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R
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ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
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£
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TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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76-0451843
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1333 West Loop South
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Suite 1700
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Houston, Texas
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77027
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, Par Value $0.01 Per Share
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New York Stock Exchange
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ITEM
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PAGE
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PART I
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1.
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Business
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3
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Markets and Products
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4
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Market Issues
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8
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New Product Development
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9
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Competition
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10
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Manufacturing
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10
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Major Customers
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11
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Backlog
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11
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Patents, Trademarks and Other Intellectual Property
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11
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Employees
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11
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Executive Officers of the Registrant
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12
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Glossary of Terms
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13
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1A.
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Risk Factors
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13
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1B.
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Unresolved Staff Comments
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13
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2.
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Properties
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14
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3.
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Legal Proceedings
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14
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4.
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Mine Safety Disclosures
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16
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PART II
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5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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17
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6.
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Selected Financial Data
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17
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7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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18
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7A.
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Quantitative and Qualitative Disclosures about Market Risk
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18
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8.
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Financial Statements and Supplementary Data
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19
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9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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19
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9A.
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Controls and Procedures
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19
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9B.
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Other Information
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20
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PART III
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10
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Directors, Executive Officers and Corporate Governance
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20
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11.
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Executive Compensation
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20
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12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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20
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13.
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Certain Relationships and Related Transactions, and Director Independence
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20
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14.
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Principal Accounting Fees and Services
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20
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PART IV
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15.
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Exhibits, Financial Statement Schedules
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21
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Signatures
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30
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Name and Age
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Present Principal Position and Other Material Positions Held During Last Five Years
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Jack B. Moore (59)
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Chairman of the Board of Directors since May 2011. President and Chief Executive Officer since April 2008. President and Chief Operating Officer from January 2007 to March 2008. Senior Vice President from July 2005 to December 2006. Vice President from May 2003 to July 2005. President, Drilling and Production Systems segment from July 2002 to December 2006. Vice President and General Manager, Cameron Western Hemisphere from July 1999 to July 2002. Vice President Western Hemisphere Operations, Vice President Eastern Hemisphere, Vice President Latin American Operations, Director Human Resources, Director Market Research and Director Materials of Baker Hughes Incorporated from 1976 to July 1999. Serves on the board of directors of the American Petroleum Institute (API), National Ocean Industries Association (NOIA), Petroleum Equipment Suppliers Association, CanCare, Inc., Spindletop Charities and on the University of Houston C.T. Bauer College of Business Dean’s Executive Board.
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John D. Carne (64)
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Executive Vice President since March 2010. Chief Operating Officer from August 2010 to January 2013. Named to be Chief Executive Officer for OneSubsea. Senior Vice President from February 2006 to February 2010. Vice President from May 2003 to February 2006. President, Drilling and Production Systems segment since January 2007. President, Valves and Measurement segment from April 2002 to December 2006. Director of Operations, Eastern Hemisphere, Cameron division from 1999 to March 2002. Plant Manager, Leeds, England, Cameron division from 1996 to 1999. Director of Operations, U.K. & Norway, Cooper Energy Services (U.K.) Ltd. from 1988 to 1996.
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William C. Lemmer (68)
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Senior Vice President and General Counsel since May 2008, Senior Vice President, General Counsel and Secretary from July 2007 to May 2008. Vice President, General Counsel and Secretary from July 1999 to July 2007. Vice President, General Counsel and Secretary of Oryx Energy Company from 1994 to March 1999.
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Charles M. Sledge (47)
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Senior Vice President and Chief Financial Officer since November 2008. Vice President and Chief Financial Officer from April 2008 to November 2008. Vice President and Corporate Controller from July 2001 to March 2008. Senior Vice President, Finance and Treasurer from 1999 to June 2001, and Vice President, Controller from 1996 to 1999, of Stage Stores, Inc., a chain of family apparel stores.
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James E. Wright (59)
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Senior Vice President since March 2010. President, Valves & Measurement segment since January 2007. President, Distributed and Process Valves divisions from December 2005 to December 2006. Vice President and General Manager, Distributed Products from August 2002 to December 2005. Vice President and General Manager, North America Pipeline and Distributor Products from June 2001 to August 2002 and Vice President Marketing and North American Sales for Valves & Measurement from August 1998 to June 2001.
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Gary M. Halverson (54)
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Senior Vice President since October 2012. Vice President from October 2010 to October 2012. President, Surface Systems since 2005. Vice President and General Manager Cameron Western Hemisphere from 2003 to 2005. General Manager of Cameron Latin America from 2001 to 2003. Director of Sales and Marketing for Cameron Asia Pacific Middle East from 1995 to 2001.
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Roslyn R. Larkey (54)
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Vice President, Human Resources since August 2010. Joined Cameron in 2000 and appointed to current position in August 2010. Recently held the position of Vice President, Human Resources for Cameron’s Valves & Measurement segment, and also served as Director, Employee Relations & Organizational Development and Vice President, HR Surface Systems division. Previously held key human resources roles at The Coastal Corporation and Metamor Worldwide.
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Christopher A. Krummel (44)
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Vice President, Controller and Chief Accounting Officer since April 2008. Assistant Controller from October 2007 to March 2008. Chief Financial Officer from October 2003 to October 2007 of Enventure Global Technology, a joint venture of Royal Dutch Shell and Halliburton. Vice President of Capital Planning and Allocation, Vice President of Mergers and Acquisitions and Division Financial Controller for Petroleum Geo-Services from 1995 to 2003.
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Western Hemisphere
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Eastern
Hemisphere
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Asia/Pacific
and
Middle East
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West
Africa
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Total
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||||||||||||||||
DPS and V&M ―
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Number of locations
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187 | 68 | 57 | 16 | 328 | |||||||||||||||
Square footage:
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Owned
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5,510,395 | 4,510,880 | 12,738 | 18,898 | 10,052,911 | |||||||||||||||
Leased
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2,956,319 | 479,856 | 2,486,452 | 642,450 | 6,565,077 | |||||||||||||||
PCS ―
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Number of locations
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66 | 7 | 6 | – | 79 | |||||||||||||||
Square footage:
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||||||||||||||||||||
Owned
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1,138,045 | – | – | – | 1,138,045 | |||||||||||||||
Leased
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1,030,712 | 142,170 | 134,615 | – | 1,307,497 | |||||||||||||||
Corporate ―
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||||||||||||||||||||
Number of locations
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6 | 2 | – | – | 8 | |||||||||||||||
Square footage:
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||||||||||||||||||||
Owned
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85,518 | – | – | – | 85,518 | |||||||||||||||
Leased
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440,830 | 336 | – | – | 441,166 | |||||||||||||||
Total ―
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||||||||||||||||||||
Number of locations
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259 | 77 | 63 | 16 | 415 | |||||||||||||||
Square footage:
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Owned
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6,733,958 | 4,510,880 | 12,738 | 18,898 | 11,276,474 | |||||||||||||||
Leased
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4,427,861 | 622,362 | 2,621,067 | 642,450 | 8,313,740 |
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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Price Range ($)
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High
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Low
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Last
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||||||||||
2012
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First Quarter
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$ | 57.65 | $ | 49.02 | $ | 52.83 | ||||||
Second Quarter
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53.84 | 38.38 | 42.71 | |||||||||
Third Quarter
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60.00 | 41.26 | 56.07 | |||||||||
Fourth Quarter
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57.78 | 47.62 | 56.46 |
Price Range ($)
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High
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Low
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Last
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||||||||||
2011
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||||||||||||
First Quarter
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$ | 63.16 | $ | 47.66 | $ | 57.10 | ||||||
Second Quarter
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57.85 | 42.75 | 50.29 | |||||||||
Third Quarter
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58.50 | 41.54 | 41.54 | |||||||||
Fourth Quarter
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55.15 | 38.77 | 49.19 |
Period
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Total number of shares purchased
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Average price paid per share
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Total number of shares purchased as part of repurchase program
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Maximum number of shares that may yet be purchased under
repurchase program(1)
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||||||||||||
10/1/12 - 10/31/12
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– | $ | – | 306,200 | 9,566,768 | |||||||||||
11/1/12 - 11/30/12
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65,508 | $ | 53.47 | 371,708 | 8,914,895 | |||||||||||
12/1/12 - 12/31/12
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90,092 | $ | 53.58 | 461,800 | 8,433,083 | |||||||||||
Total
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155,600 | $ | 53.53 | 461,800 | 8,433,083 |
(1)
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Based upon month-end stock price
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(a)The following documents are filed as part of this Report:
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(1)Financial Statements:
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(2)Financial Statement Schedules:
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/s/ Ernst & Young LLP
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Additions
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Balance at beginning
of period
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Charged
to costs
and expenses
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Charged
to other accounts
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Deductions
(a)
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Translation
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Balance
at end
of period
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|||||||||||||||||||
YEAR ENDED DECEMBER 31, 2012:
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Allowance for doubtful accounts
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$ | 9.9 | $ | 0.5 | $ | 0.2 | $ | (2.6 | ) | $ | (0.1 | ) | $ | 7.9 | ||||||||||
Allowance for obsolete and excess inventory
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$ | 81.9 | $ | 20.9 | $ | (2.0 | ) | $ | (12.3 | ) | $ | 0.4 | $ | 88.9 | ||||||||||
YEAR ENDED DECEMBER 31, 2011:
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Allowance for doubtful accounts
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$ | 14.0 | $ | 1.0 | $ | 0.3 | $ | (5.2 | ) | $ | (0.2 | ) | $ | 9.9 | ||||||||||
Allowance for obsolete and excess inventory
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$ | 68.0 | $ | 18.8 | $ | 2.0 | $ | (6.0 | ) | $ | (0.9 | ) | $ | 81.9 | ||||||||||
YEAR ENDED DECEMBER 31, 2010:
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Allowance for doubtful accounts
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$ | 15.8 | $ | (0.4 | ) | $ | 0.8 | $ | (1.5 | ) | $ | (0.7 | ) | $ | 14.0 | |||||||||
Allowance for obsolete and excess inventory
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$ | 58.9 | $ | 15.0 | $ | 3.9 | $ | (9.2 | ) | $ | (0.6 | ) | $ | 68.0 |
(a)
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Write-offs of uncollectible receivables, deductions for collections of previously reserved receivables and write-offs of obsolete inventory.
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Exhibit Number
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Exhibit Index Description |
3.1
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Restated Certificate of Incorporation of Cameron International Corporation, dated May 11, 2012, filed as Appendix C to the Company’s Supplement to the 2012 Proxy Statement, and incorporated herein by reference.
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3.2
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Bylaws of Cameron International Corporation filed as Exhibit 3.1 to the Current Report on Form 8-K filed on April 18, 2012, and incorporated herein by reference.
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3.3
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Amendment to the Bylaws of Cameron International Corporation filed as Exhibit 3.1 to the Current Report on Form 8-K filed on October 18, 2012, and incorporated herein by reference.
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3.4
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Certificate of Elimination with Respect to Series A Junior Participating Preferred Stock, filed as Exhibit 3.1 to the Current Report on Form 8-K filed December 18, 2007, and incorporated herein by reference.
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3.5
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Certificate of Elimination with Respect to Series B Junior Participating Preferred Stock of Cameron International Corporation pursuant to Section 151(g), filed as Exhibit 3.8 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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4.1
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Registration Statement on Form S-3 filed with the Securities and Exchange Commission on May 4, 1998 (Registration Statement No. 333-51705), and incorporated herein by reference.
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4.2
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Form of Indenture for senior debt securities filed as Exhibit 4.1 to the Registration Statement on Form S-3 filed with the Securities and Exchange Commission on June 23, 2008 (File No. 333-151838) and incorporated herein by reference.
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10.1
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Cameron International Corporation Retirement Savings Plan, as Amended and Restated, effective January 1, 2008, filed as Exhibit 10.6 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.2
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First through Third Amendments to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.7 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.3
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Merger of the Petreco International, Inc. 401(k) Profit Sharing Plan with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.10 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
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10.4
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Merger of the Company's Savings-Investment Plan for Hourly Employees with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.11 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
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Exhibit Number
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Exhibit Index Description |
10.5
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Amendment to the NuFlo Technologies, Inc. 401(K) Plan and Merger of the NuFlo Technologies, Inc. 401(K) Plan with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.11 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
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10.6
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Fourth Amendment to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.43 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.7
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Fifth and Sixth Amendments to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.12 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
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10.8
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Merger of the NATCO Group Profit Sharing And Savings Plan with and into the Cameron International Corporation Retirement Savings Plan, effective March 17, 2010, filed as Exhibit 10.49 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.9
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Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.21 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.10
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First through Third Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.22 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10. 11
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Fourth Amendment to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.44 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.12
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Fifth and Sixth Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.17 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
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10.13*
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Seventh and Eighth Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective August 6, 2012.
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10.14
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The Company's Deferred Compensation Plan for Non-Employee Directors, filed as Exhibit 10.41 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
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10.15
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The Company's Long-Term Incentive Plan, as Amended and Restated as of November 2002, incorporated by reference to the Company's Proxy Statement for the Annual Meeting of Stockholders held on May 8, 2003.
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Exhibit Number
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Exhibit Index Description |
10.16
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Sixth Amendment to the Company's Long-Term Incentive Plan, as Amended and Restated as of November 2002, incorporated by reference to the Company's Proxy Statement for the Annual meeting of Stockholders held on May 8, 2003.
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10.17
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Seventh Amendment to the Company's Long-Term Incentive Plan, as Amended and Restated, filed as Exhibit 10.44 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
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10.18*
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The Amended and Restated Cameron International Corporation Nonqualified Deferred Compensation Plan, effective January 1, 2013.
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10.19
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The 2011 Management Incentive Compensation Plan of the Company, incorporated herein by reference to the Company’s 2011 Proxy Statement for the Annual Meeting of Stockholders held on May 3, 2011.
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10.20
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The Company's 2005 Equity Incentive Plan, Amended and Restated as of February 18, 2009, filed as an Appendix to the Company's 2009 Proxy Statement, and incorporated herein by reference.
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10.21
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Seventh Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, filed as Exhibit 10.16 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.22
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Eighth Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, filed as Exhibit 10.17 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.23
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Ninth Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, effective May 3, 2011, filed as Appendix B in the 2011 Proxy Statement, and incorporated herein by reference.
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10.24
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Change in Control Policy of the Company, approved February 19, 1996, filed as Exhibit 10.18 to the Annual Report on Form 10-K for 1996 of the Company, and incorporated herein by reference.
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10.25
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Form of Change of Control Agreement, effective December 18, 2008, by and between the Company and John D. Carne, John Bartos, Hal J. Goldie, Christopher A. Krummel, William C. Lemmer, Joseph H. Mongrain, Jack B. Moore, Charles M. Sledge and James E. Wright filed as Exhibit 10.17 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
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10.26
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Form of Change in Control Agreement, effective June 16, 2009, by and between the Company and Mr. H. Keith Jennings, filed as Exhibit 10.52 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.27*
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Form of Executive Severance Program of the Company, effective October 17, 2012.
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Exhibit Number
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Exhibit Index Description |
10.28
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Form of Indemnification Agreement, effective February 20, 2003, by and between the Company and C. Baker Cunningham, Sheldon R. Erikson, Michael E. Patrick, David Ross and Bruce W. Wilkinson, filed as Exhibit 10.32 to the Annual Report on Form 10-K/A for 2002 of the Company, and incorporated herein by reference.
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10.29
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Form of Indemnification Agreement, effective February 20, 2003, by and between the Company and Mr. Jeff Altamari, Mr. John Carne, Mr. Hal Goldie, Mr. William C. Lemmer, Mr. Jack B. Moore, and Mr. Charles M. Sledge, filed as Exhibit 10.36 to the Annual Report on Form 10-K for 2003 of the Company, and incorporated herein by reference.
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10.30
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Form of Indemnification Agreement, effective February 7, 2005, by and between the Company and Peter J. Fluor, filed as Exhibit 10.23 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
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10.31
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Form of Indemnification Agreement, effective July 1, 2008, by and between the Company and Douglas L. Foshee, filed as Exhibit 10.24 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
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10.32
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Form of Indemnification Agreement, effective June 12, 2009, by and between the Company and Jon Erik Reinhardsen, filed as Exhibit 10.28 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
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10.33
|
Form of Indemnification Agreement, effective August 13, 2007, by and between the Company and William C. Lemmer, Joseph H. Mongrain and James E. Wright, filed as Exhibit 10.50 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.34
|
Form of Indemnification Agreement, effective January 1, 2011, by and between the Company and Jeffrey G. Altamari, John C. Bartos, John D. Carne, Mark L. Carter, Glenn J. Chiasson, Gary Devlin, Brad Eastman, Kevin Fleming, Hal J. Goldie, Gary M. Halverson, Grace B. Holmes, H. Keith Jennings, Christopher A. Krummel, Amber Macksey, Jack B. Moore, Edward E. Roper, Owen Serjeant, Charles M. Sledge, Stephen P. Tomlinson and Edward E. Will, filed as Exhibit 10.51 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
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10.35
|
Form of Indemnification Agreement, effective October 18, 2011, by and between the Company and Rodolfo Landim, filed as Exhibit 10.41 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
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10.36*
|
Form of Indemnification Agreement, by and between the Company and William G. Lamb effective April 12, 2012, and James T. Hackett effective August 1, 2012.
|
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|
10.37
|
Credit Agreement, dated as of April 14, 2008, among the Company and certain of its subsidiaries and the banks named therein and JPMorgan Chase Bank, N.A., as agent, filed as Exhibit 10.1 to the Current Report on Form 8-K dated April 14, 2008, of the Company, and incorporated herein by reference.
|
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|
10.38*
|
Second Amendment to the Credit Agreement, dated as of June 6, 2011, among the Company and certain of its subsidiaries and the banks named therein and JPMorgan Chase Bank, N.A., as agent.
|
Exhibit Number
|
Exhibit Index Description |
10.39*
|
Amended and Restated Credit Agreement, dated February 2, 2012, among the Company and certain of its subsidiaries and the banks named therein and Citibank, N.A.
|
|
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10.40*
|
First Amendment to the Amended and Restated Credit Agreement, dated July 2, 2012, among the Company and certain of its subsidiaries and the banks named therein and Citibank, N.A.
|
|
|
10.41
|
Form of Stock Option Agreement for grants dated November 22, 2004, under the Company’s Long-Term Incentive Plan, filed as an exhibit to a Form 8-K on January 18, 2005, and incorporated herein by reference.
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10.42
|
Form of Stock Option Agreement for grants dated November 10, 2005, filed as Exhibit 10.47 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
|
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10.43
|
Form of Stock Option Agreement for stock options granted on after April 1, 2009, filed as Exhibit 10.30 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
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10.44
|
Form of Grant Agreement for Stock Options granted on or after October 20, 2010, filed as Exhibit 10.39 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
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10.45
|
Form of Amendment dated October 20, 2010 to Stock Options Agreement, filed as Exhibit 10.49 on Form 10-K for 2011 of the Company, and incorporated herein by reference..
|
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10.46*
|
Form of Stock Option Agreement for stock options granted on or after October 18, 2012.
|
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|
10.47
|
Form of Grant Agreement for Restricted Stock Units granted on or after October 20, 2010, filed as Exhibit 10.40 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
|
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10.48
|
Form of Grant Agreement for Restricted Stock Units for Executive Officers granted on or after October 20, 2010, filed as Exhibit 10.41 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
|
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10.49
|
Form of Grant Agreement for Restricted Stock Units granted on or after November 16, 2011, filed as Exhibit 10.55 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
|
|
10.50*
|
Form of Restricted Stock Unit Agreement for Restricted Stock Units granted on or after June 21, 2012.
|
|
|
10.51*
|
Form of Restricted Stock Unit Agreement for Restricted Stock Units granted on or after January 1, 2013.
|
Exhibit Number
|
Exhibit Index Description |
10.52
|
Form of Grant Agreement for Restricted Stock Units for Executive Officers granted on or after November 16, 2011, filed as Exhibit 10.56 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
10.53
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2011, filed as Exhibit 10.57 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
|
|
10.54*
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2012.
|
|
|
10.55*
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2013.
|
|
|
10.56
|
NATCO Group, Inc. 1998 Employee Stock Option Plan, filed as Exhibit 10.3 to NATCO’s Proxy Statement on Form S-1 (No. 333-48851), and incorporated herein by reference.
|
|
|
10.57
|
NATCO Group, Inc. 2001 Stock Incentive Plan, filed as Appendix B to NATCO’s Proxy Statement dated May 24, 2001, and incorporated herein by reference.
|
|
|
10.58
|
NATCO Group, Inc. 2004 Stock Incentive Plan, filed as Appendix B to NATCO’s Proxy Statement dated May 27, 2004, and incorporated herein by reference.
|
|
|
10.59
|
NATCO Group, Inc. 2006 Long-Term Incentive Compensation Plan, as Amended and Restated, filed as Exhibit 10.1 to NATCO’s Quarterly Report on Form 10-Q for quarter ended June 30, 2006 , and incorporated herein by reference.
|
|
|
13.1*
|
Portions of the 2012 Annual Report to Stockholders are included as an exhibit to this report.
|
|
|
14.1
|
Code of Ethics for Management Personnel, including Senior Financial Officers, filed as Exhibit 14.2 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
|
|
|
14.2
|
Cameron Code of Conduct, filed as Exhibit 14.1 to the Current Report on Form 8-K filed August 19, 2009, and incorporated herein by reference.
|
|
|
14.3
|
Amendment to the Code of Business Conduct and Ethics for Directors, filed as Exhibit 14.1 to the Current Report on Form 8-K filed July 19, 2011 and incorporated herein by reference.
|
|
|
14.4
|
Code of Business Conduct and Ethics for Directors filed as Exhibit 14.1 to the Current Report on Form 8-K filed October 18, 2012 of the Company, and incorporated herein by reference.
|
|
|
21.1*
|
Subsidiaries of registrant.
|
|
|
23.1*
|
Consent of Independent Registered Public Accounting Firm.
|
Exhibit Number
|
Exhibit Index Description |
|
|
31.1*
|
Certification.
|
|
|
31.2*
|
Certification.
|
|
|
32.1*
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101.INS*
|
XBRL Instance Document
|
|
|
101.SCH*
|
XBRLTaxonomy Extension Schema Document
|
|
|
101.CAL*
|
XBRLTaxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF*
|
XBRLTaxonomy Extension Definition Linkbase Document
|
|
|
101.LAB*
|
XBRLTaxonomy Extension Label Linkbase Document
|
|
|
101.PRE*
|
XBRLTaxonomy Extension Presentation Linkbase Document
|
|
CAMERON INTERNATIONAL CORPORATION
|
||
Registrant
|
||
By:
|
/s/ Christopher A. Krummel
|
|
(Christopher A. Krummel)
|
||
Vice President Controller and Chief Accounting Officer
|
||
(principal accounting officer)
|
||
Date: February 22, 2013
|
Signature
|
Title
|
/s/ C. Baker Cunningham
|
|
(C. Baker Cunningham)
|
Director
|
/s/ Sheldon R. Erikson
|
|
(Sheldon R. Erikson)
|
Director
|
/s/ Peter J. Fluor
|
|
(Peter J. Fluor)
|
Director
|
/s/ Douglas L. Foshee
|
|
(Douglas L. Foshee)
|
Director
|
/s/ James T. Hackett
|
|
(James T. Hackett)
|
Director
|
/s/ Rodolfo Landim
|
|
(Rodolfo Landim)
|
Director
|
/s/ Jack B. Moore
|
|
(Jack B. Moore)
|
Chairman of the Board, President
and Chief Executive Officer
|
(principal executive officer)
|
|
/s/ Michael E. Patrick
|
|
(Michael E. Patrick)
|
Director
|
/s/ Jon Erik Reinhardsen
|
|
(Jon Erik Reinhardsen)
|
Director
|
/s/ David Ross
|
|
(David Ross)
|
Director
|
/s/ Bruce W. Wilkinson
|
|
(Bruce W. Wilkinson)
|
Director
|
/s/ Charles M. Sledge
|
Senior Vice President and Chief Financial Officer
|
(Charles M. Sledge)
|
(principal financial officer)
|
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
3.1
|
Restated Certificate of Incorporation of Cameron International Corporation, dated May 11, 2012, filed as Appendix C to the Company’s Supplement to the 2012 Proxy Statement, and incorporated herein by reference.
|
||
3.2
|
Bylaws of Cameron International Corporation filed as Exhibit 3.1 to the Current Report on Form 8-K filed on April 18, 2012, and incorporated herein by reference.
|
||
3.3
|
Amendment to the Bylaws of Cameron International Corporation filed as Exhibit 3.1 to the Current Report on Form 8-K filed on October 18, 2012, and incorporated herein by reference.
|
||
3.4
|
Certificate of Elimination with Respect to Series A Junior Participating Preferred Stock, filed as Exhibit 3.1 to the Current Report on Form 8-K filed December 18, 2007, and incorporated herein by reference.
|
||
3.5
|
Certificate of Elimination with Respect to Series B Junior Participating Preferred Stock of Cameron International Corporation pursuant to Section 151(g), filed as Exhibit 3.8 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
4.1
|
Registration Statement on Form S-3 filed with the Securities and Exchange Commission on May 4, 1998 (Registration Statement No. 333-51705), and incorporated herein by reference.
|
||
4.2
|
Form of Indenture for senior debt securities filed as Exhibit 4.1 to the Registration Statement on Form S-3 filed with the Securities and Exchange Commission on June 23, 2008 (File No. 333-151838) and incorporated herein by reference.
|
||
10.1
|
Cameron International Corporation Retirement Savings Plan, as Amended and Restated, effective January 1, 2008, filed as Exhibit 10.6 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.2
|
First through Third Amendments to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.7 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.3
|
Merger of the Petreco International, Inc. 401(k) Profit Sharing Plan with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.10 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
|
||
10.4
|
Merger of the Company's Savings-Investment Plan for Hourly Employees with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.11 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
|
||
10.5
|
Amendment to the NuFlo Technologies, Inc. 401(K) Plan and Merger of the NuFlo Technologies, Inc. 401(K) Plan with and into the Cameron International Corporation Retirement Savings Plan, filed as Exhibit 10.11 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
|
||
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
10.6
|
Fourth Amendment to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.43 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.7
|
Fifth and Sixth Amendments to the Cameron International Corporation Retirement Savings Plan, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.12 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.8
|
Merger of the NATCO Group Profit Sharing And Savings Plan with and into the Cameron International Corporation Retirement Savings Plan, effective March 17, 2010, filed as Exhibit 10.49 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.9
|
Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.21 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.10
|
First through Third Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.22 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10. 11
|
Fourth Amendment to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.44 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.12
|
Fifth and Sixth Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective January 1, 2008, filed as Exhibit 10.17 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.13*
|
Seventh and Eighth Amendments to the Individual Account Retirement Plan for Bargaining Unit Employees at the Company's Buffalo, New York Plant, as Amended and Restated effective August 6, 2012.
|
||
10.14
|
The Company's Deferred Compensation Plan for Non-Employee Directors, filed as Exhibit 10.41 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
|
||
10.15
|
The Company's Long-Term Incentive Plan, as Amended and Restated as of November 2002, incorporated by reference to the Company's Proxy Statement for the Annual Meeting of Stockholders held on May 8, 2003.
|
||
10.16
|
Sixth Amendment to the Company's Long-Term Incentive Plan, as Amended and Restated as of November 2002, incorporated by reference to the Company's Proxy Statement for the Annual meeting of Stockholders held on May 8, 2003.
|
||
10.17
|
Seventh Amendment to the Company's Long-Term Incentive Plan, as Amended and Restated, filed as Exhibit 10.44 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
|
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
10.18*
|
The Amended and Restated Cameron International Corporation Nonqualified Deferred Compensation Plan, effective January 1, 2013.
|
||
10.19
|
The 2011 Management Incentive Compensation Plan of the Company, incorporated herein by reference to the Company’s 2011 Proxy Statement for the Annual Meeting of Stockholders held on May 3, 2011.
|
||
10.20
|
The Company's 2005 Equity Incentive Plan, Amended and Restated as of February 18, 2009, filed as an Appendix to the Company's 2009 Proxy Statement, and incorporated herein by reference.
|
||
10.21
|
Seventh Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, filed as Exhibit 10.16 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.22
|
Eighth Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, filed as Exhibit 10.17 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.23
|
Ninth Amendment to the Company’s 2005 Equity Incentive Plan, Amended and Restated, effective May 3, 2011, filed as Appendix B in the 2011 Proxy Statement, and incorporated herein by reference.
|
||
10.24
|
Change in Control Policy of the Company, approved February 19, 1996, filed as Exhibit 10.18 to the Annual Report on Form 10-K for 1996 of the Company, and incorporated herein by reference.
|
||
10.25
|
Form of Change of Control Agreement, effective December 18, 2008, by and between the Company and John D. Carne, John Bartos, Hal J. Goldie, Christopher A. Krummel, William C. Lemmer, Joseph H. Mongrain, Jack B. Moore, Charles M. Sledge and James E. Wright filed as Exhibit 10.17 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
|
||
10.26
|
Form of Change in Control Agreement, effective June 16, 2009, by and between the Company and Mr. H. Keith Jennings, filed as Exhibit 10.52 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.27*
|
Form of Executive Severance Program of the Company, effective October 17, 2012.
|
||
10.28
|
Form of Indemnification Agreement, effective February 20, 2003, by and between the Company and C. Baker Cunningham, Sheldon R. Erikson, Michael E. Patrick, David Ross and Bruce W. Wilkinson, filed as Exhibit 10.32 to the Annual Report on Form 10-K/A for 2002 of the Company, and incorporated herein by reference.
|
||
10.29
|
Form of Indemnification Agreement, effective February 20, 2003, by and between the Company and Mr. Jeff Altamari, Mr. John Carne, Mr. Hal Goldie, Mr. William C. Lemmer, Mr. Jack B. Moore, and Mr. Charles M. Sledge, filed as Exhibit 10.36 to the Annual Report on Form 10-K for 2003 of the Company, and incorporated herein by reference.
|
||
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
10.30
|
Form of Indemnification Agreement, effective February 7, 2005, by and between the Company and Peter J. Fluor, filed as Exhibit 10.23 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
|
||
10.31
|
Form of Indemnification Agreement, effective July 1, 2008, by and between the Company and Douglas L. Foshee, filed as Exhibit 10.24 to the Annual Report on Form 10-K for 2008 of the Company, and incorporated herein by reference.
|
||
10.32
|
Form of Indemnification Agreement, effective June 12, 2009, by and between the Company and Jon Erik Reinhardsen, filed as Exhibit 10.28 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.33
|
Form of Indemnification Agreement, effective August 13, 2007, by and between the Company and William C. Lemmer, Joseph H. Mongrain and James E. Wright, filed as Exhibit 10.50 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.34
|
Form of Indemnification Agreement, effective January 1, 2011, by and between the Company and Jeffrey G. Altamari, John C. Bartos, John D. Carne, Mark L. Carter, Glenn J. Chiasson, Gary Devlin, Brad Eastman, Kevin Fleming, Hal J. Goldie, Gary M. Halverson, Grace B. Holmes, H. Keith Jennings, Christopher A. Krummel, Amber Macksey, Jack B. Moore, Edward E. Roper, Owen Serjeant, Charles M. Sledge, Stephen P. Tomlinson and Edward E. Will, filed as Exhibit 10.51 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.35
|
Form of Indemnification Agreement, effective October 18, 2011, by and between the Company and Rodolfo Landim, filed as Exhibit 10.41 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.36*
|
Form of Indemnification Agreement, by and between the Company and William G. Lamb effective April 12, 2012, and James T. Hackett effective August 1, 2012.
|
||
10.37
|
Credit Agreement, dated as of April 14, 2008, among the Company and certain of its subsidiaries and the banks named therein and JPMorgan Chase Bank, N.A., as agent, filed as Exhibit 10.1 to the Current Report on Form 8-K dated April 14, 2008, of the Company, and incorporated herein by reference.
|
||
10.38*
|
Second Amendment to the Credit Agreement, dated as of June 6, 2011, among the Company and certain of its subsidiaries and the banks named therein and JPMorgan Chase Bank, N.A., as agent.
|
||
10.39*
|
Amended and Restated Credit Agreement, dated February 2, 2012, among the Company and certain of its subsidiaries and the banks named therein and Citibank, N.A.
|
||
10.40*
|
First Amendment to the Amended and Restated Credit Agreement, dated July 2, 2012, among the Company and certain of its subsidiaries and the banks named therein and Citibank, N.A.
|
||
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
10.41
|
Form of Stock Option Agreement for grants dated November 22, 2004, under the Company’s Long-Term Incentive Plan, filed as an exhibit to a Form 8-K on January 18, 2005, and incorporated herein by reference.
|
||
10.42
|
Form of Stock Option Agreement for grants dated November 10, 2005, filed as Exhibit 10.47 to the Annual Report on Form 10-K for 2005 of the Company, and incorporated herein by reference.
|
||
|
|||
10.43
|
Form of Stock Option Agreement for stock options granted on after April 1, 2009, filed as Exhibit 10.30 on Form 10-K for 2009 of the Company, and incorporated herein by reference.
|
||
10.44
|
Form of Grant Agreement for Stock Options granted on or after October 20, 2010, filed as Exhibit 10.39 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.45
|
Form of Amendment dated October 20, 2010 to Stock Options Agreement, filed as Exhibit 10.49 on Form 10-K for 2011 of the Company, and incorporated herein by reference..
|
||
10.46*
|
Form of Stock Option Agreement for stock options granted on or after October 18, 2012.
|
||
10.47
|
Form of Grant Agreement for Restricted Stock Units granted on or after October 20, 2010, filed as Exhibit 10.40 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.48
|
Form of Grant Agreement for Restricted Stock Units for Executive Officers granted on or after October 20, 2010, filed as Exhibit 10.41 on Form 10-K for 2010 of the Company, and incorporated herein by reference.
|
||
10.49
|
Form of Grant Agreement for Restricted Stock Units granted on or after November 16, 2011, filed as Exhibit 10.55 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.50*
|
Form of Restricted Stock Unit Agreement for Restricted Stock Units granted on or after June 21, 2012.
|
||
10.51*
|
Form of Restricted Stock Unit Agreement for Restricted Stock Units granted on or after January 1, 2013.
|
||
10.52
|
Form of Grant Agreement for Restricted Stock Units for Executive Officers granted on or after November 16, 2011, filed as Exhibit 10.56 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.53
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2011, filed as Exhibit 10.57 on Form 10-K for 2011 of the Company, and incorporated herein by reference.
|
||
10.54*
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2012.
|
||
10.55*
|
Form of Grant Agreement for Performance-Based Restricted Stock Units granted on or after January 1, 2013.
|
||
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
10.56
|
NATCO Group, Inc. 1998 Employee Stock Option Plan, filed as Exhibit 10.3 to NATCO’s Proxy Statement on Form S-1 (No. 333-48851), and incorporated herein by reference.
|
||
10.57
|
NATCO Group, Inc. 2001 Stock Incentive Plan, filed as Appendix B to NATCO’s Proxy Statement dated May 24, 2001, and incorporated herein by reference.
|
||
10.58
|
NATCO Group, Inc. 2004 Stock Incentive Plan, filed as Appendix B to NATCO’s Proxy Statement dated May 27, 2004, and incorporated herein by reference.
|
||
10.59
|
NATCO Group, Inc. 2006 Long-Term Incentive Compensation Plan, as Amended and Restated, filed as Exhibit 10.1 to NATCO’s Quarterly Report on Form 10-Q for quarter ended June 30, 2006 , and incorporated herein by reference.
|
||
13.1*
|
Portions of the 2012 Annual Report to Stockholders are included as an exhibit to this report.
|
||
14.1
|
Code of Ethics for Management Personnel, including Senior Financial Officers, filed as Exhibit 14.2 to the Annual Report on Form 10-K for 2004 of the Company, and incorporated herein by reference.
|
||
14.2
|
Cameron Code of Conduct, filed as Exhibit 14.1 to the Current Report on Form 8-K filed August 19, 2009, and incorporated herein by reference.
|
||
14.3
|
Amendment to the Code of Business Conduct and Ethics for Directors, filed as Exhibit 14.1 to the Current Report on Form 8-K filed July 19, 2011 and incorporated herein by reference.
|
||
14.4
|
Code of Business Conduct and Ethics for Directors filed as Exhibit 14.1 to the Current Report on Form 8-K filed October 18, 2012 of the Company, and incorporated herein by reference.
|
||
21.1*
|
Subsidiaries of registrant.
|
||
23.1*
|
Consent of Independent Registered Public Accounting Firm.
|
||
31.1*
|
Certification.
|
||
31.2*
|
Certification.
|
||
32.1*
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS*
|
XBRL Instance Document
|
||
101.SCH*
|
XBRLTaxonomy Extension Schema Document
|
||
101.CAL*
|
XBRLTaxonomy Extension Calculation Linkbase Document
|
||
Exhibit Number
|
Exhibit Index Description
|
Sequential Page Number
|
|
101.DEF*
|
XBRLTaxonomy Extension Definition Linkbase Document
|
||
101.LAB*
|
XBRLTaxonomy Extension Label Linkbase Document
|
||
101.PRE*
|
XBRLTaxonomy Extension Presentation Linkbase Document
|
I.
|
Effective as of August 6, 2012:
|
“Effective Date of Contribution Rate
|
Contribution Rate
|
|||
On and after July 30, 2007 but before
August 2, 2010
|
$ | 1.20 | ||
On and after August 2, 2010 but before
August 1, 2011
|
$ | 1.30 | ||
On and after August 1, 2011 but before
August 6, 2012
|
$ | 1.35 | ||
On and after August 6, 2012 but before
August 6, 2013
|
$ | 1.50 | ||
On and after August 6, 2013 but before
August 6, 2014
|
$ | 1.65 | ||
On and after August 6, 2014
|
$ | 1.80” |
II.
|
As amended hereby, the Plan is specifically ratified and reaffirmed.
|
CAMERON INTERNATIONAL CORPORATION
|
|||
By:
|
/s/ Roslyn R. Larkey
|
||
Name:
|
Roslyn R. Larkey
|
||
Title:
|
Vice President, Human Resources
|
III.
|
Effective as of August 6, 2012:
|
1.
|
Section 15.01(b) of the Plan is hereby amended to read as follows:
|
IV.
|
As amended hereby, the Plan is specifically ratified and reaffirmed.
|
CAMERON INTERNATIONAL CORPORATION
|
|||
By:
|
/s/ Roslyn R. Larkey
|
||
Name:
|
Roslyn R. Larkey
|
||
Title:
|
Vice President, Human Resources
|
Page No.
|
|
ARTICLE I Definitions and Construction
|
1
|
ARTICLE II Participation
|
6
|
ARTICLE III Account Credits and Allocations of Income or Loss
|
8
|
ARTICLE IV Deemed Investment of Funds
|
11
|
ARTICLE V Determination of Vested Interest and Forfeitures
|
12
|
ARTICLE VI In-Service Withdrawals and Loans
|
12
|
ARTICLE VII Termination Benefits
|
12
|
ARTICLE VIII Administration of the Plan
|
16
|
ARTICLE IX Administration of Funds
|
18
|
ARTICLE X Nature of the Plan
|
18
|
ARTICLE XI Miscellaneous
|
19
|
|
(1)
|
Account(s): A Participant’s Matching Account, Retirement Account, Cash Balance Account, and/or Deferral Account, including the amounts credited thereto.
|
|
(2)
|
Affiliate: Each trade or business (whether or not incorporated) which together with the Company would be deemed to be a “single employer” within the meaning of subsections (b) or (c) of Section 414 of the Code, in each case as determined by an 80% control test.
|
|
(3)
|
As soon as administratively practicable: For purposes of benefit distributions, a date of distribution that is as soon as administratively practicable as determined by the Committee following a permissible payment event, but in no event later than the later of the 15th day of the third calendar month following the date of the permissible payment event or December 31st of the calendar year in which the permissible payment event occurs. In no event shall a Participant or his Beneficiary be permitted to designate the taxable year of the payment.
|
|
(4)
|
Base Salary: The base rate of pay and any miscellaneous cash incentive pay not associated with your annual incentive bonus paid in cash by the Employer to or for the benefit of a Participant for services rendered or labor performed while a Participant, including base pay and any miscellaneous cash incentive pay not associated with your annual incentive bonus a Participant could have received in cash in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii) elective contributions made on his behalf by the Employer pursuant to a qualified cash or deferred arrangement (as defined in Section 401(k) of the Code) or pursuant to a plan maintained under Section 125 of the Code; provided, however, that for each Plan Year, an amount equal to the applicable limitation in effect under Section 402(g) of the Code for such Participant (including catch up contributions, if such Participant is eligible therefor) shall be deducted from such Participant’s Base Salary for such Plan Year solely for purposes of computing the amount of such Participant’s Participant Deferrals under the Plan for such Plan Year.
|
|
(5)
|
Beneficiary: The person or persons entitled to receive the Participant’s benefits under the Plan in the event of the Participant’s death, as determined in accordance with Section 7.4.
|
|
(6)
|
Board: The Board of Directors of the Company.
|
|
(7)
|
Bonus: The annual incentive bonus, if any, paid in cash by the Employer to or for the benefit of a Participant for services rendered or labor performed, including the portion thereof that a Participant could have received in cash in lieu of (i) Compensation deferrals pursuant to Section 3.1 and (ii) elective contributions made on his behalf by the Employer pursuant to a qualified cash or deferred arrangement (as defined in Section 401(k) of the Code) or pursuant to a plan maintained under Section 125 of the Code but excluding any annual incentive bonuses or awards earned by the Participant over a service period of longer or shorter than twelve months; provided, however, that, for any Plan Year that a Participant elects to defer Bonus but not Base Salary, an amount equal to the applicable limitation in effect under Section 402(g) of the Code (including catch up contributions if such Participant is eligible therefor) shall be deducted from such Participant’s Bonus for such Plan Year solely for purposes of computing the amount of such Participant’s Participant Deferrals under the Plan for such Plan Year.
|
|
(8)
|
Cash Balance Account: An individual account for each Participant who was a participant in the Excess Defined Benefit Plan who was an Eligible Employee as January 1, 2008, the balance of which is adjusted to reflect changes in value as provided in Section 3.4.
|
|
(9)
|
Cash Balance Deferral: The lump sum value of the Participant’s accrued benefit under the Excess Defined Benefit Plan as of December 31, 2007, as determined under the terms of such plan.
|
|
(10)
|
Change in Control: Except as otherwise provided herein, the existence of a “Change in Control” shall be determined with respect to the Company and shall have the same meaning as such term has in the Cameron International Corporation 2005 Equity Incentive Plan, as amended, or any successor plan. With respect to an Employer other than the Company, the Employer shall be deemed to have undergone a Change in Control in the event that (a) the Employer ceases to be an Affiliate of the Company, provided that the transaction or series of transactions that resulted in such cessation constitutes a change in the ownership or effective control of the Employer or a majority shareholder of the Employer (or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, with the chain ending at the Employer), or (b) there is a change in the ownership of a substantial portion of the Employer’s assets, in each case within the meaning of Section 409A(a)(2)(A)(v) of the Code.
|
|
(11)
|
Code: The Internal Revenue Code of 1986, as amended. References herein to provisions of the Code shall include any successor statute and the applicable regulations or other authoritative guidance promulgated thereunder.
|
|
(12)
|
Committee: The Cameron International Corporation Plans Administration Committee.
|
|
(13)
|
Company: Cameron International Corporation, its corporate successors, and the surviving corporation resulting from the merger of Cameron International Corporation with any other corporation(s).
|
|
(14)
|
Compensation: Base Salary and/or Bonus.
|
|
(15)
|
Deferral Account: An individual account for each Participant, with one subaccount to which is credited his Participant Deferrals pursuant to Section 3.1 and with another subaccount to which is credited the value of his Supplemental Basic Account (as defined under this Plan prior to January 1, 2008) as of December 31, 2007, and which separate subaccounts are adjusted to reflect changes in value as provided in Section 3.4.
|
|
(16)
|
Effective Date: January 1, 2013, as to this restatement of the Plan except as otherwise provided herein. The original effective date of the Plan was January 1, 2003.
|
|
(17)
|
Eligible Employee: Each individual who has been selected by the Chief Executive Officer of the Company for participation in the Plan.
|
|
(18)
|
Eligibility Period: The 30-day period following an Eligible Employee’s notification by the Committee of eligibility to participate in the Plan.
|
|
(19)
|
Employer: The Company and any other adopting entity that is designated to participate in the Plan pursuant to the provisions of Section 2.4.
|
|
(20)
|
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
|
|
(21)
|
Excess Defined Benefit Plan: The Cameron International Corporation Supplemental Excess Defined Benefit Plan.
|
|
(22)
|
Exchange Act: The Securities Exchange Act of 1934, as amended.
|
|
(23)
|
Funds: The investment funds, if any, designated from time to time by the Committee for the deemed investment of Accounts pursuant to Section 4.1.
|
|
(24)
|
Inactive Participant: An individual (a) for whom Account(s) were maintained under the Plan as of December 31, 2012 but who has not been designated as eligible to participate in the Plan as of or after January 1, 2013 in accordance with Section 2.1 or (b) who became a Participant on or after January 1, 2013 but whose eligibility to continue to defer Compensation and receive an allocation of Matching Deferrals and Retirement Deferrals under the Plan has ceased pursuant to Section 2.2.
|
|
(25)
|
Matching Account: An individual account for each Participant, with one subaccount to which is credited the Matching Deferrals made on his behalf pursuant to Section 3.2 and with another subaccount to which is credited the value of his Supplemental Matching Account (as defined under the Plan prior to January 1, 2008) as of December 31, 2007, and which separate subaccounts are adjusted to reflect changes in value as provided in Section 3.4.
|
|
(26)
|
Matching Deferrals: Deferrals made by the Employer on a Participant’s behalf pursuant to Section 3.2.
|
|
(27)
|
Participant: Each Eligible Employee who has become a Participant pursuant to Article II or as a result of the transfer of certain account balances from the Excess Defined Benefit Plan to the Plan. Where the context requires, the term “Participant” shall be deemed to include an Eligible Employee for purposes of Section 3.1 if such Eligible Employee has not yet become a Participant pursuant to Section 2.1. The term “Participant” shall also include an Inactive Participant except as otherwise described in Section 2.3.
|
|
(28)
|
Participant Deferrals: Deferrals made by a Participant pursuant to Section 3.1.
|
|
(29)
|
Plan: The Cameron International Corporation Nonqualified Deferred Compensation Plan, as amended from time to time.
|
|
(30)
|
Plan Year: The twelve consecutive month period commencing January 1 of each year.
|
|
(31)
|
Qualified Compensation: “Compensation” as defined under the Savings Plan, but determined without regard to the limitation under Section 401(a)(17) of the Code.
|
|
(32)
|
Retirement Account: An individual account for each Participant which is credited with his Retirement Deferrals and which is thereafter adjusted to reflect changes in value as provided in Section 3.4.
|
|
(33)
|
Retirement Deferrals: Deferrals made by the Employer on a Participant’s behalf pursuant to Section 3.3.
|
|
(34)
|
Savings Plan: The Cameron International Corporation Retirement Savings Plan, as amended from time to time, and, for purposes of Section 3.1(c), any other plan that includes a cash or deferred arrangement that is subject to Section 401(k) of the Code and is maintained by the Employer or an employer under common control with the Employer (within the meaning of Section 414(b), (c) or (m) of the Code).
|
|
(35)
|
Specified Employee: An individual who on the date of his Termination of Service meets the definition of “key employee” in Section 416(i) of the Code (applied in accordance with the Treasury Regulations promulgated thereunder and without regard to subparagraph (5) thereof) and, as of the date of his Termination of Service, the Company or any Affiliate is publicly traded on an established securities market or otherwise. The identification of Specified Employees for purposes of distributions upon Termination of Service pursuant to Article VII shall be made in accordance with the general requirements of Section 409A(a)(2)(B)(i) of the Code pursuant to any method elected by the Committee or, if no such election is made, under the default rules under such Code Section.
|
|
(36)
|
Termination of Service: The termination of a Participant’s employment with the Employer and all Affiliates for any reason whatsoever. Notwithstanding anything to the contrary herein, a Participant shall not be considered to have incurred a Termination of Service for purposes of the Plan if his termination does not constitute a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code.
|
|
(37)
|
Trust: The irrevocable grantor trust established under the Trust Agreement.
|
|
(38)
|
Trust Agreement: The agreement entered into between the Employer and the Trustee pursuant to Article X.
|
|
(39)
|
Trust Fund: The funds and properties held pursuant to the provisions of the Trust Agreement, together with all income, profits and increments thereto.
|
|
(40)
|
Trustee: The independent commercial trustee or trustees qualified and acting under the Trust Agreement at any time.
|
|
(41)
|
Valuation Date: Each day that the New York Stock Exchange is open for business.
|
|
(42)
|
Vested Interest: The portion of a Participant’s Accounts which, pursuant to the Plan, is nonforfeitable.
|
|
a.
|
the Change in Control of such entity constitutes a change in ownership or control of such entity or a substantial portion of its assets within the meaning of Section 409A of the Code (a “409A Change in Control”) and the Committee (or, if applicable, its appropriate counterpart with respect to any Employer other than the Company) takes irrevocable action to terminate and liquidate the Plan within 30 days preceding or 12 months following such 409A Change in Control;
|
|
b.
|
the Vested Interest of each Participant in his Account under the Plan and all Other Arrangements (as defined in paragraph (c) below) are distributed within 12 months following the date that all necessary action to terminate and liquidate the Plan and the Other Arrangements is irrevocably taken; and
|
|
c.
|
all plans, arrangements, methods, programs and other arrangements that are sponsored by the “service recipient” (within the meaning of Section 409A of the Code), as determined immediately following such 409A Change in Control, with respect to which deferrals of compensation are treated as having been deferred under a single plan under Treasury Regulation § 1.409A-1(c)(2) (collectively, the “Other Arrangements”), are terminated and liquidated with respect to each Participant who experienced such 409A Change in Control. For purposes of any 409A Change in Control that results from an asset purchase transaction, the applicable “service recipient” with the discretion to liquidate and terminate the Plan and the Other Arrangements shall be the “service recipient” that is primarily liable immediately after the transaction for the payment of the Plan benefits.
|
|
a.
|
the termination and liquidation does not occur proximate to a down turn in the financial health of the Company and all entities that would be considered a single “service recipient” along with the Company under Section 409A;
|
|
b.
|
such “service recipient” terminates and liquidates all plans, agreements, methods, programs and other arrangements sponsored by the service recipient that would be aggregated with any terminated and liquidated plans, agreements, methods, programs and other arrangements under Treasury Regulation § 1.409A-1(c) if the same Participant had deferrals of compensation under all such plans, agreements, methods, programs or other arrangements;
|
|
c.
|
no payments in liquidation of the Plan are made within 12 months of the date that the Company takes all necessary action to irrevocably terminate and liquidate the Plan, other than payments that would be payable under the terms of such arrangements if the action to terminate and liquidate the Plan had not occurred;
|
|
d.
|
all payments are made within 24 months of the date that the Company takes all necessary action to irrevocably terminate and liquidate the Plan; and
|
|
e.
|
the Company and all other entities required to be considered a single “service recipient” within the meaning of Section 409A of the Code do not adopt a new Plan that would be aggregated with any terminated and liquidated plan under Treasury Regulation §1.409A-1(c) if the same Participant participated in both plans at any time within three years following the date that the service recipient took all necessary action to irrevocably terminate and liquidate the Plan.
|
CAMERON INTERNATIONAL CORPORATION
|
||
By:
|
/s/ William C. Lemmer
|
|
Name:
|
William C. Lemmer
|
|
Title:
|
Senior Vice President & General Counsel
|
1.
|
PURPOSE
|
2.
|
SCOPE
|
3.
|
ELIGIBILITY FOR PLAN BENEFITS
|
|
(a)
|
Any Covered Executive whose employment is terminated by the Company for reasons other than cause, as determined in its sole discretion by the Company, (“Termination”), and who executes and delivers the Waiver and Release as provided for in Section 10 hereof shall be eligible for the separation benefits provided for by this Program, subject to the terms and conditions of this Program.
|
|
(b)
|
If the group in which the Covered Executive is employed is sold, merged or consolidated with another entity or business, any Covered Executive who continues employment or is offered continued employment with a new owner of a former Company operation in the same or reasonably comparable position, will not be eligible for benefits under this Program. Similarly, if the Company establishes a joint venture and the Covered Executive is offered the same or a reasonably comparable position with the joint venture, the Covered Executive will not be eligible for benefits under this Program. The Company’s Vice President, Human Resources will make the determination, in its discretion, as to the comparability of any such position.
|
4.
|
SALARY CONTINUATION PAYMENTS
|
5.
|
BENEFITS
|
|
(a)
|
A Covered Executive’s participation in all employee benefit plans ends on the Termination Date. No payments made pursuant to this Program and no payout for unused vacation or under the MICP or LTIP grants are deferrable under any Company Plan including the Cameron Retirement Savings Plan or the Cameron Nonqualified Compensation Plan, nor are they considered for purposes of employer contributions or accruals under such plans or any other similar plan sponsored by the Company.
|
|
(b)
|
Following Termination, the Covered Employee will receive a lump sum payment equal to the cost of 12 months’ COBRA coverage. This lump sum will be subject to all applicable taxes. THE COVERED EXECUTIVE IS RESPONSIBLE FOR HIS OR HER OWN COBRA ELECTION.
|
|
(c)
|
Information regarding conversion privileges or portability of the Supplemental Life Insurance will be communicated on or prior to the Termination Date. Eligibility for distributions under any Cameron sponsored retirement plan will be subject to, and any such distribution will be made in accordance with, the provisions of the specific plan.
|
6.
|
MANAGEMENT INCENTIVE COMPENSATION PLAN
|
7.
|
LONG-TERM INCENTIVE PLAN
|
8.
|
OUTPLACEMENT SERVICES
|
9.
|
REDUCTION IN SEPARATION BENEFITS FOR OTHER SEVERANCE RIGHTS
|
10.
|
REQUIRED WAIVER AND RELEASE
|
11.
|
SECTION 409A COMPLIANCE
|
|
(a)
|
It is intended that this Executive Severance Program be interpreted and administered consistent with Section 409A of the Internal Revenue Code and the regulations issued thereunder.
|
|
(b)
|
Under the requirements of Section 409A of the Internal Revenue Code, because the Company is publicly traded, if a Covered Executive is a “specified employee” and the total amount of separation allowance payments payable in the first six months following the Covered Executive’s Termination under this and any other program, policy, plan or agreement with the Company and/or any of its affiliatesexceeds an applicable limit and all payments will not be made within 2½ months following the end of the calendar year in which the Covered Executive’s employment was terminated, then the Company is required to delay any payment that would cause the applicable limit to be exceeded and the payments will resume, without interest, beginning with the first regular payroll cycle that is six months following Termination. The applicable limit under Section 409A is an amount equal to the lesser of (A) two times the Covered Executive’s base annual rate of salary during the calendar year immediately preceding the year of his or herTermination and (B) $500,000 (for 2012), subject to adjustment for later years under the Internal Revenue Code.
|
|
(c)
|
The Company’s Vice President of Human Resources will identify the Covered Executives who are specified employees in accordance with any method permitted under Section 409A and will advise a Covered Executive if any applicable delay applies to him or her.
|
|
(d)
|
Notwithstanding anything of the contrary in this Program, if any payment of separation benefits under this Program would subject the Covered Executiveto additional taxes and interest under Section 409A of the Internal Revenue Code because the timing of such payments is not delayed for the first six months following a Covered Executive’s Termination of employment with the Company, then any such payments will be accumulated and paid in equal monthly installments, without interest, beginning on the first business day that is six months following Termination.
|
|
(e)
|
For purposes of Section – 409A, Termination under this program will have the same meaning as a “separation from service” under Section 409A of the Internal Revenue Code. For example, if a Covered Executive will be providing significant post-termination consulting services to the Company or any of its affiliates, his or her Termination may not be considered to occur for purposes of this Program until the consulting arrangement ends. Further, for purposes of Section 409A of the Internal Revenue Code, installments of separation allowance payments will be treated as separate payments.
|
12.
|
PROGRAM AMENDMENT AND TERMINATION
|
13.
|
RESPONSIBILITIES
|
Signed by:
|
|||
Printed Name:
|
|||
Dated:
|
|||
Company Representative:
|
|||
Dated:
|
![]() |
INDEMNITEE
|
CAMERON INTERNATIONAL CORPORATION
|
||||
/s/ William G. Lamb | s/ Jack B. Moore | ||||
Name:
|
William G. Lamb
|
Name:
|
Jack B. Moore
|
||
Title:
|
Vice President, Tax
|
Title:
|
President and Chief Executive Officer
|
||
Address:
|
1333 West Loop South,
|
Address:
|
1333 West Loop South,
|
||
Suite 1700
|
Suite 1700
|
||||
Houston, Texas 77027
|
Houston, Texas 77027
|
ATTEST: | CAMERON INTERNATIONAL CORPORATION | ||||
By
|
/s/ Grace B. Holmes
|
By:
|
/s/ Jack Moore | ||
Name: |
Grace B. Holmes
|
Name:
|
Jack B. Moore
|
||
Title: |
Vice President, Corporate Secretary
|
Title:
|
Chairman, President & CEO
|
||
and Chief Governance Officer
|
INDEMNITEE
|
||
/s/ James T. Hackett
|
||
Name:
|
James T. Hackett |
Address:
|
1201 Lake Robbins Drive
|
|
The Woodlands, TX 77380
|
Page
|
|
ARTICLE I DEFINITIONS
|
1
|
1.1 Definitions
|
1
|
1.2 Interpretive Provisions
|
21
|
ARTICLE II THE CREDITS
|
22
|
2.1 Commitment
|
22
|
2.2 Determination of Dollar Amounts; Required Payments; Termination
|
22
|
2.3 Ratable Loans
|
23
|
2.4 Types of Advances
|
23
|
2.5 Swing Line Loans
|
24
|
2.5.1 Canadian Swing Line Loans
|
24
|
2.5.2 US Swing Line Loans
|
26
|
2.5.3 UK Swing Line Loans
|
28
|
2.5.4 Singapore Swing Line Loans
|
30
|
2.6 Commitment Fee; Usage Fee; Reductions in Aggregate Commitment
|
32
|
2.6.1 Commitment Fee
|
32
|
2.6.2 Usage Fee
|
33
|
2.6.3 Reductions in Aggregate Commitment
|
33
|
2.7 Minimum Amount of Each Advance
|
33
|
2.8 Optional Principal Payments
|
33
|
2.9 Method of Selecting Types and Interest Periods for New Advances
|
34
|
2.10 Conversion and Continuation of Outstanding Advances
|
34
|
2.11 Method of Borrowing
|
36
|
2.12 Changes in Interest Rate, etc
|
36
|
2.13 Rates Applicable After Default
|
37
|
2.14 Method of Payment
|
37
|
2.15 Defaulting Lenders
|
38
|
2.15.1 Reallocation of Participations to Reduce Fronting Exposure
|
38
|
2.15.2 Cash Collateral, Repayment of Swing Line Loans
|
38
|
2.15.3 Defaulting Lender Cure
|
39
|
2.15.4 New Swing Line Loans/Facility LCs
|
39
|
2.16 Noteless Agreement; Evidence of Indebtedness
|
39
|
Page
|
|
2.17 Telephonic Notices
|
40
|
2.18 Interest Payment Dates; Interest and Fee Basis
|
40
|
2.19 Notification of Advances, Interest Rates, Prepayments and Commitment Reductions
|
41
|
2.20 Lending Installations
|
41
|
2.21 Non-Receipt of Funds by an Administrative Agent
|
41
|
2.22 Market Disruption
|
42
|
2.23 Judgment Currency
|
43
|
2.24 Additional Borrowing Subsidiaries
|
43
|
2.25 Lender Replacement
|
44
|
2.26 Facility LCs
|
44
|
2.26.1 Issuance
|
44
|
2.26.2 Participations
|
45
|
2.26.3 Notice
|
45
|
2.26.4 LC Fees
|
45
|
2.26.5 Administration; Reimbursement by Lenders
|
46
|
2.26.6 Reimbursement by Borrower
|
47
|
2.26.7 Obligations Absolute
|
47
|
2.26.8 Actions of LC Issuers
|
48
|
2.26.9 Indemnification
|
48
|
2.26.10 Lenders' Indemnification
|
49
|
2.26.11 Facility LC Collateral Account
|
49
|
2.26.12 Rights as a Lender
|
51
|
2.26.13 Bank Guaranties
|
51
|
2.26.14 Facility LCs Issued for Subsidiaries
|
51
|
2.27 Increase in Aggregate Commitment
|
51
|
2.28 Extension of Facility Termination Date
|
53
|
2.28.1 Second Amendment Effective Date Extension
|
53
|
2.28.2 Post-Second Amendment Requests for Extension
|
53
|
ARTICLE III YIELD PROTECTION; TAXES
|
56
|
3.1 Yield Protection
|
56
|
Page
|
|
3.2 Changes in Capital Adequacy Regulations
|
57
|
3.3 Availability of Types of Advances
|
58
|
3.4 Funding Indemnification
|
58 |
3.5 Taxes
|
58
|
3.6 Lender Statements; Survival of Indemnity
|
62
|
ARTICLE IV CONDITIONS PRECEDENT
|
62
|
4.1 Initial Credit Extensions
|
62
|
4.1.1 Closing Documents
|
62
|
4.1.2 Fees
|
64
|
4.2 Each Credit Extension
|
64
|
ARTICLE V REPRESENTATIONS AND WARRANTIES
|
65
|
5.1 Existence and Standing
|
65
|
5.2 Authorization and Validity
|
65
|
5.3 No Conflict; Government Consent
|
66
|
5.4 Financial Statements
|
66
|
5.5 Taxes
|
66
|
5.6 Litigation and Contingent Obligations
|
66
|
5.7 Subsidiaries
|
67
|
5.8 ERISA
|
67
|
5.9 Accuracy of Information
|
67
|
5.10 Regulation U
|
67
|
5.11 [Reserved]
|
67
|
5.12 Compliance With Laws
|
67
|
5.13 Ownership of Properties
|
67
|
5.14 Plan Assets; Prohibited Transactions
|
67
|
5.15 Environmental Matters
|
67
|
5.16 Investment Company Act
|
67
|
5.17 [Reserved]
|
68
|
5.18 Reportable Transaction
|
68
|
5.19 Foreign Assets Control Regulations, etc
|
68
|
5.20 Obligations Pari Passu
|
68
|
Page
|
|
ARTICLE VI COVENANTS
|
69
|
6.1 Financial Reporting
|
69
|
6.2 Use of Proceeds
|
70
|
6.3 Notice of Default
|
71
|
6.4 Conduct of Business
|
71
|
6.5 Taxes
|
71
|
6.6 Insurance
|
71
|
6.7 Compliance with Laws
|
71
|
6.8 Maintenance of Properties
|
71
|
6.9 Inspection
|
71
|
6.10 [Reserved]
|
72
|
6.11 Indebtedness
|
72
|
6.12 Merger
|
72
|
6.13 Sale of Assets
|
72
|
6.14 [Reserved]
|
72
|
6.15 Liens
|
72
|
6.16 Affiliates
|
73
|
6.17 Environmental Matters
|
74
|
6.18 Restrictions on Subsidiary Payments
|
74
|
6.19 ERISA Compliance
|
74
|
6.20 Total Debt to Total Capitalization Ratio4
|
74
|
ARTICLE VII DEFAULTS
|
74
|
ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
|
77
|
8.1 Acceleration; Facility LC Collateral Account
|
77
|
8.2 Amendments
|
78
|
8.3 Preservation of Rights
|
79
|
ARTICLE IX GENERAL PROVISIONS
|
79
|
9.1 Survival of Representations
|
79
|
9.2 Governmental Regulation
|
80
|
9.3 Headings
|
80
|
9.4 Entire Agreement
|
80
|
Page
|
|
9.5 Several Obligations; Benefits of this Agreement
|
80
|
9.6 Expenses; Indemnification
|
80
|
9.7 Numbers of Documents
|
82
|
9.8 Accounting
|
82 |
9.9 Severability of Provisions
|
82
|
9.10 Nonliability of Lenders
|
82
|
9.11 Confidentiality
|
83
|
9.12 Nonreliance
|
84
|
9.13 Disclosure
|
84
|
9.14 USA PATRIOT Act Notice
|
84
|
9.15 Interest Rate Limitation
|
84
|
ARTICLE X THE ADMINISTRATIVE AGENT
|
85
|
ARTICLE XI SETOFF; RATABLE PAYMENTS
|
87
|
11.1 Setoff
|
87
|
11.2 Ratable Payments; Sharing of Set-offs
|
87
|
ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
|
88
|
12.1 Successors and Assigns
|
88
|
12.2 Dissemination of Information
|
92
|
ARTICLE XIII NOTICES
|
92
|
13.1 Notices
|
92
|
13.2 Change of Address.
|
93
|
ARTICLE XIV COUNTERPARTS
|
93
|
ARTICLE XV CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL
|
93
|
15.1 CHOICE OF LAW
|
93
|
15.2 CONSENT TO JURISDICTION
|
94
|
15.3 WAIVER OF JURY TRIA
|
94
|
SCHEDULES AND EXHIBITS
|
|
PRICING SCHEDULE
|
|
COMMITMENT SCHEDULE
|
|
EXHIBIT A-1 FORM OF IN-HOUSE COUNSEL OPINION
|
|
EXHIBIT A-2 FORM OF OUTSIDE COUNSEL OPINION
|
|
EXHIBIT B FORM OF COMPLIANCE CERTIFICATE
|
|
EXHIBIT C FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
|
|
EXHIBIT D FORM OF LOAN/CREDIT RELATED MONEY TRANSFER
|
|
INSTRUCTION
|
|
EXHIBIT E FORM OF NOTE
|
|
EXHIBIT F FORM OF JOINDER AGREEMENT
|
|
EXHIBIT G FORM OF GUARANTY
|
|
SCHEDULE 1 MANDATORY COST FORMULAE
|
|
SCHEDULE 2 [RESERVED]
|
|
SCHEDULE 3 LIENS
|
|
SCHEDULE 4 EUROCURRENCY PAYMENT OFFICES OF THE AGENT
|
|
SCHEDULE 5 EXISTING LETTERS OF CREDIT
|
CAMERON INTERNATIONAL CORPORATION | ||
By: | ||
Lorne E. Phillips | ||
Treasurer |
By: | ||
Lorne E. Phillips | ||
Attorney in Fact
|
By: | ||
Helen A. Carr
|
||
Managing Director
|
By: | ||
Name: | ||
Title: |
By: | ||
Helen A. Carr
|
||
Managing Director
|
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
By: | ||
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Title: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
By: | ||
Name: | ||
Title: |
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Title: |
Address: | ||
Attention: | ||
Telephone: | ||
Telecopy: |
APPLICABLE MARGIN
|
LEVEL I
|
LEVEL II
|
LEVEL III
|
LEVEL IV
|
LEVEL V
|
LEVEL VI
|
Undrawn Commitment Fee – Non-Extended
|
||||||
Commitments
|
6.0 bps
|
7.5 bps
|
9.0 bps
|
11.0 bps
|
15.0 bps
|
17.5 bps
|
Undrawn Commitment Fee – Extended
|
||||||
Commitments
|
8.0 bps
|
10.0 bps
|
12.5 bps
|
20.0 bps
|
25.0 bps
|
30.0 bps
|
Eurocurrency Margin
|
30.0 bps
|
35.0 bps
|
40.0 bps
|
50.0 bps
|
65.0 bps
|
90.0 bps
|
Financial Letter of Credit Fee
|
30.0 bps
|
35.0 bps
|
40.0 bps
|
50.0 bps
|
65.0 bps
|
90.0 bps
|
Performance Letter of Credit Fee
|
15.00 bps
|
17.5 bps
|
20.0 bps
|
25.0 bps
|
32.5 bps
|
45.0 bps
|
Documentary Letter of Credit Fee
|
7.5 bps
|
8.75 bps
|
10.0 bps
|
12.5 bps
|
16.25 bps
|
22.5 bps
|
>50% Usage Fee
|
10.0 bps
|
10.0 bps
|
10.0 bps
|
10.0 bps
|
10.0 bps
|
10.0 bps
|
APPLICABLE MARGIN
|
LEVEL I
|
LEVEL II
|
LEVEL III
|
LEVEL IV
|
LEVEL V
|
LEVEL VI
|
Undrawn Commitment Fee
|
8.0 bps
|
10.0 bps
|
12.5 bps
|
20.0 bps
|
25.0 bps
|
30.0 bps
|
Eurocurrency Margin
|
30.0 bps
|
35.0 bps
|
40.0 bps
|
50.0 bps
|
65.0 bps
|
90.0 bps
|
Financial Letter of Credit Fee
|
30.0 bps
|
35.0 bps
|
40.0 bps
|
50.0 bps
|
65.0 bps
|
90.0 bps
|
Performance Letter of Credit Fee
|
15.00 bps
|
17.5 bps
|
20.0 bps
|
25.0 bps
|
32.5 bps
|
45.0 bps
|
Documentary Letter of Credit Fee
|
7.5 bps
|
8.75 bps
|
10.0 bps
|
12.5 bps
|
16.25 bps
|
22.5 bps
|
>50% Usage Fee
|
60.0 bps | 60.0 bps | 60.0 bps | 60.0 bps | 60.0 bps | 60.0 bps |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
By: | ||
Name: | ||
Title: |
Facility Identification Number(s) | ||
Customer/Account Name | ||
Transfer Funds To | ||
For Account No. | ||
Reference/Attention To | ||
Authorized Officer (Customer Representative) Date |
By: | ||
Print Name: | ||
Title: |
By: | ||
Print Name: | ||
Title: |
By: | ||
Print Name: | ||
Title: |
Page
|
||
ARTICLE I
|
||
DEFINITIONS AND ACCOUNTING TERMS
|
||
Section 1.01.
|
Certain Defined Terms
|
1
|
Section 1.02.
|
Computation of Time Periods
|
17
|
Section 1.03.
|
Accounting Terms
|
17
|
Section 1.04.
|
Miscellaneous
|
17
|
ARTICLE II
|
||
AMOUNT AND TERMS OF THE LETTERS OF CREDIT
|
||
Section 2.01.
|
Letters of Credit
|
17
|
Section 2.02.
|
Fees
|
20
|
Section 2.03.
|
Administration; Reimbursement; Demand Loans
|
21
|
Section 2.04.
|
Default Interest
|
22
|
Section 2.05.
|
Yield Protection
|
22
|
Section 2.06.
|
Capital Adequacy
|
23
|
Section 2.07.
|
Illegality
|
23
|
Section 2.08.
|
Payments and Computations
|
24
|
Section 2.09.
|
Taxes
|
24
|
Section 2.10.
|
Reduction or Termination of the Commitment; Effect of Termination
|
25
|
Section 2.11.
|
Transfers; Assignments of Proceeds
|
26
|
Section 2.12.
|
Modifications of a Letter Credit
|
26
|
Section 2.13.
|
Collateral
|
26
|
ARTICLE III
|
||
CONDITIONS
|
||
Section 3.01.
|
Initial Conditions Precedent
|
29
|
Section 3.02.
|
Additional Conditions Precedent to Each Letter of Credit
|
31
|
ARTICLE IV
|
||
REPRESENTATIONS AND WARRANTIES
|
||
Section 4.01.
|
Representations and Warranties
|
32
|
ARTICLE V
|
||
COVENANTS
|
||
Section 5.01.
|
Reporting
|
36
|
Section 5.02.
|
Use of Proceeds
|
38
|
Section 5.03.
|
Notice of Default
|
38
|
Section 5.04.
|
Conduct of Business
|
38
|
Section 5.05.
|
Taxes
|
39
|
Section 5.06.
|
Insurance
|
39
|
Section 5.07.
|
Compliance with Laws
|
39
|
Section 5.08.
|
Maintenance of Properties
|
39
|
Section 5.09.
|
Inspection
|
39
|
Section 5.10.
|
Credit Agreement Notices
|
40
|
Section 5.11.
|
Further Assurances
|
40
|
Section 5.12.
|
[Reserved]
|
40
|
Page
|
||
Section 5.13.
|
Indebtedness
|
40
|
Section 5.14.
|
Merger
|
41
|
Section 5.15.
|
Sale of Assets
|
41
|
Section 5.16.
|
[Reserved]
|
41
|
Section 5.17.
|
Liens
|
41
|
Section 5.18.
|
Affiliates
|
42
|
Section 5.19.
|
Environmental Matters
|
42
|
Section 5.20.
|
Restrictions on Subsidiary Payments
|
42
|
Section 5.21.
|
ERISA Compliance
|
43
|
Section 5.22.
|
Total Debt to Total Capitalization Ratio
|
43
|
Section 5.23.
|
Removal of Collateral
|
43
|
ARTICLE VI
|
||
COLLATERAL ACCOUNTS
|
||
Section 6.01.
|
Generally
|
43
|
Section 6.02.
|
Control over Accounts
|
43
|
Section 6.03.
|
Changes to Collateral Accounts
|
43
|
Section 6.04.
|
Fees and Expenses Related to Collateral Accounts
|
44
|
ARTICLE VII
|
||
EVENTS OF DEFAULT
|
||
Section 7.01.
|
Events of Default
|
44
|
Section 7.02.
|
Remedies
|
47
|
Section 7.03.
|
Application of Amounts Received Following the Occurrence of an Event of Default
|
47
|
ARTICLE VIII
|
||
MISCELLANEOUS
|
||
Section 8.01.
|
Amendments, Etc
|
48
|
Section 8.02.
|
Notices, Etc
|
48
|
Section 8.03.
|
No Waiver; Remedies
|
51
|
Section 8.04.
|
Costs, Expenses; Indemnity; Limitation of Liability
|
52
|
Section 8.05.
|
Right of Set-Off
|
53
|
Section 8.06.
|
Assignments
|
54
|
Section 8.07.
|
Governing Law; Entire Agreement
|
55
|
Section 8.08.
|
Interest
|
55
|
Section 8.09.
|
Confidentiality
|
55
|
Section 8.10.
|
Execution in Counterparts
|
56
|
Section 8.11.
|
Domicile of Loans
|
56
|
Section 8.12.
|
Binding Effect
|
56
|
Section 8.13.
|
WAIVER OF JURY TRIAL
|
57
|
Section 8.14.
|
Severability
|
57
|
Section 8.15.
|
FORUM SELECTION AND CONSENT TO JURISDICTION
|
57
|
Section 8.16.
|
DAMAGES
|
58
|
Section 8.17.
|
Appointment of Process Agent
|
58
|
Section 8.18.
|
Patriot Act Notice
|
58
|
Page
|
||
Section 8.19.
|
Survival of Agreements, Representations and Warranties, Etc
|
59
|
Section 8.20.
|
Judgment Currency
|
59
|
Section 8.21.
|
Currency Conversion
|
59
|
Section 8.22.
|
Exchange Rates
|
60
|
Section 8.23.
|
Additional Subsidiary Applicants
|
60
|
Section 8.24.
|
Amendment and Restatement
|
62
|
SCHEDULES:
|
||
Schedule 1.01(a)
|
Existing Letters of Credit
|
|
Schedule 1.01(b)
|
Pricing Schedule
|
|
Schedule 4.01(h)(i)
|
Subsidiaries
|
|
Schedule 4.01(h)(ii)
|
Subsidiary Applicants
|
|
Schedule 4.01(v)
|
Collateral Accounts
|
|
Schedule 5.17
|
Liens
|
|
EXHIBITS:
|
||
Exhibit A
|
Form of Collateral Provider Guaranty
|
|
Exhibit B
|
Form of Compliance Certificate
|
|
Exhibit C
|
Form of Joinder Agreement
|
|
Exhibit D
|
Form of Request to Withdraw Collateral
|
|
Exhibit E
|
Form of Security Agreement
|
|
Exhibit F
|
Form of Subsidiary Guaranty
|
|
Exhibit G
|
Form of Notice of Letter of Credit
|
|
Exhibit H
|
Form of Collateral Certificate
|
Cameron International Corporation
|
|
1333 West Loop South, Suite 1700
|
|
Houston, Texas 77027
|
|
Attention: William Lemmer
|
|
Telecopier No.: 713-513-3499
|
|
Email address: William.lemmer@c-a-m.com
|
|
With a copy to:
|
Cameron International Corporation
|
|
1333 West Loop South, Suite 1700
|
|
Houston, Texas 77027
|
|
Attention: Keith Jennings
|
|
Telecopier No.: 713-513-3355
|
|
Email address: Keith.Jennings@c-a-m.com
|
Citibank, N.A.
|
|
1615 Brett Road OPS III
|
|
New Castle, DE 19720
|
|
Attention: Lorie Paulin
|
|
Telecopier No.: 212-994-0961
|
|
Email address: lorie.paulin@citi.com
|
With copies to:
|
|
Citibank, N.A.
|
|
388 Greenwich Street, 34th Floor
|
|
New York, NY 10013
|
|
Attention: Robert Malleck
|
|
Telephone: (212) 816-5435
|
|
Facsimile: (646) 192-1688
|
|
Email: robert.malleck@citi.com
|
|
Citi Global Energy
|
|
811 Main Street, Suite 4000
|
|
Houston TX 77002
|
|
Attention: Nannette N. Dockal
|
|
Telephone: 713-821-4737
|
|
Facsimile: 713-481-0245
|
|
Email: nannette.n.dockal@citi.com
|
Citi Global Energy
|
|
811 Main Street, Suite 4000
|
|
Houston TX 77002
|
|
Attention: Nannette N. Dockal
|
|
Telephone: 713-821-4737
|
|
Facsimile: 713-481-0245
|
|
Email: nannette.n.dockal@citi.com
|
|
With copies to:
|
|
Citibank, N.A.
|
|
388 Greenwich Street, 34th Floor
|
|
New York, NY 10013
|
|
Attention: Robert Malleck
|
|
Telephone: (212) 816-5435
|
|
Facsimile: (646) 192-1688
|
|
Email: robert.malleck@citi.com
|
APPLICANTS:
|
|||||
CAMERON INTERNATIONAL CORPORATION
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Vice President and Treasurer
|
|||||
CAMERON LIMITED
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings | |||||
Attorney-in-fact | |||||
CAMERON FRANCE S.A.S.
|
|||||
By | : |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON ITALY S.R.L | |||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON ITALY HOLDING S.R.L.
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON SYSTEMS S.R.L.
|
|||||
By |
:
|
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON GMBH
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
CAMERON DO BRASIL LTDA
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON SYSTEMS DE VENEZUELA, S.A.
|
|||||
By | : |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON VENEZOLANA, S.A.
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON CANADA CORPORATION
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON DE MEXICO, S.A. DE C.V.
|
|||||
By |
:
|
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
|||||
CAMERON (SINGAPORE) PTE. LTD.
|
|||||
By
|
: |
/s/ H. Keith Jennings
|
|||
H. Keith Jennings
|
|||||
Attorney-in-fact
|
LETTER OF CREDIT ISSUER:
|
|||
CITIBANK, N.A., as Letter of Credit Issuer
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
Commitment: $250,000,000
|
Level I
Status
|
Level II
Status
|
Level III
Status
|
Level IV
Status
|
Level V
Status
|
Level VI
Status
|
|
Commitment Fee
|
.150%
|
.175%
|
.200%
|
.250%
|
.350%
|
.450%
|
Issuance Fee – Secured Letters of Credit
|
.250%
|
.250%
|
.250%
|
.250%
|
.375%
|
1.000%
|
Issuance Fee – Unsecured Financial Letters of Credit
|
1.250%
|
1.250%
|
1.500%
|
2.000%
|
2.250%
|
2.500%
|
Issuance Fee – Unsecured Performance Letters of Credit
|
.625%
|
.625%
|
.750%
|
1.000%
|
1.125%
|
1.250%
|
Subsidiary Applicant
|
Jurisdiction of
Organization
|
Address
|
Organizational
Number
|
Cameron Limited
|
United Kingdom
|
Baker & McKenzie
100 New Bridge Street
London, England
EC4V 6JA
|
400176
|
Cameron France S.A.S.
|
France
|
Plaine Saint-Pierre
C-S 620
Beziers Cedex
France 34535
|
582 122 230
|
Cameron Italy S.R.L
|
Italy
|
Via Italo Betto 11
Voghera (PV)
Pavia, Italy 27058
|
12055830157
|
Cameron Italy Holding S.R.L.
|
Italy
|
Via Vittor Pisani, 20
Milan Italy 20124
|
07138870964
|
Cameron Systems S.R.L.
|
Italy
|
Via Cantu 8/10
Cinisello Balsamo (MI)
Milan, Italy 20092)
|
02980670968
|
Cameron GmbH
|
Germany
|
Lückenweg 1
Celle, Germany 29227
|
HRB 100653
|
Cameron do Brasil Ltda
|
Brazil
|
Baker & McKenzie (Trench, Rossi e Watanabe) – Ales
Av Dr Chucri Zaidan, 920, 130 Andar
Market Place Tower
Sao Paulo
Sao Paulo 04583-904
|
33.206.850.520
|
Cameron Systems de Venezuela, S.A.
|
Venezuela
|
Rodner, Martinez & Associates
Edificio Torre Clement, Piso 2
Piso 2, Avenida Venezuela; Urbanizacion El Rosal
Caracas, Venezuela 1060
|
J-070418881-8
|
Cameron Venezolana, S.A.
|
Venezuela
|
Rodner, Martinez & Associates
Edificio Torre Clement, Piso 2
Piso 2, Avenida Venezuela; Urbanizacion El Rosal
Caracas, Venezuela 1060
|
J-07039128-6
|
Cameron Canada Corporation
|
Canada (Nova Scotia)
|
McInnes Cooper
Purdy’s Wharf Tower II
1300-1969 Upper Water Street
Halifax
Nova Scotia B3J 2V1
|
3200556
|
Cameron de Mexico, S.A. de S.V.
|
Mexico
|
Avenida Acacias S/N Col.
Cd. Industrial Bruno Paglia Tejeria
Veracruz, Mexico C.P. 91697
|
CCM-931027JG5
|
Cameron (Singapore) Pte. Ltd.
|
Singapore
|
No. 2 Gul Circle
Jurong Industrial Estate
Jurong, Singapore 629560
|
197401101H
|
Account Number
|
Account Institution
|
Collateral Provider
|
6733001841*
|
Union Bank, N.A.
|
Cameron International Corporation
|
Cameron
|
$ | 13,706,425 | ||
Cameron Canada Corporation
|
$ | 2,363,312 | ||
CES US
|
$ | 1,437,892 | ||
FloTec US
|
$ | 704,091 | ||
Cameron Technologies U.S., Inc.
|
$ | 311,967 | ||
Cameron Valves & Measurement Australia
|
$ | 73,091 | ||
Cameron Valves & Measurement US
|
$ | 24,718 | ||
TOTAL
|
$ | 18,621,496 |
CAMERON INTERNATIONAL CORPORATION
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
CITIBANK, N.A. | |||
By:
|
|||
Name:
|
|||
Title:
|
|
(i)
|
any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s outstanding voting securities, other than through the purchase of voting securities directly from the Company through a private placement; or
|
|
(ii)
|
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board; or
|
|
(iii)
|
a merger or consolidation involving the Company or its stock, or an acquisition by the Company, directly or indirectly or through one or more subsidiaries, of another entity or its stock or assets in exchange for the stock of the Company unless, immediately following such transaction less than a majority of the then outstanding voting securities of the surviving or resulting corporation or entity will be (or is) then beneficially owned, directly or indirectly, by all or substantially of the individuals and entities who were the beneficial owners of the Company’s outstanding voting securities immediately prior to such transaction (treating, for purposes of determining whether the majority ownership continuity test is met, any ownership of the voting securities of the surviving or resulting corporation or entity that results from a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or other entity with which the Company is merged or consolidated as not owned by persons who were beneficial owners of the Company’s outstanding voting securities immediately prior to the transaction).
|
|
(iv)
|
a tender offer or exchange offer is made and consummated by a Person other than the Company for the ownership of 20% or more of the voting securities of the Company then outstanding; or
|
|
(v)
|
all or substantially all of the assets of the Company are sold or transferred to a Person as to which (a) the Incumbent Board does not have authority (whether by law or contract) to directly control the use or further disposition of such assets and (b) the financial results of the Company and such Person are not consolidated for financial reporting purposes.
|
|
1.
|
If payment or withholding of the income tax due in connection with the RSUs and Stock Options is not made within ninety (90) days of the event giving rise to the income tax liability or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by the Participant to the Employer, effective as of the Due Date. The Participant agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 12 of the Award Agreement. Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant will not e eligible for a loan from the Company or the Employer to cover the income tax liability. In the event that the Participant is a director or executive officer and the income tax is not collected from or paid by the Due Date, the amount of any uncollected income tax will constitute a benefit to the Participant on which additional income tax and national insurance contributions (“NICs”) will be payable. Participant will be responsible for reporting any income tax for reimbursing the Company or the Employer the value of any employee NICs due on this additional benefit.
|
|
(i)
|
any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s outstanding voting securities, other than through the purchase of voting securities directly from the Company through a private placement; or
|
|
(ii)
|
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board; or
|
|
(iii)
|
a merger or consolidation involving the Company or its stock, or an acquisition by the Company, directly or indirectly or through one or more subsidiaries, of another entity or its stock or assets in exchange for the stock of the Company unless, immediately following such transaction less than a majority of the then outstanding voting securities of the surviving or resulting corporation or entity will be (or is) then beneficially owned, directly or indirectly, by all or substantially of the individuals and entities who were the beneficial owners of the Company’s outstanding voting securities immediately prior to such transaction (treating, for purposes of determining whether the majority ownership continuity test is met, any ownership of the voting securities of the surviving or resulting corporation or entity that results from a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or other entity with which the Company is merged or consolidated as not owned by persons who were beneficial owners of the Company’s outstanding voting securities immediately prior to the transaction).
|
|
(iv)
|
a tender offer or exchange offer is made and consummated by a Person other than the Company for the ownership of 20% or more of the voting securities of the Company then outstanding; or
|
|
(v)
|
all or substantially all of the assets of the Company are sold or transferred to a Person as to which (a) the Incumbent Board does not have authority (whether by law or contract) to directly control the use or further disposition of such assets and (b) the financial results of the Company and such Person are not consolidated for financial reporting purposes.
|
|
i.
|
If the Participant terminates employment with the Company in accordance with Section 4(a), the vested portion of the Award shall be paid within 30 days following the Vesting Date.
|
ii.
|
If the Participant’s employment terminates by reason of death or long-term disability in accordance with Section 4(b), hereof, prior to the Vesting Date, the Award, as accelerated pursuant to Section 4 and/or 5 hereof, shall be paid within 30 days of such termination.
|
|
iii.
|
If the Participant’s employment is terminated with the Company by reason of a workforce reduction in accordance with Section 4(c), the vested portion of such Award shall be paid within 30 days following the Vesting Date.
|
iv.
|
If the Participant’s employment is terminated as a result of a “Change in Control” as provided for in Section 4(d), and if the “Change in Control” also constitutes a “change in control event” within the meaning of U.S. Department of Treasury Regulation Section 1.409A-3(i)(5) (a “Section 409A CIC”), Participant’s vested Award shall be paid within 30 days following such Section 409A CIC. If the “Change in Control” that is not a Section 409A CIC, Participant’s vested award shall be paid within 30 days following the Vesting Date.
|
|
i.
|
any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s outstanding voting securities, other than through the purchase of voting securities directly from the Company through a private placement; or
|
|
ii.
|
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board; or
|
|
iii.
|
a merger or consolidation involving the Company or its stock, or an acquisition by the Company, directly or indirectly or through one or more subsidiaries, of another entity or its stock or assets in exchange for the stock of the Company unless, immediately following such transaction less than a majority of the then outstanding voting securities of the surviving or resulting corporation or entity will be (or is) then beneficially owned, directly or indirectly, by all or substantially of the individuals and entities who were the beneficial owners of the Company’s outstanding voting securities immediately prior to such transaction (treating, for purposes of determining whether the majority ownership continuity test is met, any ownership of the voting securities of the surviving or resulting corporation or entity that results from a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or other entity with which the Company is merged or consolidated as not owned by persons who were beneficial owners of the Company’s outstanding voting securities immediately prior to the transaction).
|
|
iv.
|
a tender offer or exchange offer is made and consummated by a Person other than the Company for the ownership of 20% or more of the voting securities of the Company then outstanding; or
|
|
v.
|
all or substantially all of the assets of the Company are sold or transferred to a Person as to which (x) the Incumbent Board does not have authority (whether by law or contract) to directly control the use or further disposition of such assets and (y) the financial results of the Company and such Person are not consolidated for financial reporting purposes.
|
|
i.
|
If the Participant terminates employment in accordance with Section 4(a), the number of Shares equal to the portion of the RSUs that vested shall be delivered within 30 days following the Scheduled Vesting Date.
|
ii.
|
If the Participant’s employment terminates by reason of death or Long-term Disability in accordance with Section 4(b, prior to the Scheduled Vesting Date, the number of Shares equal to the RSUs that were subject to accelerated vesting pursuant to Section 4 hereof, shall be delivered within 30 days of such termination.
|
|
iii.
|
If the Participant’s employment is terminated by reason of a workforce reduction in accordance with Section 4(c), the number of Shares equal to the portion of the RSUs that vested shall be delivered within 30 days following the Scheduled Vesting Date.
|
iv.
|
If the Participant’s employment is terminated in connection with a “Change in Control” as provided for in Section 4(d), and if the “Change in Control” also constitutes a “change in control event” within the meaning of U.S. Department of Treasury Regulation Section 1.409A-3(i)(5) (a “Section 409A CIC”), unless otherwise provided in Section 22 of this Award Agreement, the number of Shares equal to the Participant’s vested RSUs shall be delivered within 30 days following such Section 409A CIC or date of such termination, whichever is the later to occur. If the “Change in Control” does not constitute a Section 409A CIC, the Shares underlying the Participant’s vested RSUs shall be delivered within 30 days following the Change in Control or such termination, whichever is the later to occur.
|
|
1.
|
If payment or withholding of the income tax due in connection with the RSUs is not made within ninety (90) days of the event giving rise to the income tax liability or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by the Participant to the Employer, effective as of the Due Date. The Participant agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 12 of the Award Agreement. Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant will not e eligible for a loan from the Company or the Employer to cover the income tax liability. In the event that the Participant is a director or executive officer and the income tax is not collected from or paid by the Due Date, the amount of any uncollected income tax will constitute a benefit to the Participant on which additional income tax and national insurance contributions (“NICs”) will be payable. Participant will be responsible for reporting any income tax for reimbursing the Company or the Employer the value of any employee NICs due on this additional benefit.
|
|
(i)
|
any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s outstanding voting securities, other than through the purchase of voting securities directly from the Company through a private placement; or
|
|
(ii)
|
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board; or
|
|
(iii)
|
a merger or consolidation involving the Company or its stock, or an acquisition by the Company, directly or indirectly or through one or more subsidiaries, of another entity or its stock or assets in exchange for the stock of the Company unless, immediately following such transaction less than 50% of the then outstanding voting securities of the surviving or resulting corporation or entity will be (or is) then beneficially owned, directly or indirectly, by all or substantially of the individuals and entities who were the beneficial owners of the Company’s outstanding voting securities immediately prior to such transaction (treating, for purposes of determining whether the 50% continuity test is met, any ownership of the voting securities of the surviving or resulting corporation or entity that results from a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or other entity with which the Company is merged or consolidated as not owned by persons who were beneficial owners of the Company’s outstanding voting securities immediately prior to the transaction).
|
|
(iv)
|
a tender offer or exchange offer is made and consummated by a Person other than the Company for the ownership of 20% or more of the voting securities of the Company then outstanding; or
|
|
(v)
|
all or substantially all of the assets of the Company are sold or transferred to a Person as to which (a) the Incumbent Board does not have authority (whether by law or contract) to directly control the use or further disposition of such assets and (b) the financial results of the Company and such Person are not consolidated for financial reporting purposes.
|
|
i.
|
If the Participant’s employment with the Company is terminated pursuant to the circumstances provided for in Section 4(b) hereof, the vested portion of the Award shall be paid within 30 days of the date of termination.
|
|
ii.
|
If the Participant’s termination of employment with the Company is terminated pursuant to the circumstances provided for in Sections 4(a) or 4(c), the vested portion of the Award shall be paid within 30 days following the Vesting Date.
|
|
(i)
|
any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s outstanding voting securities, other than through the purchase of voting securities directly from the Company through a private placement; or
|
|
(ii)
|
individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board shall from and after such election be deemed to be a member of the Incumbent Board; or
|
|
(iii)
|
a merger or consolidation involving the Company or its stock, or an acquisition by the Company, directly or indirectly or through one or more subsidiaries, of another entity or its stock or assets in exchange for the stock of the Company unless, immediately following such transaction less than 50% of the then outstanding voting securities of the surviving or resulting corporation or entity will be (or is) then beneficially owned, directly or indirectly, by all or substantially of the individuals and entities who were the beneficial owners of the Company’s outstanding voting securities immediately prior to such transaction (treating, for purposes of determining whether the 50% continuity test is met, any ownership of the voting securities of the surviving or resulting corporation or entity that results from a stockholder’s ownership of the stock of, or their ownership interest in, the corporation or other entity with which the Company is merged or consolidated as not owned by persons who were beneficial owners of the Company’s outstanding voting securities immediately prior to the transaction).
|
|
(iv)
|
a tender offer or exchange offer is made and consummated by a Person other than the Company for the ownership of 20% or more of the voting securities of the Company then outstanding; or
|
|
(v)
|
all or substantially all of the assets of the Company are sold or transferred to a Person as to which (a) the Incumbent Board does not have authority (whether by law or contract) to directly control the use or further disposition of such assets and (b) the financial results of the Company and such Person are not consolidated for financial reporting purposes.
|
|
(i)
|
The “Effective Period” shall mean for the purposes of this Award Agreement the period from the earliest date to occur of any of the following: (1) any of the events set forth under the definition of Change in Control shall have occurred, (2) the receipt by the Company of a Schedule 13D stating the intention of any person to take actions which if accomplished, would constitute a Change in Control; (3) the public announcement by any person of its intention to take any such action, in each case without regard for any contingency or condition which has not been satisfied on such date; (4) the agreement by the Company to enter into a transaction which, if consummated, would result in a Change in Control; or (5) consideration by the Board of a transaction which, if consummated, would result in a Change in Control. If, however, an Effective Date occurs but the proposed transaction to which it relates ceases to be actively considered, the Effective Period will be deemed not to have commenced for purposes of this Agreement. If, however, an Effective Date occurs with respect to a proposed transaction which ceased to be actively considered but for which active consideration is received, the Effective Date with respect to the Change in Control that ultimately occurs shall be that date upon which consideration was revived and ultimately carried through to consummation and two years following the beginning of the period and the Change in Control.
|
(ii)
|
“Good Reason” for the purposes of the Award Agreement shall mean the following: (1) a change in the Participant’s status, title(s) or positions(s) with the Company, including as an officer of the Company, which in the Participant’s reasonable judgment, does not represent a promotion, with commensurate adjustment of compensation, from the Participant’s status, title(s) and positions(s) immediately prior to the Effective Date; or the assignment to the Participant’s of any duties or responsibilities which, in the Participant’s reasonable judgment, are in consistent with such status, title(s) or positions(s); or any removal of the Participant’s from or any failure to reappoint or reelect the Participant’s to such position(s); provided that the circumstances described in this item (1) do not apply if as a result of the Participant’s Death, Retirement or Disability or following receipt by the Participant’s of written notice from the Company of the termination of the Participant’s employment for Cause; (2) a reduction by the Company any time after the Effective Date in the Participant’s then current base salary; (3) the failure by the Company to continue to effect any Plan in which the Participant’s were participating immediately prior to the Effective Date other than as a result of the normal expiration or amendment of any such Plan in accordance with its terms; or the taking of any action; or the failure to act, by the Company which would adversely affect the Participant’s continued participation in any such Plan on at least as favorable a basis to the Participant’s as is the case immediately prior to the Effective Date or which would materially reduce the Participant’s benefits under any such Plan or deprive the Participant’s of any material benefit enjoyed by you immediately prior to the Effective Date, except with the Participant’s express written consent; or (4) the relocation of the principal place of your employment to a location 25 mile further from the Participant’s principal residence without the Participant’s express written consent.
|
|
i.
|
If the Participant’s employment is terminated pursuant to the circumstances provided for in Section 4(b) hereof, prior to the Scheduled Vesting Date, the number of Shares equal to the PRSUs that were subject to vest shall be delivered within 30 days of the date of termination.
|
|
ii.
|
If the Participant’s employment is terminated pursuant to the circumstances provided for in Sections 4(a) or 4(c), the number of Shares equal to the number of PRSUs that were subject to vest shall be delivered within 30 days following the Scheduled Vesting Date.
|
|
1.
|
If payment or withholding of the income tax due in connection with the RSUs is not made within ninety (90) days of the event giving rise to the income tax liability or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by the Participant to the Employer, effective as of the Due Date. The Participant agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 12 of the Award Agreement. Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the Participant will not e eligible for a loan from the Company or the Employer to cover the income tax liability. In the event that the Participant is a director or executive officer and the income tax is not collected from or paid by the Due Date, the amount of any uncollected income tax will constitute a benefit to the Participant on which additional income tax and national insurance contributions (“NICs”) will be payable. Participant will be responsible for reporting any income tax for reimbursing the Company or the Employer the value of any employee NICs due on this additional benefit.
|
Region
|
2012
|
2011
|
2010
|
|||||||||
North America
|
$ | 3,806.2 | $ | 3,084.0 | $ | 2,491.3 | ||||||
South America
|
607.8 | 647.8 | 524.7 | |||||||||
Asia, including Middle East
|
1,924.8 | 1,270.9 | 1,178.2 | |||||||||
Africa
|
901.9 | 1,002.1 | 1,182.4 | |||||||||
Europe
|
913.8 | 753.8 | 655.2 | |||||||||
Other
|
347.6 | 200.4 | 103.0 | |||||||||
$ | 8,502.1 | $ | 6,959.0 | $ | 6,134.8 |
(dollars in millions)
|
Increase (decrease)
in 2013 pre-tax
pension expense
|
Increase (decrease)
in PBO at
December 31, 2012
|
||||||
Change in Assumption:
|
||||||||
25 basis point decrease in discount rate
|
$ | 1.5 | $ | 15.0 | ||||
25 basis point increase in discount rate
|
$ | (1.5 | ) | $ | (14.3 | ) | ||
25 basis point decrease in expected return on assets
|
$ | 0.6 | $ | – | ||||
25 basis point increase in expected return on assets
|
$ | (0.6 | ) | $ | – |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Revenues
|
100 | % | 100 | % | 100 | % | ||||||
Costs and expenses:
|
||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
70.9 | 69.5 | 68.7 | |||||||||
Selling and administrative expenses
|
13.7 | 14.4 | 14.0 | |||||||||
Depreciation and amortization
|
3.0 | 3.0 | 3.3 | |||||||||
Interest, net
|
1.0 | 1.2 | 1.2 | |||||||||
Other costs (see Note 3)
|
0.4 | 2.5 | 0.8 | |||||||||
Total costs and expenses
|
89.0 | 90.6 | 88.0 | |||||||||
Income before income taxes
|
11.0 | 9.4 | 12.0 | |||||||||
Income tax provision
|
(2.2 | ) | (1.9 | ) | (2.8 | ) | ||||||
Net income
|
8.8 | % | 7.5 | % | 9.2 | % |
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||||
2012
|
2011
|
Amount
|
%
|
|||||||||||||||
Drilling activity (average number of working rigs during period)1:
|
||||||||||||||||||
United States
|
1,919 | 1,875 | 44 | 2.3 | % | |||||||||||||
Canada
|
365 | 423 | (58 | ) | (13.7 | )% | ||||||||||||
Rest of world
|
1,234 | 1,168 | 66 | 5.7 | % | |||||||||||||
Global average rig count
|
3,518 | 3,466 | 52 | 1.5 | % | |||||||||||||
Commodity prices (average of daily U.S. dollar prices per unit during period)2:
|
||||||||||||||||||
West Texas Intermediate Cushing, OK crude spot price per barrel in U.S. dollars
|
$ | 94.10 | $ | 95.05 | $ | (0.95 | ) | (1.0 | )% | |||||||||
Henry Hub natural gas spot price per MMBtu in U.S. dollars
|
$ | 2.75 | $ | 4.00 | $ | (1.25 | ) | (31.2 | )% | |||||||||
Twelve-month futures strip price (U.S. dollar amount at period end)2:
|
||||||||||||||||||
West Texas Intermediate Cushing, OK crude oil contract (per barrel)
|
$ | 93.19 | $ | 98.85 | $ | (5.66 | ) | (5.7 | )% | |||||||||
Henry Hub natural gas contract (per MMBtu)
|
$ | 3.60 | $ | 3.30 | $ | 0.30 | 9.1 | % | ||||||||||
Contracted drillships and semi submersibles by location: 3
|
||||||||||||||||||
U.S. Gulf of Mexico
|
40 | 34 | 6 | 17.6 | % | |||||||||||||
Central and South America
|
84 | 76 | 8 | 10.5 | % | |||||||||||||
Northwestern Europe
|
45 | 42 | 3 | 7.1 | % | |||||||||||||
West Africa
|
32 | 36 | (4 | ) | (11.1 | )% | ||||||||||||
Southeast Asia and Australia
|
21 | 43 | (22 | ) | (51.2 | )% | ||||||||||||
Other
|
47 | 31 | 16 | 51.6 | % | |||||||||||||
269 | 262 | 7 | 2.7 | % |
|
•
|
Nearly 31% of the increase was attributable to the incremental impact of revenues from businesses acquired since the beginning of 2011.
|
|
•
|
Absent the effect of newly acquired businesses, consolidated revenues increased approximately 15% from 2011.
|
|
•
|
Higher aftermarket activity levels, particularly in unconventional resource regions in North America, the impact of higher beginning-of-year backlog on 2012 shipments and increased deliveries to certain international locations, such as Iraq, Latin America, Europe and Asia, contributed to higher revenues in each segment.
|
|
•
|
the impact of lower margins in the DPS segment as a result of a decline in major subsea project margins and
|
|
•
|
the impact of businesses acquired since the beginning of 2011, which carry higher costs than certain other businesses in the segment.
|
|
•
|
As a percent of revenues, selling and administrative expenses declined from 14.4% in 2011 to 13.7% in 2012.
|
|
•
|
Higher employee and facility-related costs as a result of increased business volumes and international and aftermarket expansion efforts accounted for nearly all of the dollar increase.
|
|
•
|
increased capital spending in recent periods (i) in the DPS segment, primarily for expansion of the fleet of rental equipment available in the Surface Systems division and to enhance the aftermarket capabilities in the Drilling Systems division and (ii) for development of the Company’s enhanced business information systems and,
|
|
•
|
the impact of newly acquired businesses, which accounted for nearly one-third of the increase in costs during 2012.
|
Year Ended December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Impairment of intangibles
|
$ | 17.6 | $ | – | ||||
International pension settlement costs
|
6.6 | – | ||||||
Indemnity settlement with BP Exploration and Production Inc.
|
– | 82.5 | ||||||
BOP litigation costs
|
2.5 | 60.7 | ||||||
Acquisition integration costs
|
13.2 | – | ||||||
Costs associated with retiring the 2.5% convertible debentures
|
– | 14.5 | ||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
(15.7 | ) | 9.3 | |||||
Joint venture formation costs
|
2.7 | – | ||||||
Severance, restructuring and other costs
|
6.6 | 10.4 | ||||||
Total other costs
|
$ | 33.5 | $ | 177.4 |
Year Ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
(dollars in millions)
|
Tax Provision
|
Tax Rate
|
Tax Provision
|
Tax Rate
|
||||||||||||
Provision based on international income distribution
|
$ | 239.3 | 25.5 | % | $ | 174.6 | 26.8 | % | ||||||||
Adjustments to income tax provision:
|
||||||||||||||||
Realization of certain tax benefits associated with tax planning strategies put in place in prior years
|
– | – | (18.4 | ) | (2.9 | ) | ||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved
|
(25.2 | ) | (2.7 | ) | (13.7 | ) | (2.1 | ) | ||||||||
Finalization of prior year returns
|
(20.7 | ) | (2.2 | ) | (6.6 | ) | (1.0 | ) | ||||||||
Accrual adjustments and other
|
(5.9 | ) | (0.6 | ) | (6.7 | ) | (1.0 | ) | ||||||||
Tax provision
|
$ | 187.5 | 20.0 | % | $ | 129.2 | 19.8 | % |
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
$ | % | ||||||||||||
Revenues
|
$ | 4,871.3 | $ | 4,061.5 | $ | 809.8 | 19.9 | % | ||||||||
Income before income taxes
|
$ | 712.3 | $ | 685.6 | $ | 26.7 | 3.9 | % | ||||||||
Income before income taxes as a percent of revenues
|
14.6 | % | 16.9 | % | N/A | (2.3 | )% | |||||||||
Orders
|
$ | 7,326.8 | $ | 4,343.4 | $ | 2,983.4 | 68.7 | % | ||||||||
Backlog (at period-end)
|
$ | 6,576.4 | $ | 3,811.1 | $ | 2,765.3 | 72.6 | % |
|
•
|
a 15% increase in surface equipment revenues, reflecting increased deployment of rental equipment in unconventional resource regions of North America, higher shipments to customers in Iraq, Latin America, and increased project activity levels in the Europe, Africa and Caspian Sea regions,
|
|
•
|
a nearly 9% increase in sales of drilling equipment, as drilling contractors and rig owners continued to place additional focus during the year on obtaining aftermarket parts and services from original equipment manufacturers, and
|
|
•
|
a 2% increase in subsea equipment sales, mainly reflecting higher aftermarket activity levels.
|
Income before income taxes as a percent of revenues
|
|
The decrease in the ratio of income before income taxes as a percent of revenues was due primarily to:
|
|
•
|
a 2.1 percentage-point increase in the ratio of cost of sales (exclusive of depreciation and amortization) to revenues as a result of a decline in major subsea project margins and the impact of businesses acquired since the beginning of 2011, which carry higher costs than certain other businesses in the segment, and
|
|
•
|
a 0.3 percentage-point increase in the ratio of depreciation and amortization to revenues due mainly to the impact of newly acquired businesses and higher depreciation expense related to expansion of the fleet of rental equipment available in the Surface Systems division.
|
|
•
|
a 61% increase in drilling equipment orders, nearly all of which was for major project awards of drilling stacks for new drillship construction and spares for existing rigs, as well as a complete drilling equipment package for a new ultra-deepwater drillship,
|
|
•
|
a 29% increase in surface equipment orders due mainly to higher demand for new equipment in Iraq, the North Sea and Latin America, as well as increased use of rental equipment in unconventional resource regions of North America, and
|
|
•
|
a 65% increase in subsea orders, largely due to a more than doubling of the number of new subsea trees awarded in 2012 as compared to 2011, mainly for use offshore Brazil, Egypt and in the South China Sea, along with new variation orders on existing projects.
|
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
$ | % | ||||||||||||
Revenues
|
$ | 2,142.2 | $ | 1,663.0 | $ | 479.2 | 28.8 | % | ||||||||
Income before income taxes
|
$ | 425.8 | $ | 294.1 | $ | 131.7 | 44.8 | % | ||||||||
Income before income taxes as a percent of revenues
|
19.9 | % | 17.7 | % | N/A | 2.2 | % | |||||||||
Orders
|
$ | 2,104.3 | $ | 2,000.7 | $ | 103.6 | 5.2 | % | ||||||||
Backlog (at period-end)
|
$ | 1,051.0 | $ | 1,144.9 | $ | (93.9 | ) | (8.2 | )% |
|
•
|
Sales of engineered and process valves increased 40% and 34%, respectively, as compared to 2011, as a result of higher North American and Asia Pacific activity levels in the pipeline construction and petrochemical markets, combined with higher beginning-of-the-year backlog levels.
|
|
•
|
Higher beginning-of-the-year backlog and strong market conditions for much of the year in North America, particularly in unconventional resource areas, contributed to a 24% increase in sales of distributed valves and a 18% increase of sales in measurement products in 2012 as compared to 2011.
|
|
•
|
a 2.3 percentage-point decrease in the ratio of selling and administrative costs to revenues as selling and administrative expenses increased at less than one-third of the rate of increase in revenues during 2012, and
|
|
•
|
a 0.5 percentage-point decline in the ratio of depreciation and amortization to revenues due mainly to the impact of relatively flat depreciation and amortization expense on an increasing revenue base, offset by a 0.7 percentage-point increase in the ratio of cost of sales to revenues, due to changes in the mix of sales of higher versus lower-margin products.
|
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
dollars in millions)
|
2012
|
2011
|
$ | % | ||||||||||||
Revenues
|
$ | 1,488.6 | $ | 1,234.5 | $ | 254.1 | 20.6 | % | ||||||||
Income before income taxes
|
$ | 147.1 | $ | 116.0 | $ | 31.1 | 26.8 | % | ||||||||
Income before income taxes as a percent of revenues
|
9.9 | % | 9.4 | % | N/A | 0.5 | % | |||||||||
Orders
|
$ | 1,455.6 | $ | 1,483.5 | $ | (27.9 | ) | (1.9 | )% | |||||||
Backlog (at period-end)
|
$ | 969.8 | $ | 1,013.1 | $ | (43.3 | ) | (4.3 | )% |
|
•
|
a 25% increase in process systems revenues largely reflecting (i) a 46% increase in shipments of standard and traditional separation equipment mainly for use in unconventional resource regions of North America, and (ii) a 15% increase in custom engineered equipment revenues due to higher activity levels on certain large international projects,
|
|
•
|
a 58% increase in sales of engineered air equipment mainly associated with large multi-unit shipments of process gas equipment worldwide and higher deliveries of air separation and engineered air units, and
|
|
•
|
a 26% increase in shipments of Superior compressors mainly for a large project in Asia.
|
Year Ended December 31,
|
||||||||
(dollars in millions)
|
2011
|
2010
|
||||||
Indemnity settlement with BP Exploration and Production Inc.
|
$ | 82.5 | $ | – | ||||
BOP litigation costs
|
60.7 | 12.5 | ||||||
Acquisition integration costs
|
– | 22.0 | ||||||
Costs associated with retiring the 2.5% convertible debentures
|
14.5 | – | ||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
9.3 | – | ||||||
Acquisition and other restructuring costs
|
10.4 | 12.7 | ||||||
Total other costs
|
$ | 177.4 | $ | 47.2 |
Year Ended December 31,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
(dollars in millions)
|
Tax Provision
|
Tax Rate
|
Tax Provision
|
Tax Rate
|
||||||||||||
Provision based on international income distribution
|
$ | 174.6 | 26.8 | % | $ | 176.9 | 24.1 | % | ||||||||
Adjustments to income tax provision:
|
||||||||||||||||
Realization of certain tax benefits associated with tax planning strategies put in place in prior years
|
(18.4 | ) | (2.9 | ) | – | – | ||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved
|
(13.7 | ) | (2.1 | ) | – | – | ||||||||||
Finalization of prior year returns
|
(6.6 | ) | (1.0 | ) | (5.9 | ) | (0.8 | ) | ||||||||
Accrual adjustments and other
|
(6.7 | ) | (1.0 | ) | (0.6 | ) | (0.1 | ) | ||||||||
Tax provision
|
$ | 129.2 | 19.8 | % | $ | 170.4 | 23.2 | % |
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
(dollars in millions)
|
2011
|
2010
|
$ | % | ||||||||||||
Revenues
|
$ | 4,061.5 | $ | 3,718.3 | $ | 343.2 | 9.2 | % | ||||||||
Income before income taxes
|
$ | 685.6 | $ | 666.7 | $ | 18.9 | 2.8 | % | ||||||||
Income before income taxes as a percent of revenues
|
16.9 | % | 17.9 | % | N/A | (1.0 | )% | |||||||||
Orders
|
$ | 4,343.4 | $ | 2,967.2 | $ | 1,376.2 | 46.4 | % | ||||||||
Backlog (at period-end)
|
$ | 3,811.1 | $ | 3,195.9 | $ | 615.2 | 19.2 | % |
|
•
|
a 22% increase in surface equipment sales, reflecting strong market conditions and higher activity levels in most regions of the world, except for certain parts of North Africa due to recent unrest in that region, and
|
|
•
|
a 13% increase in sales of drilling equipment as drilling contractors and rig owners continued to place more focus during the year on obtaining aftermarket parts and services from original equipment manufacturers.
|
|
•
|
a 0.6 percentage-point increase in the ratio of selling and administrative expenses to revenues due mainly to higher employee-related costs related to increased business volumes and international expansion efforts, as well as the impact of the reversal in 2010 of certain bad debt provisions recorded in previous periods related to certain international customers and higher legal costs,
|
|
•
|
a 0.3 percentage-point increase in the ratio of cost of sales (exclusive of depreciation and amortization) to revenues due mainly to a decline in major subsea project margins, over 40% of which was due to a $51.0 million adjustment during 2011 related to cost overruns on a large subsea project in Nigeria, which more than offset improved margins in the surface equipment product line, and
|
|
•
|
a 0.2 percentage-point increase in the ratio of depreciation and amortization to revenues due mainly to higher depreciation expense related to expansion of the fleet of rental equipment available in the Surface division and higher capital spending for enhancements to the aftermarket capabilities in the Drilling division, as well as higher amortization of acquired intangibles.
|
|
•
|
a 126% increase in drilling equipment orders, nearly one-half of which was attributable to new major project awards involving jackup and land rigs, with increased demand for aftermarket spare parts, repairs and services accounting for an additional 25% of the increase,
|
|
•
|
a 21% increase in surface equipment orders due mainly to higher activity levels in all major regions of the world, and
|
|
•
|
a nearly 7% increase in subsea orders, largely for aftermarket parts and services.
|
Year Ended
December 31,
|
Increase
|
|||||||||||||||
(dollars in millions)
|
2011
|
2010
|
$ | % | ||||||||||||
Revenues
|
$ | 1,663.0 | $ | 1,273.3 | $ | 389.7 | 30.6 | % | ||||||||
Income before income taxes
|
$ | 294.1 | $ | 188.0 | $ | 106.1 | 56.4 | % | ||||||||
Income before income taxes as a percent of revenues
|
17.7 | % | 14.8 | % | N/A | 2.9 | % | |||||||||
Orders
|
$ | 2,000.7 | $ | 1,579.2 | $ | 421.5 | 26.7 | % | ||||||||
Backlog (at period-end)
|
$ | 1,144.9 | $ | 833.8 | $ | 311.1 | 37.3 | % |
|
•
|
Sales of engineered valves increased 36% on the strength of higher North American activity levels and increased deliveries from higher beginning-of-the-year backlog for pipeline construction projects.
|
|
•
|
Higher current year bookings and higher beginning-of-the-year backlog levels, primarily due to improved market conditions in North America, contributed to a 35% increase in sales of distributed valves in 2011 as compared to 2010.
|
|
•
|
Better market conditions in North America and higher aftermarket activity in Asia Pacific also contributed to increases of 19%, 15% and 23% in sales of process valves, measurement products and aftermarket parts and services, respectively.
|
|
•
|
a 1.9 percentage-point decrease in the ratio of selling and administrative costs to revenues as selling and administrative costs increased, primarily due to headcount increases and international sales and marketing expansion efforts, at nearly one-half of the rate of increase in revenues for the period resulting in an improved ratio of costs to revenues, and
|
|
•
|
a 0.9 percentage-point decline in the ratio of depreciation and amortization to revenues due mainly to lower amortization of intangible assets in relation to higher revenues.
|
|
•
|
higher North American activity levels, largely in unconventional resource areas, as well as increased North American pipeline construction activity, which led to a 43% increase in orders for distributed valves and a 24% increase in demand for engineered valves, and
|
|
•
|
increased project activity levels in North America and in the Asia Pacific region which contributed to a 23% increase in demand for process valves, a 22% increase in aftermarket parts and services orders and a 12% increase in demand for measurement equipment.
|
Year Ended
December 31,
|
Increase (Decrease)
|
|||||||||||||||
(dollars in millions)
|
2011
|
2010
|
$ | % | ||||||||||||
Revenues
|
$ | 1,234.5 | $ | 1,143.2 | $ | 91.3 | 8.0 | % | ||||||||
Income before income taxes
|
$ | 116.0 | $ | 131.9 | $ | (15.9 | ) | (12.1 | )% | |||||||
Income before income taxes as a percent of revenues
|
9.4 | % | 11.5 | % | N/A | (2.1 | )% | |||||||||
Orders
|
$ | 1,483.5 | $ | 1,244.1 | $ | 239.4 | 19.2 | % | ||||||||
Backlog (at period-end)
|
$ | 1,013.1 | $ | 787.4 | $ | 225.7 | 28.7 | % |
|
•
|
a 31% increase in sales of reciprocating compression equipment largely reflecting (i) a 151% increase in shipments of Superior compressors, mainly for larger scale international projects, and (ii) a 13% increase in demand for aftermarket parts and services from both domestic and international customers associated with a higher number of emissions projects and the addition of a new business early in the year, and
|
|
•
|
a 19% increase in sales of Centrifugal compression equipment as strong domestic and international market conditions led to double-digit increases in deliveries of each major product line.
|
|
•
|
a 3.4 percentage-point increase in the ratio of cost of sales (excluding depreciation and amortization) to revenues, due largely to a 4.9 percentage-point decrease in margins in the process systems businesses due largely to higher costs and manufacturing inefficiencies, partially offset by a 1.5 percentage-point improvement in Compression margins, and
|
|
•
|
a 0.4 percentage-point increase in selling and administrative expenses to revenues due mainly to higher employee and facility-related costs.
|
|
•
|
Centrifugal compression orders were up 38% compared to 2010, largely on the strength of a 58% increase in demand, mainly from international customers, for engineered air, gas and air separation equipment and a 23% increase in domestic and international demand for new plant air machines.
|
|
•
|
Orders for process systems applications increased 16%, nearly 87% of which was due to a major award received in 2011 for a custom engineered oil dehydration and desalting system for use on a platform in the Gulf of Mexico.
|
|
•
|
a $130.2 million increase in certain other costs described above and in Note 3 of the Notes to Consolidated Financial Statements,
|
|
•
|
$28.4 million of higher employee salaries, benefits and travel costs associated largely with increased headcount levels,
|
|
•
|
$8.4 million of foreign currency losses incurred in 2011 as compared to $8.7 million of foreign currency gains in 2010 as a result of exchange rate fluctuations on intercompany loans denominated in currencies other than the functional currency of the entities holding the loans,
|
|
•
|
the absence in the current year of a $7.2 million benefit from interest rate swaps recognized in 2010, and
|
|
•
|
an increase of $5.6 million in depreciation and amortization due primarily to higher capital spending for development of the Company’s enhanced business information systems.
|
(dollars in millions)
|
Payments Due by Period
|
|||||||||||||||||||
Contractual Obligations
|
Total
|
Less Than
1 Year
|
1 – 3
Years
|
4 – 5
Years
|
After 5
Years
|
|||||||||||||||
Debt (a)
|
$ | 2,019.6 | $ | 18.9 | $ | 500.6 | $ | 0.1 | $ | 1,500.0 | ||||||||||
Capital lease obligations (b)
|
121.1 | 12.3 | 22.1 | 10.9 | 75.8 | |||||||||||||||
Operating leases
|
386.8 | 65.0 | 112.9 | 91.1 | 117.8 | |||||||||||||||
Purchase obligations (c)
|
1,322.5 | 1,283.8 | 38.7 | – | – | |||||||||||||||
Minimum required contributions to funded defined benefit pension plans (d)
|
11.8 | 11.8 | − | − | − | |||||||||||||||
Benefit payments expected for unfunded pension and postretirement benefit plans (U.S. only)
|
13.3 | 1.9 | 3.3 | 3.0 | 5.1 | |||||||||||||||
Unrecognized tax benefits (e)
|
15.0 | 15.0 | − | − | − | |||||||||||||||
Total contractual cash obligations
|
$ | 3,890.1 | $ | 1,408.7 | $ | 677.6 | $ | 105.1 | $ | 1,698.7 |
(a)
|
See Note 10 of the Notes to Consolidated Financial Statements for information on interest rates on the outstanding debt.
|
(b)
|
Payments shown include interest.
|
(c)
|
Represents outstanding purchase orders entered into in the ordinary course of business.
|
(d)
|
The Company does not estimate its future minimum required contributions beyond one year.
|
(e)
|
The balance shown represents the portion of the Company’s unrecognized tax benefits recorded as a current liability at December 31, 2012. The remaining balance of unrecognized tax benefits totaling $106.0 million has been excluded from the table as the Company cannot reasonably estimate the timing of the associated future cash outflows.
|
(dollars in millions)
|
Amount of Commitment Expiration by Period
|
|||||||||||||||||||
Other Unrecorded Commercial
Obligations and Off-Balance
Sheet Arrangements
|
Total
Commitment
|
Less Than
1 Year
|
1 - 3
Years
|
4 – 5
Years
|
After 5
Years
|
|||||||||||||||
Committed lines of credit available as of year-end
|
$ | 1,181.0 | $ | 66.0 | $ | 280.0 | $ | 835.0 | $ | − | ||||||||||
Standby letters of credit and bank guarantees
|
940.7 | 439.4 | 381.6 | 97.7 | 22.0 | |||||||||||||||
Financial letters of credit
|
26.5 | 13.9 | 12.6 | – | − | |||||||||||||||
Insurance bonds
|
13.9 | 13.9 | – | – | – | |||||||||||||||
Other financial guarantees
|
0.8 | 0.2 | – | 0.2 | 0.4 | |||||||||||||||
Total commercial commitments
|
$ | 2,162.9 | $ | 533.4 | $ | 674.2 | $ | 932.9 | $ | 22.4 |
•
|
volatility in general economic, social and political conditions;
|
•
|
the effects of civil unrest and sanctions imposed by the United States and other governments on transactions with various countries, such as Iran;
|
•
|
the effects of civil unrest on the Company’s business operations, customers and employees, such as that recently occurring in several countries in the Middle East;
|
•
|
differing tax rates and/or increasing tax rates. Economic conditions around the world have resulted in decreased tax revenues for many governments, which have led and could continue to lead to changes in tax laws in countries where the Company does business, including further changes in the United States. Changes in tax laws could have a negative impact on the Company’s future results;
|
•
|
exchange controls or other similar measures that result in restrictions on repatriation of capital and/or income; and
|
•
|
reductions in the number or capacity of qualified personnel.
|
Notional Amount - Buy
|
Notional Amount - Sell
|
|||||||||||||||||||||||||||
(in millions)
|
2013
|
2014
|
Total
|
2013
|
2014
|
2015
|
Total
|
|||||||||||||||||||||
Foreign currency forward contracts –
|
||||||||||||||||||||||||||||
Notional currency in:
|
||||||||||||||||||||||||||||
Euro
|
240.5 | 62.1 | 302.6 | (7.8 | ) | – | – | (7.8 | ) | |||||||||||||||||||
Pound Sterling
|
58.6 | – | 58.6 | (7.8 | ) | (0.2 | ) | – | (8.0 | ) | ||||||||||||||||||
Norwegian krone
|
1,016.6 | 156.2 | 1,172.8 | (394.5 | ) | (0.4 | ) | – | (394.9 | ) | ||||||||||||||||||
Singapore dollar
|
11.0 | – | 11.0 | – | – | – | – | |||||||||||||||||||||
U.S. dollar
|
43.4 | 0.3 | 43.7 | (212.5 | ) | (5.3 | ) | (0.5 | ) | (218.3 | ) |
|
/s/ Ernst & Young LLP
|
|
/s/ Ernst & Young LLP
|
Year Ended December 31,
|
||||||||||||
(dollars in millions, except per share data)
|
2012
|
2011
|
2010
|
|||||||||
Revenues
|
$ | 8,502.1 | $ | 6,959.0 | $ | 6,134.8 | ||||||
Costs and expenses:
|
||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
6,024.3 | 4,838.4 | 4,212.4 | |||||||||
Selling and administrative expenses
|
1,161.2 | 1,001.5 | 862.3 | |||||||||
Depreciation and amortization
|
254.7 | 206.6 | 201.6 | |||||||||
Interest, net
|
90.4 | 84.0 | 78.0 | |||||||||
Other costs (see Note 3)
|
33.5 | 177.4 | 47.2 | |||||||||
Total costs and expenses
|
7,564.1 | 6,307.9 | 5,401.5 | |||||||||
Income before income taxes
|
938.0 | 651.1 | 733.3 | |||||||||
Income tax provision
|
(187.5 | ) | (129.2 | ) | (170.4 | ) | ||||||
Net income
|
$ | 750.5 | $ | 521.9 | $ | 562.9 | ||||||
Earnings per common share:
|
||||||||||||
Basic
|
$ | 3.05 | $ | 2.13 | $ | 2.32 | ||||||
Diluted
|
$ | 3.02 | $ | 2.09 | $ | 2.27 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Net income
|
$ | 750.5 | $ | 521.9 | $ | 562.9 | ||||||
Foreign currency translation gain (loss)
|
74.6 | (60.2 | ) | (50.1 | ) | |||||||
Gain (loss) on derivatives recognized in other comprehensive income:
|
||||||||||||
Pre-tax
|
14.9 | (6.3 | ) | (9.0 | ) | |||||||
Tax effect
|
(4.8 | ) | 1.1 | 2.9 | ||||||||
(Gain) loss on derivatives reclassified from accumulated other comprehensive income to:
|
||||||||||||
Revenues
|
5.4 | (2.2 | ) | 4.9 | ||||||||
Cost of sales
|
4.0 | 10.0 | 11.8 | |||||||||
Depreciation and amortization
|
0.1 | 0.1 | 0.1 | |||||||||
Tax effect
|
(3.0 | ) | (1.5 | ) | (5.2 | ) | ||||||
Actuarial gains (losses) recognized in other comprehensive income:
|
||||||||||||
Pre-tax
|
(42.7 | ) | (8.6 | ) | 7.4 | |||||||
Tax effect
|
9.4 | 0.9 | (2.9 | ) | ||||||||
Amortization to selling and administrative expenses of:
|
||||||||||||
Prior service credits
|
(1.5 | ) | (1.3 | ) | (0.9 | ) | ||||||
Net actuarial losses
|
5.0 | 4.9 | 5.5 | |||||||||
Tax effect
|
(0.6 | ) | (0.6 | ) | (1.1 | ) | ||||||
Comprehensive income
|
$ | 811.3 | $ | 458.2 | $ | 526.3 |
December 31,
|
||||||||
(dollars in millions, except shares and per share data)
|
2012
|
2011
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 1,185.8 | $ | 898.9 | ||||
Short-term investments
|
517.0 | 423.5 | ||||||
Receivables, net
|
1,966.7 | 1,757.3 | ||||||
Inventories, net
|
2,741.2 | 2,399.9 | ||||||
Other
|
499.9 | 349.0 | ||||||
Total current assets
|
6,910.6 | 5,828.6 | ||||||
Plant and equipment, net
|
1,765.1 | 1,500.1 | ||||||
Goodwill
|
1,923.9 | 1,615.3 | ||||||
Other assets
|
558.6 | 417.7 | ||||||
Total assets
|
$ | 11,158.2 | $ | 9,361.7 | ||||
Liabilities and stockholders’ equity
|
||||||||
Short-term debt
|
$ | 29.2 | $ | 10.6 | ||||
Accounts payable and accrued liabilities
|
3,045.7 | 2,669.7 | ||||||
Accrued income taxes
|
94.1 | – | ||||||
Total current liabilities
|
3,169.0 | 2,680.3 | ||||||
Long-term debt
|
2,047.0 | 1,574.2 | ||||||
Deferred income taxes
|
131.7 | 184.5 | ||||||
Other long-term liabilities
|
244.4 | 215.3 | ||||||
Total liabilities
|
5,592.1 | 4,654.3 | ||||||
Commitments and contingencies
|
− | − | ||||||
Stockholders’ equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at December 31, 2012 and 2011
|
2.6 | 2.6 | ||||||
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding
|
− | − | ||||||
Capital in excess of par value
|
2,094.6 | 2,072.4 | ||||||
Retained earnings
|
4,120.7 | 3,370.2 | ||||||
Accumulated other elements of comprehensive income (loss)
|
(30.0 | ) | (90.8 | ) | ||||
Less: Treasury stock at cost, 16,415,336 shares at December 31, 2012 and 17,579,397 shares at December 31, 2011
|
(621.8 | ) | (647.0 | ) | ||||
Total stockholders’ equity
|
5,566.1 | 4,707.4 | ||||||
Total liabilities and stockholders’ equity
|
$ | 11,158.2 | $ | 9,361.7 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 750.5 | $ | 521.9 | $ | 562.9 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
211.8 | 160.2 | 142.6 | |||||||||
Amortization
|
42.9 | 46.4 | 59.0 | |||||||||
Non-cash stock compensation expense
|
44.7 | 36.7 | 34.5 | |||||||||
Deferred income taxes and tax benefit of stock compensation plan transactions
|
(85.1 | ) | (22.0 | ) | (19.1 | ) | ||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||
Receivables
|
(144.0 | ) | (461.1 | ) | (81.4 | ) | ||||||
Inventories
|
(368.9 | ) | (397.1 | ) | (3.8 | ) | ||||||
Accounts payable and accrued liabilities
|
213.0 | 200.8 | (291.7 | ) | ||||||||
Other assets and liabilities, net
|
18.0 | 122.7 | (108.8 | ) | ||||||||
Net cash provided by operating activities
|
682.9 | 208.5 | 294.2 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sales and maturities of short-term investments
|
1,031.7 | 15.2 | − | |||||||||
Purchases of short-term investments
|
(1,125.4 | ) | (438.0 | ) | − | |||||||
Capital expenditures
|
(427.2 | ) | (388.1 | ) | (200.7 | ) | ||||||
Acquisitions, net of cash acquired
|
(349.3 | ) | (421.3 | ) | (40.9 | ) | ||||||
Proceeds from sales of plant and equipment
|
27.6 | 19.6 | 12.4 | |||||||||
Net cash used for investing activities
|
(842.6 | ) | (1,212.6 | ) | (229.2 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Short-term loan borrowings (repayments), net
|
(41.9 | ) | 45.7 | (8.4 | ) | |||||||
Issuance of senior debt
|
499.3 | 747.8 | − | |||||||||
Debt issuance costs
|
(3.4 | ) | (4.7 | ) | − | |||||||
Redemption of convertible debentures
|
– | (705.7 | ) | − | ||||||||
Purchase of equity call options, net
|
– | (12.2 | ) | − | ||||||||
Purchase of treasury stock
|
(21.3 | ) | (2.4 | ) | (124.0 | ) | ||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions
|
12.3 | 21.5 | 36.3 | |||||||||
Excess tax benefits from stock compensation plan transactions
|
11.1 | 9.0 | 16.4 | |||||||||
Principal payments on capital leases
|
(11.3 | ) | (8.2 | ) | (6.6 | ) | ||||||
Net cash provided by (used for) financing activities
|
444.8 | 90.8 | (86.3 | ) | ||||||||
Effect of translation on cash
|
1.8 | (20.3 | ) | (7.2 | ) | |||||||
Increase (decrease) in cash and cash equivalents
|
286.9 | (933.6 | ) | (28.5 | ) | |||||||
Cash and cash equivalents, beginning of year
|
898.9 | 1,832.5 | 1,861.0 | |||||||||
Cash and cash equivalents, end of year
|
$ | 1,185.8 | $ | 898.9 | $ | 1,832.5 |
(dollars in millions)
|
Common
Stock
|
Capital in
Excess of
Par value
|
Retained
Earnings
|
Accumulated Other
Elements of
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
|
||||||||||||||||||
Balance ― December 31, 2009
|
$ | 2.6 | $ | 2,244.0 | $ | 2,285.4 | $ | 9.5 | $ | (621.8 | ) | $ | 3,919.7 | |||||||||||
Net income
|
– | – | 562.9 | – | – | 562.9 | ||||||||||||||||||
Other comprehensive income (loss)
|
– | – | – | (36.6 | ) | – | (36.6 | ) | ||||||||||||||||
Non-cash stock compensation expense
|
– | 34.5 | – | – | – | 34.5 | ||||||||||||||||||
Purchase of treasury stock
|
– | – | – | – | (124.0 | ) | (124.0 | ) | ||||||||||||||||
Treasury stock issued under stock compensation plans
|
– | (32.5 | ) | – | – | 67.9 | 35.4 | |||||||||||||||||
Tax benefit of stock compensation plan transactions
|
– | 17.4 | – | – | – | 17.4 | ||||||||||||||||||
NATCO purchase price allocation adjustment
|
– | (4.1 | ) | – | – | (12.8 | ) | (16.9 | ) | |||||||||||||||
Balance ― December 31, 2010
|
2.6 | 2,259.3 | 2,848.3 | (27.1 | ) | (690.7 | ) | 4,392.4 | ||||||||||||||||
Net income
|
– | – | 521.9 | – | – | 521.9 | ||||||||||||||||||
Other comprehensive income (loss)
|
– | – | – | (63.7 | ) | – | (63.7 | ) | ||||||||||||||||
Non-cash stock compensation expense
|
– | 36.7 | – | – | – | 36.7 | ||||||||||||||||||
Purchase of treasury stock
|
– | – | – | – | (2.4 | ) | (2.4 | ) | ||||||||||||||||
Treasury stock issued under stock compensation plans
|
– | (25.4 | ) | – | – | 46.1 | 20.7 | |||||||||||||||||
Tax benefit of stock compensation plan transactions
|
– | 4.9 | – | – | – | 4.9 | ||||||||||||||||||
Conversion value of convertible debentures in excess of principal
|
– | (203.3 | ) | – | – | – | (203.3 | ) | ||||||||||||||||
Other
|
0.2 | – | – | – | 0.2 | |||||||||||||||||||
Balance ― December 31, 2011
|
2.6 | 2,072.4 | 3,370.2 | (90.8 | ) | (647.0 | ) | 4,707.4 | ||||||||||||||||
Net income
|
– | – | 750.5 | – | – | 750.5 | ||||||||||||||||||
Other comprehensive income (loss)
|
– | – | – | 60.8 | – | 60.8 | ||||||||||||||||||
Non-cash stock compensation expense
|
– | 44.7 | – | – | – | 44.7 | ||||||||||||||||||
Purchase of treasury stock
|
– | – | – | – | (21.5 | ) | (21.5 | ) | ||||||||||||||||
Treasury stock issued under stock compensation plans
|
– | (34.0 | ) | – | – | 46.7 | 12.7 | |||||||||||||||||
Tax benefit of stock compensation plan transactions
|
– | 11.5 | – | – | – | 11.5 | ||||||||||||||||||
Balance ― December 31, 2012
|
$ | 2.6 | $ | 2,094.6 | $ | 4,120.7 | $ | (30.0 | ) | $ | (621.8 | ) | $ | 5,566.1 |
Estimated
Useful Lives
|
|
Buildings and leasehold improvements
|
10-40years
|
Machinery, equipment and tooling
|
3-18 years
|
Office furniture, software and other
|
3-10 years
|
(dollars in millions)
|
Preliminary Purchase
Price Allocation
of Businesses
Acquired for 2012
|
|||
Cash
|
$ | 16.4 | ||
Accounts receivable
|
44.6 | |||
Inventory
|
41.1 | |||
Current deferred tax assets
|
25.7 | |||
Other current assets
|
27.7 | |||
Property, plant and equipment
|
18.6 | |||
Goodwill
|
249.6 | |||
Intangibles
|
94.8 | |||
Other non-current assets
|
7.0 | |||
Accounts payable and accrued liabilities
|
(159.8 | ) | ||
Total purchase price
|
$ | 365.7 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Impairment of intangibles
|
$ | 17.6 | $ | – | $ | – | ||||||
International pension settlement costs
|
6.6 | – | – | |||||||||
Indemnity settlement with BP Exploration and Production Inc. (see Note 19)
|
– | 82.5 | – | |||||||||
BOP litigation costs
|
2.5 | 60.7 | 12.5 | |||||||||
Acquisition integration costs
|
13.2 | – | 22.0 | |||||||||
Costs associated with retiring the 2.5% convertible debentures
|
– | 14.5 | – | |||||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
(15.7 | ) | 9.3 | – | ||||||||
Joint venture formation costs
|
2.7 | – | – | |||||||||
Severance, restructuring and other costs
|
6.6 | 10.4 | 12.7 | |||||||||
Total other costs
|
$ | 33.5 | $ | 177.4 | $ | 47.2 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Trade receivables
|
$ | 1,823.2 | $ | 1,523.5 | ||||
Insurance company receivables related to the indemnity settlement with BP Exploration and Production Inc. (see Note 19)
|
– | 167.5 | ||||||
Other receivables
|
151.4 | 76.2 | ||||||
Allowance for doubtful accounts
|
(7.9 | ) | (9.9 | ) | ||||
Total receivables
|
$ | 1,966.7 | $ | 1,757.3 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Raw materials
|
$ | 237.9 | $ | 427.3 | ||||
Work-in-process
|
902.1 | 767.8 | ||||||
Finished goods, including parts and subassemblies
|
1,797.9 | 1,376.9 | ||||||
Other
|
14.3 | 12.5 | ||||||
2,952.2 | 2,584.5 | |||||||
Excess of current standard costs over LIFO costs
|
(122.0 | ) | (102.7 | ) | ||||
Allowance for obsolete and excess inventory
|
(89.0 | ) | (81.9 | ) | ||||
Total inventories
|
$ | 2,741.2 | $ | 2,399.9 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Land and land improvements
|
$ | 100.0 | $ | 80.3 | ||||
Buildings
|
610.5 | 561.5 | ||||||
Machinery and equipment
|
1,387.5 | 1,208.0 | ||||||
Tooling, dies, patterns, etc.
|
205.3 | 189.6 | ||||||
Office furniture & equipment
|
177.1 | 156.9 | ||||||
Capitalized software
|
288.3 | 220.1 | ||||||
Assets under capital leases
|
102.5 | 54.3 | ||||||
Construction in progress
|
251.6 | 183.4 | ||||||
All other
|
33.1 | 33.9 | ||||||
3,155.9 | 2,688.0 | |||||||
Accumulated depreciation
|
(1,390.8 | ) | (1,187.9 | ) | ||||
Total plant and equipment, net
|
$ | 1,765.1 | $ | 1,500.1 |
(dollars in millions)
|
DPS
|
V&M
|
PCS
|
Total
|
||||||||||||
Balance at December 31, 2011
|
$ | 438.5 | $ | 318.0 | $ | 858.8 | $ | 1,615.3 | ||||||||
Current year acquisitions
|
249.6 | – | – | 249.6 | ||||||||||||
Adjustments to the purchase price allocation for prior year acquisitions
|
67.3 | – | (1.0 | ) | 66.3 | |||||||||||
Impairment
|
(13.9 | ) | (0.7 | ) | – | (14.6 | ) | |||||||||
Translation
|
2.9 | 1.5 | 2.9 | 7.3 | ||||||||||||
Balance at December 31, 2012
|
$ | 744.4 | $ | 318.8 | $ | 860.7 | $ | 1,923.9 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Deferred income taxes
|
$ | 127.6 | $ | 56.3 | ||||
Other intangibles:
|
||||||||
Gross:
|
||||||||
Customer relationships
|
136.3 | 144.0 | ||||||
Patents and technology
|
198.0 | 123.0 | ||||||
Trademarks
|
71.6 | 64.2 | ||||||
Noncompete agreements, engineering drawings and other
|
87.0 | 103.6 | ||||||
Accumulated amortization
|
(157.1 | ) | (125.6 | ) | ||||
Other
|
95.2 | 52.2 | ||||||
Total other assets
|
$ | 558.6 | $ | 417.7 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Indemnity settlement with BP Exploration and Production Inc. (see Note 19)
|
$ | – | $ | 250.0 | ||||
Trade accounts payable and accruals
|
925.1 | 718.8 | ||||||
Advances from customers
|
1,320.1 | 1,012.5 | ||||||
Other accruals
|
800.5 | 688.4 | ||||||
Total accounts payable and accrued liabilities
|
$ | 3,045.7 | $ | 2,669.7 |
Balance
December 31, 2011
|
Warranty
Provisions
|
Acquisitions
|
Charges
Against
Accrual
|
Translation
and Other
|
Balance
December 31, 2012
|
|||||||||||||||||
$ | 65.0 | $ | 43.4 | $ | 7.5 | $ | (49.8 | ) | $ | 1.5 | $ | 67.6 |
Pension Benefits
|
Postretirement
Benefits
|
|||||||||||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||||
Service cost
|
$ | 2.9 | $ | 3.1 | $ | 2.9 | $ | − | $ | − | $ | − | ||||||||||||
Interest cost
|
14.9 | 15.9 | 15.1 | 0.5 | 0.6 | 0.9 | ||||||||||||||||||
Expected return on plan assets
|
(17.9 | ) | (18.2 | ) | (15.8 | ) | − | − | − | |||||||||||||||
Amortization of prior service credits
|
(0.2 | ) | – | – | (1.3 | ) | (1.3 | ) | (0.9 | ) | ||||||||||||||
Amortization of losses (gains)
|
5.9 | 5.8 | 6.7 | (0.9 | ) | (0.9 | ) | (1.2 | ) | |||||||||||||||
Settlement loss
|
4.5 | – | – | – | – | – | ||||||||||||||||||
Other
|
1.5 | 0.3 | – | − | − | − | ||||||||||||||||||
Total net benefit plan expense (income)
|
$ | 11.6 | $ | 6.9 | $ | 8.9 | $ | (1.7 | ) | $ | (1.6 | ) | $ | (1.2 | ) |
December 31, 2012
|
December 31, 2011
|
Year Ending
December 31, 2013
|
||||||||||||||||||
(dollars in millions)
|
Before Tax
|
After Tax
|
Before Tax
|
After Tax
|
Expected
Amortization
|
|||||||||||||||
Pension benefits:
|
||||||||||||||||||||
Prior service credits
|
$ | 0.5 | $ | 0.4 | $ | 0.7 | $ | 0.5 | $ | (1.8 | ) | |||||||||
Actuarial losses, net
|
(125.6 | ) | (95.2 | ) | (88.3 | ) | (65.8 | ) | 8.3 | |||||||||||
Postretirement benefits:
|
||||||||||||||||||||
Prior service credits
|
4.3 | 2.7 | 5.7 | 3.6 | (1.1 | ) | ||||||||||||||
Actuarial gains
|
8.7 | 5.5 | 8.8 | 5.5 | (1.0 | ) | ||||||||||||||
$ | (112.1 | ) | $ | (86.6 | ) | $ | (73.1 | ) | $ | (56.2 | ) | $ | 4.4 |
Pension Benefits
|
Postretirement
Benefits
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Benefit obligation at beginning of year
|
$ | 297.1 | $ | 282.4 | $ | 14.1 | $ | 15.6 | ||||||||
Service cost
|
2.9 | 3.1 | − | − | ||||||||||||
Interest cost
|
14.9 | 15.9 | 0.5 | 0.6 | ||||||||||||
Plan participants’ contributions
|
0.8 | 1.0 | − | − | ||||||||||||
Actuarial losses (gains)
|
43.9 | 7.1 | (0.9 | ) | (0.7 | ) | ||||||||||
Exchange rate changes
|
13.9 | (0.2 | ) | − | − | |||||||||||
Benefits and expenses paid from plan assets
|
(9.2 | ) | (12.2 | ) | (1.2 | ) | (1.4 | ) | ||||||||
Plan amendments
|
– | (0.7 | ) | 0.1 | − | |||||||||||
Settlements
|
(14.7 | ) | – | – | – | |||||||||||
Other
|
37.4 | 0.7 | − | − | ||||||||||||
Benefit obligation at end of year
|
$ | 387.0 | $ | 297.1 | $ | 12.6 | $ | 14.1 |
Pension Benefits
|
Postretirement
Benefits
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Fair value of plan assets at beginning of year
|
$ | 275.9 | $ | 261.3 | $ | − | $ | − | ||||||||
Actual return on plan assets
|
23.3 | 15.0 | − | − | ||||||||||||
Company contributions
|
12.3 | 10.4 | 1.2 | 1.4 | ||||||||||||
Plan participants’ contributions
|
0.8 | 1.0 | − | − | ||||||||||||
Exchange rate changes
|
12.7 | 0.1 | − | − | ||||||||||||
Benefits and expenses paid from plan assets
|
(9.2 | ) | (12.2 | ) | (1.2 | ) | (1.4 | ) | ||||||||
Settlements
|
(14.7 | ) | – | – | – | |||||||||||
Other
|
16.6 | – | – | – | ||||||||||||
Fair value of plan assets at end of year
|
$ | 317.7 | $ | 275.9 | $ | − | $ | − |
Pension Benefits
|
Postretirement
Benefits
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
|
|
||||||||||||||
Current
|
$ | (0.9 | ) | $ | (0.2 | ) | $ | (1.6 | ) | $ | (1.9 | ) | ||||
Non-current
|
(68.4 | ) | (21.0 | ) | (11.0 | ) | (12.2 | ) | ||||||||
Underfunded status at end of year
|
$ | (69.3 | ) | $ | (21.2 | ) | $ | (12.6 | ) | $ | (14.1 | ) |
2012
|
2011
|
2010
|
||||||||||
U.K. plan:
|
||||||||||||
Equity securities
|
54 | % | 53 | % | 54 | % | ||||||
Fixed income debt securities, cash and other
|
46 | % | 47 | % | 46 | % |
Fair Value Based on
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
Fair Value Based on
Significant Other
Observable Inputs
(Level 2)
|
Fair Value Based
on Significant
Unobservable Inputs
(Level 3)
|
Total
|
|||||||||||||||||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 1.6 | $ | 1.9 | $ | – | $ | – | $ | – | $ | – | $ | 1.6 | $ | 1.9 | ||||||||||||||||
Equity securities:
|
||||||||||||||||||||||||||||||||
U.S. equities
|
– | – | 65.5 | 58.3 | – | – | 65.5 | 58.3 | ||||||||||||||||||||||||
Non-U.S. equities
|
– | – | 98.1 | 82.3 | – | – | 98.1 | 82.3 | ||||||||||||||||||||||||
Bonds:
|
||||||||||||||||||||||||||||||||
Non-U.S. government bonds
|
– | – | 30.1 | 89.9 | – | – | 30.1 | 89.9 | ||||||||||||||||||||||||
Non-U.S. corporate bonds
|
– | – | 94.1 | 23.8 | – | – | 94.1 | 23.8 | ||||||||||||||||||||||||
Alternative investments:
|
||||||||||||||||||||||||||||||||
Insurance contracts
|
– | – | – | – | 15.6 | 8.0 | 15.6 | 8.0 | ||||||||||||||||||||||||
Real estate and other
|
– | – | – | – | 12.7 | 11.7 | 12.7 | 11.7 | ||||||||||||||||||||||||
Total assets
|
$ | 1.6 | $ | 1.9 | $ | 287.8 | $ | 254.3 | $ | 28.3 | $ | 19.7 | $ | 317.7 | $ | 275.9 |
Year Ended December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Balance at beginning of the year
|
$ | 19.7 | $ | 18.3 | ||||
Purchases/sales, net
|
7.7 | 0.7 | ||||||
Actual return on plan assets
|
0.2 | 0.9 | ||||||
Currency impact
|
0.7 | (0.2 | ) | |||||
Balance at end of the year
|
$ | 28.3 | $ | 19.7 |
Pension Benefits
|
Postretirement
Benefits
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Assumptions related to net benefit costs:
|
||||||||||||||||
U.S. plans:
|
||||||||||||||||
Discount rate
|
3.5 | % | 4.1 | % | 3.5 | % | 4.1 | % | ||||||||
Health care cost trend rate
|
– | – | 8.0 | % | 9.0 | % | ||||||||||
Measurement date
|
1/1/2012
|
1/1/2011
|
1/1/2012
|
1/1/2011
|
||||||||||||
Foreign plans:
|
||||||||||||||||
Discount rate
|
5.0-5.75 | % | 5.5 | % | – | – | ||||||||||
Expected return on plan assets
|
4.75-6.5 | % | 4.75-6.75 | % | – | – | ||||||||||
Rate of compensation increase
|
3.0-4.25 | % | 3.0-4.5 | % | – | – | ||||||||||
Measurement date
|
1/1/2012
|
1/1/2011
|
– | – | ||||||||||||
Assumptions related to end-of-period benefit obligations:
|
||||||||||||||||
U.S. plans:
|
||||||||||||||||
Discount rate
|
2.75 | % | 3.5 | % | 2.75 | % | 3.5 | % | ||||||||
Health care cost trend rate
|
– | – | 8.0 | % | 9.0 | % | ||||||||||
Measurement date
|
12/31/2012
|
12/31/2011
|
12/31/2012
|
12/31/2011
|
||||||||||||
Foreign plans:
|
||||||||||||||||
Discount rate
|
2.25-6.75 | % | 5.0-5.75 | % | – | – | ||||||||||
Rate of compensation increase
|
3.0-4.5 | % | 3.0-4.25 | % | – | – | ||||||||||
Measurement date
|
12/31/2012
|
12/31/2011
|
– | – |
Projected Benefit
Obligation in Excess
of Plan Assets
|
Accumulated Benefit
Obligation in Excess
of Plan Assets
|
|||||||||||||||
at December 31,
|
at December 31,
|
|||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Fair value of applicable plan assets
|
$ | 312.3 | $ | 275.9 | $ | 18.4 | $ | 11.2 | ||||||||
Projected benefit obligation of applicable plans
|
$ | 381.5 | $ | 297.1 | – | – | ||||||||||
Accumulated benefit obligation of applicable plans
|
– | – | $ | 53.5 | $ | 20.7 |
(dollars in millions)
|
Pension Benefits
|
Postretirement
Benefits
|
||||||
Year ending December 31:
|
|
|
||||||
2013
|
$ | 11.6 | $ | 1.7 | ||||
2014
|
$ | 11.8 | $ | 1.5 | ||||
2015
|
$ | 12.1 | $ | 1.4 | ||||
2016
|
$ | 12.6 | $ | 1.3 | ||||
2017
|
$ | 13.0 | $ | 1.1 | ||||
2018 - 2022
|
$ | 72.9 | $ | 4.1 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Outstanding restricted and deferred stock units and awards
|
$ | 32.6 | $ | 25.6 | $ | 26.0 | ||||||
Unvested outstanding stock options
|
12.1 | 11.1 | 8.5 | |||||||||
Total stock-based compensation expense
|
$ | 44.7 | $ | 36.7 | $ | 34.5 |
Options |
Shares
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
(in years)
|
Aggregate
Intrinsic
Value
(dollars in
millions)
|
||||||||||||
Outstanding at January 1, 2012
|
5,757,456 | $ | 38.36 | 4.55 | $ | 63.8 | ||||||||||
Granted
|
668,361 | 56.04 | ||||||||||||||
Exercised
|
(1,439,428 | ) | 31.47 | |||||||||||||
Forfeited
|
(216,746 | ) | 37.85 | |||||||||||||
Expired
|
– | – | ||||||||||||||
Outstanding at December 31, 2012
|
4,769,643 | $ | 42.94 | 5.02 | $ | 64.5 | ||||||||||
Vested at December 31, 2012 or expected to vest in the future
|
4,754,339 | $ | 42.91 | 5.01 | $ | 64.4 | ||||||||||
Exercisable at December 31, 2012
|
3,175,276 | $ | 38.98 | 3.61 | $ | 55.5 |
At
|
||||
December 31, 2012
|
||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions)
|
$ | 15.9 | ||
Weighted-average remaining expense recognition period (in years)
|
1.49 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Expected life (in years)
|
3.2 | 2.8 | 2.5 | |||||||||
Risk-free interest rate
|
0.37 | % | 0.38 | % | 0.46 | % | ||||||
Volatility
|
39.4 | % | 42.6 | % | 43.8 | % | ||||||
Expected dividend yield
|
0.0 | % | 0.0 | % | 0.0 | % |
Year Ended December 31,
|
||||||||||||
|
2012
|
2011
|
2010
|
|||||||||
Grant-date fair value per option
|
$ | 15.68 | $ | 14.47 | $ | 11.78 | ||||||
Intrinsic value of options exercised (dollars in millions)
|
$ | 33.7 | $ | 31.5 | $ | 63.4 | ||||||
Average intrinsic value per share of options exercised
|
$ | 23.39 | $ | 26.79 | $ | 22.46 |
Restricted and Deferred Stock Units
|
Number
|
Weighted-Average
Grant Date
Fair Value
|
||||||
Nonvested at January 1, 2012
|
1,909,355 | $ | 30.25 | |||||
Granted
|
674,578 | 50.44 | ||||||
Vested
|
(808,342 | ) | 49.60 | |||||
Forfeited
|
(62,084 | ) | 47.47 | |||||
Nonvested at December 31, 2012
|
1,713,507 | $ | 28.11 |
At
December 31, 2012
|
||||
Stock-based compensation cost not yet recognized under the straight-line method (dollars in millions)
|
$ | 31.8 | ||
Weighted-average remaining expense recognition period (in years)
|
1.53 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Number of units granted with performance conditions
|
211,244 | 139,191 | 211,804 | |||||||||
Intrinsic value of units vesting (dollars in millions)
|
$ | 38.2 | $ | 36.9 | $ | 29.2 | ||||||
Total number of units granted
|
674,578 | 682,246 | 806,041 | |||||||||
Weighted average grant date fair value per unit
|
$ | 50.44 | $ | 50.67 | $ | 41.81 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Senior notes:
|
||||||||
Floating rate notes due June 2, 2014
|
$ | 250.0 | $ | 250.0 | ||||
1.6% notes due April 30, 2015
|
250.0 | – | ||||||
6.375% notes due July 15, 2018
|
450.0 | 450.0 | ||||||
4.5% notes due June 1, 2021
|
250.0 | 250.0 | ||||||
3.6% notes due April 30, 2022
|
250.0 | – | ||||||
7.0% notes due July 15, 2038
|
300.0 | 300.0 | ||||||
5.95% notes due June 1, 2041
|
250.0 | 250.0 | ||||||
Unamortized original issue discount
|
(4.1 | ) | (3.8 | ) | ||||
Other debt
|
19.6 | 70.0 | ||||||
Obligations under capital leases
|
60.7 | 18.6 | ||||||
2,076.2 | 1,584.8 | |||||||
Current maturities
|
(29.2 | ) | (10.6 | ) | ||||
Long-term maturities
|
$ | 2,047.0 | $ | 1,574.2 |
|
•
|
$250.0 million principal amount of 1.6% Senior Notes due April 30, 2015; and
|
|
•
|
$250.0 million principal amount of 3.6% Senior Notes due April 30, 2022.
|
Year Ended December 31
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Interest expensed
|
$ | 104.4 | $ | 92.4 | $ | 82.2 | ||||||
Interest paid
|
$ | 96.7 | $ | 102.8 | $ | 73.0 |
Capital
|
Operating
|
|||||||
(dollars in millions)
|
Lease Payments
|
Lease Payments
|
||||||
Year ending December 31:
|
||||||||
2013
|
$ | 12.3 | $ | 65.0 | ||||
2014
|
12.1 | 62.7 | ||||||
2015
|
10.0 | 50.2 | ||||||
2016
|
6.7 | 53.1 | ||||||
2017
|
4.2 | 38.0 | ||||||
Thereafter
|
75.8 | 117.8 | ||||||
Future minimum lease payments
|
121.1 | 386.8 | ||||||
Less: amount representing interest
|
(60.4 | ) | – | |||||
Lease obligations at December 31, 2012
|
$ | 60.7 | $ | 386.8 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
U.S. operations
|
$ | 745.9 | $ | 590.3 | $ | 365.9 | ||||||
Foreign operations
|
192.1 | 60.8 | 367.4 | |||||||||
Income before income taxes
|
$ | 938.0 | $ | 651.1 | $ | 733.3 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Current:
|
|
|
|
|||||||||
U.S. federal
|
$ | 123.4 | $ | 46.6 | $ | 102.5 | ||||||
U.S. state and local
|
9.4 | 5.3 | 8.7 | |||||||||
Foreign
|
140.1 | 96.4 | 83.1 | |||||||||
272.9 | 148.3 | 194.3 | ||||||||||
Deferred:
|
||||||||||||
U.S. federal
|
(35.8 | ) | 5.9 | (25.8 | ) | |||||||
U.S. state and local
|
(2.3 | ) | 2.1 | 0.9 | ||||||||
Foreign
|
(47.3 | ) | (27.1 | ) | 1.0 | |||||||
(85.4 | ) | (19.1 | ) | (23.9 | ) | |||||||
Income tax provision
|
$ | 187.5 | $ | 129.2 | $ | 170.4 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
U.S. federal statutory rate
|
35.00 | % | 35.00 | % | 35.00 | % | ||||||
State and local income taxes
|
0.57 | 1.03 | 1.02 | |||||||||
Foreign statutory rate differential
|
(9.22 | ) | (7.30 | ) | (9.62 | ) | ||||||
Change in valuation allowance on deferred tax assets
|
5.92 | (8.89 | ) | 6.76 | ||||||||
Nondeductible expenses
|
0.74 | 2.47 | 1.64 | |||||||||
Net U.S. tax on foreign source income
|
(10.92 | ) | (1.67 | ) | (9.52 | ) | ||||||
All other
|
(2.09 | ) | (0.80 | ) | (2.05 | ) | ||||||
Total
|
20.00 | % | 19.84 | % | 23.23 | % | ||||||
Total income taxes paid (dollars in millions)
|
$ | 239.5 | $ | 121.2 | $ | 198.2 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Deferred tax liabilities:
|
|
|
||||||
Plant and equipment
|
$ | (150.3 | ) | $ | (137.6 | ) | ||
Inventory
|
– | (4.5 | ) | |||||
Intangible assets
|
(106.7 | ) | (90.7 | ) | ||||
Other
|
(17.1 | ) | (9.3 | ) | ||||
Total deferred tax liabilities
|
(274.1 | ) | (242.1 | ) | ||||
Deferred tax assets:
|
||||||||
Inventory
|
5.6 | – | ||||||
Postretirement benefits other than pensions
|
11.7 | 9.5 | ||||||
Reserves and accruals
|
137.5 | 120.4 | ||||||
Net operating losses and tax credits
|
276.6 | 102.0 | ||||||
Pensions
|
25.8 | 16.6 | ||||||
Other
|
12.7 | 22.0 | ||||||
Total deferred tax assets
|
469.9 | 270.5 | ||||||
Valuation allowance
|
(84.2 | ) | (29.7 | ) | ||||
Net deferred tax assets (liabilities)
|
$ | 111.6 | $ | (1.3 | ) |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Balance at beginning of year
|
$ | 148.4 | $ | 68.4 | $ | 60.4 | ||||||
Increases in estimates for tax positions taken prior to the current year
|
– | 6.6 | 1.0 | |||||||||
Decreases in estimates for tax positions taken prior to the current year
|
(11.3 | ) | (2.4 | ) | (0.3 | ) | ||||||
Increases due to tax positions taken during the current year
|
– | 76.1 | 5.5 | |||||||||
Decreases relating to settlements with tax authorities
|
(10.1 | ) | (2.3 | ) | (0.3 | ) | ||||||
Decreases resulting from the lapse of applicable statutes of limitation
|
(6.5 | ) | (0.1 | ) | (0.2 | ) | ||||||
Net increases due to translation and interest
|
0.5 | 2.1 | 2.3 | |||||||||
Balance at end of year
|
$ | 121.0 | $ | 148.4 | $ | 68.4 |
United States
|
United Kingdom
|
Canada
|
France
|
Germany
|
Norway
|
Singapore
|
Italy
|
2000
|
2007
|
2006
|
2010
|
2008
|
2010
|
2004
|
2007
|
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Balance at beginning of year
|
$ | 29.7 | $ | 96.2 | $ | 46.1 | ||||||
Valuation allowances for unutilized net operating losses and excess foreign tax credits generated in the current year
|
35.9 | – | 49.6 | |||||||||
Valuation allowances on foreign tax credits associated with a prior year
|
19.5 | – | – | |||||||||
Reduction in valuation allowances due to utilization of prior years’ net operating losses and excess foreign tax credits
|
– | (57.9 | ) | – | ||||||||
Write-off of valuation allowances and associated deferred tax assets for certain losses that have no possibility of being utilized
|
– | (6.0 | ) | – | ||||||||
Effect of translation
|
(0.9 | ) | (2.6 | ) | 0.5 | |||||||
Balance at end of year
|
$ | 84.2 | $ | 29.7 | $ | 96.2 |
(dollars in millions)
|
Domestic
|
Foreign
|
Expiration
|
|||||||||
Net operating losses - regular income tax
|
$ | – | $ | 97.0 |
2014 - Indefinite
|
|||||||
Net operating losses – state income tax
|
$ | 2.2 | $ | – | 2017 | |||||||
Foreign tax credits
|
$ | 125.6 | $ | – | 2016 - 2022 |
Common
Stock
|
Treasury
Stock
|
Shares
Outstanding
|
||||||||||
Balance - December 31, 2009
|
263,111,472 | (18,453,758 | ) | 244,657,714 | ||||||||
Purchase of treasury stock
|
– | (3,176,705 | ) | (3,176,705 | ) | |||||||
Stock issued under stock compensation plans
|
– | 2,432,821 | 2,432,821 | |||||||||
Balance - December 31, 2010
|
263,111,472 | (19,197,642 | ) | 243,913,830 | ||||||||
Purchase of treasury stock
|
– | (49,000 | ) | (49,000 | ) | |||||||
Stock issued under stock compensation plans
|
– | 1,667,245 | 1,667,245 | |||||||||
Balance - December 31, 2011
|
263,111,472 | (17,579,397 | ) | 245,532,075 | ||||||||
Purchase of treasury stock
|
– | (412,800 | ) | (412,800 | ) | |||||||
Stock issued under stock compensation plans
|
– | 1,576,861 | 1,576,861 | |||||||||
Balance - December 31, 2012
|
263,111,472 | (16,415,336 | ) | 246,696,136 |
December 31,
|
||||||||
(dollars in millions)
|
2012
|
2011
|
||||||
Accumulated foreign currency translation gain (loss)
|
$ | 45.9 | $ | (28.7 | ) | |||
Prior service credits, net, related to the Company’s pension and postretirement benefit plans
|
3.1 | 4.1 | ||||||
Actuarial losses, net, related to the Company’s pension and postretirement benefit plans
|
(89.7 | ) | (60.3 | ) | ||||
Change in fair value of derivatives accounted for as cash flow hedges and other, net
|
10.7 | (5.9 | ) | |||||
Total accumulated other elements of comprehensive income (loss)
|
$ | (30.0 | ) | $ | (90.8 | ) |
Year Ended December 31, 2012
|
||||||||||||||||||||
(dollars in millions)
|
DPS
|
V&M
|
PCS
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Revenues
|
$ | 4,871.3 | $ | 2,142.2 | $ | 1,488.6 | $ | − | $ | 8,502.1 | ||||||||||
Depreciation and amortization
|
$ | 149.9 | $ | 41.4 | $ | 36.9 | $ | 26.5 | $ | 254.7 | ||||||||||
Interest, net
|
$ | – | $ | − | $ | – | $ | 90.4 | $ | 90.4 | ||||||||||
Income (loss) before income taxes
|
$ | 712.3 | $ | 425.8 | $ | 147.1 | $ | (347.2 | ) | $ | 938.0 | |||||||||
Capital expenditures
|
$ | 300.0 | $ | 29.9 | $ | 28.5 | $ | 68.8 | $ | 427.2 | ||||||||||
Total assets
|
$ | 6,005.1 | $ | 1,773.0 | $ | 2,576.9 | $ | 803.2 | $ | 11,158.2 |
Year Ended December 31, 2011
|
||||||||||||||||||||
(dollars in millions)
|
DPS
|
V&M
|
PCS
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Revenues
|
$ | 4,061.5 | $ | 1,663.0 | $ | 1,234.5 | $ | – | $ | 6,959.0 | ||||||||||
Depreciation and amortization
|
$ | 111.4 | $ | 40.3 | $ | 37.9 | $ | 17.0 | $ | 206.6 | ||||||||||
Interest, net
|
$ | – | $ | – | $ | – | $ | 84.0 | $ | 84.0 | ||||||||||
Income (loss) before income taxes
|
$ | 685.6 | $ | 294.1 | $ | 116.0 | $ | (444.6 | ) | $ | 651.1 | |||||||||
Capital expenditures
|
$ | 255.6 | $ | 34.8 | $ | 21.6 | $ | 76.1 | $ | 388.1 | ||||||||||
Total assets
|
$ | 4,784.5 | $ | 1,524.6 | $ | 2,101.9 | $ | 950.7 | $ | 9,361.7 |
Year Ended December 31, 2010
|
||||||||||||||||||||
(dollars in millions)
|
DPS
|
V&M
|
PCS
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Revenues
|
$ | 3,718.3 | $ | 1,273.3 | $ | 1,143.2 | $ | – | $ | 6,134.8 | ||||||||||
Depreciation and amortization
|
$ | 93.0 | $ | 42.4 | $ | 54.9 | $ | 11.3 | $ | 201.6 | ||||||||||
Interest, net
|
$ | – | $ | – | $ | – | $ | 78.0 | $ | 78.0 | ||||||||||
Income (loss) before income taxes
|
$ | 666.7 | $ | 188.0 | $ | 131.9 | $ | (253.3 | ) | $ | 733.3 | |||||||||
Capital expenditures
|
$ | 104.6 | $ | 35.3 | $ | 19.7 | $ | 41.1 | $ | 200.7 | ||||||||||
Total assets
|
$ | 3,570.1 | $ | 1,299.7 | $ | 1,750.8 | $ | 1,384.5 | $ | 8,005.1 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Revenues:
|
|
|
|
|||||||||
United States
|
$ | 4,670.5 | $ | 3,868.2 | $ | 3,281.5 | ||||||
United Kingdom
|
616.0 | 741.2 | 1,041.0 | |||||||||
Other foreign countries
|
3,215.6 | 2,349.6 | 1,812.3 | |||||||||
Total revenues
|
$ | 8,502.1 | $ | 6,959.0 | $ | 6,134.8 |
December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Long-lived assets:
|
|
|
|
|||||||||
United States
|
$ | 2,531.7 | $ | 2,411.8 | $ | 1,896.6 | ||||||
United Kingdom
|
170.2 | 167.4 | 197.7 | |||||||||
Other foreign countries
|
1,322.9 | 845.4 | 885.3 | |||||||||
Total long-lived assets
|
$ | 4,024.8 | $ | 3,424.6 | $ | 2,979.6 |
Year Ended December 31,
|
||||||||||||
(amounts in millions, except per share data)
|
2012
|
2011
|
2010
|
|||||||||
Net income
|
$ | 750.5 | $ | 521.9 | $ | 562.9 | ||||||
Average shares outstanding (basic)
|
246.4 | 245.0 | 243.1 | |||||||||
Common stock equivalents
|
1.7 | 2.1 | 2.4 | |||||||||
Incremental shares from assumed conversion of convertible debentures
|
– | 2.1 | 2.0 | |||||||||
Shares utilized in diluted earnings per share calculation
|
248.1 | 249.2 | 247.5 | |||||||||
Earnings per share:
|
||||||||||||
Basic
|
$ | 3.05 | $ | 2.13 | $ | 2.32 | ||||||
Diluted
|
$ | 3.02 | $ | 2.09 | $ | 2.27 |
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Impact on net assets of indemnity settlement with BP Exploration and Production, Inc.
|
$ | – | $ | (82.5 | ) | $ | – | |||||
NATCO purchase price allocation adjustment
|
$ | – | $ | – | $ | (16.9 | ) | |||||
Tax benefit of stock compensation plan transactions
|
$ | 11.5 | $ | 4.9 | $ | 17.4 | ||||||
Change in fair value of derivatives accounted for as cash flow hedges, net of tax
|
$ | 10.1 | $ | (5.2 | ) | $ | (6.1 | ) | ||||
Actuarial gain (loss) and impact of plan amendments, net, related to defined benefit pension and postretirement benefit plans
|
$ | (33.3 | ) | $ | (7.7 | ) | $ | 4.5 |
Fair Value Based on
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
|
Fair Value Based on
Significant Other
Observable Inputs
(Level 2)
|
Fair Value Based
on Significant
Unobservable
Inputs (Level 3)
|
Total
|
|||||||||||||||||||||||||||||
(dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||||||||||||||||||
Cash
|
$ | 447.1 | $ | 491.7 | $ | – | $ | – | $ | – | $ | – | $ | 447.1 | $ | 491.7 | ||||||||||||||||
Certificates of deposit
|
0.2 | – | – | – | – | – | 0.2 | – | ||||||||||||||||||||||||
Money market funds
|
429.1 | 133.4 | – | – | – | – | 429.1 | 133.4 | ||||||||||||||||||||||||
Commercial paper
|
– | – | 202.7 | 140.4 | – | – | 202.7 | 140.4 | ||||||||||||||||||||||||
U.S. treasury securities
|
17.6 | – | – | – | – | – | 17.6 | – | ||||||||||||||||||||||||
U.S. non-governmental agency asset-backed securities
|
– | – | 41.4 | 27.8 | – | – | 41.4 | 27.8 | ||||||||||||||||||||||||
U.S. corporate obligations
|
18.9 | 29.1 | – | – | – | – | 18.9 | 29.1 | ||||||||||||||||||||||||
Non-U.S. bank and other obligations
|
28.8 | 76.5 | – | – | – | – | 28.8 | 76.5 | ||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||||||||||
Commercial paper
|
– | – | 253.9 | 213.5 | – | – | 253.9 | 213.5 | ||||||||||||||||||||||||
Certificates of deposit
|
3.0 | – | – | – | – | – | 3.0 | – | ||||||||||||||||||||||||
U.S. Treasury securities
|
64.5 | 10.1 | – | – | – | – | 64.5 | 10.1 | ||||||||||||||||||||||||
U.S. non-governmental agency asset-backed securities
|
– | – | 99.5 | 77.3 | – | – | 99.5 | 77.3 | ||||||||||||||||||||||||
U.S. corporate obligations
|
96.1 | 122.6 | – | – | – | – | 96.1 | 122.6 | ||||||||||||||||||||||||
Non-qualified plan assets:
|
||||||||||||||||||||||||||||||||
Money market funds
|
1.1 | – | – | – | – | – | 1.1 | – | ||||||||||||||||||||||||
Domestic bond funds
|
2.4 | – | – | – | – | – | 2.4 | – | ||||||||||||||||||||||||
International bond fund
|
0.1 | – | – | – | – | – | 0.1 | – | ||||||||||||||||||||||||
Domestic equity funds
|
3.6 | – | – | – | – | – | 3.6 | – | ||||||||||||||||||||||||
International equity funds
|
2.1 | – | – | – | – | – | 2.1 | – | ||||||||||||||||||||||||
Blended equity funds
|
2.6 | – | – | – | – | – | 2.6 | – | ||||||||||||||||||||||||
Common stock
|
2.1 | – | – | – | – | – | 2.1 | – | ||||||||||||||||||||||||
Derivatives, net asset (liability):
|
||||||||||||||||||||||||||||||||
Foreign currency contracts
|
– | – | 19.9 | (13.8 | ) | – | – | 19.9 | (13.8 | ) | ||||||||||||||||||||||
Interest rate contracts
|
– | – | – | 1.4 | – | – | – | 1.4 | ||||||||||||||||||||||||
$ | 1,119.3 | $ | 863.4 | $ | 617.4 | $ | 446.6 | $ | – | $ | – | $ | 1,736.7 | $ | 1,310.0 |
Notional Amount - Buy
|
Notional Amount - Sell
|
|||||||||||||||||||||||||||
(in millions)
|
2013
|
2014
|
Total
|
2013
|
2014
|
2015
|
Total
|
|||||||||||||||||||||
Foreign currency forward contracts–
|
||||||||||||||||||||||||||||
Notional currency in:
|
||||||||||||||||||||||||||||
Euro
|
240.5 | 62.1 | 302.6 | (7.8 | ) | – | – | (7.8 | ) | |||||||||||||||||||
Pound Sterling
|
58.6 | – | 58.6 | (7.8 | ) | (0.2 | ) | – | (8.0 | ) | ||||||||||||||||||
Norwegian krone
|
1,016.6 | 156.2 | 1,172.8 | (394.5 | ) | (0.4 | ) | – | (394.9 | ) | ||||||||||||||||||
Singapore dollar
|
11.0 | – | 11.0 | – | – | – | – | |||||||||||||||||||||
U.S. dollar
|
43.4 | 0.3 | 43.7 | (212.5 | ) | (5.3 | ) | (0.5 | ) | (218.3 | ) |
The fair values of derivative financial instruments recorded in the Company’s Consolidated Balance Sheets were as follows:
|
December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
(dollars in millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||||||||||
Derivatives designated as hedges:
|
||||||||||||||||
Foreign exchange contracts –
|
||||||||||||||||
Current
|
$ | 20.4 | $ | 5.7 | $ | 1.9 | $ | 7.0 | ||||||||
Non-current
|
2.3 | 0.4 | – | 0.6 | ||||||||||||
Total derivatives designated as hedges
|
22.7 | 6.1 | 1.9 | 7.6 | ||||||||||||
Derivatives not designated as hedges:
|
||||||||||||||||
Foreign exchange contracts –
|
||||||||||||||||
Current
|
3.3 | – | 2.5 | 10.6 | ||||||||||||
Non-current
|
– | – | – | – | ||||||||||||
Interest rate swaps –
|
||||||||||||||||
Current
|
– | – | 1.4 | – | ||||||||||||
Non-current
|
– | – | – | – | ||||||||||||
Total derivatives not designated as hedges
|
3.3 | – | 3.9 | 10.6 | ||||||||||||
Total derivatives
|
$ | 26.0 | $ | 6.1 | $ | 5.8 | $ | 18.2 |
Year Ended December 31,
|
||||||||||||
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Derivatives designated as hedging instruments:
|
||||||||||||
Foreign currency contracts –
|
||||||||||||
Cost of sales
|
$ | 0.4 | $ | (0.8 | ) | $ | (0.7 | ) | ||||
Derivatives not designated as hedging instruments:
|
||||||||||||
Foreign currency contracts –
|
||||||||||||
Cost of sales
|
1.9 | (0.5 | ) | 2.7 | ||||||||
Other costs
|
15.7 | (9.3 | ) | – | ||||||||
Equity call options -
|
||||||||||||
Other costs
|
– | (12.2 | ) | – | ||||||||
Interest rate swaps -
|
||||||||||||
Interest, net
|
– | (0.2 | ) | 7.2 | ||||||||
Total pre-tax gain (loss)
|
$ | 18.0 | $ | (23.0 | ) | $ | 9.2 |
2012 (quarter ended)
|
||||||||||||||||
(dollars in millions, except per share data)
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
||||||||||||
Revenues
|
$ | 1,804.3 | $ | 2,053.7 | $ | 2,218.3 | $ | 2,425.8 | ||||||||
Revenues less cost of sales (exclusive of depreciation and amortization)
|
$ | 523.9 | $ | 604.8 | $ | 650.1 | $ | 699.0 | ||||||||
Other costs (credits)
|
$ | (1.5 | ) | $ | 9.9 | $ | 3.4 | $ | 21.7 | |||||||
Net income
|
$ | 134.0 | $ | 174.6 | $ | 223.6 | $ | 218.3 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.54 | $ | 0.71 | $ | 0.91 | $ | 0.88 | ||||||||
Diluted
|
$ | 0.54 | $ | 0.70 | $ | 0.90 | $ | 0.88 |
2011 (quarter ended)
|
||||||||||||||||
(dollars in millions, except per share data)
|
March 31,
|
June 30,
|
September 30,
|
December 31,
|
||||||||||||
Revenues
|
$ | 1,501.3 | $ | 1,741.1 | $ | 1,685.9 | $ | 2,030.7 | ||||||||
Revenues less cost of sales (exclusive of depreciation and amortization)
|
$ | 443.4 | $ | 527.7 | $ | 549.3 | $ | 600.2 | ||||||||
Other costs
|
$ | 8.9 | $ | 20.1 | $ | 34.2 | $ | 114.2 | ||||||||
Net income
|
$ | 109.5 | $ | 148.0 | $ | 164.5 | $ | 99.9 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.45 | $ | 0.60 | $ | 0.67 | $ | 0.41 | ||||||||
Diluted
|
$ | 0.43 | $ | 0.59 | $ | 0.67 | $ | 0.40 |
Year Ended December 31,
|
||||||||||||||||||||
(dollars in millions, except per share data)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
Income Statement Data:
|
||||||||||||||||||||
Revenues
|
$ | 8,502.1 | $ | 6,959.0 | $ | 6,134.8 | $ | 5,223.2 | $ | 5,848.9 | ||||||||||
Costs and expenses:
|
||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
6,024.3 | 4,838.4 | 4,212.4 | 3,540.1 | 4,127.9 | |||||||||||||||
Selling and administrative expenses
|
1,161.2 | 1,001.5 | 862.3 | 715.6 | 668.3 | |||||||||||||||
Depreciation and amortization
|
254.7 | 206.6 | 201.6 | 156.6 | 132.1 | |||||||||||||||
Interest, net
|
90.4 | 84.0 | 78.0 | 86.5 | 43.0 | |||||||||||||||
Other costs
|
33.5 | 177.4 | 47.2 | 81.6 | − | |||||||||||||||
Charge for pension plan termination
|
– | – | – | − | 26.2 | |||||||||||||||
Total costs and expenses
|
7,564.1 | 6,307.9 | 5,401.5 | 4,580.4 | 4,997.5 | |||||||||||||||
Income before income taxes
|
938.0 | 651.1 | 733.3 | 642.8 | 851.4 | |||||||||||||||
Income tax provision
|
(187.5 | ) | (129.2 | ) | (170.4 | ) | (167.3 | ) | (270.7 | ) | ||||||||||
Net income
|
$ | 750.5 | $ | 521.9 | $ | 562.9 | $ | 475.5 | $ | 580.7 | ||||||||||
Basic earnings per share
|
$ | 3.05 | $ | 2.13 | $ | 2.32 | $ | 2.15 | $ | 2.67 | ||||||||||
Diluted earnings per share
|
$ | 3.02 | $ | 2.09 | $ | 2.27 | $ | 2.11 | $ | 2.54 | ||||||||||
Balance Sheet Data (at the end of period):
|
||||||||||||||||||||
Total assets
|
$ | 11,158.2 | $ | 9,361.7 | $ | 8,005.1 | $ | 7,725.4 | $ | 5,902.4 | ||||||||||
Stockholders’ equity
|
$ | 5,566.1 | $ | 4,707.4 | $ | 4,392.4 | $ | 3,919.7 | $ | 2,344.5 | ||||||||||
Long-term debt
|
$ | 2,047.0 | $ | 1,574.2 | $ | 772.9 | $ | 1,232.3 | $ | 1,218.6 | ||||||||||
Other long-term obligations
|
$ | 376.1 | $ | 399.8 | $ | 265.9 | $ | 277.1 | $ | 228.0 |
CAMERON INTERNATIONAL CORPORATION -- SUBSIDIARIES & JOINT VENTURES
|
|
(Active as of December 31, 2012)
|
|
State/Country of
|
|
Incorporation or
|
|
Cameron International Corporation (Delaware) -- Parent - 100
|
Organization
|
1238585 Alberta Ltd.
|
Canada (Alberta)
|
7286902 Canada Inc.
|
Canada (Alberta)
|
Angola Oilfield Equipment Limited (joint venture)
|
Cayman Islands
|
Axsia Holdings Limited
|
United Kingdom
|
Axsia Howmar Limited
|
United Kingdom
|
Axsia Serck Baker Nigeria Ltd.
|
Nigeria
|
Cairntoul Well Equipment Services Limited
|
United Kingdom
|
Cairnwell Management Services Limited
|
United Kingdom
|
Cameron (China) Co., Ltd.
|
China
|
Cameron (Gaomi) Systems Co., Ltd.
|
China
|
Cameron (Holding) Corp.
|
USA (Nevada)
|
Cameron (Malaysia) Sdn Bhd
|
Malaysia
|
Cameron (Shenzhen) Systems Co., Ltd.
|
China
|
Cameron (Singapore) Pte. Ltd.
|
Singapore
|
Cameron (Trinidad) Limited
|
Trinidad and Tobago
|
Cameron Al Rushaid Limited Company (joint venture)
|
Saudi Arabia
|
Cameron Algerie S.á.r.l.
|
Algeria
|
Cameron Angola - Prestaçao de Serviços, Limitada
|
Angola
|
Cameron APME Holding Pty Ltd
|
Australia
|
Cameron Argentina S.A.I.C.
|
Argentina
|
Cameron AS
|
Norway
|
Cameron Australasia Pty. Ltd.
|
Australia
|
Cameron B.V.
|
Netherlands
|
Cameron Beijing Commercial Co., Ltd.
|
China
|
Cameron Canada Corporation
|
Canada (Nova Scotia)
|
Cameron Cayman Limited
|
Cayman Islands
|
Cameron Colombia LLC
|
USA (Delaware)
|
Cameron Colombia Ltda
|
Colombia
|
Cameron de Mexico S.A. de C.V.
|
Mexico
|
Cameron do Brasil Ltda.
|
Brazil
|
Cameron Egypt LLC
|
Egypt
|
Cameron Energy Services B.V.
|
Netherlands
|
Cameron Energy Services International, Inc.
|
USA (Ohio)
|
Cameron Equipment (Shanghai) Co., Ltd.
|
China
|
Cameron Euro Automation Center B.V.
|
Netherlands
|
Cameron Foreign Holdings Corp.
|
USA (Delaware)
|
Cameron France, S.A.S.
|
France
|
Cameron Gabon, S.A.
|
Gabon
|
Cameron German Holdings GmbH
|
Germany
|
Cameron GH GmbH & Co. KG
|
Germany
|
Cameron Global Holdings LP
|
Canada (Ontario)
|
Cameron GmbH28
|
Germany
|
Cameron Holding (Dutch) B.V.
|
Netherlands
|
Cameron Holding (Norway) AS
|
Norway
|
Cameron Inc.
|
USA (Louisiana)
|
Cameron Industries Limited
|
United Kingdom
|
Cameron International Holding B.V.
|
Netherlands
|
Cameron International Holding Corp.
|
USA (Nevada)
|
Cameron International Malaysia Sdn Bhd
|
Malaysia
|
Cameron International Malaysia Systems Sdn Bhd
|
Malaysia
|
Cameron Investment Holding LLC
|
Russia
|
Cameron Ireland Holding Company
|
Ireland
|
Cameron Ireland Limited
|
Ireland
|
Cameron Italy Holding S.r.l.
|
Italy
|
Cameron Italy S.R.L.
|
Italy
|
Cameron Japan Ltd. (joint venture)
|
Japan
|
Cameron Korea Limited
|
Korea
|
Cameron Limited
|
United Kingdom
|
Cameron Lux APME SARL
|
Luxembourg
|
Cameron Lux AUD SARL
|
Luxembourg
|
Cameron Lux BRL SARL
|
Luxembourg
|
Cameron Lux CAD SARL
|
Luxembourg
|
Cameron Lux EUR SARL
|
Luxembourg
|
Cameron Lux GBP SARL
|
Luxembourg
|
Cameron Lux I SARL
|
Luxembourg
|
Cameron Lux II SARL
|
Luxembourg
|
Cameron Lux III SARL
|
Luxembourg
|
Cameron Lux IV SARL
|
Luxembourg
|
Cameron Lux MXN SARL
|
Luxembourg
|
Cameron Lux MYR SARL
|
Luxembourg
|
Cameron Lux NOK SARL
|
Luxembourg
|
Cameron Lux USD SARL
|
Luxembourg
|
Cameron Lux V SARL
|
Luxembourg
|
Cameron Manufacturing (India) Private Limited
|
India
|
Cameron Middle East FZE
|
United Arab Emirites
|
Cameron Middle East Ltd.
|
Cayman Islands
|
Cameron Netherlands B.V.
|
Netherlands
|
Cameron Norge AS
|
Norway
|
Cameron Norge Holding AS
|
Norway
|
Cameron Offshore Engineering Limited
|
United Kingdom
|
Cameron Offshore Systems Nigeria Limited
|
Nigeria
|
Cameron Pensions Trustee Limited
|
United Kingdom
|
Cameron Petroleum (UK) Limited
|
United Kingdom
|
Cameron Petroleum Equipment Group, Inc.
|
USA (Delaware)
|
Cameron Petroleum Investments Limited
|
United Kingdom
|
Cameron Poland sp. zo.o.
|
Poland
|
Cameron Products Limited
|
United Kingdom
|
Cameron Products Ltd.
|
Cayman Islands
|
Cameron Resources Inc.
|
USA (Delaware)
|
Cameron Rig Solutions Canada Ltd.
|
Canada (Alberta)
|
Cameron Rig Solutions, Inc.
|
USA (Texas)
|
Caméron România S.R.L.
|
Romania
|
Cameron Russia Ltd.
|
Cayman Islands
|
Cameron Sense AS
|
Norway
|
Cameron Sense Drillrig AS
|
Norway
|
Cameron Services International Pty Ltd
|
Australia
|
Cameron Services Middle East LLC (joint venture)
|
Oman
|
Cameron Services Russia Ltd.
|
Cayman Islands
|
Cameron Solutions Inc.
|
USA (Delaware)
|
Cameron Solutions Sdn Bhd
|
Malaysia
|
Cameron Systems (Ireland) Limited
|
Ireland
|
Cameron Systems AS
|
Norway
|
Cameron Systems de Venezuela, S.A.
|
Venezuela
|
Cameron Systems Limited
|
United Kingdom
|
Cameron Systems S.R.L.
|
Italy
|
Cameron Systems Shanghai Co., Ltd.
|
China
|
Cameron Technologies UK Limited
|
United Kingdom
|
Cameron Technologies US, Inc.
|
USA (Delaware)
|
Cameron Technologies, Inc.
|
USA (Delaware)
|
Cameron Valves - Trading and Industrial Services, Sociedad Unipessoal LDA
|
Portugal
|
Cameron Valves & Measurement West Africa Limited
|
Nigeria
|
Cameron Venezolana, S.A.
|
Venezuela
|
Cameron Village LLC
|
USA (Delaware)
|
Cameron Wellhead Services, LLC
|
USA (Nevada)
|
Cameron/Curtiss-Wright EMD LLC (joint venture)
|
USA (Delaware)
|
Canada Tiefbohrgeräte und Maschinenfabrik GmbH
|
Austria
|
Compression Services Company
|
USA (Ohio)
|
Connor Sales Company, Inc.
|
USA (North Dakota)
|
Cooper Cameron Corporation Sdn Bhd
|
Malaysia
|
Cooper Cameron Foreign Sales Company Ltd.
|
Barbados
|
Cooper Cameron Libya Limited
|
Malta
|
D.E.S. Operations Limited
|
Scotland
|
Drill Finance AS
|
Norway
|
Elco Filtration & Testing, Inc.
|
USA (California)
|
Elco Middle East LLC
|
Oman
|
Flow Control-Tati Production Sdn. Bhd.
|
Malaysia
|
Fluid Processing (L) Bhd
|
Labuan
|
Fluid Processing Sdn Bhd (joint venture)
|
Malaysia
|
Geographe Energy Singapore Pte Ltd
|
Singapore
|
I.C.I. Artificial Lift Inc.
|
Canada (Alberta)
|
I.C.I. Solutions Inc.
|
Canada (Alberta)
|
International Valves Limited
|
United Kingdom
|
Jiskoot Holdings Limited
|
United Kingdom
|
Jiskoot Limited
|
United Kingdom
|
LeTourneau Technologies Asia Pte. Ltd.
|
Singapore
|
LeTourneau Technologies Middle East FZE
|
United Arab Emirites
|
Linco-Electromatic, Inc.
|
USA (Texas)
|
Maskinering og Sveiseservice AS (joint venture)
|
Norway
|
NATCO Al Rushaid Middle East Ltd. (joint venture)
|
Saudi Arabia
|
NATCO Canada, ULC
|
Canada (Alberta)
|
NATCO Group Inc.
|
USA (Delaware)
|
NATCO Holdings LLC
|
USA (Delaware)
|
NATCO Luxembourg SARL
|
Luxembourg
|
Newco Valves, LLC (joint venture)
|
USA (Texas)
|
Newmans (Yancheng) Cast Steel Ltd. (joint venture)
|
China
|
Newmans (Yancheng) Valve Manufacturing Ltd. (joint venture)
|
China
|
Newmans International Ltd.
|
China (Hong Kong)
|
Newmans Shanghai Trading Ltd.
|
China
|
Newmans SRL (joint venture)
|
Italy
|
Newmans Valve Australia Pty
|
Australia
|
Newmans Valves Limited
|
Canada
|
NTC Technical Services Sdn. Bhd.
|
Malaysia
|
NTG Group de Mexico, S. de R.L. de C.V.
|
Mexico
|
NuFlo Finance and Royalty Company
|
USA (Delaware)
|
Oil River Services Ltd.
|
Canada (Saskatchewan)
|
On/Off Manufatura e Comércio de Vávulas Ltda.
|
Brazil
|
Petreco International (Middle East) Limited
|
United Kingdom
|
Petreco-KCC Holding, Inc.
|
USA (Delaware)
|
Pressure Peak for Oil Equipment and Appliances Services and General Trading, Limited Liability Private Company
|
Iraq
|
Process Analytical Applications, Inc.
|
USA (Texas)
|
PT Cameron Services International
|
Indonesia
|
PT Cameron Systems (joint venture)
|
Indonesia
|
Riyan Cameron (B) Sendirian Berhad
|
Brunei
|
SBS Immobilienentwicklung und -verwertungs GmbH
|
Austria
|
SBS Oilfield Equipment GmbH
|
Austria
|
Sense DrillFab AS (joint venture)
|
Norway
|
Sequel Holding, Inc.
|
USA (Delaware)
|
Servicios TTS Sense Tihuatian S.A. de C.V.
|
Mexico
|
ShanDong Cameron Petroleum Equipment, Ltd.
|
China
|
TEST Angola - Tecnologia e Serviços Petrolíferos, Lda. (joint venture)
|
Angola
|
TEST International
|
Cayman Islands
|
TEST Saudi Arabia Ltd. (joint venture)
|
Saudi Arabia
|
TPS (Technical Petroleum Services) Nigeria Limited
|
Nigeria
|
TTS Energy (China) Company Limited
|
China
|
TTS Energy Pte. Ltd.
|
Singapore
|
TTS Sense - Industria, Comercio e Servicos em Petroleo Ltda.
|
Brazil
|
TTS Sense Mexico S.A. de C.V.
|
Mexico
|
TTS Sense Mud BV
|
Netherlands
|
Vescon Equipamentos Industriais Ltda.
|
Brazil
|
Registration
Statement No.
|
Purpose
|
No. 333-26923
No. 33-95004
|
Form S-8 Registration Statements pertaining to the Amended and Restated Cooper Cameron Corporation Long-Term Incentive Plan
|
No. 333-53545
|
|
No. 333-37850
|
|
No. 333-106224
|
|
No. 33-95002
|
Form S-8 Registration Statement pertaining to the Cooper Cameron Corporation Retirement Savings Plan
|
No. 333-57991
|
Form S-8 Registration Statement pertaining to the Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation Buffalo, New York Plant
|
No. 333-79787
|
Form S-8 Registration Statement pertaining to the Cooper Cameron Corporation Second Amended and Restated 1995 Stock Option Plan for Non-Employee Directors
|
No. 333-46638
|
Form S-8 Registration Statement pertaining to the Cooper Cameron Corporation
|
No. 333-82082
|
Broad Based 2000 Incentive Plan
|
No. 333-61820
|
|
No. 333-104755
|
|
No. 333-128414
|
Form S-8 Registration Statement pertaining to the Cameron International Corporation 2005 Equity Incentive Plan
|
No. 333-136900
|
|
No. 333-151838
|
Form S-3ASR Registration Statement pertaining to the Cameron International Corporation $750 Million Ten-year and Thirty-year Unsecured Senior Notes
|
No. 333-156712
|
Form S-8 Registration Statement pertaining to the Cameron International Corporation Deferred Compensation Plan for Non-Employee Directors and the Cameron International Corporation Nonqualified Deferred Nonqualified Deferred Compensation Plan
|
No. 333-178708
|
Form S-3 ASR Registration Statement pertaining to the Cameron International Corporation Shelf Registration of securities
|
|
/s/ Jack B. Moore
|
|
Jack B. Moore
|
|
President & Chief Executive Officer
|
|
By:
|
/s/ Charles M. Sledge |
|
Charles M. Sledge
|
|
|
Senior Vice President and Chief Financial Officer
|
(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.
|
/s/ Jack B. Moore
|
||
Name:
|
Jack B. Moore
|
|
Title:
|
President and Chief Executive Officer
|
|
/s/ Charles M. Sledge
|
||
Name:
|
Charles M. Sledge
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
Leases (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum lease payments for capital leases and noncancelable operating leases | The Company leases certain facilities, office space, vehicles, data processing and other equipment under capital and operating leases. Rental expenses for the years ended December 31, 2012, 2011 and 2010 were $85.6 million, $74.7 million and $67.5 million, respectively. Future minimum lease payments with respect to capital leases and operating leases with noncancelable terms in excess of one year were as follows:
|
Accounts Payable and Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Accounts Payable and Accrued Liabilities [Abstract] | ||
Indemnity settlement with BP Exploration and Production Inc. | $ 0 | $ 250.0 |
Trade accounts payable and accruals | 925.1 | 718.8 |
Advances from customers | 1,320.1 | 1,012.5 |
Other accruals | 800.5 | 688.4 |
Total accounts payable and accrued liabilities | 3,045.7 | 2,669.7 |
Product Warranty Accrual [Roll Forward] | ||
Balance, beginning | 65.0 | |
Warranty Provisions | 43.4 | |
Acquisitions | 7.5 | |
Charges Against Accrual | (49.8) | |
Translation and Other | 1.5 | |
Balance, ending | $ 67.6 |
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments in the balance sheet | Following is a summary of the Company's financial instruments which have been valued at fair value in the Company's Consolidated Balance Sheets at December 31, 2012 and 2011:
|
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Information relating to the contracts and estimated fair values recorded in the Company's Consolidated Balance Sheets | Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at December 31, 2012 was as follows:
|
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Schedule of fair values of derivative financial instruments of balance sheets |
|
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Pre-tax gain (loss) from ineffective portion of derivatives | The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was:
|
Inventories (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
|
Debt (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Senior Notes Payable Due 2014 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2014 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2015 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2015 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2018 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2018 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2021 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2021 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2022 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2022 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2038 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2038 [Member]
|
Dec. 31, 2012
Senior Notes Payable Due 2041 [Member]
|
Dec. 31, 2011
Senior Notes Payable Due 2041 [Member]
|
Dec. 31, 2012
Senior Notes Payable [Member]
|
Dec. 31, 2011
Senior Notes Payable [Member]
|
Dec. 31, 2012
Other Debt [Member]
|
Dec. 31, 2011
Other Debt [Member]
|
Dec. 31, 2012
Obligations Under Capital Leases [Member]
|
Dec. 31, 2011
Obligations Under Capital Leases [Member]
|
Dec. 31, 2012
Public offering [Member]
|
May 17, 2012
Public offering [Member]
|
Dec. 31, 2012
Amended Line of Credit [Member]
|
Dec. 31, 2012
Line of Credit Multi Currency [Member]
|
|
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Principal outstanding, net of unamortized discount | $ 2,076.2 | $ 1,584.8 | $ 250.0 | $ 250.0 | $ 250.0 | $ 0 | $ 450.0 | $ 450.0 | $ 250.0 | $ 250.0 | $ 250.0 | $ 0 | $ 300.0 | $ 300.0 | $ 250.0 | $ 250.0 | $ 19.6 | $ 70.0 | $ 60.7 | $ 18.6 | |||||||
Unamortized original issue discount | (4.1) | (3.8) | |||||||||||||||||||||||||
Current maturities | (29.2) | (10.6) | |||||||||||||||||||||||||
Long-term maturities | 2,047.0 | 1,574.2 | |||||||||||||||||||||||||
Maturity date | Jun. 02, 2014 | Apr. 30, 2015 | Jul. 15, 2018 | Jun. 01, 2021 | Apr. 30, 2022 | Jul. 15, 2038 | Jun. 01, 2041 | Jun. 06, 2016 | |||||||||||||||||||
Interest rate (in hundredths) | 1.60% | 6.375% | 4.50% | 3.60% | 7.00% | 5.95% | |||||||||||||||||||||
Issuance date of unsecured senior notes | May 17, 2012 | ||||||||||||||||||||||||||
Issued amount (Senior Notes) | 500.0 | ||||||||||||||||||||||||||
Debt instrument, date of first required payment | Oct. 30, 2012 | Oct. 30, 2012 | |||||||||||||||||||||||||
Percentage of principal amount under a change of control repurchase event (in hundredths) | 99.957% | 99.744% | |||||||||||||||||||||||||
Interest rate description | interest based on the 3-month London Interbank Offered Rate (LIBOR) plus 0.93% | ||||||||||||||||||||||||||
Basis spread (in hundredths) | 0.93% | ||||||||||||||||||||||||||
Effective interest rate | 1.24% | 1.46% | |||||||||||||||||||||||||
Maximum borrowing capacity | 835.0 | 250.0 | |||||||||||||||||||||||||
Letters of credit outstanding | 25.4 | 199.0 | |||||||||||||||||||||||||
Remaining capacity under revolving line of credit facility | 809.6 | 51.0 | |||||||||||||||||||||||||
Weighted-average interest rate on other debt (in hundredths) | 9.20% | 9.10% | |||||||||||||||||||||||||
Future maturities, 2013 | 18.9 | ||||||||||||||||||||||||||
Future maturities, 2014 | 250.3 | ||||||||||||||||||||||||||
Future maturities, 2015 | 250.3 | ||||||||||||||||||||||||||
Future maturities, thereafter | 1,500.1 | ||||||||||||||||||||||||||
Interest expensed and paid [Abstract] | |||||||||||||||||||||||||||
Interest expensed | 104.4 | 92.4 | 82.2 | ||||||||||||||||||||||||
Interest paid | $ 96.7 | $ 102.8 | $ 73.0 |
Unaudited Quarterly Operating Results (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Unaudited Quarterly Operating Results [Abstract] | |||||||||||
Revenues | $ 2,425.8 | $ 2,218.3 | $ 2,053.7 | $ 1,804.3 | $ 2,030.7 | $ 1,685.9 | $ 1,741.1 | $ 1,501.3 | $ 8,502.1 | $ 6,959.0 | $ 6,134.8 |
Revenues less cost of sales (exclusive of depreciation and amortization) | 699.0 | 650.1 | 604.8 | 523.9 | 600.2 | 549.3 | 527.7 | 443.4 | |||
Other costs (credits) | 21.7 | 3.4 | 9.9 | (1.5) | 114.2 | 34.2 | 20.1 | 8.9 | 33.5 | 177.4 | 47.2 |
Net income | $ 218.3 | $ 223.6 | $ 174.6 | $ 134.0 | $ 99.9 | $ 164.5 | $ 148.0 | $ 109.5 | $ 750.5 | $ 521.9 | $ 562.9 |
Earnings per share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.88 | $ 0.91 | $ 0.71 | $ 0.54 | $ 0.41 | $ 0.67 | $ 0.60 | $ 0.45 | $ 3.05 | $ 2.13 | $ 2.32 |
Diluted (in dollars per share) | $ 0.88 | $ 0.90 | $ 0.70 | $ 0.54 | $ 0.40 | $ 0.67 | $ 0.59 | $ 0.43 | $ 3.02 | $ 2.09 | $ 2.27 |
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Off Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments | Note 18: Off-Balance Sheet Risk and Guarantees, Concentrations of Credit Risk and Fair Value of Financial Instruments Off-Balance Sheet Risk and Guarantees At December 31, 2012, the Company was contingently liable with respect to approximately $940.7 million of bank guarantees and standby letters of credit issued on its behalf by major domestic and international financial institutions in connection with the delivery, installation and performance of the Company's products under contract with customers throughout the world. The Company was also liable to these financial institutions for financial letters of credit and other guarantees issued on its behalf totaling nearly $27.3 million, which provide security to third parties relating to the Company's ability to meet specified financial obligations, including payment of leases, customs duties, insurance and other matters. Additionally, the Company was liable for approximately $13.9 million of insurance bonds at December 31, 2012 relating to the requirements in certain foreign jurisdictions where the Company does business that the Company hold insurance bonds rather than bank guarantees. The Company's other off-balance sheet risks were not material at December 31, 2012. Concentrations of Credit Risk and Major Customers Apart from its normal exposure to its customers, who are predominantly in the energy industry, the Company had no significant concentrations of credit risk at December 31, 2012. The Company typically does not require collateral for its customer trade receivables. Allowances for doubtful accounts are recorded for estimated losses that may result from the inability of customers to make required payments. See Note 4 of the Notes to Consolidated Financial Statements for additional information. During 2012 and 2011, no individual customer accounted for more than 10% of the Company's consolidated revenues. Largely as a result of major subsea project activity levels, revenue from a major customer of each of the Company's segments accounted for approximately 12% of the Company's consolidated 2010 revenues. Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash and cash equivalents, short-term investments, trade receivables, trade payables, derivative instruments and debt instruments. The book values of trade receivables, trade payables and floating-rate debt instruments are considered to be representative of their respective fair values. Following is a summary of the Company's financial instruments which have been valued at fair value in the Company's Consolidated Balance Sheets at December 31, 2012 and 2011:
Fair values for financial instruments utilizing level 2 inputs were determined from information obtained from third party pricing sources, broker quotes, calculations involving the use of market indices or mutual fund unit values determined based upon the valuation of the funds' underlying assets. At December 31, 2012, the fair value of the Company's fixed-rate debt (based on Level 1 quoted market rates) was approximately $2.06 billion as compared to the $1.75 billion face value of the debt recorded, net of original issue discounts, in the Company's Consolidated Balance Sheet. At December 31, 2011, the fair value of the Company's fixed-rate debt (based on Level 1 quoted market rates) was approximately $1.47 billion as compared to the $1.25 billion face value of the debt. Derivative Contracts In order to mitigate the effect of exchange rate changes, the Company will often attempt to structure sales contracts to provide for collections from customers in the currency in which the Company incurs its manufacturing costs. In certain instances, the Company will enter into foreign currency forward contracts to hedge specific large anticipated receipts or disbursements in currencies for which the Company does not traditionally have fully offsetting local currency expenditures or receipts. The Company was party to a number of long-term foreign currency forward contracts at December 31, 2012. The purpose of the majority of these contracts was to hedge large anticipated non-functional currency cash flows on major subsea, drilling, valve or other equipment contracts involving the Company's United States operations and its wholly-owned subsidiaries in Australia, France, Italy, Malaysia, Norway, Singapore and the United Kingdom. Many of these contracts have been designated as and are accounted for as cash flow hedges with changes in the fair value of those contracts recorded in accumulated other comprehensive income (loss) in the period such change occurs. Certain other contracts, many of which are centrally managed, are intended to offset other foreign currency exposures but have not been designated as hedges for accounting purposes and, therefore, any change in the fair value of those contracts are reflected in earnings in the period such change occurs. The Company determines the fair value of its outstanding foreign currency forward contracts based on quoted exchange rates for the respective currencies applicable to similar instruments. The Company manages its debt portfolio to achieve an overall desired position of fixed and floating rates and employs from time to time interest rate swaps as a tool to achieve that goal. Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at December 31, 2012 was as follows:
The amount of pre-tax gain (loss) from the ineffective portion of derivatives designated as hedging instruments and from derivatives not designated as hedging instruments was:
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Other Costs (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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Sep. 30, 2012
|
Jun. 30, 2012
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Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
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Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Other Costs [Abstract] | |||||||||||
Impairment of intangibles | $ 17.6 | $ 0 | $ 0 | ||||||||
International pension settlement costs | 6.6 | 0 | 0 | ||||||||
Indemnity settlement with BP Exploration and Production Inc. (see Note 19) | 0 | 82.5 | 0 | ||||||||
BOP litigation costs | 2.5 | 60.7 | 12.5 | ||||||||
Acquisition integration costs | 13.2 | 0 | 22.0 | ||||||||
Costs associated with retiring the 2.5% convertible debentures | 0 | 14.5 | 0 | ||||||||
Mark-to-market impact on currency derivatives not designated as accountinghedges | (15.7) | 9.3 | 0 | ||||||||
Joint venture formation cost | 2.7 | 0 | 0 | ||||||||
Severance, restructuring and other costs | 6.6 | 10.4 | 12.7 | ||||||||
Total other costs | $ 21.7 | $ 3.4 | $ 9.9 | $ (1.5) | $ 114.2 | $ 34.2 | $ 20.1 | $ 8.9 | $ 33.5 | $ 177.4 | $ 47.2 |
Accumulated Other Elements of Comprehensive Income (Loss) (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Accumulated Other Elements of Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of accumulated other elements of comprehensive income (loss) | Accumulated other elements of comprehensive income (loss) comprised the following:
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Stock-Based Compensation Plans (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total compensation expense for all stock-based compensation plans | Stock-based compensation expense recognized was as follows:
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Summary of activity in all stock based compensation plans | A summary of option activity under the Company's stock compensation plans as of and for the year ended December 31, 2012 is presented below:
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Share-based payment award, stock options, valuation assumptions | The fair values per share of option grants for the years ended December 31, 2012, 2011 and 2010 were estimated using the Black-Scholes-Merton option pricing formula with the following weighted-average assumptions:
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Share-based payment award, options, grants in period, grant date intrinsic value | The above assumptions and market prices of the Company's common stock at the date of option exercises resulted in the following values:
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Restricted and deferred stock units granted and vesting | Information on restricted and deferred stock units granted and vesting during the three years ended December 31, 2012 follows:
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Stock Options [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in all stock based compensation plans | A summary of restricted and deferred stock unit award activity under the Company's stock compensation plans as of and for the year ended December 31, 2012 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrecognized compensation expense for all stock-based compensation plans |
|
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Restricted and Deferred Stock Units [Member]
|
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrecognized compensation expense for all stock-based compensation plans |
|
Inventories (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Inventories [Abstract] | ||
Raw materials | $ 237.9 | $ 427.3 |
Work-in-process | 902.1 | 767.8 |
Finished goods, including parts and subassemblies | 1,797.9 | 1,376.9 |
Other | 14.3 | 12.5 |
Gross Inventories | 2,952.2 | 2,584.5 |
Excess of current standard costs over LIFO costs | (122.0) | (102.7) |
Allowance for obsolete and excess inventory | (89.0) | (81.9) |
Total inventories | $ 2,741.2 | $ 2,399.9 |
Derivative Contracts (Details) (FX Forward Contracts [Member], USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Buy Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | $ 302.6 |
Buy Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 58.6 |
Buy Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 1,172.8 |
Buy Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 11.0 |
Buy U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 43.7 |
Sell Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (7.8) |
Sell Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (8.0) |
Sell Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (394.9) |
Sell Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
Sell U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (218.3) |
2013 [Member] | Buy Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 240.5 |
2013 [Member] | Buy Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 58.6 |
2013 [Member] | Buy Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 1,016.6 |
2013 [Member] | Buy Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 11.0 |
2013 [Member] | Buy U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 43.4 |
2013 [Member] | Sell Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (7.8) |
2013 [Member] | Sell Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (7.8) |
2013 [Member] | Sell Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (394.5) |
2013 [Member] | Sell Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2013 [Member] | Sell U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (212.5) |
2014 [Member] | Buy Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 62.1 |
2014 [Member] | Buy Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2014 [Member] | Buy Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 156.2 |
2014 [Member] | Buy Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2014 [Member] | Buy U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0.3 |
2014 [Member] | Sell Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2014 [Member] | Sell Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (0.2) |
2014 [Member] | Sell Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (0.4) |
2014 [Member] | Sell Singapore dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2014 [Member] | Sell U.S. dollar [Member]
|
|
Derivative [Line Items] | |
Notional Amount | (5.3) |
2015 [Member] | Sell Euro [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2015 [Member] | Sell Pound Sterling [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2015 [Member] | Sell Norwegian krone [Member]
|
|
Derivative [Line Items] | |
Notional Amount | 0 |
2015 [Member] | Sell Singapore dollar [Member]
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Derivative [Line Items] | |
Notional Amount | 0 |
2015 [Member] | Sell U.S. dollar [Member]
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|
Derivative [Line Items] | |
Notional Amount | $ (0.5) |
Accumulated Other Elements of Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Components of accumulated other elements of comprehensive income (loss) [Abstract] | ||
Accumulated foreign currency translation gain (loss) | $ 45.9 | $ (28.7) |
Prior service credits, net, related to the Company's pension and postretirement benefit plans | 3.1 | 4.1 |
Actuarial losses, net, related to the Company's pension and postretirement benefit plans | (89.7) | (60.3) |
Change in fair value of derivatives accounted for as cash flow hedges and other | 10.7 | (5.9) |
Total accumulated other elements of comprehensive income (loss) | $ (30.0) | $ (90.8) |
Unaudited Quarterly Operating Results (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Unaudited Quarterly Operating Results [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited quarterly operating results | Unaudited quarterly operating results were as follows:
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Acquisitions and Joint Ventures
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Acquisitions and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Joint Ventures | Note 2: Acquisitions and Joint Ventures One SubseaTM ― On November 15, 2012, Cameron and Schlumberger announced their intent to create OneSubsea, a joint venture to manufacture and develop products, systems and services for the subsea oil and gas market. Cameron will contribute its existing subsea business and receive $600 million from Schlumberger while Schlumberger will contribute its Framo, Surveillance, Flow Assurance and Power and Controls businesses. As 60% owner, Cameron will manage the joint venture, consolidate it in its DPS segment and reflect a minority interest in its financial statements for Schlumberger's 40% interest in the joint venture. The transaction is subject to regulatory approvals and other customary closing conditions, which are expected to be completed during the first half of 2013. LeTourneau Technologies Drilling Systems, Inc. — On October 24, 2011, the Company closed on the acquisition of LeTourneau Technologies Drilling Systems, Inc., a wholly-owned subsidiary of Joy Global Inc., for $375.0 million in cash, subject to certain post-closing adjustments. LeTourneau provides drilling equipment as well as rig designs and components for both the land and offshore rig markets and its results of operations have been included in the Company's DPS segment from the date of acquisition. Other Acquisitions — During the fourth quarter of 2012, the Company spent $39.7 million, net of cash acquired, on two acquisitions, CairnToul Well Equipment Services Limited and ICI Artificial Lift, Inc. both of which are intended to enhance the product and service offerings of its Surface Systems business in the DPS segment. On June 6, 2012, the Company closed on its purchase of the drilling equipment business of TTS Energy Division from TTS Group ASA, a Norwegian company ("TTS"), for a cash payment of $248.1 million, net of cash acquired, subject to certain post-closing adjustments. TTS provides high performance drilling equipment, rig packages and rig solutions for both onshore and offshore rigs to the international energy industry and its financial results have been included in the DPS segment since the date of acquisition. During the first quarter of 2012, the Company acquired 100% of the outstanding stock of Elco Filtration and Testing, Inc. ("Elco"), for a total purchase price of $61.5 million, net of cash acquired. Elco was purchased to strengthen the Company's wellhead product and service offerings and has been included in the DPS segment since the date of acquisition. The Company is still awaiting significant information relating to the fair value of the assets and liabilities of each of these businesses, in particular inventory, property, plant and equipment and acquired intangibles, in order to finalize the respective purchase price allocations. The table set forth below shows the preliminary purchase price allocation of the four businesses acquired in 2012. These items are included in the Company's Consolidated Balance Sheet at December 31, 2012 and are treated as non-cash additions, except for the net cash cost of the acquisitions, in the Company's Consolidated Cash Flows Statement for the year ended December 31, 2012.
Approximately $27.8 million of the goodwill recorded in 2012 is deductible for tax purposes. During 2011, the Company also acquired the stock of four other businesses for a total cash purchase price, net of cash acquired, of $46.9 million. Vescon Equipamentos Industriais Ltda. was acquired to strengthen the Company's surface product offerings in the Brazilian market and has been included in the DPS segment since the date of acquisition. The remaining interest in Scomi Energy Sdn Bhd., previously a Cameron joint venture company, was acquired in order to strengthen the Company's process systems offerings in the Malaysian market. TS-Technology AS, a Norwegian company, was acquired to enhance the Company's water treatment technology offerings. Industrial Machine and Fabrication ("IMF") was acquired to enhance the Company's rotating compression aftermarket offerings. The results of these businesses have been included in the PCS segment since the dates of the respective acquisitions. During 2010, the Company acquired the assets or capital stock of two businesses for a total cash purchase price of $40.9 million. These businesses were acquired to enhance the Company's product offerings or aftermarket services in the DPS and V&M segments. The two acquisitions were included in the Company's consolidated financial statements for the periods subsequent to the acquisitions. Under the terms of the acquisition recorded in the V&M segment, the Company has the right and obligation under various conditions to purchase the remaining 49% capital stock interest it does not currently own. The Company has reflected a liability in its consolidated balance sheet for the fair value of the remaining 49% interest the Company is required to purchase. |
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