Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ |
Title of each class | Trading Symbol | Name of each exchange on which registered |
☒ | No | ☐ |
☒ | No | ☐ |
☒ | Accelerated Filer | ☐ | ||
Non-accelerated Filer | ☐ | Emerging Growth Company | ||
Smaller Reporting Company |
Yes | ☐ | No | ☐ |
Yes | No | ☒ |
Page No. | ||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
Millions of dollars and shares except per share data | 2019 | 2018 | 2019 | 2018 | ||||||||
Revenue: | ||||||||||||
Services | $ | $ | $ | $ | ||||||||
Product sales | ||||||||||||
Total revenue | ||||||||||||
Operating costs and expenses: | ||||||||||||
Cost of services | ||||||||||||
Cost of sales | ||||||||||||
Impairments and other charges | ||||||||||||
General and administrative | ||||||||||||
Total operating costs and expenses | ||||||||||||
Operating income | ||||||||||||
Interest expense, net of interest income of $4, $13, $12 and $23 | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Other, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Income before income taxes | ||||||||||||
Income tax provision | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Net income | $ | $ | $ | $ | ||||||||
Net (income) loss attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Net income attributable to company | $ | $ | $ | $ | ||||||||
Basic net income per share | $ | $ | $ | $ | ||||||||
Diluted net income per share | $ | $ | $ | $ | ||||||||
Basic weighted average common shares outstanding | ||||||||||||
Diluted weighted average common shares outstanding | ||||||||||||
See notes to condensed consolidated financial statements. |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | $ | $ | $ | $ | ||||||||
Other comprehensive income (loss), net of income taxes | ( | ) | ||||||||||
Comprehensive income | $ | $ | $ | $ | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||
Comprehensive income attributable to company shareholders | $ | $ | $ | $ | ||||||||
See notes to condensed consolidated financial statements. |
Millions of dollars and shares except per share data | June 30, 2019 | December 31, 2018 | ||||
Assets | ||||||
Current assets: | ||||||
Cash and equivalents | $ | $ | ||||
Receivables (net of allowances for bad debts of $757 and $738) | ||||||
Inventories | ||||||
Other current assets | ||||||
Total current assets | ||||||
Property, plant and equipment (net of accumulated depreciation of $13,592 and $13,153) | ||||||
Goodwill | ||||||
Deferred income taxes | ||||||
Operating lease right-of-use assets | ||||||
Other assets | ||||||
Total assets | $ | $ | ||||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | $ | ||||
Accrued employee compensation and benefits | ||||||
Current portion of operating lease liabilities | ||||||
Other current liabilities | ||||||
Total current liabilities | ||||||
Long-term debt | ||||||
Operating lease liabilities | ||||||
Employee compensation and benefits | ||||||
Other liabilities | ||||||
Total liabilities | ||||||
Shareholders’ equity: | ||||||
Common shares, par value $2.50 per share (authorized 2,000 shares, issued 1,068 and 1,069 shares) | ||||||
Paid-in capital in excess of par value | ||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||
Retained earnings | ||||||
Treasury stock, at cost (194 and 198 shares) | ( | ) | ( | ) | ||
Company shareholders’ equity | ||||||
Noncontrolling interest in consolidated subsidiaries | ||||||
Total shareholders’ equity | ||||||
Total liabilities and shareholders’ equity | $ | $ | ||||
See notes to condensed consolidated financial statements. |
Six Months Ended June 30 | ||||||
Millions of dollars | 2019 | 2018 | ||||
Cash flows from operating activities: | ||||||
Net income | $ | $ | ||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||
Depreciation, depletion and amortization | ||||||
Impairments and other charges | ||||||
Changes in assets and liabilities: | ||||||
Receivables | ( | ) | ( | ) | ||
Inventories | ( | ) | ( | ) | ||
Accounts payable | ( | ) | ||||
Other operating activities | ( | ) | ||||
Total cash flows provided by (used in) operating activities | ||||||
Cash flows from investing activities: | ||||||
Capital expenditures | ( | ) | ( | ) | ||
Proceeds from sales of property, plant and equipment | ||||||
Payments to acquire businesses | ( | ) | ( | ) | ||
Other investing activities | ( | ) | ( | ) | ||
Total cash flows provided by (used in) investing activities | ( | ) | ( | ) | ||
Cash flows from financing activities: | ||||||
Dividends to shareholders | ( | ) | ( | ) | ||
Stock repurchase program | ( | ) | ||||
Other financing activities | ( | ) | ||||
Total cash flows provided by (used in) financing activities | ( | ) | ( | ) | ||
Effect of exchange rate changes on cash | ( | ) | ( | ) | ||
Decrease in cash and equivalents | ( | ) | ( | ) | ||
Cash and equivalents at beginning of period | ||||||
Cash and equivalents at end of period | $ | $ | ||||
Supplemental disclosure of cash flow information: | ||||||
Cash payments during the period for: | ||||||
Interest | $ | $ | ||||
Income taxes | $ | $ | ||||
See notes to condensed consolidated financial statements. |
- | the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and |
- | the reported amounts of revenue and expenses during the reporting period. |
Three Months Ended | Six Months Ended | ||||||||
Millions of dollars | June 30, 2019 | June 30, 2019 | June 30, 2018 | ||||||
Long-lived asset impairments | $ | $ | $ | ||||||
Severance costs | |||||||||
Inventory write-downs | |||||||||
Venezuela investment write-down | |||||||||
Other | |||||||||
Total impairments and other charges | $ | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | ||||||||
Revenue: | ||||||||||||
Completion and Production | $ | $ | $ | $ | ||||||||
Drilling and Evaluation | ||||||||||||
Total revenue | $ | $ | $ | $ | ||||||||
Operating income: | ||||||||||||
Completion and Production | $ | $ | $ | $ | ||||||||
Drilling and Evaluation | ||||||||||||
Total operations | ||||||||||||
Corporate and other (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Impairments and other charges (b) | ( | ) | ( | ) | ( | ) | ||||||
Total operating income | $ | $ | $ | $ | ||||||||
Interest expense, net of interest income | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Other, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Income before income taxes | $ | $ | $ | $ |
Millions of dollars | Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
Revenue by segment: | 2019 | 2018 | 2019 | 2018 | ||||||||
Completion and Production | $ | $ | $ | $ | ||||||||
Drilling and Evaluation | ||||||||||||
Total revenue | $ | $ | $ | $ | ||||||||
Revenue by geographic region: | ||||||||||||
North America | $ | $ | $ | $ | ||||||||
Latin America | ||||||||||||
Europe/Africa/CIS | ||||||||||||
Middle East/Asia | ||||||||||||
Total revenue | $ | $ | $ | $ |
Millions of dollars | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||
Components of lease expense: | ||||||
Finance lease cost: | ||||||
Amortization of right-of-use assets | $ | $ | ||||
Interest on lease liabilities | ||||||
Operating lease cost | ||||||
Short-term lease cost | ||||||
Sublease income | ( | ) | ( | ) | ||
Total lease cost | $ | $ |
Millions of dollars | As of June 30, 2019 | ||
Components of balance sheet: | |||
Operating leases: | |||
Operating lease right-of-use assets (non-current) | $ | ||
Current portion of operating lease liabilities | |||
Operating lease liabilities (non-current) | |||
Finance leases: | |||
Other assets (non-current) | $ | ||
Other current liabilities | |||
Other liabilities (non-current) |
Millions of dollars except years and percentages | Six Months Ended June 30, 2019 | ||
Other supplemental information: | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | ||
Operating cash flows from finance leases | |||
Financing cash flows from finance leases | |||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases (a) | $ | ||
Finance leases | |||
Weighted-average remaining lease term: | |||
Operating leases | |||
Finance leases | |||
Weighted-average discount rate for operating leases | % |
Millions of dollars | Operating Leases | Finance Leases | ||||
2019 | $ | $ | ||||
2020 | ||||||
2021 | ||||||
2022 | ||||||
2023 | ||||||
Thereafter | ||||||
Total lease payments | ||||||
Less imputed interest | ( | ) | ( | ) | ||
Total | $ | $ |
Millions of dollars | June 30, 2019 | December 31, 2018 | ||||
Finished products and parts | $ | $ | ||||
Raw materials and supplies | ||||||
Work in process | ||||||
Total | $ | $ |
Millions of dollars | Common Shares | Paid-in Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Consolidated Subsidiaries | Total | ||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||
Comprehensive income (loss): | |||||||||||||||||||||
Net income | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||
Cash dividends ($0.18 per share) | ( | ) | ( | ) | |||||||||||||||||
Stock plans | |||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||
Comprehensive income (loss): | |||||||||||||||||||||
Net income | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||
Cash dividends ($0.18 per share) | ( | ) | ( | ) | |||||||||||||||||
Stock repurchase program | ( | ) | ( | ) | |||||||||||||||||
Stock plans | ( | ) | ( | ) | |||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ |
Millions of dollars | Common Shares | Paid-in Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Consolidated Subsidiaries | Total | ||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||
Comprehensive income (loss): | |||||||||||||||||||||
Net Income | |||||||||||||||||||||
Other comprehensive income | ( | ) | ( | ) | |||||||||||||||||
Cash dividends ($0.18 per share) | ( | ) | ( | ) | |||||||||||||||||
Stock plans | ( | ) | |||||||||||||||||||
Other | ( | ) | |||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||
Comprehensive income (loss): | |||||||||||||||||||||
Net Income | ( | ) | |||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||
Cash dividends ($0.18 per share) | ( | ) | ( | ) | |||||||||||||||||
Stock plans | ( | ) | |||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ |
Millions of dollars | June 30, 2019 | December 31, 2018 | ||||
Defined benefit and other postretirement liability adjustments | $ | ( | ) | $ | ( | ) |
Cumulative translation adjustments | ( | ) | ( | ) | ||
Other | ( | ) | ( | ) | ||
Total accumulated other comprehensive loss | $ | ( | ) | $ | ( | ) |
- | the Comprehensive Environmental Response, Compensation, and Liability Act; |
- | the Resource Conservation and Recovery Act; |
- | the Clean Air Act; |
- | the Federal Water Pollution Control Act; |
- | the Toxic Substances Control Act; and |
- | the Oil Pollution Act. |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||
Millions of shares | 2019 | 2018 | 2019 | 2018 | ||||
Basic weighted average common shares outstanding | ||||||||
Dilutive effect of awards granted under our stock incentive plans | ||||||||
Diluted weighted average common shares outstanding | ||||||||
Antidilutive shares: | ||||||||
Options with exercise price greater than the average market price | ||||||||
Total antidilutive shares |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||
Millions of dollars | Level 1 | Level 2 | Total fair value | Carrying value | Level 1 | Level 2 | Total fair value | Carrying value | |||||||||||||||||
Total debt | $ | $ | $ | $ | $ | $ | $ | $ |
- | our Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion products and services. The segment consists of Production Enhancement, Cementing, Completion Tools, Production Solutions, Pipeline and Process Services, Multi-Chem and Artificial Lift. |
- | our Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. The segment consists of Baroid, Sperry Drilling, Wireline and Perforating, Drill Bits and Services, Landmark Software and Services, Testing and Subsea, and Consulting and Project Management. |
- | directing capital and resources that differentiate our service and product offerings into strategic markets around the world; |
- | collaborating and engineering solutions to maximize asset value for our customers; |
- | leveraging our broad technology offerings to provide value to our customers and enable them to more efficiently drill and complete their wells; |
- | investing in technology that will help our customers reduce reservoir uncertainty, increase operational efficiency and improve well productivity; |
- | improving working capital and managing our balance sheet to maximize our financial flexibility; |
- | seeking additional ways to be one of the most cost-efficient service providers in the industry by maintaining capital discipline and leveraging our scale and breadth of operations; and |
- | striving to achieve superior returns and cash flow generation for our shareholders. |
Three Months Ended June 30 | Year Ended December 31 | ||||||||
2019 | 2018 | 2018 | |||||||
Oil price - WTI (1) | $ | 59.77 | $ | 68.03 | $ | 64.94 | |||
Oil price - Brent (1) | 68.92 | 74.50 | 71.08 | ||||||
Natural gas price - Henry Hub (2) | 2.56 | 2.86 | 3.17 | ||||||
(1) Oil price measured in dollars per barrel (2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
U.S. Land | 967 | 1,021 | 994 | 986 | ||||
U.S. Offshore | 22 | 18 | 22 | 17 | ||||
Canada | 82 | 108 | 132 | 188 | ||||
North America | 1,071 | 1,147 | 1,148 | 1,191 | ||||
International | 1,109 | 968 | 1,069 | 969 | ||||
Worldwide total | 2,180 | 2,115 | 2,217 | 2,160 |
Revenue: | Three Months Ended June 30 | Favorable | Percentage | ||||||||
Millions of dollars | 2019 | 2018 | (Unfavorable) | Change | |||||||
Completion and Production | $ | 3,805 | $ | 4,164 | $ | (359 | ) | (9 | )% | ||
Drilling and Evaluation | 2,125 | 1,983 | 142 | 7 | |||||||
Total revenue | $ | 5,930 | $ | 6,147 | $ | (217 | ) | (4 | )% | ||
By geographic region: | |||||||||||
North America | $ | 3,327 | $ | 3,834 | $ | (507 | ) | (13 | )% | ||
Latin America | 571 | 479 | 92 | 19 | |||||||
Europe/Africa/CIS | 823 | 726 | 97 | 13 | |||||||
Middle East/Asia | 1,209 | 1,108 | 101 | 9 | |||||||
Total revenue | $ | 5,930 | $ | 6,147 | $ | (217 | ) | (4 | )% |
Operating income (loss): | Three Months Ended June 30 | Favorable | Percentage | ||||||||
Millions of dollars | 2019 | 2018 | (Unfavorable) | Change | |||||||
Completion and Production | $ | 470 | $ | 669 | $ | (199 | ) | (30 | )% | ||
Drilling and Evaluation | 145 | 191 | (46 | ) | (24 | ) | |||||
Total | 615 | 860 | (245 | ) | (28 | ) | |||||
Corporate and other | (65 | ) | (71 | ) | 6 | 8 | |||||
Impairments and other charges | (247 | ) | — | (247 | ) | — | |||||
Total operating income | $ | 303 | $ | 789 | $ | (486 | ) | (62 | )% |
Revenue: | Six Months Ended June 30 | Favorable | Percentage | ||||||||
Millions of dollars | 2019 | 2018 | (Unfavorable) | Change | |||||||
Completion and Production | $ | 7,467 | $ | 7,971 | $ | (504 | ) | (6 | )% | ||
Drilling and Evaluation | 4,200 | 3,916 | 284 | 7 | |||||||
Total revenue | $ | 11,667 | $ | 11,887 | $ | (220 | ) | (2 | )% | ||
By geographic region: | |||||||||||
North America | $ | 6,602 | $ | 7,351 | $ | (749 | ) | (10 | )% | ||
Latin America | 1,158 | 936 | 222 | 24 | |||||||
Europe/Africa/CIS | 1,571 | 1,442 | 129 | 9 | |||||||
Middle East/Asia | 2,336 | 2,158 | 178 | 8 | |||||||
Total revenue | $ | 11,667 | $ | 11,887 | $ | (220 | ) | (2 | )% |
Operating income (loss): | Six Months Ended June 30 | Favorable | Percentage | ||||||||
Millions of dollars | 2019 | 2018 | (Unfavorable) | Change | |||||||
Completion and Production | $ | 838 | $ | 1,169 | $ | (331 | ) | (28 | )% | ||
Drilling and Evaluation | 268 | 379 | (111 | ) | (29 | ) | |||||
Total | 1,106 | 1,548 | (442 | ) | (29 | ) | |||||
Corporate and other | (130 | ) | (140 | ) | 10 | 7 | |||||
Impairments and other charges | (308 | ) | (265 | ) | (43 | ) | (16 | ) | |||
Total operating income | $ | 668 | $ | 1,143 | $ | (475 | ) | (42 | )% |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b) | |
April 1 - 30 | 9,974 | $29.70 | — | $5,300,007,172 | |
May 1 - 31 | 116,411 | $25.62 | — | $5,300,007,172 | |
June 1 - 30 | 5,010,451 | $21.97 | 4,544,500 | $5,200,008,050 | |
Total | 5,136,836 | $22.07 | 4,544,500 |
(a) | Of the 5,136,836 shares purchased during the three-month period ended June 30, 2019, 592,336 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to purchase common stock. |
(b) | Our Board of Directors has authorized a program to repurchase our common stock from time to time. During the second quarter of 2019, we repurchased 4,544,500 shares of our common stock pursuant to our share repurchase program for a total cost of $100 million at an average price of approximately $22.00 per share. Approximately $5.2 billion remained authorized for repurchases as of June 30, 2019. From the inception of this program in February 2006 through June 30, 2019, we repurchased approximately 217 million shares of our common stock for a total cost of approximately $8.9 billion. |
† | 10.1 | |
† | 10.2 | |
† | 10.3 | |
† | 10.4 | |
† | 10.5 | |
† | 10.6 | |
*† | 10.7 | |
*† | 10.8 | |
* | 31.1 | |
* | 31.2 | |
** | 32.1 | |
** | 32.2 | |
* | 95 | |
* | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
* | 101.SCH | XBRL Taxonomy Extension Schema Document |
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed with this Form 10-Q. | |
** | Furnished with this Form 10-Q. | |
† | Management contracts or compensatory plans or arrangements. |
/s/ Lance Loeffler | /s/ Charles E. Geer, Jr. |
Lance Loeffler | Charles E. Geer, Jr. |
Executive Vice President and | Vice President and |
Chief Financial Officer | Corporate Controller |
2.1 | Definitions 1 |
2.2 | Number 3 |
2.3 | Headings 3 |
3.1 | Participants 3 |
3.2 | Partial Performance Cycle Participation 3 |
3.3 | No Right to Participate 4 |
3.4 | Consent to Dispute Resolution 4 |
5.1 | Performance Measures 4 |
5.2 | Performance Requirements 5 |
5.3 | Award Determinations 5 |
5.4 | Incentive Opportunities 5 |
5.5 | Discretionary Adjustments 5 |
6.1 | Form and Timing of Payment 5 |
6.2 | Elective Deferral 5 |
6.3 | Tax Withholding 5 |
7.1 | Termination of Service During Performance Cycle 6 |
7.2 | Termination of Service after End of Performance Cycle But Prior to the Payment Date 6 |
8.1 | Status as a Participant or Beneficiary 6 |
8.2 | Employment 6 |
8.3 | Nontransferability 6 |
8.4 | Nature of Program 7 |
11.1 | Governing Law 7 |
11.2 | Successor 8 |
11.3 | Status of Stock 8 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
▪ | total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which we have received a citation from MSHA; |
▪ | total number of orders issued under section 104(b) of the Mine Act, which covers violations that had previously been cited under section 104(a) that, upon follow-up inspection by MSHA, are found not to have been totally abated within the prescribed time period, which results in the issuance of an order requiring the mine operator to immediately withdraw all persons (except certain authorized persons) from the mine; |
▪ | total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act; |
▪ | total number of flagrant violations (i.e., reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury) under section 110(b)(2) of the Mine Act; |
▪ | total number of imminent danger orders (i.e., the existence of any condition or practice in a mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated) issued under section 107(a) of the Mine Act; |
▪ | total dollar value of proposed assessments from MSHA under the Mine Act; |
▪ | total number of mining-related fatalities; and |
▪ | total number of pending legal actions before the Federal Mine Safety and Health Review Commission involving such mine. |
HALLIBURTON COMPANY | |||||||||||||||||
Mine Safety Disclosures | |||||||||||||||||
Quarter Ended June 30, 2019 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Whole dollars) | |||||||||||||||||
Operation/ MSHA Identification Number(1) | Section 104 Citations | Section 104(b) Orders | 104(d) Citations and Orders | Section 110(b)(2) Violations | Section 107(a) Orders | Proposed MSHA Assessments(2) | Fatalities | Pending Legal Actions | |||||||||
BPM Colony Mill/4800070 | 3 | — | — | — | — | $ | — | — | — | ||||||||
BPM Colony Mine/4800889 | — | — | — | — | — | — | — | — | |||||||||
BPM Lovell Mill/4801405 | 1 | — | — | — | — | — | — | — | |||||||||
BPM Lovell Mine/4801016 | — | — | — | — | — | — | — | — | |||||||||
Corpus Christi Grinding Plant/4104010 | — | — | — | — | — | — | — | — | |||||||||
Dunphy Mill/2600412 | — | — | — | — | — | — | — | — | |||||||||
Lake Charles Plant/1601032 | — | — | — | — | — | — | — | — | |||||||||
Larose Grinding Plant/1601504 | — | — | — | — | — | — | — | — | |||||||||
Rossi Jig Plant/2602239 | — | — | — | — | — | — | — | — | |||||||||
Total | 4 | — | — | — | — | $ | — | — | — |
(1) | The definition of a mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools and preparation facilities. Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine. |
(2) | Amounts included are the total dollar value of proposed or outstanding assessments received from MSHA on or before July 10, 2019 regardless of whether the assessment has been challenged or appealed, for citations and orders occurring during the quarter ended June 30, 2019. |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|||
Revenue: | ||||||
Revenue | $ 5,930 | $ 6,147 | $ 11,667 | $ 11,887 | ||
Operating costs and expenses: | ||||||
Impairments and other charges | [1] | 247 | 0 | 308 | 265 | |
General and administrative | 56 | 65 | 115 | 123 | ||
Total operating costs and expenses | 5,627 | 5,358 | 10,999 | 10,744 | ||
Operating income | 303 | 789 | 668 | 1,143 | ||
Interest expense, net of interest income | (144) | (137) | (287) | (277) | ||
Other, net | (8) | (19) | (38) | (44) | ||
Income (loss) from continuing operations before income taxes | 151 | 633 | 343 | 822 | ||
Income tax (provision) benefit | (74) | (125) | (114) | (267) | ||
Net income (loss) | 77 | 508 | 229 | 555 | ||
Net (income) loss attributable to noncontrolling interest | (2) | 3 | (2) | 2 | ||
Net income (loss) attributable to company | $ 75 | $ 511 | $ 227 | $ 557 | ||
Basic net income (loss) per share | $ 0.09 | $ 0.58 | $ 0.26 | $ 0.64 | ||
Diluted net income (loss) per share | $ 0.09 | $ 0.58 | $ 0.26 | $ 0.63 | ||
Basic weighted average common shares outstanding (in shares) | 874 | 877 | 874 | 876 | ||
Diluted weighted average common shares outstanding (in shares) | 875 | 880 | 874 | 879 | ||
Services [Member] | ||||||
Revenue: | ||||||
Revenue | $ 4,559 | $ 4,808 | $ 8,911 | $ 9,196 | ||
Operating costs and expenses: | ||||||
Cost of services and sales | 4,204 | 4,221 | 8,360 | 8,228 | ||
Product sales [Member] | ||||||
Revenue: | ||||||
Revenue | 1,371 | 1,339 | 2,756 | 2,691 | ||
Operating costs and expenses: | ||||||
Cost of services and sales | $ 1,120 | $ 1,072 | $ 2,216 | $ 2,128 | ||
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Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Interest income | $ 4 | $ 13 | $ 12 | $ 23 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Net income (loss) | $ 77 | $ 508 | $ 229 | $ 555 |
Other comprehensive income (loss), net of income taxes | 1 | 1 | 2 | (1) |
Comprehensive income (loss) | 78 | 509 | 231 | 554 |
Comprehensive (income) loss attributable to noncontrolling interest | (2) | 3 | (2) | 2 |
Comprehensive income (loss) attributable to company shareholders | $ 76 | $ 512 | $ 229 | $ 556 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
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Current assets: | ||
Allowance for bad debts | $ 757 | $ 738 |
Accumulated depreciation | $ 13,592 | $ 13,153 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 2,000 | 2,000 |
Common stock, shares issued (in shares) | 1,068 | 1,069 |
Treasury shares (in shares) | 194 | 198 |
Basis of Presentation |
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Jun. 30, 2019 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2018 Annual Report on Form 10-K. Our accounting policies are in accordance with United States generally accepted accounting principles. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect:
Ultimate results could differ from our estimates. In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of June 30, 2019 and the results of our operations for the three and six months ended June 30, 2019 and 2018, and our cash flows for the six months ended June 30, 2019 and 2018. Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. In conjunction with our adoption of the new lease accounting standard, capital leases, which are now referred to as finance leases, have been reclassified on our balance sheet as of December 31, 2018. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. See Note 5 and Note 11 for further information on the new lease standard. The results of our operations for the three and six months ended June 30, 2019 may not be indicative of results for the full year.
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Impairments and Other Charges |
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Impairments and Other Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment, and Other Activities Disclosure | Impairments and Other Charges During the three and six months ended June 30, 2019, we recognized certain impairments and other charges as we continue to adjust our cost structure and footprint to the current operating environment. The following table presents various pre-tax charges we recorded during the three and six months ended June 30, 2019, in addition to the six months ended June 30, 2018, which are reflected within "impairments and other charges" on our condensed consolidated statements of operations. There were no impairments and other charges recorded during the three months ended June 30, 2018.
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Business Segment and Geographic Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment and Geographic Information | Business Segment and Geographic Information We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment. The following table presents information on our business segments.
(a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives. (b) For the three months ended June 30, 2019, amount includes $77 million attributable to Completion and Production, $142 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. For the six months ended June 30, 2019, amount includes $127 million attributable to Completion and Production, $153 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. During the six months ended June 30, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela. See Note 2 for further discussion on these impairments and other charges. There were no such impairments and other charges recorded during the three months ended June 30, 2018. Receivables As of both June 30, 2019 and December 31, 2018, 43% of our net trade receivables were from customers in the United States. Other than the United States, no other country or single customer accounted for more than 10% of our trade receivables at these dates. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves a high degree of judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit agency ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.
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Revenue |
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Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize. Disaggregation of revenue We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 54% and 59% of our consolidated revenue was from the United States for the six months ended June 30, 2019 and 2018, respectively. No other country accounted for more than 10% of our revenue. The following table presents information on our disaggregated revenue.
Contract balances We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our condensed consolidated financial statements. Transaction price allocated to remaining performance obligations Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure | Leases We adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. We adopted the standard using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the three and six months ending June 30, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our condensed consolidated balance sheet as of January 1, 2019. The adoption of this standard did not materially impact our condensed consolidated results of operations for the three and six months ended June 30, 2019. See Note 11 for additional information about the new accounting standard. Beginning January 1, 2019, for all leases with a term in excess of 12 months, we recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. We recognize lease expense for these short-term leases on a straight-line basis over the lease term. We are a lessee for numerous operating leases, primarily related to real estate, transportation and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of our leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We also have some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment leases, such as offshore vessels and drilling rigs, we account for the lease and non-lease components separately. The following tables illustrate the financial impact of our leases as of and for the three and six months ended June 30, 2019, along with other supplemental information about our existing leases:
(a) Primarily consists of operating lease right-of-use assets exchanged for lease obligations upon implementation of the new lease accounting standard on January 1, 2019. The following table summarizes the maturity of our operating and finance leases as of June 30, 2019:
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Inventories |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials and other tools that are recorded using the last-in, first-out method, which totaled $189 million as of June 30, 2019 and $186 million as of December 31, 2018. If the average cost method had been used, total inventories would have been $21 million higher than reported as of June 30, 2019 and $24 million higher as of December 31, 2018. The cost of the remaining inventory was recorded using the average cost method. We had $3.3 billion of inventory as of June 30, 2019, an 11% increase from December 31, 2018, primarily associated with a build-up of our artificial lift and directional drilling inventory. Inventories consisted of the following:
All amounts in the table above are reported net of obsolescence reserves of $194 million as of June 30, 2019 and $219 million as of December 31, 2018.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Shareholders’ Equity The following tables summarize our shareholders’ equity activity for the three and six months ended June 30, 2019 and June 30, 2018, respectively:
Our Board of Directors has authorized a program to repurchase our common stock from time to time. During the quarter ended June 30, 2019, under that program we repurchased approximately 4.5 million shares of our common stock for a total cost of $100 million. Approximately $5.2 billion remained authorized for repurchases as of June 30, 2019. From the inception of this program in February 2006 through June 30, 2019, we repurchased approximately 217 million shares of our common stock for a total cost of approximately $8.9 billion. Accumulated other comprehensive loss consisted of the following:
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Commitments and Contingencies |
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Jun. 30, 2019 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Environmental We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others:
In addition to the federal laws and regulations, states and other countries where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with environmental, legal and regulatory requirements. Our Health, Safety and Environment group has several programs in place to maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion, we are involved in environmental litigation and claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect on our liquidity, consolidated results of operations, or consolidated financial position. Our accrued liabilities for environmental matters were $64 million as of June 30, 2019 and $42 million as of December 31, 2018. Because our estimated liability is typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous properties. Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for six federal and state Superfund sites for which we have established reserves. As of June 30, 2019, those six sites accounted for approximately $14 million of our $64 million total environmental reserve. Despite attempts to resolve these Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims with respect to environmental matters for which we have been named as a potentially responsible party. Guarantee arrangements In the normal course of business, we have agreements with financial institutions under which approximately $2.1 billion of letters of credit, bank guarantees or surety bonds were outstanding as of June 30, 2019. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.
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Income (Loss) per Share |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) per Share | Income per Share Basic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive shares represent potential common shares which are excluded from the computation of diluted income per share as their impact would be antidilutive. A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of cash and equivalents, receivables and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows:
Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.
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New Accounting Pronouncements |
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Jun. 30, 2019 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Pronouncements Leases Effective January 1, 2019, we adopted an accounting standard update issued by the Financial Accounting Standards Board (FASB) related to accounting for leases, which requires lessees to record assets and liabilities that arise for all leases on their balance sheet and expanded financial statement disclosures for both lessees and lessors. Previously, only capital leases were recorded on the balance sheet. This update requires lessees to recognize a lease liability equal to the present value of its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and instead recognize lease expense for such leases generally on a straight-line basis over the lease term. Leases with a term of longer than 12 months will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted this standard using the optional modified retrospective transition method. As such, the comparative financial information has not been restated and continues to be reported under the lease standard in effect during those periods. We also elected other practical expedients provided by the new standard, including the package of practical expedients, the short-term lease recognition practical expedient in which leases with a term of 12 months or less are not recognized on the balance sheet, and the practical expedient to not separate lease and non-lease components for the majority of our leases. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our balance sheet as of January 1, 2019. Additionally, capital leases have been reclassified on our condensed consolidated balance sheet as of December 31, 2018 to conform to current period presentation. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. The adoption of this standard did not materially impact our condensed consolidated statements of operations for the three and six months ended June 30, 2019. See Note 5 for our expanded lease disclosures required by the new standard.
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Revenue (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
Revenue [Abstract] | |
Revenue Recognition, Policy | The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize. |
Inventories (Policies) |
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Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy |
Impairments and Other Charges Impairments and Other Chargers (Tables) |
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Impairments and Other Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The following table presents various pre-tax charges we recorded during the three and six months ended June 30, 2019, in addition to the six months ended June 30, 2018, which are reflected within "impairments and other charges" on our condensed consolidated statements of operations. There were no impairments and other charges recorded during the three months ended June 30, 2018.
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Business Segment and Geographic Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information on business segments | The following table presents information on our business segments.
(a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives. (b) For the three months ended June 30, 2019, amount includes $77 million attributable to Completion and Production, $142 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. For the six months ended June 30, 2019, amount includes $127 million attributable to Completion and Production, $153 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. During the six months ended June 30, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela. See Note 2 for further discussion on these impairments and other charges. There were no such impairments and other charges recorded during the three months ended June 30, 2018. |
Revenue (Tables) |
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Disaggregation of Revenue | The following table presents information on our disaggregated revenue.
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following tables illustrate the financial impact of our leases as of and for the three and six months ended June 30, 2019, along with other supplemental information about our existing leases:
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Lease supplemental disclosure |
(a) Primarily consists of operating lease right-of-use assets exchanged for lease obligations upon implementation of the new lease accounting standard on January 1, 2019.
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Lessee, Operating and Finance Leases, Liability Maturity Table | The following table summarizes the maturity of our operating and finance leases as of June 30, 2019:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
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Shareholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of shareholders' equity activity | The following tables summarize our shareholders’ equity activity for the three and six months ended June 30, 2019 and June 30, 2018, respectively:
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Schedule of comprehensive income (loss) | Accumulated other comprehensive loss consisted of the following:
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Income (Loss) per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding and antidilutive shares | A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:
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Fair value by balance sheet grouping table (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows:
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Basis of Presentation (Details) $ in Millions |
Dec. 31, 2018
USD ($)
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification of Capital Leases to Other Assets | $ 88 |
Reclassification of Capital Leases to Other Liabilities | $ 109 |
Impairments and Other Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived asset impairments | $ 108 | $ 150 | $ 0 | |||
Severance costs | 58 | 77 | 0 | |||
Inventory write-downs | 33 | 33 | 0 | |||
Venezuela investment write-down | 308 | 265 | ||||
Other | 48 | 48 | 0 | |||
Impairments and other charges | [1] | 247 | $ 0 | 308 | 265 | |
VENEZUELA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Venezuela investment write-down | $ 0 | $ 0 | $ 265 | |||
|
Business Segment and Geographic Information (Narrative) (Details) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019
Division
Countries
Customers
|
Dec. 31, 2018
Countries
Customers
|
|
Concentration Risk [Line Items] | ||
Number of business segments | Division | 2 | |
Maximum Percentage Gross Trade Receivables From One Geographic Segment | 10.00% | 10.00% |
Maximum Percentage Gross Trade Receivables From One Customer | 10.00% | 10.00% |
Number of Countries Exceed Receivables Threshold | Countries | 1 | 1 |
Number of Customers Exceed Receivables Threshold | Customers | 0 | 0 |
Geographic Concentration Risk [Member] | Accounts Receivable [Member] | UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 43.00% | 43.00% |
Business Segment and Geographic Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||||
Revenue: | |||||||||
Revenue | $ 5,930 | $ 6,147 | $ 11,667 | $ 11,887 | |||||
Operating income (loss): | |||||||||
Impairments and other charges | [1] | 247 | 0 | 308 | 265 | ||||
Operating income | 303 | 789 | 668 | 1,143 | |||||
Interest expense, net of interest income | (144) | (137) | (287) | (277) | |||||
Other, net | (8) | (19) | (38) | (44) | |||||
Income (loss) from continuing operations before income taxes | 151 | 633 | 343 | 822 | |||||
Completion and Production | |||||||||
Revenue: | |||||||||
Revenue | 3,805 | 4,164 | 7,467 | 7,971 | |||||
Operating income (loss): | |||||||||
Impairments and other charges | [1] | 77 | 127 | ||||||
Operating income | 470 | 669 | 838 | 1,169 | |||||
Drilling and Evaluation | |||||||||
Revenue: | |||||||||
Revenue | 2,125 | 1,983 | 4,200 | 3,916 | |||||
Operating income (loss): | |||||||||
Impairments and other charges | [1] | 142 | 153 | ||||||
Operating income | 145 | 191 | 268 | 379 | |||||
Total operations | |||||||||
Revenue: | |||||||||
Revenue | 5,930 | 6,147 | 11,667 | 11,887 | |||||
Operating income (loss): | |||||||||
Operating income | 615 | 860 | 1,106 | 1,548 | |||||
Corporate and other | |||||||||
Operating income (loss): | |||||||||
Operating income | [2] | (65) | $ (71) | (130) | $ (140) | ||||
Corporate and other | |||||||||
Operating income (loss): | |||||||||
Impairments and other charges | [1] | $ 28 | $ 28 | ||||||
|
Leases (Details) - USD ($) $ in Billions |
Jun. 30, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1.1 | |
Lessee, Operating Lease, Term of Contract | 10 years |
Components of lease expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Finance lease cost - Amortization of right-of-use assets | $ 5 | $ 10 |
Finance lease cost - Interest on lease liabilities | 13 | 28 |
Operating lease cost | 90 | 186 |
Short-term lease cost | 9 | 15 |
Sublease income | (2) | (3) |
Total lease cost | $ 115 | $ 236 |
Leases - Components of balance sheet (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating lease right-of-use assets | $ 978 | $ 0 |
Current portion of operating lease liabilities | 215 | 0 |
Operating lease liabilities | 761 | $ 0 |
Other Assets [Member] | ||
Finance Lease, Right-of-Use Asset | 141 | |
Other Current Liabilities [Member] | ||
Finance Lease, Liability, Current | 17 | |
Other Liabilities [Member] | ||
Finance Lease, Liability, Noncurrent | $ 136 |
Leases - Other supplemental information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
||||
Leases [Abstract] | |||||
Operating cash flows from operating leases | $ 161 | ||||
Operating cash flows from finance leases | $ 13 | 28 | |||
Financing cash flows from finance leases | 15 | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,138 | [1] | |||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 65 | ||||
Operating Lease, Weighted Average Remaining Lease Term | 9 years 7 months 6 days | 9 years 7 months 6 days | |||
Finance Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | 4.60% | |||
|
Lease maturity (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
2019 - Operating Leases | $ 151 |
2019 - Financing Leases | 34 |
2020 - Operating Leases | 206 |
2020 - Financing Leases | 65 |
2021 - Operating Leases | 161 |
2021 - Financing Leases | 65 |
2022 - Operating Leases | 125 |
2022 - Financing Leases | 65 |
2023 - Operating Leases | 101 |
2023 - Financing Leases | 65 |
Thereafter - Operating Leases | 524 |
Thereafter - Financing Leases | 144 |
Total lease payments - Operating Leases | 1,268 |
Total lease payments - Financing Leases | 438 |
Imputed interest - Operating Leases | (293) |
Imputed interest - Financing Leases | (284) |
Total - Operating Leases | 975 |
Total - Financing Leases | $ 154 |
Leases - Future minimum payments on noncancellable operating leases (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due | $ 975 |
2019 | 275 |
2020 | 146 |
2021 | 122 |
2022 | 100 |
2023 | 78 |
Thereafter | $ 254 |
Inventories (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
LIFO Method Related Items [Abstract] | ||
LIFO Inventory Amount | $ 189 | $ 186 |
Average Cost Method, Difference | 21 | 24 |
Inventory, Net [Abstract] | ||
Finished products and parts | 2,102 | 1,947 |
Raw materials and supplies | 1,089 | 934 |
Work in process | 156 | 147 |
Inventory, net | $ 3,347 | 3,028 |
Increase (Decrease) in Inventory, Percentage | 11.00% | |
Obsolescence reserves | $ 194 | $ 219 |
Shareholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Defined benefit and other postretirement liability adjustments | $ (203) | $ (203) |
Cumulative translation adjustments | (82) | (82) |
Other | (67) | (70) |
Total accumulated other comprehensive loss | $ (352) | $ (355) |
Shareholders' Equity Repurchase Activity (Details) shares in Millions, $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
shares
| |
Repurchase Activity [Abstract] | |
Stock Repurchased During Period, Shares | shares | 4.5 |
Stock Repurchased During Period, Value | $ 100 |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | $ 5,200 |
Treasury Stock Shares Acquired From Inception | shares | 217.0 |
Treasury Stock Value Acquired Cost Method From Inception | $ 8,900 |
Commitments and Contingencies (Environmental) (Details) $ in Millions |
Jun. 30, 2019
USD ($)
Superfund_Sites
|
Dec. 31, 2018
USD ($)
|
---|---|---|
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Accrual for Environmental Loss Contingencies | $ 64 | $ 42 |
Superfund Sites [Member] | ||
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Number Of Superfund Sites | Superfund_Sites | 6 | |
Accrual for Environmental Loss Contingencies, Gross | $ 14 |
Commitments and Contingencies (Guarantee Arrangements) (Details) $ in Billions |
Jun. 30, 2019
USD ($)
|
---|---|
Financial agreements | |
Guarantee arrangements [Abstract] | |
Guarantee arrangements outstanding | $ 2.1 |
Income (Loss) per Share (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding (in shares) | 874 | 877 | 874 | 876 |
Dilutive effect of awards granted under our stock incentive plans | 1 | 3 | 0 | 3 |
Diluted weighted average common shares outstanding (in shares) | 875 | 880 | 874 | 879 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options with exercise price greater than the average market price | 23 | 6 | 20 | 6 |
Total antidilutive shares | 23 | 6 | 20 | 6 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of days from period end | 2 days | |
Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 11,608 | $ 10,767 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, Long-term and Short-term, Combined Amount | 10,329 | 10,348 |
Level 1 | Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 8,219 | 6,726 |
Level 2 | Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 3,389 | 4,041 |
Level 3 | Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 0 | $ 0 |
New Accounting Pronouncements (Details) - USD ($) $ in Millions |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|
New Accounting Pronouncements [Abstract] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1,100 | |
Reclassification of Capital Leases to Other Assets | $ 88 | |
Reclassification of Capital Leases to Other Liabilities | $ 109 |
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