[DWP'E\>"U/;9PC\(HC,K8'&CD8&P_>[JZR:DPH.0%&=!JA@`9#%0%/!G"2[LDQ:`'!1 MHC$#,`$`QXX>`5"8F-&B,&M0+'HC68Z92FV7P*U,<^Y*NB+KV/GQI],3)2(3 M+%PT@D\2/Z+Z=B*-LU"@"H(##+)`J'!50T\'!CP@J74KUZY>OX(-*W8LV;+_ M8@6@3:L6;4AL<)+"===SB(H`$S!4XD2JZ+ZC7(L6`\D-DB^OI6S1,N;.;<%Q[GSY,S?1GDF:QDR20NK+JUNOW?`:=EK9 M%C&H)OQW-T]YTS!@V"!TK]]/"7G#,R#J`8H"@U$<9I!JP>((K1BP8*"B003% MD$LB0ZVMHD6,QTZ",Y\&/3=O[+&EM!@S34MQ]:6]Y.:;R$WD_N<*44$9`E0P M7#[']86@?Z>D(@4@N+"P``2T_!$!0)`8@%`$;P$3!43B64->>MJ\1XUZ;)#D M7HK:W"=-B\?DA\U\7<1(S7YTZ;8@;P"N8($$9W!@_Z!1"LK!EX[P0)"3?P\- M`R)%3HY4'HDKFD2EB_+%!Y-++\I$THW;<'AD7#S>%8"90B9XH)C)8:\ M&9Z4(=J)XJ72E/B%BBBQ&.B56@)*JJ`6??E-H9/ZPZ-M$Q3H*'%$&L>JK0E^ MN"DS<6)S(CJ9_@IJE<*.RN>>,FXI*HR#-M'?K?#,E0$'%62`D5YJ1OKLK942 MP:N)<^I:9[AW$IMG>Z&:6BRRI1K++C:I.JLM.W-=L6_6@1L1:<$3UFNN'JBV_^N-5R*4>,7?5HAL1;PKKIO*0`*L($'$]2%YAQ& M%EF/P,QC3_;%#34\+JG%LXS.!@G7GE4OFFP`.NL/FD,V?V9$H:0ATM\<4F? M^ZR`.2EH+GCL,P+\-"6_8XC-3ZGSF?WVUSP<66\24NC$`0Z`@JQ4#S%0D0-` M"L"8J$"@`%*1(#HNZ+2WF]KCWG5SE[4D=S-H4.U?"8)V0/BULUA:+ MP+\IZ&\,A^-B##]A!P,(,`ZI0$!#`@,5J2RD*J;@4>>,"#>X::Q!ZQC,`AOX MP`AV"#SKJ^+NHFBN7A'/4XG4`NG`T,C\$6YYAEM=$01T_XD%;(\4/EQ@`IQ8 M@`CLHHT!.>)!$A+'YZ%M(Q_YB`3LB$3S[6LZ*&C.5'RXBCL($9;&@>+>I&C( MK2%2=(H4)B.1YTAC0M)=QU/>NRJ)EBA@THF2,$`*)K2+[#T``H\19'Y3 MCI%0#A]7R1&0680")EUI1U`*#I6R=*426$U,9:J2FIITIO+!Z2I)(@&>]M0B M/P5J1TB#C:$2%20D4650YQF,*/_XP:-1Z(0!$?A-/C+0:7_DURO/UXH4@/24 M,21I%,QD5K/J,PIX.2M;VVJFM*I@K6Z=JUU((E>ZMM6E^L'K7/7Z+KZZ=:F` M#:Q%)C!8MFH&'(8]K%D3RZ>YQDL2VGL`]ZHWRTRRH'I%$N`2Y=!$5FE4E]I* M@0VUXX>*WC*(&)T5+X/IRUX>\EO$[.=L_]DU@JI0DJK3+0LI24:Y:)!2756< M`9>"53]"4[CUG!HA+?7+^,$6F,6K[?!NR]NOX;9B*=3N&($VS^"^([2NJUX: MK^=9S#X1;]%-PP>#0MU]OE=WG+IB_;*K,_NZT*!#^*(4_`=>N(CWOTGAX'-9 MEL\#*PS_NJ$#W#&M>SKFZ5<(_"TKX@0\X.%:6"<$7J^!FTL$N(;PP_2]6H*Q M>]W!E0AB_8FQQV;XK M8\K9[LCPH+%L7UMCZ0+,G]6=;XE1#.3Y"=F+V[T?0E5E9"4G.8-@3F\A.=P[ M#[,>S3C08'ZEH9=9ZM\WD-;##G,YJ!UN]3V8OK+=MPE@K>+K,#@>M&QSD6Q^T MNT7&]K7%7&TFM]K)EI:US.*[W&\G.\Y9+MN^]TMG4D_;Q>S^M;6Q#>]ARSO> MRJXWE3N-;'';FM%OOK*T*=[H@*][X/1,=:\/SO!+%YN*(;58QY'6=2W0=+\\H:6`A?\N%`#(#)?=PI=-X)!6ZE=JP#2IA_]" MXHFJTYIY6'*U*):E1J=!ZHG_\"4S_B]3T`Y`&_&+R` M`R]@!^TE!0DP"^UK;_O;XS[WNM\][1,`UE+,?JH*.7WE7-_K`V#RLLI?/O.; MSWP%.#_ZTG_^]*LO?>A;/_O+Q[[VN\_][F?_^^"OOOC'?WWS6W\!M7"'+D2+ M.^.K>I9B,N)NZ/\7^\<%_W#1?U+XCQ3_[P0`^@,*X-\-I4!WC!+@8=C`R=^1 M"*`_/&`_1"`\3.`[5*`[7"`[9""#B`D!GD(=W$$>'!G\G5H#ZL@&F@(*EH(* MD@(+HL*:N*#_),1@),Q@D?A?`KX8"4Z:"'"!?"CR&(%KA'DAD^8Y$$!&D98P.HHRW28CO^`3C"HQ`E0#/F M`2NJ(E'48/$M(+OQX-#4@1PD0"'88ARPD3V.8P,<9!PD9/:T"28Y)`OX'@H< M@",R@$)6I/70GP=NI!P\`$/)8P+8T`79GSR*8/98!PN<9$I>9`$\0DM^DDDN M`$IZ8#9*0@.@P"K8I"]@)!^P$4AN3!S<(G?H00)<83OPI"?L8U)"R%/@`PY& M8%=VB--HB5?JA$*)&0`761` MC)(HJ%$#E&0YSB1V3*9D%L!E6J57,N!`&EP,\4%:#D(M'((AK%]@#@UYF4DM),C-"0VH68M6.)%>N!M^I`?U)!D7B0U1LA;H$`$`.=5."4N`@,6 M&B=RQJ9PLB9,^MZ&6.0100(U>F1DAJ4:14!VCJ)&_MTX:M(`9.!^F\;<>^Y9?$K/+"V"8SY"A]YC7$H6>FE/,J+1(I07TVP6E8X4+3$D?G9"FF[I@:KA'MAI`0C09UUD M>;4A-?HI0_9GA/;@97'/H$)D91TJ:!*D:&[E_,%@I5+JI3J@I6;JD4#JTGGB M1L7?V$&@IIX@J2Y(0"+JJ9JJY:!JW"AIGHFJ!*XJ":[2*Z[@^:[F::[.B:[IB*[L^:SLEZZ?J4JR^'[U:8+#> M'[[FG[[N'[^BSZY"#?S9:_$-K`;ZZ_\=;``FK$[DJIL`K-`(K+;D*8`5+`<> M*ZTN[*A>+*YF[)(][,E$[`8=(#S.028N9R(P0`/LY@!6;`IV+`6^[+UNK+!N MJL/&*\=-Z5],ICL=`'(Z!Q".DF0J!TR"%23`HD-8#XYRY&#^8'X:(60*(RE< M(2]VXX0>80%D9(E&(H/^`;PZ#;QN;9[27]@B))@J;1PL*)=*;2.4(QQ@[3N2 MY7C.YAPDY&JVDSMA+19.8CNU#CDVPB^PT7U^Y?\CN&7;X)_O,4!.^D$U*H`? MI*<]LM&;9H_O44?3CJ+OK:8-WNS,%Y5+,"1)G`KIJ`"=^U0>&`>#.\'`C!#<,@H4=.:>BTO$/`[;J$L MM&@=!".,(D`M"-$AY*?___)$0A8"`-&E[+8H[\)M5?YC))9ODBIKSHX).D+" M1J["^))N.[#E,F+D6Q@&TFH2\H8H]%5C`B]GU*X@0X%FCNXO[;ZN.#&$2>+# M%E-Q*)!H'-!D&;*B8]Z0-!%O)&ZP'!!N#;\Q.L:N)+*G"PM$)AH`=L@>F,8! MA%PO*1R`4"8`(%3/]N;N'.2H4TIA5-`D619BIYJ=O#J$YQJ"[Q5"'W3C`N!" MT`X"`9YB`J-`))(P,%B/$#W&0HVO/'XN#>&E_LEC&S[*(QRI5=J?+2[458HD M,/KN0@+2B7*M2P@%'R#*O@BH;(^%!,LWU,)SB3DNR`Y,:\#C54-Y2Q^DN+^U2+B^H MK!ZV,#7MIQU?H2)8(H^N\Q%/3)WAU>X3:=Y4+/\R,XIB).XN\18#[_\4@E0C*^I'Z"-$8>,DQ*!UC5 M0D9GEMY^)1*.<\>5<\OZ1X.V<'A]%_U:+$XPK%`K;#H?JLN^`U`?\^=/SE-%J+=?_%+`;F]53#-<:2-0]+-1VU]U(V(9RN'JIJIG72%ZDNQ< M?[<>BO0<"J%2IVI4*PD"+``D7#?,?J`?+"%#DBQ7;[<>&S1,QXD.'XH(=$N8QFSC_0])ECF(C5X^B,WHE-\,V[N)ABB>X1/\D\RI" M%ZQ'HA@/J,S4D>"9+*G",ML*?CD*!TTVLIM2=,M6(UD3)(W_<$Y M&4N'[?IYH:L1?LZN52Y,6E2P,F?A_``2N'[QDP1DJU"U?/4R!Z1`)YZ=Y05%OR@N)9+=?" M.RXQ_U)Z]UBRI6'^I5+;T40VYD]6[;*C0GYFZQ1+:*AGY5DS!`AT0+N[^[O# M>[M_P'$0L)\6@MC]W@"P(A]T-W/L.X12RG>!YN\U(\#K'TPWPK2;.W#3<%2, M;Z4W)^%*?%53\RI0+UH6O'Q#8G6V,3T3NB349N,FIW0:.2K`@:=+#TF7?"[R M06JB^B'2-N=.Z19VJPV>(?)M3R:]`E@Q5`TU*L_#F,!W`C&&J/;0>`E+(WK" M0'FO:T#]NJ)HN-5C1 M9(@R_1BW--'GP0$PAV&R_\R?KP^G]BF4*?]#OH7V;#K@T\'J M#;A$Q^F:.Q&=?OR;TVFA&@+%4W-NEV&L\M]C`"J;TOU(K5[B-_X>O(5E-9!W M,_R:4P_I<['>FS51V+5PA[7KL_9;&_=PRSYRJ[YR0R-\_O: M__X`9OFSH';2[7[8'[?O![]GS_[K/_^`%?^VY/1B6W^T&K;U7_:X;C^X=G^W M?O^VAK^W7O\XC?^UGO^T?G!H!O9>M'[T"W_S`S_\.W_M,W_43+^M'/$)C\0 ML%@I8=%X1":11&73>60^IU$I>5S M%BI.7^*3YCE?[D\#1!,\(QPS["K_TUO$6VM#!R83%EH MT#6R2T)(&!4RJ%1`*%`092FHS&MJT&8YJ.2T9*%.0!!'HK8V1V=9:/ZN-'B' MKR["3M%V+@6G!0SV)2&'H$&"!`76>?NV[&"1@D;L+:A3R>#"AA.+)"P"*L&S M!I4*B'QFQ$]!;.7*M,/WA0^X%,_.<7HH#Y(M:'-X'?E)9A:`%46-'D5:5(`R M9B@8Z.LI#4D!7$:6H<`H9`!4*$[`F3IP@!J+!$Y/2E2IA&J6L&&'H%!PTF!7 MM56+H'5;_P!M+*\I4"PK:8"!0R$+]O*=BG>4WVL*6`#F8N8KQ6:.D]?T^-N(0>QEYAX>`L>XO+F/LZN$NP!U MJ'XH#H`/KP1M=R8)]"E0SQ7Q'E,(FOO%:0#_[.FLB640@(B%RYAS;@\G!G#( MKP+(`64@G8J3+":DP@\/F`K+TC?"J3"*>9V=$<;Q__@,P,M`X;$ MB!LA&'CRO+<^JF89!ACB,DPFDSCP@.=0NV=&+YE+X8%MX$)`0!;*(4,X#1.Q MK8B@()F%#4$');30210PJP$4%EKQ-2(*<,S"S\`;#$K/25P6!ZG7'*Y'[=[[L29 MR:1SSS\'/731,U&@F]%/OR0XU%=/07763W?]==%CEQUTVFOW_';<,]%]]]1] M_[R;Q=_V>O,ZAA^C<3HJ%[SYR2WG&WJ@,8];\\.S13X1%O]V/O+NH_^>;.D; MH3YLZR7)7@J:_R?9WO'QW0^?^^?CAY\4N--GO/CK?:ZG4/\+A<"2BO`P+1#P M5;!^E\&?;&,`V"E3J]RRXG:@AR_N,H` M*-#'C!QBAYIX`Q>-@TL5Z,&..(3B11Q3PGOB0$.RI,`@/"15#`?(D#C(BET# MN2'D@"(\+/A("`\X%1/]9@0=WL0`@IF7@@*8'2,VD1/4"%DWMF<&'88D%!A! M(@+`F`4_R*I"&"F)`IXA1"^M<0@)#9`7',(@,UA(K3!F9;Q`3E549U5X\V:RJ,*8,"/++>PKB M,D"HPV`-(\("_M)+))0R([DJ"SJ2QH=6OG.9#Z"./LJBS[MXE!D*354U,?I1 MAY2QGMWTYO[H=KQPBM-_Y'P,8UZ4SCJ,Z2WMG.B=)A/`,F#RI;H:E9OB%<\E MN^ZZ6,8V MMK$X'0!S#*"F%+B#I_UJ#@,6]12_].L>YK2$4:=E@`:,I1VJ,4AR*,J?$FTC MM9Y$;:<4Q!RY"'";1V+",3G1#CO@1Q%452)_V+E0LG"+K*N2B'MV&R[_%`&X M;+U4'3;Y#`%QHI;-Y>ICG'$`SN@E4D1X;G#AX3#KEF>;J2PL&BSXFO3"08&> M,,>RL$,3FJF.17X0RYU,-]F+XU(\PL,*/.R8%(8=!#<.TVA2*G+8EFX;(A[#" MA++V-@K^;+VWX3%0%-@'!G+9@5Z.(/C"/+TL\TFFQMMR>Y4'9@FV6);K2P+NT[S*]NTWOKM!J.#2>"[WF.J/<\ MB"Z7NL^I%C2@!\UJ5_/LS(BMFQQ(6QAB=[42FRP,89:L2'9]PQJD/G6N-2%K M"%S/WUCWPP?VJLG>89-0.0=73/5AOQVP$J-(.'KC2G)7RCL\]DX!5PR@&8KK MDQL.\7>ZAAD%:50Y9W?&WK:\]8!!2=1;X8+00!9%(UQ0)U7I5(]A#B@$S#RG M@W5@$8?O(X\ZQ>$I<\VKL%PY$GD4K)4*@I1!XB#V`\,*Y9S@K!H].5B'X<(/ M6D>8J.ZEK1M60;,I">K:1\$-(L1%[(?Q^Z(4M'#_"L=!AP`4:;ZIX*4MZ82_ M``OE"!7"D`Q>LL%N&!7J__@VFO$L0$#!'D0B"`B7)*H"P9"8[:`*B8(GK:"* M88$J)N0FQO"/TA$JG@(E+K#"$PH%(%P756&.`;B0+T#!+32W9()!5OJ%R%H' M&_P7\5-#K%`$"*P66.,?^1B4-%,!7?JB<,&%KS,O50D.DB`,@R"M!H&FQBD) MS8"6UO$D0N.*=@J,%03;4BM?$$" M9/DD.3(Q!3`DQU`P`<*_*_2ZU0"967D5DU,"5]0NDLB*@"*5P.B&65F'O9C" M820IU5,$-9*(RY`5@9!%;-"V7]!#Q5&"$[*#<*.B%7('-1(79V,793.'A#J>`"L:0(^'SA)1"0Q]:0':1QTAJ`$8I'7*!+N?2QXS@ MA!EYI%OJ%X7HEZT2#^%[";UXIE&(`(H:B'2C.D011"*(`/FS`S79CXO$Q2&0 MJ+B8$@IC%.@22449";A8R)B3""Y)R9?QCG(YD(ZD)5PZ`%")021H">201ZK` MP9@3H#N\QE?[M6[K)DBYAF\0Q.TY%^F[AH`K%P(B%29@2G$A#'T02*SK2H[R M$]>XHJ8\(=!`H;:[N#K8RK/,2B:I@J?LRO4Q@&V8A/;KC/69RAILRG!I2_'" MRK-4$.G3AW+I2E<*&G?@1EH:3/VPRR$+3+/TAP$*B>ZY.TINZP5@HRE9,S5: MV\Q"J+5HRS9=$\VCE,!@T\Q;L[;0G+;13$W6Q#;7[#7K^99N,;K9M,W;Q,W< MU,W<7(#:W,W?["W@%,[@'$[@1)3B_,WC1$[=5,[EQ,WF=$[;A,[H_);II,YN ML<[KU$[M7`#]F;WO!,_P%,_Q),_R-,_S1,_T5,_U9,_V=,_WA,_X[!D#L$#Y HM,_[Q,_\U,_]Y,_^],__[$]JJLP!)=`"-=`#1=`$5=`%95`$#0(`.S\_ ` end XML 13 R19.xml IDEA: Recently Issued Accounting Standards 1.0.0.3 false Recently Issued Accounting Standards false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Recently Issued Accounting Standards [Abstract] 0 nov_RecentlyIssuedAccountingStandardsAbstract nov false na duration string Recently Issued Accounting Standards. false false false false false true false false false 1 false false 0 0 false false Recently Issued Accounting Standards. false 3 Recently Issued Accounting Standards 1 us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>14. Recently Issued Accounting Standards</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In February 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position (“FSP”) SFAS 157-2, “Effective Date of FASB Statement No. 157” (“FSP 157-2”), which defers the effective date of SFAS No. 157, “Fair Value Measurements” (“SFAS 157”), as it related to non-financial assets and non-financial liabilities, to fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The Company, as of January 1, 2009, adopted the provisions of this statement and included the appropriate disclosures surrounding non-financial assets and liabilities, as applicable. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2007, the FASB issued SFAS No. 141R, “Business Combinations” (“SFAS 141R”). SFAS 141R provides revised guidance on how acquirers recognize and measure the consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling interests, and goodwill acquired in a business combination. SFAS 141R also expands required disclosures surrounding the nature and financial effects of business combinations. SFAS 141R is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. On January 1, 2009, the Company adopted SFAS 141R. The Company expects that this new standard will impact certain aspects of its accounting for business combinations on a prospective basis, including the determination of fair values assigned to certain purchased assets and liabilities. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (“SFAS 160”). SFAS 160 establishes requirements for ownership interests in subsidiaries held by parties other than the Company (previously called minority interests) be clearly identified, presented, and disclosed in the consolidated statement of financial position within equity, but separate from the parent’s equity. All changes in the parent’s ownership interests are required to be accounted for consistently as equity transactions and any noncontrolling equity investments in deconsolidated subsidiaries must be measured initially at fair value. SFAS 160 is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. However, presentation and disclosure requirements must be retrospectively applied to comparative financial statements. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">On January 1, 2009, the Company adopted SFAS 160, and reclassified noncontrolling interests in the amounts of $88 million and $96 million from the mezzanine section to equity in the June 30, 2009 and December 31, 2008 balance sheets, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“SFAS 161”). SFAS 161 amends and expands the disclosure requirements for derivative instruments and hedging activities, with the intent to provide users of financial statements with an enhanced understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for, and how derivative instruments and related hedged items affect an entity’s financial statements. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. On January 1, 2009, the Company adopted SFAS 161. See Note 11. “Derivative Financial Instruments”, in the notes to the consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2008, the FASB issued FASB Staff Position (“FSP”) SFAS 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP SFAS 142-3”). FSP SFAS 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, “Goodwill and Other Intangible Assets”<i>.</i> The objective of this FSP is to improve the consistency between the useful life of a recognized intangible asset under Statement No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R and other U.S. GAAP principles. FSP SFAS 142-3 is effective for fiscal years beginning after December 15, 2008. On January 1, 2009, the Company adopted FSP SFAS 142-3. There was no significant impact to the Company’s consolidated financial statements from the adoption of FSP SFAS 142-3. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009 the FASB issued FSP 141R-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (“FSP 141R-1”). FSP 141R-1 amends the provisions in SFAS 141R for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. The FSP eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and measurement criteria in SFAS 141R and instead carries forward most of the provisions in SFAS 141 for acquired contingencies. FSP 141R-1 is effective for contingent assets and contingent liabilities acquired in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company expects FSP 141R-1 will have a future impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, term and size of the acquired contingencies. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, the FASB issued FSP SFAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP SFAS 107-1”). FSP SFAS 107-1 extends the disclosure requirements regarding the fair value of financial instruments under SFAS No. 107, “Disclosures about Fair Value of Financial Instruments” (“SFAS No. 107”), to interim financial statements of publicly traded companies. FSP SFAS 107-1 is effective for interim reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. Early adoption of this FSP is permitted only if the entity also elects to early adopt FSP SFAS 157-4 and FSP SFAS 115-2. On June 1, 2009, the Company adopted FSP SFAS 107-1. There was no significant impact to the Company’s consolidated financial statements from the adoption of FSP SFAS 107-1. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”). SFAS 165 requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. SFAS 165 is effective for fiscal years and interim periods ending after June 15, 2009. On June 1, 2009, the Company adopted SFAS 165. There was no significant impact to the Company’s consolidated financial statements from the adoption of SFAS 165. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles” (SFAS 168”), which amends SFAS 162, “The Hierarchy of Generally Accepted Accounting Principles.” SFAS 168 will become the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date, SFAS 168 will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in SFAS 168 will become non-authoritative. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Company is currently assessing the impact SFAS 168 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement. </div> </div> </body> </html>  14. Recently Issued false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 14 R11.xml IDEA: Costs and Estimated Earnings on Uncompleted Contracts 1.0.0.3 false Costs and Estimated Earnings on Uncompleted Contracts false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Costs and Estimated Earnings on Uncompleted Contracts [Abstract] 0 nov_CostsAndEstimatedEarningsOnUncompletedContractsAbstract nov false na duration string Costs and Estimated Earnings on Uncompleted Contracts. false false false false false true false false false 1 false false 0 0 false false Costs and Estimated Earnings on Uncompleted Contracts. false 3 Costs and Estimated Earnings on Uncompleted Contracts 1 nov_CostsAndEstimatedEarningsOnUncompletedContractsTextBlock nov false na duration string Costs and Estimated Earnings on Uncompleted Contracts. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. Costs and Estimated Earnings on Uncompleted Contracts</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Costs and estimated earnings on uncompleted contracts consist of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Costs incurred on uncompleted contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">5,734</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,776</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Estimated earnings </div></td> <td> </td> <td> </td> <td align="right">2,987</td> <td> </td> <td> </td> <td> </td> <td align="right">2,277</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right">8,721</td> <td> </td> <td> </td> <td> </td> <td align="right">7,053</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Billings to date </div></td> <td> </td> <td> </td> <td align="right">10,212</td> <td> </td> <td> </td> <td> </td> <td align="right">8,596</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,491</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,543</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Costs and estimated earnings in excess of billings on uncompleted contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">590</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">618</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Billings in excess of costs and estimated earnings on uncompleted contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,081</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,161</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,491</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,543</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div> </body> </html>  6. Costs and Estimated Earnings on Uncompleted false false Costs and Estimated Earnings on Uncompleted Contracts. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 15 R10.xml IDEA: Accrued Liabilities 1.0.0.3 false Accrued Liabilities false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Accrued Liabilities Disclosure [Abstract] 0 nov_AccruedLiabilitiesDisclosureAbstract nov false na duration string Accrued Liabilities. false false false false false true false false false 1 false false 0 0 false false Accrued Liabilities. false 3 Accrued Liabilities 1 us-gaap_AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Accrued Liabilities</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Accrued liabilities consist of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Compensation </div></td> <td> </td> <td align="left">$</td> <td align="right">185</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">258</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Customer prepayments and billings </div></td> <td> </td> <td> </td> <td align="right">547</td> <td> </td> <td> </td> <td> </td> <td align="right">912</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Warranty </div></td> <td> </td> <td> </td> <td align="right">162</td> <td> </td> <td> </td> <td> </td> <td align="right">114</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest </div></td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Taxes (non income) </div></td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> <td> </td> <td> </td> <td align="right">76</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Insurance </div></td> <td> </td> <td> </td> <td align="right">56</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued purchase orders </div></td> <td> </td> <td> </td> <td align="right">743</td> <td> </td> <td> </td> <td> </td> <td align="right">688</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of derivatives </div></td> <td> </td> <td> </td> <td align="right">83</td> <td> </td> <td> </td> <td> </td> <td align="right">59</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">237</td> <td> </td> <td> </td> <td> </td> <td align="right">208</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">2,082</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,376</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Service and Product Warranties</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with SFAS 5. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The changes in the carrying amount of service and product warranties are as follows (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance, December 31, 2008 </div></td> <td> </td> <td align="left">$</td> <td align="right">114</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net provisions for warranties issued during the year </div></td> <td> </td> <td> </td> <td align="right">75</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Amounts incurred </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(29</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance, June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">162</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  5. Accrued Liabilities Accrued liabilities false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 16 R8.xml IDEA: Asset Impairment 1.0.0.3 false Asset Impairment false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Asset Impairment [Abstract] 0 nov_AssetImpairmentAbstract nov false na duration string Asset Impairment Abstract. false false false false false true false false false 1 false false 0 0 false false Asset Impairment Abstract. false 3 Asset Impairment 1 nov_AssetImpairmentTextBlock nov false na duration string Asset Impairment. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. Asset Impairment</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Generally accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that such assets might be impaired. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2009, the worldwide average rig count was 2,009 rigs, down 41% from the fourth quarter 2008 average of 3,395 and down 25% from the first quarter 2009 average of 2,681. The second quarter 2009 average rig count represented the lowest quarterly average in the past six years. In addition, the Company’s updated forecast was behind the Company’s previous forecast completed at the beginning of 2009. While operating profit for the first quarter of 2009 was in line with the Company’s first quarter 2009 operating profit forecast, the Company’s consolidated operating profit for the second quarter of 2009 was below its second quarter 2009 forecast. As a result of the substantial decline in the worldwide rig count, and the decline in actual/forecasted results compared to the original 2009 forecast, the Company concluded that events or circumstances had occurred indicating that goodwill and other indefinite-lived intangible assets might be impaired as described under SFAS 142. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Therefore, the Company performed its interim impairment test of goodwill for all its reporting units at the end of the second quarter of 2009. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of that reporting unit as a whole. Fair value of the reporting units is determined in accordance with SFAS 157 using significant unobservable inputs, or level 3 in the fair value hierarchy. These inputs are based on internal management estimates, forecasts and judgments, using a combination of three methods: discounted cash flow, comparable companies, and representative transactions. While the Company primarily uses the discounted cash flow method to assess fair value, the Company uses the comparable companies and representative transaction methods to validate the discounted cash flow analysis and further support management’s expectations, where possible. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The discounted cash flow is based on management’s short-term and long-term forecast of operating performance for each reporting unit. The two main assumptions used in measuring goodwill impairment, which bear the risk of change and could impact the Company’s goodwill impairment analysis, include the cash flow from operations from each of the Company’s individual business units and the weighted average cost of capital. The starting point for each of the reporting unit’s cash flow from operations is the detailed annual plan or updated forecast. The detailed planning and forecasting process takes into consideration a multitude of factors including worldwide rig activity, inflationary forces, pricing strategies, customer analysis, operational issues, competitor analysis, capital spending requirements, working capital needs, customer needs to replace aging equipment, increased complexity of drilling, new technology, and existing backlog among other items which impact the individual reporting unit projections. Cash flows beyond the specific operating plans were estimated using a terminal value calculation, which incorporated historical and forecasted financial cyclical trends for each reporting unit and considered long-term earnings growth rates. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate. During times of volatility, significant judgment must be applied to determine whether credit changes are a short-term or long-term trend. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Projections for the remainder of 2009 also reflected declines compared to the original 2009 annual forecast. The Company updated its 2009 operating forecast, long-term forecast, and discounted cash flows based on this information. The goodwill impairment analysis that we performed during the second quarter of 2009 did not result in goodwill impairment as of June 30, 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">Other indefinite-lived intangible assets, representing trade names management intends to use indefinitely, were valued using significant unobservable inputs (level 3) and are tested for impairment using the Relief from Royalty Method, a form of the Income Approach. An impairment is measured and recognized based on the amount the book value of the indefinite-lived intangible assets exceeds its estimated fair value as of the date of the impairment test. Included in the impairment test are assumptions, for each trade name, regarding the related revenue streams attributable to the trade names which are determined consistent with the forecasting process described above, the royalty rate, and the discount rate applied. Based on the Company’s indefinite-lived intangible asset impairment analysis performed during the second quarter of 2009, the Company incurred an impairment charge of $147 million in the Petroleum Services & Supplies segment related to a partial impairment of the Company’s Grant Prideco trade name. The impairment charge was primarily the result of the substantial decline in worldwide rig counts through June 2009, declines in current forecasts in rig activity for the remainder of 2009, 2010, and 2011 compared to rig count forecast at the beginning of 2009, and a current decline in the revenue forecast for the drill pipe business unit for the next three years (2009, 2010, and 2011). </div> </div> </body> </html>  3. Asset Impairment Generally accepted accounting principles require the Company false false Asset Impairment. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 17 R18.xml IDEA: Net Income Attributable to Company Per Share 1.0.0.3 false Net Income Attributable to Company Per Share false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Net Income Attributable to Company Per Share [Abstract] 0 nov_NetIncomeAttributableToCompanyPerShareAbstract nov false na duration string Net Income Attributable to Company Per Share. false false false false false true false false false 1 false false 0 0 false false Net Income Attributable to Company Per Share. false 3 Net Income Attributable to Company Per Share 1 us-gaap_EarningsPerShareTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Net Income Attributable to Company Per Share</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Numerator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net income attributable to Company </div></td> <td> </td> <td align="left">$</td> <td align="right">220</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">421</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">690</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">819</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Denominator: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic—weighted average common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> <td> </td> <td> </td> <td align="right">402</td> <td> </td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> <td> </td> <td> </td> <td align="right">379</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Dilutive effect of employee stock options and other unvested stock awards </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted outstanding shares </div></td> <td> </td> <td> </td> <td align="right">418</td> <td> </td> <td> </td> <td> </td> <td align="right">404</td> <td> </td> <td> </td> <td> </td> <td align="right">417</td> <td> </td> <td> </td> <td> </td> <td align="right">381</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Company per share: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.05</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.66</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.04</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.65</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.15</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the Company had stock options outstanding that were anti-dilutive totaling 4 million and 10 million shares for the three and six months ended June 30, 2009, respectively, and 1 million shares for both the three and six months ended June 30, 2008, respectively. </div> </div> </body> </html>  13. Net Income Attributable to Company Per Share The following table sets false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 18 R12.xml IDEA: Comprehensive Income 1.0.0.3 false Comprehensive Income false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Comprehensive Income [Abstract] 0 nov_ComprehensiveIncomeAbstract nov false na duration string Comprehensive Income. false false false false false true false false false 1 false false 0 0 false false Comprehensive Income. false 3 Comprehensive Income 1 us-gaap_ComprehensiveIncomeNoteTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>7. Comprehensive Income</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The components of comprehensive income are as follows (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income </div></td> <td> </td> <td align="left">$</td> <td align="right">222</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">425</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">695</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">825</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Currency translation adjustments, net of tax </div></td> <td> </td> <td> </td> <td align="right">112</td> <td> </td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> <td> </td> <td> </td> <td align="right">38</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Changes in derivative financial instruments, net of tax </div></td> <td> </td> <td> </td> <td align="right">83</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">105</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Changes in defined benefit plans, net of tax </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Comprehensive income </div></td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> <td> </td> <td> </td> <td align="right">437</td> <td> </td> <td> </td> <td> </td> <td align="right">856</td> <td> </td> <td> </td> <td> </td> <td align="right">884</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to noncontrolling interest </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to Company </div></td> <td> </td> <td align="left">$</td> <td align="right">414</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">433</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">851</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">878</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in Other Comprehensive Income in accordance with SFAS 52, “Foreign Currency Translation.” For the three months ended June 30, 2009, a majority of these local currencies strengthened against the U.S. dollar resulting in a net increase to Other Comprehensive Income of $112 million (net of tax of $60 million) upon the translation of their financial statements from their local currency to the U.S. dollar. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The effect of changes in the exchange rates for derivatives designated as Cash Flow hedges are accumulated in Other Comprehensive Income, net of tax, until the underlying transactions to which they are designed to hedge are realized. The movement in Other Comprehensive Income from period to period will be the result of the combination of changes in currency rates for open derivatives and the outflow of accumulated Other Comprehensive Income on previously matured derivatives. The accumulated effects of these scenarios have caused an increase in Other Comprehensive Income of $83 million (net of tax of $30 million) for the three months ended June 30, 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  7. Comprehensive Income The components of comprehensive income are false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 19 R3.xml IDEA: Consolidated Balance Sheets (Parenthetical) 1.0.0.3 false Consolidated Balance Sheets (Parenthetical) (USD $) false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 5 Common stock, par value 3 us-gaap_CommonStockParOrStatedValuePerShare us-gaap true na instant decimal No definition available. false false false false false false false false false 1 false true 0.01 0.01 false false 2 false true 0.01 0.01 false false No definition available. No authoritative reference available. false 6 Common stock, shares issued 3 us-gaap_CommonStockSharesIssued us-gaap true na instant shares No definition available. false false false false false false false false false 1 false true 418192372 418192372 false false 2 false true 417350924 417350924 false false No definition available. No authoritative reference available. false 7 Common stock, shares outstanding 3 us-gaap_CommonStockSharesOutstanding us-gaap true na instant shares No definition available. false false false false false false false false false 1 false true 418192372 418192372 false false 2 false true 417350924 417350924 false false No definition available. No authoritative reference available. false false 2 3 false UnKnown NoRounding UnKnown false true XML 20 R14.xml IDEA: Debt 1.0.0.3 false Debt false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Debt [Abstract] 0 nov_DebtAbstract nov false na duration string Debt. false false false false false true false false false 1 false false 0 0 false false Debt. false 3 Debt 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Debt</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Debt consists of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 6.5% payable semiannually, principal due on March 15, 2011 </div></td> <td> </td> <td align="left">$</td> <td align="right">150</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">150</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 7.25% payable semiannually, principal due on May 1, 2011 </div></td> <td> </td> <td> </td> <td align="right">206</td> <td> </td> <td> </td> <td> </td> <td align="right">208</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 5.65% payable semiannually, principal due on November 15, 2012 </div></td> <td> </td> <td> </td> <td align="right">200</td> <td> </td> <td> </td> <td> </td> <td align="right">200</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 5.5% payable semiannually, principal due on November 19, 2012 </div></td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015 </div></td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total debt </div></td> <td> </td> <td> </td> <td align="right">881</td> <td> </td> <td> </td> <td> </td> <td align="right">874</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Less current portion </div></td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td align="left">$</td> <td align="right">873</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">870</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Senior Notes</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the merger of Grant Prideco, the Company completed an exchange offer relative to the $175 million of 6.125% Senior Notes due 2015 previously issued by Grant Prideco. On April 21, 2008, $151 million of Grant Prideco Senior Notes were exchanged for National Oilwell Varco Senior Notes. The National Oilwell Varco Senior Notes have the same interest rate, interest payment dates, redemption terms and maturity as the Grant Prideco Senior Notes. In November 2008, the Company repurchased $23 million of the unexchanged Grant Prideco Senior Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revolving Credit Facilities</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">On April 21, 2008, the Company replaced its existing $500 million unsecured revolving credit facility with an aggregate of $3 billion of unsecured credit facilities and borrowed $2 billion to finance the cash portion of the Grant Prideco acquisition. These facilities consisted of a $2 billion, five-year revolving credit facility and a $1 billion, 364-day revolving credit facility. At June 30, 2009, there were no borrowings against these facilities, and there were $636 million in outstanding letters of credit issued under these facilities, resulting in $1,364 million of funds available under this revolving credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 0.26% subject to a ratings-based grid, or the prime rate. In early February 2009, we terminated early the $1 billion, 364-day revolving credit facility, which matured April 20, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company also had $2,414 million of additional outstanding letters of credit at June 30, 2009, primarily in Norway, that are essentially under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds and performance bonds. The Senior Notes contain reporting covenants and the credit facility contains a financial covenant regarding maximum debt to capitalization. We were in compliance with all covenants at June 30, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Other debt includes approximately $5 million in promissory notes due to former owners of businesses acquired. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  9. Debt Debt consists of (in millions):   false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 21 R15.xml IDEA: Tax 1.0.0.3 false Tax false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Tax [Abstract] 0 nov_TaxAbstract nov false na duration string Tax. false false false false false true false false false 1 false false 0 0 false false Tax. false 3 Tax 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. Tax</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate for the three and six months ended June 30, 2009 was 37.3% and 34.1%, respectively, compared to 37.5% and 34.9% for the same periods in 2008. The second quarter 2009 tax rate, which was higher than periods preceding this quarter, was primarily affected by $21 million of additional tax provisions recognized in the period on prior year income in Norway. These additional taxes resulted from foreign currency gains on dollar-denominated accounts that were realized for Norwegian tax purposes. The Company expects its income tax rate to return to the 32% to 33% range for the remainder of the year. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate of 35% was as follows (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Federal income tax at U.S. federal statutory rate </div></td> <td> </td> <td align="left">$</td> <td align="right">124</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">238</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">369</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">444</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign income tax rate differential </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(26</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(23</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(58</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(43</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State income tax, net of federal benefit </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign dividends, net of foreign tax credits </div></td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Benefit of U.S. Manufacturing Deduction </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Nondeductible expenses </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Prior year tax on revaluation gains in Norway </div></td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Provision for income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">131</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">255</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">359</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">443</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company accounts for uncertainty in income taxes in accordance with Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – An Interpretation of FASB No. 109” (“FIN 48”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements in accordance with FASB Statement No. 109, “Accounting for Income Taxes” and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a return. Under FIN 48, the impact of an uncertain income tax position, in management’s opinion, on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has a less than 50% likelihood of being sustained. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at January 1, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">61</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Additions for tax positions of prior years </div></td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Settlements </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">53</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company has significant operations in the U.S., Canada, the U. K., the Netherlands and Norway. Tax years that remain subject to examination by major tax jurisdiction vary by legal entity, but are generally open in the U.S. for the tax years after 2003 and outside the U.S. for tax years ending after 2001. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements. </div> </div> </body> </html>  10. Tax The effective tax rate for the three and six months ended false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 22 R4.xml IDEA: Consolidated Statements of Income 1.0.0.3 false Consolidated Statements of Income (USD $) In Millions, except Per Share data false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 4 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 5 Revenue 3 us-gaap_SalesRevenueNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 3010000000 3010 false false 2 true true 3325000000 3325 false false 3 true true 6491000000 6491 false false 4 true true 6010000000 6010 false false No definition available. No authoritative reference available. false 6 Cost of revenue 3 us-gaap_CostOfGoodsAndServicesSold us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 2135000000 2135 false false 2 false true 2344000000 2344 false false 3 false true 4577000000 4577 false false 4 false true 4232000000 4232 false false No definition available. No authoritative reference available. true 7 Gross profit 3 us-gaap_GrossProfit us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 875000000 875 false false 2 false true 981000000 981 false false 3 false true 1914000000 1914 false false 4 false true 1778000000 1778 false false No definition available. No authoritative reference available. false 8 Selling, general and administrative 3 us-gaap_SellingGeneralAndAdministrativeExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 334000000 334 false false 2 false true 274000000 274 false false 3 false true 653000000 653 false false 4 false true 502000000 502 false false No definition available. No authoritative reference available. false 9 Intangible asset impairment 3 us-gaap_ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 147000000 147 false false 2 false true 0 0 false false 3 false true 147000000 147 false false 4 false true 0 0 false false No definition available. No authoritative reference available. false 10 Transaction costs 3 us-gaap_OtherCostAndExpenseOperating us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 8000000 8 false false 2 false true 16000000 16 false false 3 false true 8000000 8 false false 4 false true 16000000 16 false false No definition available. No authoritative reference available. true 11 Operating profit 3 us-gaap_OperatingIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 386000000 386 false false 2 false true 691000000 691 false false 3 false true 1106000000 1106 false false 4 false true 1260000000 1260 false false No definition available. No authoritative reference available. false 12 Interest and financial costs 3 us-gaap_InterestExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -13000000 -13 false false 2 false true -24000000 -24 false false 3 false true -26000000 -26 false false 4 false true -34000000 -34 false false No definition available. No authoritative reference available. false 13 Interest income 3 us-gaap_InvestmentIncomeInterest us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 2000000 2 false false 2 false true 10000000 10 false false 3 false true 4000000 4 false false 4 false true 26000000 26 false false No definition available. No authoritative reference available. false 14 Equity income in unconsolidated affiliate 3 us-gaap_IncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 16000000 16 false false 2 false true 17000000 17 false false 3 false true 44000000 44 false false 4 false true 17000000 17 false false No definition available. No authoritative reference available. false 15 Other income (expense), net 3 us-gaap_OtherNonoperatingIncomeExpense us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -38000000 -38 false false 2 false true -14000000 -14 false false 3 false true -74000000 -74 false false 4 false true -1000000 -1 false false No definition available. No authoritative reference available. true 16 Income before income taxes 3 nov_IncomeBeforeIncomeTaxes nov false credit duration monetary Income before income taxes. false false false false false false false false false 1 false true 353000000 353 false false 2 false true 680000000 680 false false 3 false true 1054000000 1054 false false 4 false true 1268000000 1268 false false Income before income taxes. No authoritative reference available. false 17 Provision for income taxes 3 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 131000000 131 false false 2 false true 255000000 255 false false 3 false true 359000000 359 false false 4 false true 443000000 443 false false No definition available. No authoritative reference available. true 18 Net income 3 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 222000000 222 false false 2 false true 425000000 425 false false 3 false true 695000000 695 false false 4 false true 825000000 825 false false No definition available. No authoritative reference available. false 19 Net income attributable to noncontrolling interests 3 us-gaap_NetIncomeLossAttributableToNoncontrollingInterest us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 2000000 2 false false 2 false true 4000000 4 false false 3 false true 5000000 5 false false 4 false true 6000000 6 false false No definition available. No authoritative reference available. true 20 Net income attributable to Company 3 us-gaap_NetIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 220000000 220 false false 2 true true 421000000 421 false false 3 true true 690000000 690 false false 4 true true 819000000 819 false false No definition available. No authoritative reference available. true 21 Net income attributable to Company per share: 3 us-gaap_EarningsPerShareAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 22 Basic 4 us-gaap_EarningsPerShareBasic us-gaap true na duration decimal No definition available. false false false false false false false false false 1 false true 0.53 0.53 false false 2 false true 1.05 1.05 false false 3 false true 1.66 1.66 false false 4 false true 2.16 2.16 false false No definition available. No authoritative reference available. true 23 Diluted 4 us-gaap_EarningsPerShareDiluted us-gaap true na duration decimal No definition available. false false false false false false false false false 1 false true 0.53 0.53 false false 2 false true 1.04 1.04 false false 3 false true 1.65 1.65 false false 4 false true 2.15 2.15 false false No definition available. No authoritative reference available. true 24 Weighted average shares outstanding: 3 nov_WeightedAverageSharesOutstandingAbstract nov false na duration string Weighted average shares outstanding. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false Weighted average shares outstanding. false 25 Basic 4 us-gaap_WeightedAverageNumberOfSharesOutstandingBasic us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 416000000 416 false false 2 false true 402000000 402 false false 3 false true 416000000 416 false false 4 false true 379000000 379 false false No definition available. No authoritative reference available. true 26 Diluted 4 us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 418000000 418 false false 2 false true 404000000 404 false false 3 false true 417000000 417 false false 4 false true 381000000 381 false false No definition available. No authoritative reference available. true false 4 22 false Millions Millions Hundreds false true XML 23 R16.xml IDEA: Stock Based Compensation 1.0.0.3 false Stock Based Compensation false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Stock-Based Compensation [Abstract] 0 nov_StockBasedCompensationAbstract nov false na duration string Stock-Based Compensation. false false false false false true false false false 1 false false 0 0 false false Stock-Based Compensation. false 3 Stock-Based Compensation 1 us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Stock-Based Compensation</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”). The Plan provides for the granting of stock options, performance-based share awards, restricted stock, phantom shares, stock payments and stock appreciation rights. During the quarter, the Company with approval from shareholders increased the number of shares authorized under the Plan from 15 million to 26 million. As of June 30, 2009, 11,890,826 shares remain available for future grants under the Plan, all of which are available for grants of stock options, performance-based share awards, restricted stock awards, phantom shares, stock payments and stock appreciation rights. Total stock-based compensation for all share-based compensation arrangements under the Plan was $15 million and $31 million for the three and six months ended June 30, 2009, respectively, and $16 million and $29 million for the three and six months ended June 30, 2008, respectively. The total income tax benefit recognized in the Consolidated Statements of Income for all stock-based compensation arrangements under the Plan was $7 million and $12 million for the three and six months ended June 30, 2009, respectively, and $7 million and $11 million for the three and six months ended June 30, 2008, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the six months ended June 30, 2009, the Company granted 3,234,400 stock options and 762,692 restricted stock awards, which includes 309,000 performance-based restricted stock awards. Out of the total number of stock options granted, 3,206,400 were granted on February 20, 2009 with an exercise price of $25.96. These options generally vest over a three-year period from the grant date. The remaining 28,000 options were granted May 13, 2009 to the non-employee members of the board of directors at an exercise price of $33.57. These options generally vest over a three-year period from the grant date. Out of the total number of restricted stock awards granted, 434,400 were granted on February 20, 2009 and vest on the third anniversary of the date of grant. On May 13, 2009, 19,292 restricted stock awards were granted to the non-employee members of the board of directors. These restricted stock awards vest in equal thirds over three years on the anniversary of the grant date. The performance-based restricted stock awards of 309,000 were granted on February 20, 2009. The performance-based restricted stock awards granted will be 100% vested 36 months from the date of grant, subject to the performance condition of the Company’s average operating income growth, measured on a percentage basis, from January 1, 2009 through December 31, 2011 exceeding the median operating income level growth of a designated peer group over the same period. </div> </div> </body> </html>  11. Stock-Based Compensation The false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 24 R9.xml IDEA: Inventories net 1.0.0.3 false Inventories net false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Inventories, net [Abstract] 0 nov_InventoriesNetAbstract nov false na duration string Inventories, net. false false false false false true false false false 1 false false 0 0 false false Inventories, net. false 3 Inventories, net 1 us-gaap_InventoryDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>4. Inventories, net</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Inventories consist of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Raw materials and supplies </div></td> <td> </td> <td align="left">$</td> <td align="right">782</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">739</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Work in process </div></td> <td> </td> <td> </td> <td align="right">1,507</td> <td> </td> <td> </td> <td> </td> <td align="right">1,326</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Finished goods and purchased products </div></td> <td> </td> <td> </td> <td align="right">1,536</td> <td> </td> <td> </td> <td> </td> <td align="right">1,741</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">3,825</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,806</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div> </body> </html>  4. Inventories, net Inventories consist of (in millions): false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 25 R6.xml IDEA: Basis of Presentation 1.0.0.3 false Basis of Presentation false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Basis of Presentation [Abstract] 0 nov_BasisOfPresentationAbstract nov false na duration string Basis of Presentation. false false false false false true false false false 1 false false 0 0 false false Basis of Presentation. false 3 Basis of Presentation 1 us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>   <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Basis of Presentation</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with our 2008 Annual Report on Form 10-K. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the consolidated financial statements include all adjustments, all of which are of a normal, recurring nature, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the full year. The Company has evaluated subsequent events for potential recognition or disclosure in the consolidated financial statements included through August 7, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value of Financial Instruments</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. The carrying values of other financial instruments approximate their respective fair values. </div> </div> </body> </html>  1. Basis of false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 26 R5.xml IDEA: Consolidated Statements of Cash Flows 1.0.0.3 false Consolidated Statements of Cash Flows (USD $) In Millions false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 5 Cash flows from operating activities: 3 us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 6 Net income 4 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 695000000 695 false false 2 true true 825000000 825 false false No definition available. No authoritative reference available. false 7 Adjustments to reconcile net income to net cash provided by operating activities: 4 us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 8 Depreciation and amortization 5 us-gaap_DepreciationAndAmortization us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 238000000 238 false false 2 false true 168000000 168 false false No definition available. No authoritative reference available. false 9 Excess tax benefit from exercise of stock options 5 us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true -36400000 -36 false false No definition available. No authoritative reference available. false 10 Equity income in unconsolidated affiliate 5 us-gaap_IncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -44000000 -44 false false 2 false true -17000000 -17 false false No definition available. No authoritative reference available. false 11 Dividend from unconsolidated affiliate 5 us-gaap_EquityMethodInvestmentDividendsOrDistributions us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 86000000 86 false false 2 false true 0 0 false false No definition available. No authoritative reference available. false 12 Intangible asset impairment 5 us-gaap_ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 147000000 147 false false 2 false true 0 0 false false No definition available. No authoritative reference available. false 13 Other 5 us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesOther us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -5000000 -5 false false 2 false true 43100000 43 false false No definition available. No authoritative reference available. false 14 Change in operating assets and liabilities, net of acquisitions: 4 us-gaap_IncreaseDecreaseInOperatingCapitalAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 15 Receivables 5 us-gaap_IncreaseDecreaseInAccountsReceivable us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 590000000 590 false false 2 false true -507000000 -507 false false No definition available. No authoritative reference available. false 16 Inventories 5 us-gaap_IncreaseDecreaseInInventories us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 75000000 75 false false 2 false true -297000000 -297 false false No definition available. No authoritative reference available. false 17 Costs in excess of billings 5 nov_CostsInExcessOfBillings nov false debit duration monetary Costs in excess of billings. false false false false false false false false false 1 false true 28000000 28 false false 2 false true 38000000 38 false false Costs in excess of billings. No authoritative reference available. false 18 Prepaid and other current assets 5 us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -108000000 -108 false false 2 false true 74000000 74 false false No definition available. No authoritative reference available. false 19 Accounts payable 5 us-gaap_IncreaseDecreaseInAccountsPayable us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -152000000 -152 false false 2 false true 22000000 22 false false No definition available. No authoritative reference available. false 20 Billings in excess of costs 5 nov_BillingsInExcessOfCosts nov false credit duration monetary Billings in excess of costs. false false false false false false false false false 1 false true -80000000 -80 false false 2 false true 556000000 556 false false Billings in excess of costs. No authoritative reference available. false 21 Other assets/liabilities, net 5 us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -185000000 -185 false false 2 false true 375000000 375 false false No definition available. No authoritative reference available. true 22 Net cash provided by operating activities 5 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 1285000000 1285 false false 2 false true 1243700000 1244 false false No definition available. No authoritative reference available. true 23 Cash flows from investing activities: 3 us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 24 Purchases of property, plant and equipment 4 us-gaap_PaymentsToAcquirePropertyPlantAndEquipment us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -143000000 -143 false false 2 false true -160000000 -160 false false No definition available. No authoritative reference available. false 25 Business acquisitions, net of cash acquired 4 us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -389000000 -389 false false 2 false true -2945000000 -2945 false false No definition available. No authoritative reference available. false 26 Business divestitures, net of cash disposed 4 us-gaap_ProceedsFromDivestitureOfBusinessesNetOfCashDivested us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 784000000 784 false false No definition available. No authoritative reference available. false 27 Dividend from unconsolidated affiliate 4 nov_DividendFromUnconsolidatedAffiliatesClassifiedAsInvestingActivities nov false debit duration monetary This item represents disclosure of the amount of dividends or other distributions received from unconsolidated subsidiaries,... false false false false false false false false false 1 false true 8000000 8 false false 2 false true 113000000 113 false false This item represents disclosure of the amount of dividends or other distributions received from unconsolidated subsidiaries, certain corporate joint ventures, and certain noncontrolled corporation; these investments are accounted for under the equity method of accounting. This element represents distributions that constitute a return of investment, which are classified as investing activities. No authoritative reference available. false 28 Other, net 4 us-gaap_PaymentsForProceedsFromOtherInvestingActivities us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true -1000000 -1 false false No definition available. No authoritative reference available. true 29 Net cash used in investing activities 4 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -524000000 -524 false false 2 false true -2209000000 -2209 false false No definition available. No authoritative reference available. true 30 Cash flows from financing activities: 3 us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 31 Borrowings against lines of credit and other debt 4 us-gaap_ProceedsFromIssuanceOfLongTermDebt us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 2577000000 2577 false false No definition available. No authoritative reference available. false 32 Payments against lines of credit and other debt 4 us-gaap_RepaymentsOfLongTermDebt us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -34000000 -34 false false 2 false true -1928000000 -1928 false false No definition available. No authoritative reference available. false 33 Proceeds from exercise of stock options 4 us-gaap_ProceedsFromStockOptionsExercised us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 1000000 1 false false 2 false true 77000000 77 false false No definition available. No authoritative reference available. false 34 Excess tax benefit from exercise of stock options 4 us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 36000000 36 false false No definition available. No authoritative reference available. true 35 Net cash provided by (used in) financing activities 4 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -33000000 -33 false false 2 false true 762000000 762 false false No definition available. No authoritative reference available. false 36 Effect of exchange rates on cash 3 us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 15000000 15 false false 2 false true 13000000 13 false false No definition available. No authoritative reference available. true 37 Increase in cash equivalents 3 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 743000000 743 false false 2 false true -190300000 -190 false false No definition available. No authoritative reference available. false 38 Cash and cash equivalents, beginning of period 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false true false false 1 false true 1543000000 1543 false false 2 false true 1841800000 1842 false false No definition available. No authoritative reference available. false 39 Cash and cash equivalents, end of period 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false true false 1 false true 2286000000 2286 false false 2 false true 1651500000 1652 false false No definition available. No authoritative reference available. false 41 Cash payments during the period for: 4 nov_CashPaymentsDuringPeriodForAbstract nov false na duration string Cash payments during the period for. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false Cash payments during the period for. false 42 Interest 5 us-gaap_InterestPaidNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 27000000 27 false false 2 false true 30000000 30 false false No definition available. No authoritative reference available. false 43 Income taxes 5 us-gaap_IncomeTaxesPaidNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 409000000 409 false false 2 true true 376000000 376 false false No definition available. No authoritative reference available. false false 2 38 false Millions UnKnown UnKnown false true XML 27 defnref.xml IDEA: XBRL DOCUMENT No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Costs in excess of billings. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This item represents disclosure of the amount of dividends or other distributions received from unconsolidated subsidiaries, certain corporate joint ventures, and certain noncontrolled corporation; these investments are accounted for under the equity method of accounting. This element represents distributions that constitute a return of investment, which are classified as investing activities. No authoritative reference available. No authoritative reference available. No authoritative reference available. Prepaid and other current assets. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Billings in excess of costs. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Income before income taxes. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Costs and Estimated Earnings on Uncompleted Contracts. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Grant Prideco Merger and Other Acquisitions. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Asset Impairment. No authoritative reference available. No authoritative reference available. No authoritative reference available. XML 28 R13.xml IDEA: Business Segments 1.0.0.3 false Business Segments false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Business Segments [Abstract] 0 nov_BusinessSegmentsAbstract nov false na duration string Business Segments. false false false false false true false false false 1 false false 0 0 false false Business Segments. false 3 Business Segments 1 us-gaap_SegmentReportingDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Business Segments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Operating results by segment are as follows (in millions). The 2008 actual results include Grant Prideco operations from the acquisition date of April 21, 2008: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Rig Technology </div></td> <td> </td> <td align="left">$</td> <td align="right">1,917</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,911</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,116</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,514</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Petroleum Services & Supplies </div></td> <td> </td> <td> </td> <td align="right">913</td> <td> </td> <td> </td> <td> </td> <td align="right">1,124</td> <td> </td> <td> </td> <td> </td> <td align="right">1,927</td> <td> </td> <td> </td> <td> </td> <td align="right">1,954</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Distribution Services </div></td> <td> </td> <td> </td> <td align="right">305</td> <td> </td> <td> </td> <td> </td> <td align="right">425</td> <td> </td> <td> </td> <td> </td> <td align="right">713</td> <td> </td> <td> </td> <td> </td> <td align="right">791</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Elimination </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(125</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(135</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(265</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(249</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total Revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">3,010</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,325</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,491</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,010</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating Profit: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Rig Technology (a) </div></td> <td> </td> <td align="left">$</td> <td align="right">534</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">506</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,140</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">912</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Petroleum Services & Supplies (b)(c) </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(51</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">221</td> <td> </td> <td> </td> <td> </td> <td align="right">113</td> <td> </td> <td> </td> <td> </td> <td align="right">416</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Distribution Services </div></td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">25</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td> </td> <td align="right">44</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Unallocated expenses and eliminations (d) </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(99</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(45</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(174</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(96</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Transaction costs </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(16</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(16</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total Operating Profit </div></td> <td> </td> <td align="left">$</td> <td align="right">386</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">691</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,106</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,260</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Operating Profit %: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Rig Technology (a) </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">27.9</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">26.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">27.7</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">26.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Petroleum Services & Supplies (b)(c) </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5.6</td> <td nowrap="nowrap">%)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">19.7</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.9</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">21.3</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Distribution Services </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.9</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total Operating Profit % </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">12.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">20.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">17.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">21.0</td> <td nowrap="nowrap">%</td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>Under purchase accounting related to 2009 acquisitions, a fair value step up adjustment of $5 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $2 million of these inventory charges for both the three and six months ended June 30, 2009.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>The Company recorded a $147 million impairment charge to other indefinite-lived intangible assets during the three and six months ended June 30, 2009.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(c)</td> <td> </td> <td>Under purchase accounting related to the 2008 Grant Prideco acquisition, a fair value step up adjustment of $89 million was made to inventory and is being charged to “Cost of revenue” as the applicable inventory is sold. Cost of revenue includes $46 million of these inventory charges for the three and six months ended June 30, 2008.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(d)</td> <td> </td> <td>The Company recorded a $46 million charge related to its Voluntary Early Retirement Program for the three and six months ended June 30, 2009.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company had revenues of 15.6% of total revenue from one of its customers for the six months ended June 30, 2009. This customer is a shipyard acting as a general contractor for its customers, who are drillship owners and drilling contractors. This shipyard’s customers have specified that the Company’s drilling equipment be installed on their drillships and have required the shipyard to issue contracts to the Company. There were no customers that represented 10% or greater of total revenue for the six months ended June 30, 2008. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  8. Business Segments Operating results by segment are as follows false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 29 R1.xml IDEA: Document and Company Information 1.0.0.3 false Document and Company Information (USD $) In Billions, except Share data false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Document and Company Information [Abstract] 0 nov_DocumentAndCompanyInformationAbstract nov false na duration string Document and Company Information. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false Document and Company Information. false 3 Entity Registrant Name 1 dei_EntityRegistrantName dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 NATIONAL OILWELL VARCO, INC. NATIONAL OILWELL VARCO, INC. false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 4 Entity Central Index Key 1 dei_EntityCentralIndexKey dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 0001021860 0001021860 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 5 Document Type 1 dei_DocumentType dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 10-Q 10-Q false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 6 Document Period End Date 1 dei_DocumentPeriodEndDate dei false na duration date No definition available. false false false false false false false false false 1 false false 0 0 2009-06-30 2009-06-30 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 7 Amendment Flag 1 dei_AmendmentFlag dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 false false false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 8 Current Fiscal Year End Date 1 dei_CurrentFiscalYearEndDate dei false na duration monthday No definition available. false false false false false false false false false 1 false false 0 0 --12-31 --12-31 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 9 Entity Well-known Seasoned Issuer 1 dei_EntityWellKnownSeasonedIssuer dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Yes Yes false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 10 Entity Voluntary Filers 1 dei_EntityVoluntaryFilers dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Yes Yes false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 11 Entity Current Reporting Status 1 dei_EntityCurrentReportingStatus dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Yes Yes false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 12 Entity Filer Category 1 dei_EntityFilerCategory dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Large Accelerated Filer Large Accelerated Filer false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 13 Entity Public Float 1 dei_EntityPublicFloat dei false credit instant monetary No definition available. false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 true true 37000000000 37.0 false false No definition available. No authoritative reference available. false 14 Entity Common Stock, Shares Outstanding 1 dei_EntityCommonStockSharesOutstanding dei false na instant shares No definition available. false false false false false false false false false 1 false false 0 0 false false 2 false true 418199258 418199258.00 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false false 3 13 false HundredMillions NoRounding UnKnown false true XML 30 R2.xml IDEA: Consolidated Balance Sheets 1.0.0.3 false Consolidated Balance Sheets (USD $) In Millions false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 6 Current assets: 4 us-gaap_AssetsCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 7 Cash and cash equivalents 5 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 true true 2286000000 2286 false false 2 true true 1543000000 1543 false false No definition available. No authoritative reference available. false 8 Receivables, net 5 us-gaap_ReceivablesNetCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 2603000000 2603 false false 2 false true 3136000000 3136 false false No definition available. No authoritative reference available. false 9 Inventories, net 5 us-gaap_InventoryNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 3825000000 3825 false false 2 false true 3806000000 3806 false false No definition available. No authoritative reference available. false 10 Costs in excess of billings 5 us-gaap_CostsInExcessOfBillingsOnUncompletedContractsOrProgramsExpectedToBeCollectedWithinOneYear us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 590000000 590 false false 2 false true 618000000 618 false false No definition available. No authoritative reference available. false 11 Deferred income taxes 5 us-gaap_DeferredTaxAssetsNetCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 215000000 215 false false 2 false true 271000000 271 false false No definition available. No authoritative reference available. false 12 Prepaid and other current assets 5 nov_PrepaidAndOtherCurrentAssets nov false debit instant monetary Prepaid and other current assets. false false false false false false false false false 1 false true 391000000 391 false false 2 false true 283000000 283 false false Prepaid and other current assets. No authoritative reference available. true 13 Total current assets 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 9910000000 9910 false false 2 false true 9657000000 9657 false false No definition available. No authoritative reference available. false 14 Property, plant and equipment, net 4 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 1758000000 1758 false false 2 false true 1677000000 1677 false false No definition available. No authoritative reference available. false 15 Deferred income taxes 4 us-gaap_DeferredTaxAssetsNetNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 195000000 195 false false 2 false true 126000000 126 false false No definition available. No authoritative reference available. false 16 Goodwill 4 us-gaap_Goodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 5466000000 5466 false false 2 false true 5225000000 5225 false false No definition available. No authoritative reference available. false 17 Intangibles, net 4 us-gaap_IndefiniteLivedIntangibleAssetsExcludingGoodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 4134000000 4134 false false 2 false true 4300000000 4300 false false No definition available. No authoritative reference available. false 18 Investment in unconsolidated affiliate 4 us-gaap_EquityMethodInvestments us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 387000000 387 false false 2 false true 421000000 421 false false No definition available. No authoritative reference available. false 19 Other assets 4 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 89000000 89 false false 2 false true 73000000 73 false false No definition available. No authoritative reference available. true 20 Total assets 4 us-gaap_Assets us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 21939000000 21939 false false 2 false true 21479000000 21479 false false No definition available. No authoritative reference available. true 22 Current liabilities: 4 us-gaap_LiabilitiesCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 23 Accounts payable 5 us-gaap_AccountsPayableCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 760000000 760 false false 2 false true 852000000 852 false false No definition available. No authoritative reference available. false 24 Accrued liabilities 5 us-gaap_AccruedLiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2082000000 2082 false false 2 false true 2376000000 2376 false false No definition available. No authoritative reference available. false 25 Billings in excess of costs 5 us-gaap_BillingsInExcessOfCost us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2081000000 2081 false false 2 false true 2161000000 2161 false false No definition available. No authoritative reference available. false 26 Current portion of long-term debt and short-term borrowings 5 us-gaap_DebtCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 8000000 8 false false 2 false true 4000000 4 false false No definition available. No authoritative reference available. false 27 Accrued income taxes 5 us-gaap_AccruedIncomeTaxesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 236000000 236 false false 2 false true 230000000 230 false false No definition available. No authoritative reference available. true 28 Total current liabilities 5 us-gaap_LiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 5167000000 5167 false false 2 false true 5623000000 5623 false false No definition available. No authoritative reference available. false 29 Long-term debt 4 us-gaap_LongTermDebtNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 873000000 873 false false 2 false true 870000000 870 false false No definition available. No authoritative reference available. false 30 Deferred income taxes 4 us-gaap_DeferredTaxLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2150000000 2150 false false 2 false true 2134000000 2134 false false No definition available. No authoritative reference available. false 31 Other liabilities 4 us-gaap_OtherLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 144000000 144 false false 2 false true 128000000 128 false false No definition available. No authoritative reference available. true 32 Total liabilities 4 us-gaap_Liabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 8334000000 8334 false false 2 false true 8755000000 8755 false false No definition available. No authoritative reference available. true 34 Stockholders' equity: 4 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 35 Common stock - par value $.01; 418,192,372 and 417,350,924 shares issued and outstanding at June 30, 2009 and December 31, 2008 5 us-gaap_CommonStockValue us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 4000000 4 false false 2 false true 4000000 4 false false No definition available. No authoritative reference available. false 36 Additional paid-in capital 5 us-gaap_AdditionalPaidInCapitalCommonStock us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 8027000000 8027 false false 2 false true 7989000000 7989 false false No definition available. No authoritative reference available. false 37 Accumulated other comprehensive loss 5 us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true -161000000 -161 false false No definition available. No authoritative reference available. false 38 Retained earnings 5 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 5486000000 5486 false false 2 false true 4796000000 4796 false false No definition available. No authoritative reference available. true 39 Total Company stockholders' equity 5 us-gaap_StockholdersEquity us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 13517000000 13517 false false 2 false true 12628000000 12628 false false No definition available. No authoritative reference available. false 40 Noncontrolling interests 5 us-gaap_MinorityInterest us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 88000000 88 false false 2 false true 96000000 96 false false No definition available. No authoritative reference available. true 41 Total stockholders' equity 5 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 13605000000 13605 false false 2 false true 12724000000 12724 false false No definition available. No authoritative reference available. true 42 Total liabilities and stockholders' equity 5 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 true true 21939000000 21939 false false 2 true true 21479000000 21479 false false No definition available. No authoritative reference available. true false 2 35 false Millions UnKnown UnKnown false true XML 31 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet 00 - Document - Document and Company Information Document and Company Information R1.xml false Sheet 01 - Statement - Consolidated Balance Sheets Consolidated Balance Sheets R2.xml false Sheet 011 - Statement - Consolidated Balance Sheets (Parenthetical) Consolidated Balance Sheets (Parenthetical) R3.xml false Sheet 02 - Statement - Consolidated Statements of Income Consolidated Statements of Income R4.xml false Sheet 03 - Statement - Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows R5.xml false Sheet 0601 - Disclosure - Basis of Presentation Basis of Presentation R6.xml false Sheet 0602 - Disclosure - Grant Prideco Merger and Other Acquisitions Grant Prideco Merger and Other Acquisitions R7.xml false Sheet 0603 - Disclosure - Asset Impairment Asset Impairment R8.xml false Sheet 0604 - Disclosure - Inventories net Inventories net R9.xml false Sheet 0605 - Disclosure - Accrued Liabilities Accrued Liabilities R10.xml false Sheet 0606 - Disclosure - Costs and Estimated Earnings on Uncompleted Contracts Costs and Estimated Earnings on Uncompleted Contracts R11.xml false Sheet 0607 - Disclosure - Comprehensive Income Comprehensive Income R12.xml false Sheet 0608 - Disclosure - Business Segments Business Segments R13.xml false Sheet 0609 - Disclosure - Debt Debt R14.xml false Sheet 0610 - Disclosure - Tax Tax R15.xml false Sheet 0611 - Disclosure - Stock Based Compensation Stock Based Compensation R16.xml false Sheet 0612 - Disclosure - Derivative Financial Instruments Derivative Financial Instruments R17.xml false Sheet 0613 - Disclosure - Net Income Attributable to Company Per Share Net Income Attributable to Company Per Share R18.xml false Sheet 0614 - Disclosure - Recently Issued Accounting Standards Recently Issued Accounting Standards R19.xml false Book All Reports All Reports 1 10 0 0 3 109 false false TwelveMonthsEnded_31Dec2008 1 ThreeMonthsEnded_30Jun2009 20 BalanceAsOf_03Aug2009 1 ThreeMonthsEnded_30Jun2008 20 January-01-2009_June-30-2009 72 BalanceAsOf_31Dec2008 35 BalanceAsOf_30Jun2009 35 SixMonthsEnded_30Jun2008 47 BalanceAsOf_30Jun2008 2 BalanceAsOf_31Dec2007 1 true true EXCEL 32 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls MT,\1X*&Q&N$`````````````````````/@`#`/[_"0`&```````````````" M`````0``````````$```O`````$```#^____```````````"````________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M_______________________]_____O____W___\$````!0````8````'```` M"`````D````*````"P````P````-````#@````\````0````$0```!(````3 M````%````!4````6````%P```!@````9````&@```!L````<````'0```!X` M```?````(````"$````B````(P```"0````E````)@```"<````H````*0`` M`"H````K````+````"T````N````+P```#`````Q````,@```#,````T```` M-0```#8````W````.````#D````Z````.P```#P````]````/@```#\```!` M````00```$(```!#````1````$4```!&````1P```$@```!)````2@```$L` M``!,````30```$X```!/````4````%$```!2````4P```%0```!5````5@`` M`%<```!8````60```%H```!;````7````%T```!>````7P```&````!A```` M8@```&,```!D````90```&8```!G````:````&D```!J````:P```&P```!M M````;@```&\```!P````<0```'(```!S````=````'4```!V````=P```'@` M``!Y````>@```'L```!\````?0```'X```!_````@````%(`;P!O`'0`(`!% M`&X`=`!R`'D````````````````````````````````````````````````` M```````````6``4`__________\"```````````````````````````````` M`````````#`:KK>A&````GP```*````"A M````H@```*,```"D````I0```*8```"G````J````*D```"J````JP```*P` M``"M````K@```*\```"P````L0```+(```"S````M````+4```"V````MP`` M`+@```"Y````N@```+L```#^_____O____[_________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M______________________________\)"!````8%`$88S0?!@```!@(``.$` M`@"P!,$``@```.(```!<`'``!P``&)R;```!@(````````````````` M```````````````````````````````````````````````````````````` M`````````````````````````````````````````````````````$(``@"P M!&$!`@```,`!```]`28``0`"``,`!``%``8`!P`(``D`"@`+``P`#0`.``\` M$``1`!(`$P"<``(`#@`9``(````2``(````3``(```"O`0(```"\`0(````] M`!(`\`!:`$PLBQHX```````!`%@"0``"````C0`"````(@`"````#@`"``$` MMP$"````V@`"````,0`<`,@```#_?Y`!````````!@%4`&$`:`!O`&T`80`Q M`!P`R````/]_D`$````````&`50`80!H`&\`;0!A`#$`'`#(````_W^0`0`` M``````8!5`!A`&@`;P!M`&$`,0`<`,@```#_?Y`!````````!@%4`&$`:`!O M`&T`80`Q`!P`R````/]_O`(````````&`50`80!H`&\`;0!A`#$`'`#(```` M_W^0`0``(0````8!5`!A`&@`;P!M`&$`'@0W``4`&0`!(@`D`"(`(P`L`",` M(P`P`%\`*0`[`%P`*``@`"(`)``B`",`+``C`",`,`!<`"``*0`>!$$`!@`> M``$B`"0`(@`C`"P`(P`C`#``7P`I`#L`6P!2`&4`9`!=`%P`*``@`"(`)``B M`",`+``C`",`,`!<`"``*0`>!$,`!P`?``$B`"0`(@`C`"P`(P`C`#``+@`P M`#``7P`I`#L`7``H`"``(@`D`"(`(P`L`",`(P`P`"X`,``P`%P`(``I`!X$ M30`(`"0``2(`)``B`",`+``C`",`,``N`#``,`!?`"D`.P!;`%(`90!D`%T` M7``H`"``(@`D`"(`(P`L`",`(P`P`"X`,``P`%P`(``I`!X$<0`J`#8``5\` M*``B`"0`(@`J`"``(P`L`",`(P`P`%\`*0`[`%\`*``B`"0`(@`J`"``7``H M`"``(P`L`",`(P`P`%P`(``I`#L`7P`H`"(`)``B`"H`(``B`"T`(@!?`"D` M.P!?`"@`(`!``%\`(``I`!X$7P`I`"T``5\`*``J`"``(P`L`",`(P`P`%\` M*0`[`%\`*``J`"``7``H`"``(P`L`",`(P`P`%P`(``I`#L`7P`H`"H`(``B M`"T`(@!?`"D`.P!?`"@`(`!``%\`(``I`!X$@0`L`#X``5\`*``B`"0`(@`J M`"``(P`L`",`(P`P`"X`,``P`%\`*0`[`%\`*``B`"0`(@`J`"``7``H`"`` M(P`L`",`(P`P`"X`,``P`%P`(``I`#L`7P`H`"(`)``B`"H`(``B`"T`(@`_ M`#\`7P`I`#L`7P`H`"``0`!?`"``*0`>!&\`*P`U``%?`"@`*@`@`",`+``C M`",`,``N`#``,`!?`"D`.P!?`"@`*@`@`%P`*``@`",`+``C`",`,``N`#`` M,`!<`"``*0`[`%\`*``J`"``(@`M`"(`/P`_`%\`*0`[`%\`*``@`$``7P`@ M`"D`'@0C`*0`#P`!)``C`"P`(P`C`#``.P`H`"0`(P`L`",`(P`P`"D`'@0? M`*4`#0`!(P`L`",`(P`P`#L`*``C`"P`(P`C`#``*0`>!"L`I@`3``$C`"P` M(P`C`#``+@`C`",`.P`H`",`+``C`",`,``N`",`(P`I`.``%```````]?\@ M``````````````#`(.``%``!````]?\@``#T``````````!!(.``%``!```` M]?\@``#T``````````!!(.``%``"````]?\@``#T``````````!!(.``%``" M````]?\@``#T``````````!!(.``%```````]?\@``#T``````````!!(.`` M%```````]?\@``#T``````````!!(.``%```````]?\@``#T``````````!! M(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T```````` M``!!(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T```` M``````!!(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T M``````````!!(.``%```````]?\@``#T``````````!!(.``%````````0`@ M``````````````#`(.``%``!`"L`]?\@``#X``````````!!(.``%``!`"D` M]?\@``#X``````````!!(.``%``!`"P`]?\@``#X``````````!!(.``%``! M`"H`]?\@``#X``````````!!(.``%``!``D`]?\@``#X``````````!!(.`` M%``%`````0`@```(``````````#`(.``%``%`````0`H```8``````````#` M(.``%``%`````0`J```8``````````#`(.``%````````0`H```0```````` M``#`(.``%```````"0`@``````````````#`(.``%```````"0`H```0```` M``````#`(.``%```````"0`(```0``````````#`(.``%````*0``0`@```$ M``````````#`(.``%````*4``0`@```$``````````#`(.``%``&`*4``0`@ M```,``````````#`(.``%``&`*0``0`@```,``````````#`(.``%````*8` M`0`@```$``````````#`(.``%``&`*8``0`@```,``````````#`(),"!``` M@`#_DP($`!"``_^3`@0`$8`&_Y,"!``2@`3_DP($`!.`!_^3`@0`%(`%_V`! M`@```(4`1@#I,P$````?`40`;P!C`'4`;0!E`&X`=``@`&$`;@!D`"``0P!O M`&T`<`!A`&X`>0`@`$D`;@!F`&\`<@!M`&$`=`!I`&\`A0`^`"(X`0```!L! M0P!O`&X``0```!\!0P!O`',`=`!S`"``80!N`&0`(`!%`',`=`!I`&T`80!T M`&4`9``@`$4`80!R`&X`:0!N`&<`0`@`$D` M0`@`%(`90!G`&D`0`@`%<`90!L`&P`+0!K`&X`;P!W`&X`(`!3`&4`80!S M`&\`;@!E`&0`(`!)`',`0`@`%8`;P!L`'4`;@!T`&$`<@!Y`"``1@!I`&P`90!R`',`'P`!10!N`'0` M:0!T`'D`(`!#`'4`<@!R`&4`;@!T`"``4@!E`'``;P!R`'0`:0!N`&<`(`!3 M`'0`80!T`'4`0`@`$8`:0!L`&4`<@`@`$,`80!T M`&4`9P!O`'(`>0`7``%,`&$`<@!G`&4`(`!!`&,`8P!E`&P`90!R`&$`=`!E M`&0`(`!&`&D`;`!E`'(`$P`!10!N`'0`:0!T`'D`(`!0`'4`8@!L`&D`8P`@ M`$8`;`!O`&$`=``G``%%`&X`=`!I`'0`>0`@`$,`;P!M`&T`;P!N`"``4P!T M`&\`8P!K`"P`(`!3`&@`80!R`&4``!C`&4`0`@`&D`;@!C`&\`;0!E`"``:0!N`"`` M=0!N`&,`;P!N`',`;P!L`&D`9`!A`'0`90!D`"``80!F`&8`:0!L`&D`80!T M`&4`&P`!3P!T`&@`90!R`"``:0!N`&,`;P!M`&4`(``H`&4`>`!P`&4`;@!S M`&4`*0`L`"``;@!E`'0`&@`!20!N`&,`;P!M`&4`(`!B`&4`9@!O`'(`90`@ M`&D`;@!C`&\`;0!E`"``=`!A`'@`90!S`!H``5``<@!O`'8`:0!S`&D`;P!N M`"``9@!O`'(`(`!I`&X`8P!O`&T`90`@`'0`80!X`&4`0`@`'``90!R`"`` M@!A`'0`:0!O`&X`,0`!10!X`&,`90!S`',`(`!T`&$`>``@`&(` M90!N`&4`9@!I`'0`(`!F`'(`;P!M`"``90!X`&4`<@!C`&D`0`@`"@`=0!S`&4`9``@`&D` M;@`I`"``9@!I`&X`80!N`&,`:0!N`&<`(`!A`&,`=`!I`'8`:0!T`&D`90!S M`"```44`9@!F`&4`8P!T`"``;P!F`"``90!X`&,`:`!A`&X`9P!E`"``<@!A M`'0`90!S`"``;P!N`"``8P!A`',`:``<``%)`&X`8P!R`&4`80!S`&4`(`!I M`&X`(`!C`&$``!E`',`%0`!0@!A`',`:0!S`"``;P!F`"``4`!R M`&4`0`@ M`'<`:0!T`&@`(`!G`&4`;@!E`'(`80!L`&P`>0`@`&$`8P!C`&4`<`!T`&4` M9``@`&$`8P!C`&\`=0!N`'0`:0!N`&<`(`!P`'(`:0!N`&,`:0!P`&P`90!S M`"``*`!'`$$`00!0`"D`(`!I`&X`(`!T`&@`90`@`%4`;@!I`'0`90!D`"`` M4P!T`&$`=`!E`',`(`!R`&4`<0!U`&D`<@!E`',`(`!M`&$`;@!A`&<`90!M M`&4`;@!T`"``=`!O`"``;0!A`&L`90`@`&4`0`@`&0`;P`@`&X`;P!T`"``:0!N`&,`;`!U`&0`90`@`&$`;`!L`"`` M:0!N`&8`;P!R`&T`80!T`&D`;P!N`"``;P!R`"``9@!O`&\`=`!N`&\`=`!E M`',`(`!R`&4`<0!U`&D`<@!E`&0`(`!B`'D`(`!'`$$`00!0`"``:0!N`"`` M=`!H`&4`(`!5`&X`:0!T`&4`9``@`%,`=`!A`'0`90!S`"``9@!O`'(`(`!C M`&\`;0!P`&P`90!T`&4`(`!C`&\`;@!S`&\`;`!I`&0`80!T`&4`9``@`&8` M:0!N`&$`;@!C`&D`80!L`"``0`@`&8`;P!R`"``80`@`&8`80!I`'(`(`!P M`'(`90!S`&4`;@!T`&$`=`!I`&\`;@`@`&\`9@`@`'0`:`!E`"``<@!E`',` M=0!L`'0`0`@`',`:`!O`'(`=``@`&T`80!T`'4`<@!I`'0`>0`@`&\`9@`@`'0`:`!E M`',`90`@`&D`;@!S`'0`<@!U`&T`90!N`'0``!I`&T`80!T`&4`;`!Y`"``-0`V`"X`.0!M`&D`;`!L M`&D`;P!N`"``0`L`"``<`!L`&$`;@!T M`"``80!N`&0`(`!E`'$`=0!I`'``;0!E`&X`=``@`"``"0`)`"``"0`S`#D` M,@`@``D`#0`-``T`1P!O`&\`9`!W`&D`;`!L`"``(``)``D`(``)`#(`+``W M`#<`,@`@``D`#0`-``T`20!N`'0`80!N`&<`:0!B`&P`90!S`"``(``)``D` M(``)`#,`+``V`#D`-@`@``D`#0`-``T`20!N`'8`90!S`'0`;0!E`&X`=``@ M`&D`;@`@`'4`;@!C`&\`;@!S`&\`;`!I`&0`80!T`&4`9``@`&$`9@!F`&D` M;`!I`&$`=`!E`"``(``)``D`(``)`#4`,0`R`"``"0`-``T`#0!/`'0`:`!E M`'(`(`!A`',```@`&T`;P!N`'0`:``@`'`` M90!R`&D`;P!D`',`(`!E`&X`9`!E`&0`(`!*`'4`;@!E`#,`,``L`"``,@`P M`#``.``@`&D`;@!C`&P`=0!D`&4``!C`&4`<`!T`"``<`!E`'(`(`!S`&@`80!R`&4`(`!D`&$`=`!A M`"D`.@`@`"``#0`-``T`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@`#P` M&R`!"0`)`"``"0`)`"``"0`)`"``"0`-``T`"0`@``D`5`!H`'(`90!E`"`` M30!O`&X`=`!H`',`(`!%`&X`9`!E`&0`(``)``D`(``)`%,`:0!X`"``30!O M`&X`=`!H`',`(`!%`&X`9`!E`&0`(``)``T`#0`)`"``"0!*`'4`;@!E`"`` M,P`P`"P`(``)``D`(``)`$H`=0!N`&4`(``S`#``+``@``D`#0`-``D`(``) M`#(`,``P`#D`(``)``D`(``)`#(`,``P`#@`(``)``D`(``)`#(`,``P`#D` M(``)``D`(``)`#(`,``P`#@`(``)``T`#0`-`%0`;P!T`&$`;``@`'(`90!V M`&4`;@!U`&4`0`@`'``90!R M`"``0`@`'``90!R`"````@`&T`;P!N`'0` M:`!S`"``90!N`!```4$`0`@`&$`8P!C`&4`<`!T`&4`9``@`&$`8P!C`&\`=0!N`'0`:0!N`&<` M(`!P`'(`:0!N`&,`:0!P`&P`90!S`"``<@!E`'$`=0!I`'(`90`@`'0`:`!E M`"``0P!O`&T`<`!A`&X`>0`@`'0`;P`@`'0`90!S`'0`(`!G`&\`;P!D`'<` M:0!L`&P`(`!A`&X`9``@`&\`=`!H`&4`<@`@`&D`;@!D`&4`9@!I`&X`:0!T M`&4`+0!L`&D`=@!E`&0`(`!I`&X`=`!A`&X`9P!I`&(`;`!E`"``80!S`',` M90!T`',`(`!F`&\`<@`@`&D`;0!P`&$`:0!R`&T`90!N`'0`(`!A`'0`(`!L M`&4`80!S`'0`(`!A`&X`;@!U`&$`;`!L`'D`(`!O`'(`(`!M`&\`<@!E`"`` M9@!R`&4`<0!U`&4`;@!T`&P`>0`@`'<`:`!E`&X`90!V`&4`<@`@`&4`=@!E M`&X`=`!S`"``;P!R`"``8P!I`'(`8P!U`&T`0!E`&$`<@!S`"X`(`!)`&X` M(`!A`&0`9`!I`'0`:0!O`&X`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0!S M`"``=0!P`&0`80!T`&4`9``@`&8`;P!R`&4`8P!A`',`=``@`'<`80!S`"`` M8@!E`&@`:0!N`&0`(`!T`&@`90`@`$,`;P!M`'``80!N`'D`0!S`"``8P!O`&X`0`@`&,`;P!N`&,`;`!U`&0`90!D`"`` M=`!H`&$`=``@`&4`=@!E`&X`=`!S`"``;P!R`"``8P!I`'(`8P!U`&T`0`@`'``90!R`&8`;P!R`&T`90!D`"``:0!T`',`(`!I`&X`=`!E M`'(`:0!M`"``:0!M`'``80!I`'(`;0!E`&X`=``@`'0`90!S`'0`(`!O`&8` M(`!G`&\`;P!D`'<`:0!L`&P`(`!F`&\`<@`@`&$`;`!L`"``:0!T`',`(`!R M`&4`<`!O`'(`=`!I`&X`9P`@`'4`;@!I`'0`0!S`"``:0!N`&0`:0!V`&D`9`!U`&$` M;``@`&(`=0!S`&D`;@!E`',`0`@`&8`;P!R`&,`90!S`"P`(`!P`'(`:0!C M`&D`;@!G`"``0!S`&D`0`L`"``80!N M`&0`(`!E`'@`:0!S`'0`:0!N`&<`(`!B``\``4D`;@!V`&4`;@!T`&\`<@!I M`&4`0!M`&4`;@!T`',`(`!A`&X`9``@ M`&(`:0!L`&P`:0!N`&<`0`@`&$`8P!C`'(`=0!E`',`(`!L`&D`80!B`&D` M;`!I`'0`:0!E`',`(`!U`&X`9`!E`'(`(`!S`&4`<@!V`&D`8P!E`"``80!N M`&0`(`!W`&$`<@!R`&$`;@!T`'D`(`!P`&\`;`!I`&,`:0!E`',`(`!B`&$` M`!P`&4`<@!I`&4`;@!C`&4`(`!C`&@`80!N`&<`90`N`"``20!N`"``80!D M`&0`:0!T`&D`;P!N`"P`(`!T`&@`90`@`$,`;P!M`'``80!N`'D`(`!I`&X` M8P!U`'(``!C`&4` M`!C`&4```@`$T`;P!N`'0`:`!S`"``10!N`&0`90!D`"``"0`-``T` M"0`@``D`2@!U`&X`90`@`#,`,``L`"``"0`)`"``"0!*`'4`;@!E`"``,P`P M`"P`(``)``T`#0`)`"``"0`R`#``,``Y`"``"0`)`"``"0`R`#``,``X`"`` M"0`)`"``"0`R`#``,``Y`"``"0`)`"``"0`R`#``,``X`"``"0`-``T`#0!. M`&4`=``@`&D`;@!C`&\`;0!E`"``(``)``D`)``@``D`,@`R`#(`(``)``D` M(``)`"0`(``)`#0`,@`U`"``"0`)`"``"0`D`"``"0`V`#D`-0`@``D`"0`@ M``D`)``@``D`.``R`#4`(``)``T`#0`-`$,`=0!R`'(`90!N`&,`>0`@`'0` M<@!A`&X```@`"``"0`)`"``"0`Q`#$`,@`@``D` M"0`@``D`"0`Q`#$`(``)``D`(``)``D`-0`W`"``"0`)`"``"0`)`#,`.``@ M``D`#0`-``T`0P!H`&$`;@!G`&4```@`"``"0`)`"``"0`X`#,` M(``)``D`(``)``D`(``)``D`(``)``D`,0`P`#4`(``)``D`(``)``D`,@`Q M`"``"0`-``T`#0!#`&@`80!N`&<`90!S`"``:0!N`"``9`!E`&8`:0!N`&4` M9``@`&(`90!N`&4`9@!I`'0`(`!P`&P`80!N`',`+``@`&X`90!T`"``;P!F M`"``=`!A`'@`(``@``D`"0`@``D`*``Q`"``"0`I`"``"0`)`"``"0`Q`"`` M"0`)`"``"0`)`"@`,0`@``D`*0`@``D`"0`@``D`"0`-``T`#0`)`"``"0`) M`"``"0`)`"``"0`)`"``"0`)`"``"0`)``T`#0`-`$,`;P!M`'``<@!E`&@` M90!N`',`:0!V`&4`(`!I`&X`8P!O`&T`90`@`"``"0`)`"``"0`T`#$`-@`@ M``D`"0`@``D`"0`T`#,`-P`@``D`"0`@``D`"0`X`#4`-@`@``D`"0`@``D` M"0`X`#@`-``@``D`#0`-``T`0P!O`&T`<`!R`&4`:`!E`&X`0`@`&D`0`@`%0`<@!A`&X`0`@`&\`9@`@`'0`:`!E`',`90`@`&P`;P!C`&$`;``@`&,`=0!R M`'(`90!N`&,`:0!E`',`(`!S`'0`<@!E`&X`9P!T`&@`90!N`&4`9``@`&$` M9P!A`&D`;@!S`'0`(`!T`&@`90`@`%4`+@!3`"X`(`!D`&\`;`!L`&$`<@`@ M`'(`90!S`'4`;`!T`&D`;@!G`"``:0!N`"``80`@`&X`90!T`"``:0!N`&,` M<@!E`&$`0!I`&X`9P`@`'0`<@!A`&X`0`@`&$`<@!E`"`` M9`!E`',`:0!G`&X`90!D`"``=`!O`"``:`!E`&0`9P!E`"``80!R`&4`(`!R M`&4`80!L`&D`>@!E`&0`+@`@`%0`:`!E`"``;0!O`'8`90!M`&4`;@!T`"`` M:0!N`"``3P!T`&@`90!R`"``0P!O`&T`<`!R`&4`:`!E`&X`0`@ M`'(`80!T`&4`0`@`&T`80!T`'4`<@!E`&0`(`!D`&4`<@!I`'8` M80!T`&D`=@!E`',`+@`@`%0`:`!E`"``80!C`&,`=0!M`'4`;`!A`'0`90!D M`"``90!F`&8`90!C`'0`0`@`"@`80`I`"``(``)``D`)``@``D`-0`S`#0`(``)``D`(``)`"0` M(``)`#4`,``V`"``"0`)`"``"0`D`"``"0`Q`"P`,0`T`#``(``)``D`(``) M`"0`(``)`#D`,0`R`"``"0`-``T`#0!0`&4`=`!R`&\`;`!E`'4`;0`@`%,` M90!R`'8`:0!C`&4``!P`&4`;@!S`&4```@`&T` M;P!N`'0`:`!S`"``90!N`&0`90!D`"``2@!U`&X`90`S`#``+``@`#(`,``P M`#D`+@`@`"``#0`-``T`"0`H`&(`*0`@``D`"0!4`&@`90`@`$,`;P!M`'`` M80!N`'D`(`!R`&4`8P!O`'(`9`!E`&0`(`!A`"``)``Q`#0`-P!M`&D`;`!L M`&D`;P!N`"``:0!M`'``80!I`'(`;0!E`&X`=``@`&,`:`!A`'(`9P!E`"`` M=`!O`"``;P!T`&@`90!R`"``:0!N`&0`90!F`&D`;@!I`'0`90`M`&P`:0!V M`&4`9``@`&D`;@!T`&$`;@!G`&D`8@!L`&4`(`!A`',`0`@ M`&$`;@!D`"``:0!S`"``8@!E`&D`;@!G`"``8P!H`&$`<@!G`&4`9``@`'0` M;P`@`$,`;P!S`'0`(`!O`&8`(`!R`&4`=@!E`&X`=0!E`"``80!S`"``=`!H M`&4`(`!A`'``<`!L`&D`8P!A`&(`;`!E`"``:0!N`'8`90!N`'0`;P!R`'D` M(`!I`',`(`!S`&\`;`!D`"X`(`!#`&\`0`@`&,`:`!A M`'(`9P!E`',`(`!F`&\`<@`@`'0`:`!E`"``=`!H`'(`90!E`"``80!N`&0` M(`!S`&D`>``@`&T`;P!N`'0`:`!S`"``90!N`&0`90!D`"``2@!U`&X`90`S M`#``+``@`#(`,``P`#@`+@`@`"``#0`-``T`"0`H`&0`*0`@``D`"0!4`&@` M90`@`$,`;P!M`'``80!N`'D`(`!R`&4`8P!O`'(`9`!E`&0`(`!A`"``)``T M`#8`;0!I`&P`;`!I`&\`;@`@`&,`:`!A`'(`9P!E`"``<@!E`&P`80!T`&4` M9``@`'0`;P`@`&D`=`!S`"``5@!O`&P`=0!N`'0`80!R`'D`(`!%`&$`<@!L M`'D`(`!2`&4`=`!I`'(`90!M`&4`;@!T`"``4`!R`&\`9P!R`&$`;0`@`&8` M;P!R`"``=`!H`&4`(`!T`&@`<@!E`&4`(`!A`&X`9``@`',`:0!X`"``;0!O M`&X`=`!H`',`(`!E`&X`9`!E`&0`(`!*`'4`;@!E`#,`,``L`"``,@`P`#`` M.0`N`"``(``@``T`#0!4`&@`90`@`$,`;P!M`'``80!N`'D`(`!H`&$`9``@ M`'(`90!V`&4`;@!U`&4`0!A`'(`9``@`&$`8P!T`&D`;@!G M`"``80!S`"``80`@`&<`90!N`&4`<@!A`&P`(`!C`&\`;@!T`'(`80!C`'0` M;P!R`"``9@!O`'(`(`!I`'0`0`N M`"``5`!H`&4`<@!E`"``=P!E`'(`90`@`&X`;P`@`&,`=0!S`'0`;P!M`&4` M<@!S`"``=`!H`&$`=``@`'(`90!P`'(`90!S`&4`;@!T`&4`9``@`#$`,``E M`"``;P!R`"``9P!R`&4`80!T`&4`<@`@`&\`9@`@`'0`;P!T`&$`;``@`'(` M90!V`&4`;@!U`&4`(`!F`&\`<@`@`'0`:`!E`"``0`L`"``<`!R`&D`;@!C`&D`<`!A`&P`(`!D`'4`90`@`&\`;@`@`$T` M80!R`&,`:``Q`#4`+``@`#(`,``Q`#$`(``@``D`"0`D`"``"0`Q`#4`,``@ M``D`"0`@``D`)``@``D`,0`U`#``(``)``T`#0`-``D`(``)``D`(``)``D` M(``)``D`#0`-``T`4P!E`&X`:0!O`'(`(`!.`&\`=`!E`',`+``@`&D`;@!T M`&4`<@!E`',`=``@`&$`=``@`#<`+@`R`#4`)0`@`'``80!Y`&$`8@!L`&4` M(`!S`&4`;0!I`&$`;@!N`'4`80!L`&P`>0`L`"``<`!R`&D`;@!C`&D`<`!A M`&P`(`!D`'4`90`@`&\`;@`@`$T`80!Y`#$`+``@`#(`,``Q`#$`(``@``D` M"0`@``D`,@`P`#8`(``)``D`(``)``D`,@`P`#@`(``)``T`#0`-``D`(``) M``D`(``)``D`(``)``D`#0`-``T`4P!E`&X`:0!O`'(`(`!.`&\`=`!E`',` M+``@`&D`;@!T`&4`<@!E`',`=``@`&$`=``@`#4`+@`V`#4`)0`@`'``80!Y M`&$`8@!L`&4`(`!S`&4`;0!I`&$`;@!N`'4`80!L`&P`>0`L`"``<`!R`&D` M;@!C`&D`<`!A`&P`(`!D`'4`90`@`&\`;@`@`$X`;P!V`&4`;0!B`&4`<@`Q M`#4`+``@`#(`,``Q`#(`(``@``D`"0`@``D`,@`P`#``(``)``D`(``)``D` M,@`P`#``(``)``T`#0`-``D`(``)``D`(``)``D`(``)``D`#0`-``T`4P!E M`&X`:0!O`'(`(`!.`&\`=`!E`',`+``@`&D`;@!T`&4`<@!E`',`=``@`&$` M=``@`#4`+@`U`"4`(`!P`&$`>0!A`&(`;`!E`"``0`L`"``<`!R`&D`;@!C M`&D`<`!A`&P`(`!D`'4`90`@`&\`;@`@`$$`=0!G`'4``!C`&@`80!N`&<`90`@`&\`9@!F`&4`<@`@`'(`90!L`&$` M=`!I`'8`90`@`'0`;P`@`'0`:`!E`"``)``Q`#<`-0!M`&D`;`!L`&D`;P!N M`"``;P!F`"``-@`N`#$`,@`U`"4`(`!3`&4`;@!I`&\`<@`@`$X`;P!T`&4` M0`@`$<`<@!A`&X`=``@`%``<@!I`&0`90!C`&\` M+@`@`$\`;@`@`$$`<`!R`&D`;``R`#$`+``@`#(`,``P`#@`+``@`"0`,0`U M`#$`;0!I`&P`;`!I`&\`;@`@`&\`9@`@`$<`<@!A`&X`=``@`%``<@!I`&0` M90!C`&\`(`!3`&4`;@!I`&\`<@`@`$X`;P!T`&4`0!M`&4`;@!T M`"``9`!A`'0`90!S`"P`(`!R`&4`9`!E`&T`<`!T`&D`;P!N`"``=`!E`'(` M;0!S`"``80!N`&0`(`!M`&$`=`!U`'(`:0!T`'D`(`!A`',`(`!T`&@`90`@ M`$<`<@!A`&X`=``@`%``<@!I`&0`90!C`&\`(`!3`&4`;@!I`&\`<@`@`$X` M;P!T`&4`0`@`'(`90!P`'4`<@!C`&@`80!S`&4` M9``@`"0`,@`S`&T`:0!L`&P`:0!O`&X`(`!O`&8`(`!T`&@`90`@`'4`;@!E M`'@`8P!H`&$`;@!G`&4`9``@`$<`<@!A`&X`=``@`%``<@!I`&0`90!C`&\` M(`!3`&4`;@!I`&\`<@`@`$X`;P!T`&4``!I`',`=`!I`&X`9P`@`"0`-0`P`#``;0!I`&P`;`!I`&\`;@`@ M`'4`;@!S`&4`8P!U`'(`90!D`"``<@!E`'8`;P!L`'8`:0!N`&<`(`!C`'(` M90!D`&D`=``@`&8`80!C`&D`;`!I`'0`>0`@`'<`:0!T`&@`(`!A`&X`(`!A M`&<`9P!R`&4`9P!A`'0`90`@`&\`9@`@`"0`,P!B`&D`;`!L`&D`;P!N`"`` M;P!F`"``=0!N`',`90!C`'4`<@!E`&0`(`!C`'(`90!D`&D`=``@`&8`80!C M`&D`;`!I`'0`:0!E`',`(`!A`&X`9``@`&(`;P!R`'(`;P!W`&4`9``@`"0` M,@!B`&D`;`!L`&D`;P!N`"``=`!O`"``9@!I`&X`80!N`&,`90`@`'0`:`!E M`"``8P!A`',`:``@`'``;P!R`'0`:0!O`&X`(`!O`&8`(`!T`&@`90`@`$<` M<@!A`&X`=``@`%``<@!I`&0`90!C`&\`(`!A`&,`<0!U`&D`0!E`&$`<@`@`'(`90!V`&\`;`!V`&D`;@!G`"`` M8P!R`&4`9`!I`'0`(`!F`&$`8P!I`&P`:0!T`'D`(`!A`&X`9``@`&$`(``D M`#$`8@!I`&P`;`!I`&\`;@`L`"``,P`V`#0`+0!D`&$`>0`@`'(`90!V`&\` M;`!V`&D`;@!G`"``8P!R`&4`9`!I`'0`(`!F`&$`8P!I`&P`:0!T`'D`+@`@ M`$$`=``@`$H`=0!N`&4`,P`P`"P`(``R`#``,``Y`"P`(`!T`&@`90!R`&4` M(`!W`&4`<@!E`"``;@!O`"``8@!O`'(`<@!O`'<`:0!N`&<`0`@`$8`90!B`'(`=0!A`'(`>0`R M`#``,``Y`"P`(`!W`&4`(`!T`&4`<@!M`&D`;@!A`'0`90!D`"``90!A`'(` M;`!Y`"``=`!H`&4`(``D`#$`8@!I`&P`;`!I`&\`;@`L`"``,P`V`#0`+0!D M`&$`>0`@`'(`90!V`&\`;`!V`&D`;@!G`"``8P!R`&4`9`!I`'0`(`!F`&$` M8P!I`&P`:0!T`'D`+``@`'<`:`!I`&,`:``@`&T`80!T`'4`<@!E`&0`(`!! M`'``<@!I`&P`,@`P`"P`(``R`#``,``Y`"X`(``@``T`#0!4`&@`90`@`$,` M;P!M`'``80!N`'D`(`!A`&P`0`@`&D`;@`@`$X`;P!R`'<`80!Y`"P`(`!T M`&@`80!T`"``80!R`&4`(`!E`',``!I`&T`=0!M M`"``9`!E`&(`=``@`'0`;P`@`&,`80!P`&D`=`!A`&P`:0!Z`&$`=`!I`&\` M;@`N`"``5P!E`"``=P!E`'(`90`@`&D`;@`@`&,`;P!M`'``;`!I`&$`;@!C M`&4`(`!W`&D`=`!H`"``80!L`&P`(`!C`&\`=@!E`&X`80!N`'0`0`@`"0`-0!M`&D`;`!L M`&D`;P!N`"``:0!N`"``<`!R`&\`;0!I`',`0`@`&X`;P!T`&4` M``.``%4`&$`>``@ M`%L`00!B`',`=`!R`&$`8P!T`%T`@`P!(``@`"``(``@``T`#0`-`#$`,``N M`"``5`!A`'@`(``@``T`#0!4`&@`90`@`&4`9@!F`&4`8P!T`&D`=@!E`"`` M=`!A`'@`(`!R`&$`=`!E`"``9@!O`'(`(`!T`&@`90`@`'0`:`!R`&4`90`@ M`&$`;@!D`"``@!E`&0` M(`!I`&X`(`!T`&@`90`@`'``90!R`&D`;P!D`"``;P!N`"``<`!R`&D`;P!R M`"``>0!E`&$`<@`@`&D`;@!C`&\`;0!E`"``:0!N`"``3@!O`'(`=P!A`'D` M+@`@`%0`:`!E`',`90`@`&$`9`!D`&D`=`!I`&\`;@!A`&P`(`!T`&$`>`!E M`',`(`!R`&4`0`@`&<`80!I`&X`@!E`&0`(`!F M`&\`<@`@`$X`;P!R`'<`90!G`&D`80!N`"``=`!A`'@`(`!P`'4`<@!P`&\` M0`@`&4`>`!P`&4`8P!T M`',`(`!I`'0`0`@`'(`80!T`&4`(``@``D`"0`D M`"``"0`Q`#(`-``@``D`"0`@``D`)``@``D`,@`S`#@`(``)``D`(``)`"0` M(``)`#,`-@`Y`"``"0`)`"``"0`D`"``"0`T`#0`-``@``D`#0`-``T`"0`@ M``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`-``T` M#0!&`&\`<@!E`&D`9P!N`"``:0!N`&,`;P!M`&4`(`!T`&$`>``@`'(`80!T M`&4`(`!D`&D`9@!F`&4`<@!E`&X`=`!I`&$`;``@`"``"0`)`"``"0`H`#(` M-@`@``D`*0`@``D`"0`@``D`*``R`#,`(``)`"D`(``)``D`(``)`"@`/``; M(`$U`#@`(``)`"D`(``)``D`(``)`"@`-``S`"``"0`I`"``(``-``T`#0!3 M`'0`80!T`&4`(`!I`&X`8P!O`&T`90`@`'0`80!X`"P`(`!N`&4`=``@`&\` M9@`@`&8`90!D`&4`<@!A`&P`(`!B`&4`;@!E`&8`:0!T`"``(``)``D`(``) M`#(`(``)``D`(``)``D`,0`Q`"``"0`)`"``"0`)`#@`(``)``D`(``)``D` M,0`W`"``"0`-``T`#0!&`&\`<@!E`&D`9P!N`"``9`!I`'8`:0!D`&4`;@!D M`',`+``@`&X`90!T`"``;P!F`"``9@!O`'(`90!I`&<`;@`@`'0`80!X`"`` M8P!R`&4`9`!I`'0`0!E`&$`<@`@`'0`80!X`"``;P!N`"``<@!E M`'8`80!L`'4`80!T`&D`;P!N`"``9P!A`&D`;@!S`"``:0!N`"``3@!O`'(` M=P!A`'D`(``@``D`"0`@``D`,@`Q`"``"0`)`"``"0`)`"``"0`)`"``"0`) M`#(`,0`@``D`"0`@``D`"0`@``D`#0`-``T`3P!T`&@`90!R`"``(``)``D` M(``)`#,`(``)``D`(``)``D`*``S`"``"0`I`"``"0`)`"``"0`W`"``"0`) M`"``"0`)`"@`,0`P`"``"0`I`"``(``-``T`#0`)`"``"0`)`"``"0`)`"`` M"0`)`"``"0`)`"``"0`)``T`#0`-`%``<@!O`'8`:0!S`&D`;P!N`"``9@!O M`'(`(`!I`&X`8P!O`&T`90`@`'0`80!X`&4`0`@`&D`;@`@`&D`;@!C`&\`;0!E`"``=`!A`'@`90!S`"``:0!N M`"``80!C`&,`;P!R`&0`80!N`&,`90`@`'<`:0!T`&@`(`!&`&D`;@!A`&X` M8P!I`&$`;``@`$$`8P!C`&\`=0!N`'0`:0!N`&<`(`!3`'0`80!N`&0`80!R M`&0`@!E`&0`(`!I`&X` M(`!A`&X`(`!E`&X`=`!I`'0`>0!S`"``9@!I`&X`80!N`&,`:0!A`&P`(`!S M`'0`80!T`&4`;0!E`&X`=`!S`"``:0!N`"``80!C`&,`;P!R`&0`80!N`&,` M90`@`'<`:0!T`&@`(`!&`$$`4P!"`"``4P!T`&$`=`!E`&T`90!N`'0`(`!. M`&\`+@`@`#$`,``Y`"P`(`!!`&,`8P!O`'4`;@!T`&D`;@!G`"``9@!O`'(` M(`!)`&X`8P!O`&T`90`@`%0`80!X`&4```@`'``;P!S`&D`=`!I`&\`;@!S`"``=`!A`&L` M90!N`"``;P!R`"``90!X`'``90!C`'0`90!D`"``=`!O`"``8@!E`"``=`!A M`&L`90!N`"``;P!N`"``80`@`'(`90!T`'4`<@!N`"X`(`!5`&X`9`!E`'(` M(`!&`$D`3@`@`#0`.``L`"``=`!H`&4`(`!I`&T`<`!A`&,`=``@`&\`9@`@ M`&$`;@`@`'4`;@!C`&4`<@!T`&$`:0!N`"``:0!N`&,`;P!M`&4`(`!T`&$` M>``@`'``;P!S`&D`=`!I`&\`;@`L`"``:0!N`"``;0!A`&X`80!G`&4`;0!E M`&X`=`!S`"``;P!P`&D`;@!I`&\`;@`L`"``;P!N`"``=`!H`&4`(`!I`&X` M8P!O`&T`90`@`'0`80!X`"``<@!E`'0`=0!R`&X`(`!M`'4`0`M`'0`:`!A`&X`(`!N`&\`=``@`'0`;P`@`&(` M90`@`',`=0!S`'0`80!I`&X`90!D`"``=0!P`&\`;@`@`&$`=0!D`&D`=``@ M`&(`>0`@`'0`:`!E`"``<@!E`&P`90!V`&$`;@!T`"``=`!A`'@`:0!N`&<` M(`!A`'4`=`!H`&\`<@!I`'0`>0`N`"``00!N`"``=0!N`&,`90!R`'0`80!I M`&X`(`!I`&X`8P!O`&T`90`@`'0`80!X`"``<`!O`',`:0!T`&D`;P!N`"`` M=P!I`&P`;``@`&X`;P!T`"``8@!E`"``<@!E`&,`;P!G`&X`:0!Z`&4`9``@ M`&D`9@`@`&D`=``@`&@`80!S`"``80`@`&P`90!S`',`(`!T`&@`80!N`"`` M-0`P`"4`(`!L`&D`:P!E`&P`:0!H`&\`;P!D`"``;P!F`"``8@!E`&D`;@!G M`"``@!E`&0`(`!T`&$`>``@`&(`90!N M`&4`9@!I`'0`0`@`&D``!A`'0`:0!O M`&X`(`!I`&X`(`!T`&@`90`@`%4`+@!3`"X`+``@`'8`80!R`&D`;P!U`',` M(`!S`'0`80!T`&4`0`@`&@`80!S`"``0!E`&$`<@!S`"``=`!H`&$`=``@`'(`90!M`&$`:0!N`"```!A`&T`:0!N`&$`=`!I`&\`;@`@`&(` M>0`@`&T`80!J`&\`<@`@`'0`80!X`"``:@!U`'(`:0!S`&0`:0!C`'0`:0!O M`&X`(`!V`&$`<@!Y`"``8@!Y`"``;`!E`&<`80!L`"``90!N`'0`&``!4P!T M`&\`8P!K`"``0@!A`',`90!D`"``0P!O`&T`<`!E`&X`0`L`"``80!N`&0`(``D`#$`-@!M`&D`;`!L`&D`;P!N`"``80!N`&0` M(``D`#(`.0!M`&D`;`!L`&D`;P!N`"``9@!O`'(`(`!T`&@`90`@`'0`:`!R M`&4`90`@`&$`;@!D`"``0`N`"``5`!H`&4`(`!T`&\`=`!A`&P`(`!I`&X`8P!O`&T` M90`@`'0`80!X`"``8@!E`&X`90!F`&D`=``@`'(`90!C`&\`9P!N`&D`>@!E M`&0`(`!I`&X`(`!T`&@`90`@`$,`;P!N`',`;P!L`&D`9`!A`'0`90!D`"`` M4P!T`&$`=`!E`&T`90!N`'0`0`L`"``80!N`&0`(``D`#<` M(`!M`&D`;`!L`&D`;P!N`"``80!N`&0`(``D`#$`,0!M`&D`;`!L`&D`;P!N M`"``9@!O`'(`(`!T`&@`90`@`'0`:`!R`&4`90`@`&$`;@!D`"``0`N`"``(``-``T` M1`!U`'(`:0!N`&<`(`!T`&@`90`@`',`:0!X`"``;0!O`&X`=`!H`',`(`!E M`&X`9`!E`&0`(`!*`'4`;@!E`#,`,``L`"``,@`P`#``.0`L`"``=`!H`&4` M(`!#`&\`;0!P`&$`;@!Y`"``9P!R`&$`;@!T`&4`9``@`#,`+``R`#,`-``L M`#0`,``P`"```!E M`'(`8P!I`',`90`@`'``<@!I`&,`90`@`&\`9@`@`"0`,@`U`"X`.0`V`"X` M(`!4`&@`90!S`&4`(`!O`'``=`!I`&\`;@!S`"``9P!E`&X`90!R`&$`;`!L M`'D`(`!V`&4`0`Q`#,`+``@`#(`,``P`#D`(`!T`&\`(`!T`&@` M90`@`&X`;P!N`"T`90!M`'``;`!O`'D`90!E`"``;0!E`&T`8@!E`'(`0!E`&$`<@`@`'``90!R`&D`;P!D`"`` M9@!R`&\`;0`@`'0`:`!E`"``9P!R`&$`;@!T`"``/``<(`%D`&$`=`!E`"X` M(`!/`'4`=``@`&\`9@`@`'0`:`!E`"``=`!O`'0`80!L`"``;@!U`&T`8@!E M`'(`(`!O`&8`(`!R`&4`0`@`&\`9@`@`'0`:`!E`"``9`!A`'0`90`@`&\`9@`@`&<`<@!A`&X`=``N M`"``3P!N`"``30!A`'D`,0`S`"P`(``R`#``,``Y`"P`(``Q`#D`+``R`#D` M,@`@`'(`90!S`'0`<@!I`&,`=`!E`&0`(`!S`'0`;P!C`&L`(`!A`'<`80!R M`&0`0!E M`&$`<@!S`"``;P!N`"``=`!H`&4`(`!A`&X`;@!I`'8`90!R`',`80!R`'D` M(`!O`&8`(`!T`&@`90`@`&<`<@!A`&X`=``@`&0`80!T`&4`+@`@`%0`:`!E M`"``<`!E`'(`9@!O`'(`;0!A`&X`8P!E`"T`8@!A`',`90!D`"``<@!E`',` M=`!R`&D`8P!T`&4`9``@`',`=`!O`&,`:P`@`&$`=P!A`'(`9`!S`"``;P!F M`"``,P`P`#D`+``P`#``,``@`'<`90!R`&4`(`!G`'(`80!N`'0`90!D`"`` M;P!N`"``1@!E`&(`<@!U`&$`<@!Y`#(`,``L`"``,@`P`#``.0`N`"``5`!H M`&4`(`!P`&4`<@!F`&\`<@!M`&$`;@!C`&4`+0!B`&$`0!P`&4`(`!O M`&8`(`!H`&4`9`!G`&D`;@!G`"``<@!E`&P`80!T`&D`;P!N`',`:`!I`'`` M+@`@`$8`;P!R`"``=`!H`&\`0`@`&T`=0!S`'0`(`!D`&4``!P M`&\`0`@`&4`>`!C`&@`80!N`&<`90`@`'(` M80!T`&4`(`!R`&D``!C`&@`80!N`&<`90`@`&,` M;P!N`'0`<@!A`&,`=`!S`"``80!G`&$`:0!N`',`=``@`'8`80!R`&D`;P!U M`',`(`!F`&\`<@!E`&D`9P!N`"``8P!U`'(`<@!E`&X`8P!I`&4`0`@`&4`>`!C`&@`80!N`&<`90`@`'(`80!T`&4`(`!R`&D`@!E`&0`(`!N M`&\`;@!F`'4`;@!C`'0`:0!O`&X`80!L`"``8P!U`'(`<@!E`&X`8P!Y`"`` M;0!O`&X`90!T`&$`<@!Y`"``80!C`&,`;P!U`&X`=`!S`"``*`!N`&\`;@`M M`&0`90!S`&D`9P!N`&$`=`!E`&0`(`!H`&4`9`!G`&4`*0`N`"``20!N`'0` M90!R`&4`0!I`&X` M9P`@`'(`:0!S`&L`0!I`&X`9P`@`&,`80!S`&@`(`!F`&P` M;P!W`',`(`!B`&4`:0!N`&<`(`!H`&4`9`!G`&4`9``L`"``=`!Y`'``:0!C M`&$`;`!L`'D`(`!R`&4`;`!A`'0`90!D`"``=`!O`"``=`!H`&4`(`!P`'(` M;P!J`&4`8P!T`',`(`!I`&X`(`!O`'4`<@`@`&(`80!C`&L`;`!O`&<`+@`@ M`%<`90`@`&T`80!Y`"``80!L`',`;P`@`'4`0`@`&,`=0!R`'(`90!N M`&,`>0`@`'(`90!L`&$`=`!E`&0`(`!D`&4`<@!I`'8`80!T`&D`=@!E`',` M*0`@`&$`<@!E`"``;`!E`'8`90!L`"``,@`@`&D`;@`@`'0`:`!E`"``9@!A M`&D`<@`@`'8`80!L`'4`90`@`&@`:0!E`'(`80!R`&,`:`!Y`"X`(`!!`'0` M(`!*`'4`;@!E`#,`,``L`"``,@`P`#``.0`L`"``=`!H`&4`(`!F`&$`:0!R M`"``=@!A`&P`=0!E`"``;P!F`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`',` M(`!F`&\`<@!E`&D`9P!N`"``8P!U`'(`<@!E`&X`8P!Y`"``9@!O`'(`=P!A M`'(`9``@`&,`;P!N`'0`<@!A`&,`=`!S`"``=`!O`'0`80!L`&4`9``@`"0` M,0`V`&T`:0!L`&P`:0!O`&X`+@`@`"``#0`-`$$```@`&T`;P!N`'0`:`!S`"``90!N`&0`90!D`"``2@!U`&X`90`S`#``+``@ M`#(`,``P`#D`+``@`'(`90!S`'``90!C`'0`:0!V`&4`;`!Y`"P`(`!A`&X` M9``@`#$`;0!I`&P`;`!I`&\`;@`@`',`:`!A`'(`90!S`"``9@!O`'(`(`!B M`&\`=`!H`"``=`!H`&4`(`!T`&@`<@!E`&4`(`!A`&X`9``@`',`:0!X`"`` M;0!O`&X`=`!H`',`(`!E`&X`9`!E`&0`(`!*`'4`;@!E`#,`,``L`"``,@`P M`#``.``L`"``<@!E`',`<`!E`&,`=`!I`'8`90!L`'D`+@`@`"``(``@`"`` M)``!4@!E`&,`90!N`'0`;`!Y`"``20!S`',`=0!E`&0`(`!!`&,`8P!O`'4` M;@!T`&D`;@!G`"``4P!T`&$`;@!D`&$`<@!D`',`+P`!4@!E`&,`90!N`'0` M;`!Y`"``20!S`',`=0!E`&0`(`!!`&,`8P!O`'4`;@!T`&D`;@!G`"``4P!T M`&$`;@!D`&$`<@!D`',`(`!;`$$`8@!S`'0`<@!A`&,`=`!=`(`,`2``(``@ M`"``(``-``T`#0`Q`#0`+@`@`%(`90!C`&4`;@!T`&P`>0`@`$D`0`L`"``80!S`"``;P!F`"``2@!A`&X`=0!A`'(`>0`@`#$`+``@ M`#(`,``P`#D`+``@`&$`9`!O`'``=`!E`&0`(`!T`&@`90`@`'``<@!O`'8` M:0!S`&D`;P!N`',`(`!O`&8`(`!T`&@`:0!S`"``@!E`"``80!N`&0`(`!M`&4`80!S`'4`<@!E`"``=`!H M`&4`(`!C`&\`;@!S`&D`9`!E`'(`80!T`&D`;P!N`"``=`!R`&$`;@!S`&8` M90!R`'(`90!D`"P`(`!I`&0`90!N`'0`:0!F`&D`80!B`&P`90`@`&$`0`@`"@`<`!R`&4`=@!I`&\`=0!S M`&P`>0`@`&,`80!L`&P`90!D`"``;0!I`&X`;P!R`&D`=`!Y`"``:0!N`'0` M90!R`&4`0`L`"``8@!U`'0`(`!S`&4`<`!A`'(`80!T`&4` M(`!F`'(`;P!M`"``=`!H`&4`(`!P`&$`<@!E`&X`=`!S`"``90!Q`'4`:0!T M`'D`+@`@`$$`;`!L`"``8P!H`&$`;@!G`&4`0`@`&$`0`@`&$`=``@`&8`80!I M`'(`(`!V`&$`;`!U`&4`+@`@`%,`1@!!`%,`(``Q`#8`,``@`&D`0!E`&$`<@!S`"``8@!E`&<`:0!N`&X`:0!N`&<`(`!A`&8`=`!E`'(`(`!$ M`&4`8P!E`&T`8@!E`'(`,0`U`"P`(``R`#``,``X`"X`(`!(`&\`=P!E`'8` M90!R`"P`(`!P`'(`90!S`&4`;@!T`&$`=`!I`&\`;@`@`&$`;@!D`"``9`!I M`',`8P!L`&\`0`N`"``(``-``T`20!N`"``30!A`'(`8P!H`#(`,``P`#@` M+``@`'0`:`!E`"``1@!!`%,`0@`@`&D`0`@`&$`;@`@`&4` M;@!T`&D`=`!Y`"``=0!S`&4`0!S`"`` M9@!I`&X`80!N`&,`:0!A`&P`(`!S`'0`80!T`&4`;0!E`&X`=`!S`"X`(`!3 M`$8`00!3`"``,0`V`#$`(`!I`',`(`!E`&8`9@!E`&,`=`!I`'8`90`@`&8` M;P!R`"``9@!I`/\`J@`(`#4-```,````#0\``.0!``#U#P``S`(``%\1```V M!```TQ(``*H%``!'%```'@<``)\5``!V"```#Q@``.8*```G&@``_@P``#,< M```*#P``A1T``%P0``!I'P``0!(``+LA``"2%```PR,``)H6```O)@``!AD` M`,4H``"<&P``-U(``,\$``!";P``NP$```F4``!B!@``$]X``"T0``"Q#@$` MC`````H````)"!````80`$88S0?!@```!@(```L"%`````````````\````` M````O3)M`'0``-)I``@#]``H`"P```!@`(P```+T`$@`+``$`'0``8&A`'0``@%]` M`@#]``H`#````!@`)P```+T`$@`,``$`'0``6K5`'0``:;1``@#]``H`#0`` M`!@`*````+T`$@`-``$`'0``)K!`'0``S+!``@#]``H`#@```!@`*0```+T` M$@`.``$`'0``,'A`'0``4'I``@#]``H`#P```!@`*@```+T`$@`/``$`'@`` M0%9`'@``0%)``@#]``H`$````!@`*P```+T`$@`0``$`'@#`;-5`'@#`^=1` M`@#]``H`$0```!8`+````/T`"@`2````&``M````O0`2`!(``0`=``#`AT`= M``"@BD`"`/T`"@`3````&``N````O0`2`!,``0`=``!$H$`=``"0HD`"`/T` M"@`4````&``O````O0`2`!0``0`=``!"H$`=``#BH$`"`/T`"@`5````&``P M````O0`2`!4``0`=````($`=````$$`"`/T`"@`6````&``Q````O0`2`!8` M`0`>``"`;4`>``#`;$`"`/T`"@`7````&``R````O0`2`!<``0`=```OM$`= M``#WM4`"`/T`"@`8````&``S````O0`2`!@``0`=``!(BT`=```PBT`"`/T` M"@`9````&``C````O0`2`!D``0`=``#,H$`=``"LH$`"`/T`"@`:````&``T M````O0`2`!H``0`>````8D`>````8$`"`/T`"@`;````&``U````O0`2`!L` M`0`>``!'P$`>`(`9P4`"`/T`"@`<````%@`V````_0`*`!T````8`#<```"] M`!(`'0`!`!T````00!T````00`(`_0`*`!X````8`#@```"]`!(`'@`!`!T` M`%N_0!T``#6_0`(`_0`*`!\````8`#D```"]`!(`'P`!`!T``````!T``"!D MP`(`UP!$`*X&``!L`@X`*@`.`"0`)``D`"0`)``D`"0`)``D`"0`)``D`"0` M)``.`"0`)``D`"0`)``D`"0`)``D`"0`#@`D`"0`"`(0`"`````"`/\````` M```!#P`(`A``(0````(`_P````````$/``@"$``B`````@#_`````````0\` M"`(0`",````"`/\````````!#P`(`A``)`````(`_P````````$/`/T`"@`@ M````&``Z````O0`2`"```0`>``!NM4`>``"\LD`"`/T`"@`A````&``[```` MO0`2`"$``0`=`(!FRD`=``"JR$`"`/T`"@`B````&``\````O0`2`"(``0`> M````5D`>````6$`"`/T`"@`C````&``]````O0`2`",``0`>`("2RD`>``#: MR$`"`/T`"@`D````&``^````O0`2`"0``0`?`,!LU4`?`,#YU$`"`-<`#@`8 M`0``4``D`"0`)``D`#X"$@"V``````!```````````````"@``0`9`!D`!T` M#P`#`````````0````````#O``8````W````"@````D($```!A``1AC-!\&` M```&`@``"P(4````````````!0````````"10P$`#0`"``$`#``"`&0`#P`" M``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"````@@`"``$` M@``(````````````)0($````_P"!``(`P004````%0```(,``@```(0``@`` M`*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$`50`"``@` M?0`,``````"V/`\````$`'T`#``!``(`MA@/````!`!]``P``P#_`"0)#P`` M``0```(.```````%```````#````"`(0`````````/\````````!#P`(`A`` M`0````(`_P````````$/``@"$``"`````@#_`````````0\`"`(0``,````" M`/\````````!#P`(`A``!`````(`_P````````$/`/T`"@``````%P`_```` M`0(&``$````7`/T`"@`!``$`%P`<````_0`*``$``@`7`!T```#]``H``@`` M`!@`0````+T`$@`"``$`(``!`/`_(``!`/`_`@#]``H``P```!@`00```+T` M$@`#``$`'0#2;[1C'0`R%(%C`@#]``H`!````!@`0@```+T`$@`$``$`'0#2 M;[1C'0`R%(%C`@#7``X`!`$``%``#@`F`"0`)``^`A(`M@``````0``````` M````````H``$`&0`9``=``\``P````````$`````````[P`&````-P````H` M```)"!````80`$88S0?!@```!@(```L"%````````````!@`````````]DH! M``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H` M`@```"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%``` M`!4```"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_ M````````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`$`+88#P`` M``0`?0`,``4`_P`D"0\````$```"#@``````&```````!0````@"$``````` M``#_`````````0\`"`(0``$````$`/\````````!#P`(`A```@````0`_P`` M``````$/``@"$``#````!`#_`````````0\`"`(0``0````$`/\````````! M#P`(`A``!0````0`_P````````$/``@"$``&````!`#_`````````0\`"`(0 M``<````$`/\````````!#P`(`A``"`````0`_P````````$/``@"$``)```` M!`#_`````````0\`"`(0``H````$`/\````````!#P`(`A``"P````0`_P`` M``````$/``@"$``,````!`#_`````````0\`"`(0``T````$`/\````````! M#P`(`A``#@````0`_P````````$/``@"$``/````!`#_`````````0\`"`(0 M`!`````$`/\````````!#P`(`A``$0````0`_P````````$/``@"$``2```` M``#_`````````0\`"`(0`!,````$`/\````````!#P`(`A``%`````0`_P`` M``````$/``@"$``5``````#_`````````0\`"`(0`!8````$`/\````````! M#P`(`A``%P````0`_P````````$/`/T`"@``````%P!#````_0`*``$````7 M`$0```#]``H``0`!`!<`10```/T`"@`!``(`%P!&````_0`*``$``P`7``(` M``#]``H``0`$`!<`1P```/T`"@`"````&`!(````O0`>``(``0`<``"$IT`< M``#ZJ4`<``!;N4`<``!ZMT`$`/T`"@`#````&`!)````O0`>``,``0`>``"N MH$`>``!0HD`>``#AL4`>``"(L$`$`/T`"@`$````&`!*````O0`>``0``0`= M``!8BT`=``"HCD`=``#HG4`=``#(FT`$`/T`"@`%````&`!+````O0`>``4` M`0`=``#@=$`=```@<4`=``!HA$`=``!@?T`$`/T`"@`&````&`!,````O0`> M``8``0`=``!@8D`=```````=``!@8D`=```````$`/T`"@`'````&`!-```` MO0`>``<``0`>````($`>````,$`>````($`>````,$`$`/T`"@`(````&`!. M````O0`>``@``0`=```@>$`=``"8A4`=``!(D4`=``"PDT`$`/T`"@`)```` M&`!/````O0`>``D``0`=````*L`=````.,`=````.L`=````0<`$`/T`"@`* M````&`!0````O0`>``H``0`=`````$`=````)$`=````$$`=````.D`$`/T` M"@`+````&`!1````O0`>``L``0`=````,$`=````,4`=````1D`=````,4`$ M`/T`"@`,````&`!2````O0`>``P``0`>````0\`>````+,`>``"`4L`>```` M\+\$`/T`"@`-````&`!3````O0`>``T``0`=```0=D`=``!`A4`=``!XD$`= M``#0DT`$`/T`"@`.````&`!4````O0`>``X``0`>``!@8$`>``#@;T`>``!P M=D`>``"P>T`$`/T`"@`/````&`!5````O0`>``\``0`=``#`:T`=``"0>D`= M``"XA4`=``#(B4`$`/T`"@`0````&`!6````O0`>`!```0`>`````$`>```` M$$`>````%$`>````&$`$`/T`"@`1````&`!7````O0`>`!$``0`?``"`:T`? M``!0>D`?``"0A4`?``"8B4`$`/T`"@`2````%@!8````_0`*`!,````8`%D` M``"]`!X`$P`!`"$``8!*0"$``4!:0"$``!J0`0`_0`*`!4` M```6`%L```#]``H`%@```!@`60```+T`'@`6``$`'@```'I`'@``('E`'@`` M`'I`'@``L'=`!`#]``H`%P```!@`6@```+T`'@`7``$`'@``('I`'@``0'E` M'@``$'I`'@``T'=`!`#7`#0`$`8``,P!#@!&`#``,``P`#``,``P`#``,``P M`#``,``P`#``,``P`#``#@`P`#``#@`P`#X"$@"V``````!````````````` M``"@``0`9`!D`!T`#P`#`````````0````````#O``8````W````"@````D( M$```!A``1AC-!\&````&`@``"P(8````````````*`````````#W4@$`Z50! M``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H` M`@```"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%``` M`!4```"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_ M````````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`"`+88#P`` M``0`?0`,``,`_P`D"0\````$```"#@``````*````````P````@"$``````` M``#_`````````0\`"`(0``$````"`/\````````!#P`(`A```@``````_P`` M``````$/``@"$``#`````@#_`````````0\`"`(0``0``````/\````````! M#P`(`A``!0````(`_P````````$/``@"$``&`````@#_`````````0\`"`(0 M``<````"`/\````````!#P`(`A``"`````(`_P````````$/``@"$``)```` M`@#_`````````0\`"`(0``H````"`/\````````!#P`(`A``"P``````_P`` M``````$/``@"$``,`````@#_`````````0\`"`(0``T````"`/\````````! M#P`(`A``#@````(`_P````````$/``@"$``/`````@#_`````````0\`"`(0 M`!`````"`/\````````!#P`(`A``$0````(`_P````````$/``@"$``2```` M`@#_`````````0\`"`(0`!,````"`/\````````!#P`(`A``%```````_P`` M``````$/``@"$``5`````@#_`````````0\`"`(0`!8````"`/\````````! M#P`(`A``%P````(`_P````````$/``@"$``8`````@#_`````````0\`"`(0 M`!D````"`/\````````!#P`(`A``&@````(`_P````````$/``@"$``;```` M``#_`````````0\`"`(0`!P````"`/\````````!#P`(`A``'0````(`_P`` M``````$/``@"$``>`````@#_`````````0\`"`(0`!\````"`/\````````! M#P#]``H``````!<`7````/T`"@`!````%P`;````_0`*``$``0`7``(```#] M``H``0`"`!<`1P```/T`"@`"````%@!=````_0`*``,````8`%4```"]`!(` M`P`!`!P``+B%0!P``,B)0`(`_0`*``0````6`%X```#]``H`!0```!@`7P`` M`+T`$@`%``$`'0``P&U`'0```&5``@#]``H`!@```!@`8````+T`$@`&``$` M'0``````'0```$+``@#]``H`!P```!@`40```+T`$@`'``$`'0```$;`'0`` M`#'``@#]``H`"````!@`80```+T`$@`(``$`'0``@%5`'0```````@#]``H` M"0```!@`3````+T`$@`)``$`'0``8&)`'0```````@#]``H`"@```!@`8@`` M`+T`$@`*``$`'0```!3`'0``@$5``@#]``H`"P```!8`8P```/T`"@`,```` M&`!D````O0`2``P``0`=``!P@D`=``"P?\`"`/T`"@`-````&`!E````O0`2 M``T``0`=``#`4D`=``"0```@9\`>``!P=T`"`/T`"@`3````&`!G````O0`2`!,``0`>```4 ME$`>``!PDT`"`/T`"@`4````%@!H````_0`*`!4````8`&D```"]`!(`%0`! M`!T``.!AP!T```!DP`(`_0`*`!8````8`&H```"]`!(`%@`!`!T``%!XP!T` M``*GP`(`_0`*`!<````8`&L```"]`!(`%P`!`!T``````!T``("(0`(`_0`* M`!@````8`&$```"]`!(`&``!`!T````@0!T``$!<0`(`_0`*`!D````8`&P` M``"]`!(`&0`!`!X``````!X```#POP(`_0`*`!H````8`&T```"]`!(`&@`! M`!X``&"`P!X``$*AP`(`_0`*`!L````6`&X```#]``H`'````!@`;P```+T` M$@`<``$`'0``````'0``(J1``@#]``H`'0```!@`<````+T`$@`=``$`'0`` M`$'`'0``()[``@#]``H`'@```!@`<0```+T`$@`>``$`'0```/`_'0``0%-` M`@#]``H`'P```!@`8````+T`$@`?``$`'@``````'@```$)``@#7`$0`@@8` M`&P"#@`J``X`)``.`"0`)``D`"0`)``D``X`)``D`"0`)``D`"0`)``D``X` M)``D`"0`)``D`"0`#@`D`"0`)``(`A``(`````(`_P````````$/``@"$``A M`````@#_`````````0\`"`(0`"(````"`/\````````!#P`(`A``(P````(` M_P````````$/``@"$``D`````@#_`````````0\`"`(0`"4``````/\````` M```!#P`(`A``)@````(`_P````````$/``@"$``G`````@#_`````````0\` M_0`*`"`````8`'(```"]`!(`(``!`!T``(!`P!T``-"'0`(`_0`*`"$````8 M`',```"]`!(`(0`!`!X````N0!X````J0`(`_0`*`"(````8`'0```"]`!(` M(@`!`!T``#B'0!T``,!GP`(`_0`*`",````8`'4```"]`!(`(P`!`!T``!R8 M0!T``,B<0`(`_0`*`"0````8`'8```"]`!(`)``!`!T``-RA0!T``-"90`(` M_0`*`"4````6`'<```#]``H`)@```!@`>````+T`$@`F``$`'0```#M`'0`` M`#Y``@#]``H`)P```!@`>0```+T`$@`G``$`'```D'E`'```@'=``@#7`!0` MJ@$``(P`)``D`"0`)``D``X`)``^`A(`M@``````0```````````````H``$ M`&0`9``=``\``P````````$`````````[P`&````-P````H````)"!````80 M`$88S0?!@```!@(```L"%`````````````0`````````Y%8!``T``@`!``P` M`@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H``@```"L``@`` M`((``@`!`(``"````````````"4"!````/\`@0`"`,$$%````!4```"#``(` M``"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_````````X#\! M`%4``@`(`'T`#```````MCP/````!`!]``P``0`!`+88#P````0`?0`,``(` M_P`D"0\````$```"#@``````!````````@````@"$`````````#_```````` M`0\`"`(0``$````!`/\````````!#P`(`A```@``````_P````````$/``@" M$``#`````0#_`````````0\`_0`*```````7`'H````!`@8``0```!<`_0`* M``$``0`7``(```#]``H``@```!8`>P```/T`"@`#````&`!Z````_0`*``,` M`0`;`'P```#7``P`H````#P`#@`8``X`/@(2`+8``````$`````````````` M`*``!`!D`&0`'0`/``,````````!`````````.\`!@```#<````*````"0@0 M```&$`!&&,T'P8````8"```+`A0````````````$`````````-=8`0`-``(` M`0`,``(`9``/``(``0`1``(````0``@`_*GQTDUB4#]?``(``0`J``(````K M``(```""``(``0"```@````````````E`@0```#_`($``@#!!!0````5```` M@P`"````A``"````H0`B``D`9``!``$``0!&`%@"6`(```````#@/P`````` M`.`_`0!5``(`"`!]``P``````+8\#P````0`?0`,``$``0"V&`\````$`'T` M#``"`/\`)`D/````!````@X```````0```````(````(`A``````````_P`` M``````$/``@"$``!`````0#_`````````0\`"`(0``(``````/\````````! M#P`(`A```P````$`_P````````$/`/T`"@``````%P!]`````0(&``$````7 M`/T`"@`!``$`%P`"````_0`*``(````6`'X```#]``H``P```!@`?0```/T` M"@`#``$`&P!_````UP`,`*`````\``X`&``.`#X"$@"V``````!````````` M``````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W````"@`` M``D($```!A``1AC-!\&````&`@``"P(4````````````!`````````#*6@$` M#0`"``$`#``"`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`" M````*P`"````@@`"``$`@``(````````````)0($````_P"!``(`P004```` M%0```(,``@```(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\` M``````#@/P$`50`"``@`?0`,``````"V/`\````$`'T`#``!``$`MA@/```` M!`!]``P``@#_`"0)#P````0```(.```````$```````"````"`(0```````` M`/\````````!#P`(`A```0````$`_P````````$/``@"$``"``````#_```` M`````0\`"`(0``,````!`/\````````!#P#]``H``````!<`@`````$"!@`! M````%P#]``H``0`!`!<``@```/T`"@`"````%@"!````_0`*``,````8`(`` M``#]``H``P`!`!L`@@```-<`#`"@````/``.`!@`#@`^`A(`M@``````0``` M````````````H``$`&0`9``=``\``P````````$`````````[P`&````-P`` M``H````)"!````80`$88S0?!@```!@(```L"%`````````````0````````` MO5P!``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`! M`"H``@```"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$ M%````!4```"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@`````` M`.`_````````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`!`+88 M#P````0`?0`,``(`_P`D"0\````$```"#@``````!````````@````@"$``` M``````#_`````````0\`"`(0``$````!`/\````````!#P`(`A```@`````` M_P````````$/``@"$``#`````0#_`````````0\`_0`*```````7`(,````! M`@8``0```!<`_0`*``$``0`7``(```#]``H``@```!8`A````/T`"@`#```` M&``A````_0`*``,``0`;`(4```#7``P`H````#P`#@`8``X`/@(2`+8````` M`$```````````````*``!`!D`&0`'0`/``,````````!`````````.\`!@`` M`#<````*````"0@0```&$`!&&,T'P8````8"```+`A0````````````$```` M`````+!>`0`-``(``0`,``(`9``/``(``0`1``(````0``@`_*GQTDUB4#]? M``(``0`J``(````K``(```""``(``0"```@````````````E`@0```#_`($` M`@#!!!0````5````@P`"````A``"````H0`B``D`9``!``$``0!&`%@"6`(` M``````#@/P```````.`_`0!5``(`"`!]``P``````+8\#P````0`?0`,``$` M`0"V&`\````$`'T`#``"`/\`)`D/````!````@X```````0```````(````( M`A``````````_P````````$/``@"$``!`````0#_`````````0\`"`(0``(` M`````/\````````!#P`(`A```P````$`_P````````$/`/T`"@``````%P"& M`````0(&``$````7`/T`"@`!``$`%P`"````_0`*``(````6`(<```#]``H` M`P```!@`A@```/T`"@`#``$`&P"(````UP`,`*`````\``X`&``.`#X"$@"V M``````!```````````````"@``0`9`!D`!T`#P`#`````````0````````#O M``8````W````"@````D($```!A``1AC-!\&````&`@``"P(4```````````` M!`````````"C8`$`#0`"``$`#``"`&0`#P`"``$`$0`"````$``(`/RI\=)- M8E`_7P`"``$`*@`"````*P`"````@@`"``$`@``(````````````)0($```` M_P"!``(`P004````%0```(,``@```(0``@```*$`(@`)`&0``0`!``$`1@!8 M`E@"````````X#\```````#@/P$`50`"``@`?0`,``````"V/`\````$`'T` M#``!``$`MA@/````!`!]``P``@#_`"0)#P````0```(.```````$```````" M````"`(0`````````/\````````!#P`(`A```0````$`_P````````$/``@" M$``"``````#_`````````0\`"`(0``,````!`/\````````!#P#]``H````` M`!<`B0````$"!@`!````%P#]``H``0`!`!<``@```/T`"@`"````%@"*```` M_0`*``,````8`(D```#]``H``P`!`!L`BP```-<`#`"@````/``.`!@`#@`^ M`A(`M@``````0```````````````H``$`&0`9``=``\``P````````$````` M````[P`&````-P````H````)"!````80`$88S0?!@```!@(```L"%``````` M``````0`````````EF(!``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\ MJ?'236)0/U\``@`!`"H``@```"L``@```((``@`!`(``"````````````"4" M!````/\`@0`"`,$$%````!4```"#``(```"$``(```"A`"(`"0!D``$``0`! M`$8`6`)8`@```````.`_````````X#\!`%4``@`(`'T`#```````MCP/```` M!`!]``P``0`!`+88#P````0`?0`,``(`_P`D"0\````$```"#@``````!``` M`````@````@"$`````````#_`````````0\`"`(0``$````!`/\````````! M#P`(`A```@``````_P````````$/``@"$``#`````0#_`````````0\`_0`* M```````7`(P````!`@8``0```!<`_0`*``$``0`7``(```#]``H``@```!8` MC0```/T`"@`#````&`",````_0`*``,``0`;`(X```#7``P`H````#P`#@`8 M``X`/@(2`+8``````$```````````````*``!`!D`&0`'0`/``,````````! M`````````.\`!@```#<````*````"0@0```&$`!&&,T'P8````8"```+`A0` M```````````$`````````(ED`0`-``(``0`,``(`9``/``(``0`1``(````0 M``@`_*GQTDUB4#]?``(``0`J``(````K``(```""``(``0"```@````````` M```E`@0```#_`($``@#!!!0````5````@P`"````A``"````H0`B``D`9``! M``$``0!&`%@"6`(```````#@/P```````.`_`0!5``(`"`!]``P``````+8\ M#P````0`?0`,``$``0"V&`\````$`'T`#``"`/\`)`D/````!````@X````` M``0```````(````(`A``````````_P````````$/``@"$``!`````0#_```` M`````0\`"`(0``(``````/\````````!#P`(`A```P````$`_P````````$/ M`/T`"@``````%P"/`````0(&``$````7`/T`"@`!``$`%P`"````_0`*``(` M```6`)````#]``H``P```!@`CP```/T`"@`#``$`&P"1````UP`,`*`````\ M``X`&``.`#X"$@"V``````!```````````````"@``0`9`!D`!T`#P`#```` M`````0````````#O``8````W````"@````D($```!A``1AC-!\&````&`@`` M"P(4````````````!`````````!\9@$`#0`"``$`#``"`&0`#P`"``$`$0`" M````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"````@@`"``$`@``(```` M````````)0($````_P"!``(`P004````%0```(,``@```(0``@```*$`(@`) M`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$`50`"``@`?0`,```` M``"V/`\````$`'T`#``!``$`MA@/````!`!]``P``@#_`"0)#P````0```(. M```````$```````"````"`(0`````````/\````````!#P`(`A```0````$` M_P````````$/``@"$``"``````#_`````````0\`"`(0``,````!`/\````` M```!#P#]``H``````!<`D@````$"!@`!````%P#]``H``0`!`!<``@```/T` M"@`"````%@"3````_0`*``,````8`)(```#]``H``P`!`!L`E````-<`#`"@ M````/``.`!@`#@`^`A(`M@``````0```````````````H``$`&0`9``=``\` M`P````````$`````````[P`&````-P````H````)"!````80`$88S0?!@``` M!@(```L"%`````````````0`````````;V@!``T``@`!``P``@!D``\``@`! M`!$``@```!``"`#\J?'236)0/U\``@`!`"H``@```"L``@```((``@`!`(`` M"````````````"4"!````/\`@0`"`,$$%````!4```"#``(```"$``(```"A M`"(`"0!D``$``0`!`$8`6`)8`@```````.`_````````X#\!`%4``@`(`'T` M#```````MCP/````!`!]``P``0`!`+88#P````0`?0`,``(`_P`D"0\````$ M```"#@``````!````````@````@"$`````````#_`````````0\`"`(0``$` M```!`/\````````!#P`(`A```@``````_P````````$/``@"$``#`````0#_ M`````````0\`_0`*```````7`)4````!`@8``0```!<`_0`*``$``0`7``(` M``#]``H``@```!8`E@```/T`"@`#````&`"5````_0`*``,``0`;`)<```#7 M``P`H````#P`#@`8``X`/@(2`+8``````$```````````````*``!`!D`&0` M'0`/``,````````!`````````.\`!@```#<````*````"0@0```&$`!&&,T' MP8````8"```+`A0````````````$`````````&)J`0`-``(``0`,``(`9``/ M``(``0`1``(````0``@`_*GQTDUB4#]?``(``0`J``(````K``(```""``(` M`0"```@````````````E`@0```#_`($``@#!!!0````5````@P`"````A``" M````H0`B``D`9``!``$``0!&`%@"6`(```````#@/P```````.`_`0!5``(` M"`!]``P``````+8\#P````0`?0`,``$``0"V&`\````$`'T`#``"`/\`)`D/ M````!````@X```````0```````(````(`A``````````_P````````$/``@" M$``!`````0#_`````````0\`"`(0``(``````/\````````!#P`(`A```P`` M``$`_P````````$/`/T`"@``````%P"8`````0(&``$````7`/T`"@`!``$` M%P`"````_0`*``(````6`)D```#]``H``P```!@`F@```/T`"@`#``$`&P"; M````UP`,`*`````\``X`&``.`#X"$@"V``````!```````````````"@``0` M9`!D`!T`#P`#`````````0````````#O``8````W````"@````D($```!A`` M1AC-!\&````&`@``"P(4````````````!`````````!5;`$`#0`"``$`#``" M`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"```` M@@`"``$`@``(````````````)0($````_P"!``(`P004````%0```(,``@`` M`(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$` M50`"``@`?0`,``````"V/`\````$`'T`#``!``$`MA@/````!`!]``P``@#_ M`"0)#P````0```(.```````$```````"````"`(0`````````/\````````! M#P`(`A```0````$`_P````````$/``@"$``"``````#_`````````0\`"`(0 M``,````!`/\````````!#P#]``H``````!<`G`````$"!@`!````%P#]``H` M`0`!`!<``@```/T`"@`"````%@"=````_0`*``,````8`)P```#]``H``P`! M`!L`G@```-<`#`"@````/``.`!@`#@`^`A(`M@``````0``````````````` MH``$`&0`9``=``\``P````````$`````````[P`&````-P````H````)"!`` M``80`$88S0?!@```!@(```L"%`````````````0`````````2&X!``T``@`! M``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H``@```"L` M`@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%````!4```"# M``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_```````` MX#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`!`+88#P````0`?0`, M``(`_P`D"0\````$```"#@``````!````````@````@"$`````````#_```` M`````0\`"`(0``$````!`/\````````!#P`(`A```@``````_P````````$/ M``@"$``#`````0#_`````````0\`_0`*```````7`)\````!`@8``0```!<` M_0`*``$``0`7``(```#]``H``@```!8`H````/T`"@`#````&`"?````_0`* M``,``0`;`*$```#7``P`H````#P`#@`8``X`/@(2`+8``````$`````````` M`````*``!`!D`&0`'0`/``,````````!`````````.\`!@```#<````*```` M"0@0```&$`!&&,T'P8````8"```+`A0````````````$`````````#MP`0`- M``(``0`,``(`9``/``(``0`1``(````0``@`_*GQTDUB4#]?``(``0`J``(` M```K``(```""``(``0"```@````````````E`@0```#_`($``@#!!!0````5 M````@P`"````A``"````H0`B``D`9``!``$``0!&`%@"6`(```````#@/P`` M`````.`_`0!5``(`"`!]``P``````+8\#P````0`?0`,``$``0"V&`\````$ M`'T`#``"`/\`)`D/````!````@X```````0```````(````(`A`````````` M_P````````$/``@"$``!`````0#_`````````0\`"`(0``(``````/\````` M```!#P`(`A```P````$`_P````````$/`/T`"@``````%P"B`````0(&``$` M```7`/T`"@`!``$`%P`"````_0`*``(````6`*,```#]``H``P```!@`H@`` M`/T`"@`#``$`&P"D````UP`,`*`````\``X`&``.`#X"$@"V``````!````` M``````````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W```` M"@`````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M`````````````````````````0```/[___\#````!````/[_____________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M_______________________________________________^_P``!0("```` M```````````````````!````X(6?\OE/:!"KD0@`*R>SV3````!0`````P`` M``$````H````````@#`````$````.````````````````@```+`$```3```` M"00``!\````(`````!B`'(`;````/[_```%`@(````````````` M``````````(````"U XML 33 R7.xml IDEA: Grant Prideco Merger and Other Acquisitions 1.0.0.3 false Grant Prideco Merger and Other Acquisitions false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Grant Prideco Merger and Other Acquisitions [Abstract] 0 nov_GrantPridecoMergerAndOtherAcquisitionsAbstract nov false na duration string Grant Prideco Merger and Other Acquisitions. false false false false false true false false false 1 false false 0 0 false false Grant Prideco Merger and Other Acquisitions. false 3 Grant Prideco Merger and Other Acquisitions 1 nov_GrantPridecoMergerAndOtherAcquisitionsTextBlock nov false na duration string Grant Prideco Merger and Other Acquisitions. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Grant Prideco Merger and Other Acquisitions</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Grant Prideco merger was accounted for as a purchase business combination. Assets acquired and liabilities assumed were recorded at their fair values as of April 21, 2008. The total purchase price is $7,199 million, including Grant Prideco stock options assumed and acquisition related transaction costs and is comprised of (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Consideration given to acquire the outstanding common stock of Grant Prideco: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Shares issued totaled approximately 56.9 million shares at $72.74 per share </div></td> <td> </td> <td align="left">$</td> <td align="right">4,135</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Cash paid at $23.20 per share </div></td> <td> </td> <td> </td> <td align="right">2,932</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Grant Prideco stock options assumed </div></td> <td> </td> <td> </td> <td align="right">55</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Merger related transaction costs </div></td> <td> </td> <td> </td> <td align="right">77</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total purchase price </div></td> <td> </td> <td align="left">$</td> <td align="right">7,199</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Purchase Price Allocation</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table, set forth below, displays the total purchase price allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their fair values as of April 21, 2008 (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Cash and cash equivalents </div></td> <td> </td> <td align="left">$</td> <td align="right">171</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Receivables </div></td> <td> </td> <td> </td> <td align="right">420</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assets held for sale, net </div></td> <td> </td> <td> </td> <td align="right">784</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Inventories </div></td> <td> </td> <td> </td> <td align="right">611</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Prepaid and other current assets </div></td> <td> </td> <td> </td> <td align="right">210</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Property, plant and equipment </div></td> <td> </td> <td> </td> <td align="right">392</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">2,772</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Intangibles </div></td> <td> </td> <td> </td> <td align="right">3,696</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investment in unconsolidated affiliate </div></td> <td> </td> <td> </td> <td align="right">512</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other assets </div></td> <td> </td> <td> </td> <td align="right">98</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accounts payable and accrued liabilities </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(316</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(624</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(176</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,305</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Minority interest </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other liabilities </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total purchase price </div></td> <td> </td> <td align="left">$</td> <td align="right">7,199</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Unaudited Pro Forma Financial Information</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The unaudited financial information in the table below summarizes the combined results of operations of National Oilwell Varco and Grant Prideco, on a pro forma basis, as though the companies had been combined as of the beginning of 2008. The pro forma financial information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the merger had taken place at the beginning of 2008. The pro forma financial information for the three and six month periods ended June 30, 2008 includes the business combination accounting effect on historical Grant Prideco revenues, adjustments to depreciation on acquired property, amortization charges from acquired intangible assets, financing costs on new debt in connection with the merger and related tax effects. (in millions, except per share data): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">3,010</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,444</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,491</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,613</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Company </div></td> <td> </td> <td align="left">$</td> <td align="right">220</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">446</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">690</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">898</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Basic net income attributable to Company per share </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.08</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.66</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.17</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted net income attributable to Company per share </div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.07</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.65</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Acquisitions</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the three and six months ended June 30, 2009, the Company completed five acquisitions for an aggregate purchase price of $389 million, net of cash acquired. These acquisitions included: </div> <div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>The shares of ASEP Group Holding B.V., a Netherlands-based manufacturer of well service equipment.</td> </tr> <tr> <td style="font-size: 6pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>The shares of ANS (1001) Ltd. (“Anson”), a U.K.-based manufacturer of pumps and fluid expendibles.</td> </tr> <tr> <td style="font-size: 6pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>The business and assets of Spirit Drilling Fluids Ltd., a U.S.-based company that provides drilling fluids and related well-site services to exploration and production companies.</td> </tr> <tr> <td style="font-size: 6pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>The business and assets of Spirit Minerals L.P., a U.S.-based company that mines, processes and distributes barite to the oil and gas drilling fluid industry.</td> </tr> </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">From the dates of acquisition, the results of operations from ASEP are included in the Rig Technology segment and the results of operations from Anson, Spirit Drilling Fluids, and Spirit Minerals are included in the Petroleum Services & Supplies segment. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the preliminary purchase price allocation of the assets acquired and liabilities assumed at the date of acquisition of the 2009 acquisitions (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current assets, net of cash acquired </div></td> <td> </td> <td align="left">$</td> <td align="right">213</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Property, plant and equipment </div></td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Intangible assets </div></td> <td> </td> <td> </td> <td align="right">85</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">198</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets acquired </div></td> <td> </td> <td> </td> <td align="right">553</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Current liabilities </div></td> <td> </td> <td> </td> <td align="right">113</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other liabilities </div></td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total liabilities </div></td> <td> </td> <td> </td> <td align="right">164</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Cash consideration, net of cash acquired </div></td> <td> </td> <td align="left">$</td> <td align="right">389</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div> </body> </html>  2. Grant Prideco Merger and Other Acquisitions The Grant false false Grant Prideco Merger and Other Acquisitions. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 34 R17.xml IDEA: Derivative Financial Instruments 1.0.0.3 false Derivative Financial Instruments false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Derivative Financial Instruments [Abstract] 0 nov_DerivativeFinancialInstrumentsAbstract nov false na duration string Derivative Financial Instruments. false false false false false true false false false 1 false false 0 0 false false Derivative Financial Instruments. false 3 Derivative Financial Instruments 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>12. Derivative Financial Instruments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended (”SFAS 133”), which requires companies to recognize all of its derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk, and interest rate risk. Forward contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk on forecasted revenue and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge). In addition the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with SFAS 133 the Company records all derivative financial instruments at their fair value in our consolidated balance sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments we hold are designated as either cash flow or fair value hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. We may also use interest rate contracts to mitigate our exposure to changes in interest rates on anticipated long-term debt issuances. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At June 30, 2009, the Company has determined that its financial assets of $114 million and liabilities of $95 million (primarily currency related derivatives) are level 2 in the fair value hierarchy. At June 30, 2009, the fair value of the Company’s foreign currency forward contracts totaled $16 million. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company did not have any interest rate swaps and our financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when our financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Cash Flow Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion) or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statements of Income during the current period. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted sales and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign currencies, the decrease in present value of future foreign currency revenue and costs is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">British Pound Sterling </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">£</td> <td align="right" valign="top">47</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Danish Krone </div></td> <td> </td> <td>DKK </td> <td nowrap="nowrap" align="right" valign="top"> 197</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Euro </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top"><font face="'Times New Roman',times,serif">€</font></td> <td align="right" valign="top">279</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Norwegian Krone </div></td> <td> </td> <td>NOK </td> <td align="right" valign="top"> 7,717</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">181</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are designated and qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is subject to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings (e.g., in “revenue” when the hedged item is a contracted sale). </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into forward exchange contracts to hedge certain firm commitments of revenue and costs that are denominated in currencies other than the functional currency of the operating unit. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to customers will be adversely affected by changes in the exchange rates. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency fair values of firm commitments of revenues and costs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Korean Won </div></td> <td> </td> <td>KRW </td> <td nowrap="nowrap" align="right" valign="top"> 1,917</td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">64</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Non-designated Hedging Strategy</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For derivative instruments that are non-designated, the gain or loss on the derivative instrument subject to the hedged risk (i.e. nonfunctional currency monetary accounts) are recognized in the same line item associated with the hedged item in current earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the nonfunctional currency monetary accounts will be adversely affected by changes in the exchange rates. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Currency</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Foreign Currency</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Denomination</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(in millions)</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">British Pound Sterling </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">£</td> <td align="right" valign="top">2</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Danish Krone </div></td> <td> </td> <td>DKK </td> <td nowrap="nowrap" align="right" valign="top"> 15</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Euro </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top"><font face="'Times New Roman',times,serif">€</font></td> <td align="right" valign="top">150</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Norwegian Krone </div></td> <td nowrap="nowrap" valign="top"> </td> <td>NOK </td> <td nowrap="nowrap" align="right" valign="top">2,280 </td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Swedish Krone </div></td> <td> </td> <td>SEK </td> <td nowrap="nowrap" align="right" valign="top"> 5</td> <td> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">U.S. Dollar </div></td> <td> </td> <td nowrap="nowrap" align="left" valign="top">$</td> <td align="right" valign="top">67</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 30, 2009, the Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="34%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="18%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Asset Derivatives</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Liability Derivatives</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Prepaid and other current assets</td> <td> </td> <td align="left">$</td> <td align="right">63</td> <td> </td> <td> </td> <td align="left" valign="top">Accrued liabilities</td> <td> </td> <td align="left">$</td> <td align="right">37</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Other Assets</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td align="left" valign="top">Other Liabilities</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">74</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">48</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Prepaid and other current assets</td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> <td> </td> <td align="left" valign="top">Accrued liabilities</td> <td> </td> <td align="left">$</td> <td align="right">46</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td align="left" valign="top">Other Assets</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td align="left" valign="top">Other Liabilities</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives not designated as hedging instruments under SFAS 133</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">37</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">47</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives</b> </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">111</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">95</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>The Effect of Derivative Instruments on the Consolidated Statement of Income<br /> Periods Ended June 30, 2009<br /> ($ in millions)</b> </div> <div align="center"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Derivative (Ineffective</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Portion and Amount</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Derivative (Ineffective</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives in SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated OCI into</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Excluded from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Portion and Amount</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Cash Flow Hedging</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in OCI on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Accumulated OCI into</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Effectiveness</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Excluded from</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative (Effective Portion) (a)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Income (Effective Portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Testing)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Effectiveness Testing) (b)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months<br /> Ended</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">74</td> <td> </td> <td> </td> <td colspan="3" align="center">Revenue</td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td colspan="3" align="center">Other income<br />(expense), net</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(16</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(44</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">74</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(34</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="23%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives in SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Fair Value</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fair Value Hedge</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income on</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related Hedged</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Hedging Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>on Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Relationships</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Related Hedged Item</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Items</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months<br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Three Months <br /> Ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Six Months <br /> Ended</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Revenue</td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Firm commitments</td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Revenue</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">(1</td> <td>)</td> <td> </td> <td colspan="3" align="center">Firm commitments</td> <td> </td> <td colspan="3" align="center">Cost of revenue</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">1</td> <td nowrap="nowrap"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center" style="margin-right: 40%"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="60%">  <tr valign="bottom"> <td width="18%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Derivatives Not Designated as</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain (Loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain (Loss)</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Hedging Instruments under</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Recognized in Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Recognized in Income on</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>SFAS 133</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>on Derivative</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Derivative (a)</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts </div></td> <td> </td> <td colspan="3" align="center">Other income (expense), net</td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>The Company expects that $(38) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>The amount of gain (loss) recognized in income represents $(18) million and $(27) million related to the ineffective portion of the hedging relationships for the three and six months ended June 30, 2009, respectively, and nil and $3 million related to the amount excluded from the assessment of the hedge effectiveness for the three and six months ended June 30, 2009.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">We assess the functional currencies of our operating units to ensure that the appropriate currencies are utilized in accordance with the guidance of SFAS No. 52, <i>Foreign Currency Translation</i>. Effective January 1, 2008, we changed the functional currency of our Rig Technology unit in Norway from the Norwegian krone to the U.S. dollar to more appropriately reflect the primary economic environment in which they operate. This change was precipitated by significant changes in the economic facts and circumstances, including the increased order rate for large drilling platforms and components technology, the use of our Norway unit as our preferred project manager of these projects, increasing revenue and cost base in U.S. dollars, and the implementation of an international cash pool denominated in U.S. dollars. As a Norwegian krone functional unit, Norway was subject to increasing foreign currency exchange risk as a result of these changes in its economic environment and was dependent upon significant hedging transactions to offset its non-functional currency positions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At December 31, 2007, our Norway operations had foreign currency forward contracts with notional amounts aggregating $2,551 million with a fair value of $91 million to mitigate foreign currency exchange risk against the U.S. dollar, our reporting currency. Effective with the change in the functional currency, the Company terminated these hedges. The related net gain position of $109 million associated with the terminated hedges was deferred and is being recognized into earnings in the future period(s) the forecasted transactions affect earnings, of which $23 million remains to be recognized into earnings at June 30, 2009. The Company has, subsequent to January 1, 2008, entered into new hedges to cover the exposures as a result of the change to U.S. dollar functional. At June 30, 2009, our Norway operations had derivatives with $2,709 million in notional value with a fair value asset of $33 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  12. Derivative Financial Instruments false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true -----END PRIVACY-ENHANCED MESSAGE-----

Large accelerated filer þ

Accelerated filer o

Non-accelerated filer o

Smaller reporting company o

(Do not check if smaller reporting company)