Switzerland
|
|
98-0606750
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
4-6 Rue Jean-Francois Bartholoni, 1204 Geneva, Switzerland
|
|
Not Applicable
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Page
|
|
|
|
|
|
|
|
2
|
|
26
|
|
38
|
|
40
|
|
|
|
|
|
42
|
|
42
|
|
42
|
|
43
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2013
|
December 31, 2012
|
||||||
|
(Unaudited)
|
|
||||||
Current Assets:
|
|
|
||||||
Cash and Cash Equivalents
|
$
|
295
|
$
|
300
|
||||
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $87 and $84
|
3,837
|
3,885
|
||||||
Inventories, Net
|
3,637
|
3,675
|
||||||
Current Deferred Tax Assets
|
360
|
376
|
||||||
Other Current Assets
|
819
|
793
|
||||||
Total Current Assets
|
8,948
|
9,029
|
||||||
|
||||||||
Property, Plant and Equipment, Net of Accumulated Depreciation of $6,405 and $6,030
|
8,333
|
8,299
|
||||||
Goodwill
|
3,714
|
3,871
|
||||||
Other Intangible Assets, Net of Accumulated Amortization of $699 and $658
|
688
|
766
|
||||||
Equity Investments
|
671
|
646
|
||||||
Other Non-current Assets
|
278
|
184
|
||||||
Total Assets
|
$
|
22,632
|
$
|
22,795
|
||||
|
||||||||
|
||||||||
Current Liabilities:
|
||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
2,148
|
$
|
1,585
|
||||
Accounts Payable
|
2,144
|
2,108
|
||||||
Other Current Liabilities
|
1,658
|
2,017
|
||||||
Total Current Liabilities
|
5,950
|
5,710
|
||||||
|
||||||||
Long-term Debt
|
7,087
|
7,049
|
||||||
Other Non-current Liabilities
|
1,156
|
1,218
|
||||||
Total Liabilities
|
14,193
|
13,977
|
||||||
|
||||||||
Shareholders' Equity:
|
||||||||
Shares, CHF 1.16 Par Value: Authorized 840, Conditionally Authorized 372, Issued 840 at June 30, 2013 and December 31, 2012
|
775
|
775
|
||||||
Capital in Excess of Par Value
|
4,608
|
4,674
|
||||||
Treasury Shares, at Cost
|
(83
|
)
|
(182
|
)
|
||||
Retained Earnings
|
3,260
|
3,356
|
||||||
Accumulated Other Comprehensive Income
|
(159
|
)
|
163
|
|||||
Weatherford Shareholders' Equity
|
8,401
|
8,786
|
||||||
Noncontrolling Interests
|
38
|
32
|
||||||
Total Shareholders' Equity
|
8,439
|
8,818
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
22,632
|
$
|
22,795
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
||||||||||||
Products
|
$
|
1,509
|
$
|
1,510
|
$
|
2,977
|
$
|
2,922
|
||||||||
Services
|
2,359
|
2,237
|
4,728
|
4,416
|
||||||||||||
|
3,868
|
3,747
|
7,705
|
7,338
|
||||||||||||
|
||||||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Products
|
1,069
|
1,153
|
2,214
|
2,206
|
||||||||||||
Cost of Services
|
2,057
|
1,818
|
3,918
|
3,465
|
||||||||||||
Research and Development
|
71
|
64
|
138
|
126
|
||||||||||||
Selling, General and Administrative Attributable to Segments
|
392
|
408
|
807
|
780
|
||||||||||||
Corporate, General and Administrative
|
73
|
71
|
149
|
158
|
||||||||||||
Goodwill and Equity Investment Impairment
|
—
|
793
|
—
|
793
|
||||||||||||
US Government Investigation Loss Contingency
|
153
|
100
|
153
|
100
|
||||||||||||
Gain on Sale of Business
|
(2
|
)
|
(28
|
)
|
(8
|
)
|
(28
|
)
|
||||||||
|
3,813
|
4,379
|
7,371
|
7,600
|
||||||||||||
|
||||||||||||||||
Operating Income (Loss)
|
55
|
(632
|
)
|
334
|
(262
|
)
|
||||||||||
|
||||||||||||||||
Interest Expense, Net
|
(128
|
)
|
(121
|
)
|
(259
|
)
|
(233
|
)
|
||||||||
Devaluation of Venezuelan Bolivar
|
—
|
—
|
(100
|
)
|
—
|
|||||||||||
Other, Net
|
(18
|
)
|
(27
|
)
|
(31
|
)
|
(45
|
)
|
||||||||
|
||||||||||||||||
Loss Before Income Taxes
|
(91
|
)
|
(780
|
)
|
(56
|
)
|
(540
|
)
|
||||||||
Provision for Income Taxes
|
(20
|
)
|
(63
|
)
|
(25
|
)
|
(173
|
)
|
||||||||
Net Loss
|
(111
|
)
|
(843
|
)
|
(81
|
)
|
(713
|
)
|
||||||||
|
||||||||||||||||
Net Income Attributable to Noncontrolling Interests
|
(7
|
)
|
(6
|
)
|
(15
|
)
|
(13
|
)
|
||||||||
Net Loss Attributable to Weatherford
|
$
|
(118
|
)
|
$
|
(849
|
)
|
$
|
(96
|
)
|
$
|
(726
|
)
|
||||
|
||||||||||||||||
Loss Per Share Attributable to Weatherford:
|
||||||||||||||||
Basic
|
$
|
(0.15
|
)
|
$
|
(1.11
|
)
|
$
|
(0.12
|
)
|
$
|
(0.95
|
)
|
||||
Diluted
|
$
|
(0.15
|
)
|
$
|
(1.11
|
)
|
$
|
(0.12
|
)
|
$
|
(0.95
|
)
|
||||
|
||||||||||||||||
Weighted Average Shares Outstanding:
|
||||||||||||||||
Basic
|
770
|
765
|
770
|
763
|
||||||||||||
Diluted
|
770
|
765
|
770
|
763
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Net Loss
|
$
|
(111
|
)
|
$
|
(843
|
)
|
$
|
(81
|
)
|
$
|
(713
|
)
|
||||
Other Comprehensive Loss:
|
||||||||||||||||
Foreign Currency Translation
|
(173
|
)
|
(316
|
)
|
(323
|
)
|
(133
|
)
|
||||||||
Defined Benefit Pension Activity
|
—
|
—
|
1
|
1
|
||||||||||||
Other Comprehensive Loss
|
(173
|
)
|
(316
|
)
|
(322
|
)
|
(132
|
)
|
||||||||
Comprehensive Loss
|
(284
|
)
|
(1,159
|
)
|
(403
|
)
|
(845
|
)
|
||||||||
Comprehensive Income Attributable to Noncontrolling Interests
|
(7
|
)
|
(6
|
)
|
(15
|
)
|
(13
|
)
|
||||||||
Comprehensive Loss Attributable to Weatherford
|
$
|
(291
|
)
|
$
|
(1,165
|
)
|
$
|
(418
|
)
|
$
|
(858
|
)
|
|
Six Months Ended June 30,
|
|||||||
|
2013
|
2012
|
||||||
|
|
|
||||||
Cash Flows from Operating Activities:
|
|
|
||||||
Net Loss
|
$
|
(81
|
)
|
$
|
(713
|
)
|
||
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
|
||||||||
Goodwill and Equity Investment Impairment
|
—
|
793
|
||||||
Depreciation and Amortization
|
687
|
610
|
||||||
Employee Share-Based Compensation Expense
|
27
|
37
|
||||||
Deferred Income Tax Provision (Benefit)
|
(93
|
)
|
40
|
|||||
Devaluation of Venezuelan Bolivar
|
100
|
—
|
||||||
Loss (Gain) on Sale of Assets and Businesses
|
1
|
(19
|
)
|
|||||
Other, Net
|
(27
|
)
|
44
|
|||||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
||||||||
Accounts Receivable
|
(50
|
)
|
(380
|
)
|
||||
Inventories
|
48
|
(374
|
)
|
|||||
Billings in Excess of Costs and Estimated Earnings
|
(159
|
)
|
63
|
|||||
Other Current Assets
|
7
|
(206
|
)
|
|||||
Accounts Payable
|
122
|
63
|
||||||
Other Current Liabilities
|
(205
|
)
|
264
|
|||||
Other
|
(136
|
)
|
63
|
|||||
Net Cash Provided by Operating Activities
|
241
|
285
|
||||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Capital Expenditures for Property, Plant and Equipment
|
(846
|
)
|
(1,098
|
)
|
||||
Acquisitions of Businesses, Net of Cash Acquired
|
(7
|
)
|
(156
|
)
|
||||
Acquisition of Intellectual Property
|
(3
|
)
|
(6
|
)
|
||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
—
|
(8
|
)
|
|||||
Proceeds from Sale of Assets and Businesses, Net
|
66
|
16
|
||||||
Net Cash Used by Investing Activities
|
(790
|
)
|
(1,252
|
)
|
||||
|
||||||||
Cash Flows from Financing Activities:
|
||||||||
Borrowings (Repayments) Long-term Debt, Net
|
(310
|
)
|
1,013
|
|||||
Borrowings (Repayments) of Short-term Debt, Net
|
854
|
(86
|
)
|
|||||
Proceeds from Exercise of Warrants
|
—
|
65
|
||||||
Other Financing Activities
|
4
|
(12
|
)
|
|||||
Net Cash Provided by Financing Activities
|
548
|
980
|
||||||
|
||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents, Excluding Devaluation of Venezuelan Bolivar
|
(4
|
)
|
(3
|
)
|
||||
|
||||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(5
|
)
|
10
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
300
|
371
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
295
|
$
|
381
|
||||
|
||||||||
Supplemental Cash Flow Information:
|
||||||||
Interest Paid
|
264
|
224
|
||||||
Income Taxes Paid, Net of Refunds
|
257
|
244
|
1. | General |
2. | Business Combinations and Dispositions |
3. | Accounts Receivable Factoring |
|
June 30,
2013
|
December 31,
2012
|
||||||
|
(In millions)
|
|||||||
|
|
|
||||||
Raw materials, components and supplies
|
$
|
452
|
$
|
461
|
||||
Work in process
|
147
|
166
|
||||||
Finished goods
|
3,038
|
3,048
|
||||||
|
$
|
3,637
|
$
|
3,675
|
|
North America
|
MENA/
Asia Pacific
|
Europe/
SSA/ Russia
|
Latin
America
|
Total
|
|||||||||||||||
|
|
(In millions)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2012
|
$
|
2,336
|
$
|
226
|
$
|
955
|
$
|
354
|
$
|
3,871
|
||||||||||
Acquisitions
|
—
|
—
|
2
|
—
|
2
|
|||||||||||||||
Disposals
|
(23
|
)
|
(4
|
)
|
(13
|
)
|
(1
|
)
|
(41
|
)
|
||||||||||
Purchase price and other adjustments
|
—
|
—
|
—
|
2
|
2
|
|||||||||||||||
Foreign currency translation
|
(59
|
)
|
(7
|
)
|
(49
|
)
|
(5
|
)
|
(120
|
)
|
||||||||||
Balance at June 30, 2013
|
$
|
2,254
|
$
|
215
|
$
|
895
|
$
|
350
|
$
|
3,714
|
|
June 30,
2013
|
December 31,
2012
|
||||||
|
(In millions)
|
|||||||
|
|
|
||||||
Commercial paper
|
$
|
840
|
$
|
888
|
||||
Revolving credit facility
|
525
|
—
|
||||||
364-day term loan facility
|
300
|
—
|
||||||
Other short-term bank loans
|
167
|
109
|
||||||
Total short-term borrowings
|
1,832
|
997
|
||||||
Current portion of long-term debt
|
316
|
588
|
||||||
Short-term borrowings and current portion of long-term debt
|
$
|
2,148
|
$
|
1,585
|
7. | Fair Value of Financial Instruments |
|
June 30,
2013
|
December 31,
2012
|
||||||
|
(In millions)
|
|||||||
|
|
|
||||||
Fair value
|
$
|
7,619
|
$
|
8,368
|
||||
Carrying value
|
7,058
|
7,355
|
8. | Derivative Instruments |
|
June 30,
2013
|
December 31,
2012
|
Classifications
|
||||||
|
(In millions)
|
|
|||||||
|
|
|
|
||||||
Derivative assets not designated as hedges:
|
|
|
|
||||||
Foreign currency forward contracts
|
$
|
37
|
$
|
5
|
Other Current Assets
|
||||
|
|
||||||||
Derivative liabilities not designated as hedges:
|
|
||||||||
Foreign currency forward contracts
|
(11
|
)
|
(20
|
)
|
Other Current Liabilities
|
||||
Cross-currency swap contracts
|
(23
|
)
|
(34
|
)
|
Other Liabilities
|
9. | Income Tax |
10. | Shareholders' Equity |
|
Issued
Shares
|
Capital In Excess of Par Value
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Treasury Shares
|
Noncontrolling Interests
|
Total Shareholders' Equity
|
|||||||||||||||||||||
|
(In millions)
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
769
|
$
|
4,675
|
$
|
4,134
|
$
|
80
|
$
|
(334
|
)
|
$
|
21
|
$
|
9,345
|
|||||||||||||
Net Income (Loss)
|
—
|
—
|
(726
|
)
|
—
|
—
|
13
|
(713
|
)
|
|||||||||||||||||||
Other Comprehensive Loss
|
—
|
—
|
—
|
(132
|
)
|
—
|
—
|
(132
|
)
|
|||||||||||||||||||
Dividends Paid to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
(11
|
)
|
(11
|
)
|
|||||||||||||||||||
Shares Issued for Acquisitions
|
—
|
(27
|
)
|
—
|
—
|
66
|
—
|
39
|
||||||||||||||||||||
Equity Awards Granted, Vested and Exercised
|
—
|
(20
|
)
|
—
|
—
|
39
|
—
|
19
|
||||||||||||||||||||
Other
|
6
|
58
|
—
|
—
|
—
|
—
|
64
|
|||||||||||||||||||||
Balance at June 30, 2012
|
$
|
775
|
$
|
4,686
|
$
|
3,408
|
$
|
(52
|
)
|
$
|
(229
|
)
|
$
|
23
|
$
|
8,611
|
||||||||||||
|
||||||||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
775
|
$
|
4,674
|
$
|
3,356
|
$
|
163
|
$
|
(182
|
)
|
$
|
32
|
$
|
8,818
|
|||||||||||||
Net Income (Loss)
|
—
|
—
|
(96
|
)
|
—
|
—
|
15
|
(81
|
)
|
|||||||||||||||||||
Other Comprehensive Loss
|
—
|
—
|
—
|
(322
|
)
|
—
|
—
|
(322
|
)
|
|||||||||||||||||||
Dividends Paid to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
(13
|
)
|
(13
|
)
|
|||||||||||||||||||
Equity Awards Granted, Vested and Exercised
|
—
|
(63
|
)
|
—
|
—
|
99
|
—
|
36
|
||||||||||||||||||||
Other
|
—
|
(3
|
)
|
—
|
—
|
—
|
4
|
1
|
||||||||||||||||||||
Balance at June 30, 2013
|
$
|
775
|
$
|
4,608
|
$
|
3,260
|
$
|
(159
|
)
|
$
|
(83
|
)
|
$
|
38
|
$
|
8,439
|
|
Currency
Translation
Adjustment
|
Defined
Benefit
Pension
|
Deferred
Loss on
Derivatives
|
Total
|
||||||||||||
|
|
(In millions)
|
|
|||||||||||||
|
|
|
|
|
||||||||||||
Balance at December 31, 2011
|
$
|
127
|
$
|
(36
|
)
|
$
|
(11
|
)
|
$
|
80
|
||||||
|
||||||||||||||||
Other comprehensive income before reclassifications
|
(133
|
)
|
—
|
—
|
(133
|
)
|
||||||||||
Reclassifications
|
—
|
1
|
—
|
1
|
||||||||||||
Net activity
|
(133
|
)
|
1
|
—
|
(132
|
)
|
||||||||||
|
||||||||||||||||
Balance at June 30, 2012
|
$
|
(6
|
)
|
$
|
(35
|
)
|
$
|
(11
|
)
|
$
|
(52
|
)
|
||||
|
||||||||||||||||
Balance at December 31, 2012
|
213
|
(40
|
)
|
(10
|
)
|
163
|
||||||||||
|
||||||||||||||||
Other comprehensive loss before reclassifications
|
(286
|
)
|
—
|
—
|
(286
|
)
|
||||||||||
Reclassifications
|
(37
|
)
|
1
|
—
|
(36
|
)
|
||||||||||
Net activity
|
(323
|
)
|
1
|
—
|
(322
|
)
|
||||||||||
|
||||||||||||||||
Balance at June 30, 2013
|
$
|
(110
|
)
|
$
|
(39
|
)
|
$
|
(10
|
)
|
$
|
(159
|
)
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions)
|
|||||||||||||||
|
|
|
|
|||||||||||||
Basic weighted average shares outstanding
|
770
|
765
|
770
|
763
|
||||||||||||
Dilutive effect of:
|
||||||||||||||||
Stock options, restricted shares and performance units
|
—
|
—
|
—
|
—
|
||||||||||||
Diluted weighted average shares outstanding
|
770
|
765
|
770
|
763
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions)
|
|||||||||||||||
|
|
|
|
|||||||||||||
Anti-dilutive potential shares
|
2
|
3
|
3
|
3
|
||||||||||||
Anti-dilutive potential shares due to net loss
|
6
|
4
|
4
|
4
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions)
|
|||||||||||||||
|
|
|
||||||||||||||
Share-based compensation
|
$
|
16
|
$
|
15
|
$
|
27
|
$
|
37
|
||||||||
Related tax benefit
|
6
|
5
|
10
|
13
|
13. | Segment Information |
|
Three Months Ended June 30, 2013
|
|||||||||||
|
Net
Operating
Revenues
|
Income
from
Operations
|
Depreciation
and
Amortization
|
|||||||||
|
(In millions)
|
|||||||||||
|
|
|
|
|||||||||
North America
|
$
|
1,529
|
$
|
167
|
$
|
102
|
||||||
MENA/Asia Pacific
|
919
|
45
|
98
|
|||||||||
Europe/SSA/Russia
|
681
|
83
|
68
|
|||||||||
Latin America
|
739
|
90
|
68
|
|||||||||
|
3,868
|
385
|
336
|
|||||||||
Corporate and Research and Development
|
—
|
(120
|
)
|
5
|
||||||||
US Government Investigation Loss Contingency
|
—
|
(153
|
)
|
—
|
||||||||
Other (a)
|
—
|
(57
|
)
|
—
|
||||||||
Total
|
$
|
3,868
|
$
|
55
|
$
|
341
|
|
Three Months Ended June 30, 2012
|
|||||||||||
|
Net
Operating
Revenues
|
Income
from
Operations (c)
|
Depreciation
and
Amortization
|
|||||||||
|
(In millions)
|
|||||||||||
|
|
|
|
|||||||||
North America
|
$
|
1,663
|
$
|
226
|
$
|
101
|
||||||
MENA/Asia Pacific
|
649
|
(38
|
)
|
85
|
||||||||
Europe/SSA/Russia
|
653
|
102
|
60
|
|||||||||
Latin America
|
782
|
90
|
59
|
|||||||||
|
3,747
|
380
|
305
|
|||||||||
Corporate and Research and Development
|
—
|
(113
|
)
|
6
|
||||||||
Goodwill and Equity Investment Impairment
|
—
|
(793
|
)
|
—
|
||||||||
US Government Investigation Loss Contingency
|
—
|
(100
|
)
|
—
|
||||||||
Other (b)
|
—
|
(6
|
)
|
—
|
||||||||
Total
|
$
|
3,747
|
$
|
(632
|
)
|
$
|
311
|
a)
|
The three months ended June 30, 2013 includes a $2 million gain related to the sale of our industrial screen business, income tax restatement and material weakness remediation expenses of $6 million and severance, exit and other charges of $53 million, including $36 million in severance and $12 million in legal and professional fees incurred in conjunction with our on-going investigations.
|
b)
|
The three months ended June 30, 2012 includes $23 million for severance and exit costs, income tax restatement and remediation expenses of $11 million and an offsetting gain of $28 million related to the sale of our subsea controls business.
|
c)
|
During the three months ended June 30, 2012, we recognized a charge for excess and obsolete inventory of $64 million attributable to each reporting segment as follows: $22 million for North America, $14 million for MENA/Asia Pacific, $20 million for Europe/SSA/Russia and $8 million for Latin America.
|
|
Six Months Ended June 30, 2013
|
|||||||||||
|
Net
Operating
Revenues
|
Income
From
Operations
|
Depreciation
and
Amortization
|
|||||||||
|
(In millions)
|
|||||||||||
|
|
|||||||||||
North America
|
$
|
3,221
|
$
|
391
|
$
|
210
|
||||||
MENA/Asia Pacific
|
1,704
|
87
|
191
|
|||||||||
Europe/SSA/Russia
|
1,314
|
148
|
139
|
|||||||||
Latin America
|
1,466
|
188
|
136
|
|||||||||
|
7,705
|
814
|
676
|
|||||||||
Corporate and Research and Development
|
—
|
(235
|
)
|
11
|
||||||||
US Government Investigation Loss Contingency
|
—
|
(153
|
)
|
—
|
||||||||
Other (a)
|
—
|
(92
|
)
|
—
|
||||||||
Total
|
$
|
7,705
|
$
|
334
|
$
|
687
|
|
Six Months Ended June 30, 2012
|
|||||||||||
|
Net
Operating
Revenues
|
Income
From
Operations (c)
|
Depreciation
and
Amortization
|
|||||||||
|
(In millions)
|
|||||||||||
|
|
|
|
|||||||||
North America
|
$
|
3,417
|
$
|
584
|
$
|
196
|
||||||
MENA/Asia Pacific
|
1,244
|
(16
|
)
|
168
|
||||||||
Europe/SSA/Russia
|
1,224
|
168
|
121
|
|||||||||
Latin America
|
1,453
|
173
|
114
|
|||||||||
|
7,338
|
909
|
599
|
|||||||||
Corporate and Research and Development
|
—
|
(225
|
)
|
11
|
||||||||
Goodwill and Equity Investment Impairment
|
—
|
(793
|
)
|
—
|
||||||||
US Government Investigation Loss Contingency
|
—
|
(100
|
)
|
—
|
||||||||
Other (b)
|
—
|
(53
|
)
|
—
|
||||||||
Total
|
$
|
7,338
|
$
|
(262
|
)
|
$
|
610
|
a)
|
The six months ended June 30, 2013 includes a $8 million gain related to the sale of our industrial screen business, income tax restatement and material weakness remediation expenses of $27 million and severance, exit and other charges of $73 million, including $44 million of severance and $16 million in legal and professional fees incurred in conjunction with our on-going investigations.
|
b)
|
The six months ended June 30, 2012 includes $53 million for severance, exit and other costs, $3 million in legal and professional fees incurred in connection with our on-going investigations, income tax restatement and material weakness remediation expenses of $25 million and an offsetting gain of $28 million related to the sale of our subsea controls business.
|
c)
|
During the six months ended June 30, 2012, we recognized a charge for excess and obsolete inventory of $64 million attributable to each reporting segment as follows: $22 million for North America, $14 million for MENA/Asia Pacific, $20 million for Europe/SSA/Russia and $8 million for Latin America.
|
15. | New Accounting Pronouncements |
16. | Condensed Consolidating Financial Statements |
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Current Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
1
|
$
|
—
|
$
|
1
|
$
|
293
|
$
|
—
|
$
|
295
|
||||||||||||
Other Current Assets
|
5
|
75
|
275
|
8,566
|
(268
|
)
|
8,653
|
|||||||||||||||||
Total Current Assets
|
6
|
75
|
276
|
8,859
|
(268
|
)
|
8,948
|
|||||||||||||||||
|
||||||||||||||||||||||||
Equity Investments in Affiliates
|
8,842
|
9,401
|
7,909
|
14,022
|
(40,174
|
)
|
—
|
|||||||||||||||||
Shares Held in Parent
|
—
|
—
|
10
|
73
|
(83
|
)
|
—
|
|||||||||||||||||
Intercompany Receivables, Net
|
—
|
2,103
|
—
|
—
|
(2,103
|
)
|
—
|
|||||||||||||||||
Other Non-current Assets
|
16
|
43
|
14
|
13,611
|
—
|
13,684
|
||||||||||||||||||
Total Assets
|
$
|
8,864
|
$
|
11,622
|
$
|
8,209
|
$
|
36,565
|
$
|
(42,628
|
)
|
$
|
22,632
|
|||||||||||
|
||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
—
|
$
|
1,980
|
$
|
23
|
$
|
145
|
$
|
—
|
$
|
2,148
|
||||||||||||
Accounts Payable and Other Current Liabilities
|
4
|
389
|
—
|
3,677
|
(268
|
)
|
3,802
|
|||||||||||||||||
Total Current Liabilities
|
4
|
2,369
|
23
|
3,822
|
(268
|
)
|
5,950
|
|||||||||||||||||
|
||||||||||||||||||||||||
Long-term Debt
|
—
|
5,893
|
1,006
|
188
|
—
|
7,087
|
||||||||||||||||||
Intercompany Payables, Net
|
446
|
—
|
595
|
1,063
|
(2,104
|
)
|
—
|
|||||||||||||||||
Other Non-current Liabilities
|
13
|
77
|
1
|
1,065
|
—
|
1,156
|
||||||||||||||||||
Total Liabilities
|
463
|
8,339
|
1,625
|
6,138
|
(2,372
|
)
|
14,193
|
|||||||||||||||||
|
||||||||||||||||||||||||
Weatherford Shareholders' Equity
|
8,401
|
3,283
|
6,584
|
30,389
|
(40,256
|
)
|
8,401
|
|||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
38
|
—
|
38
|
||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
8,864
|
$
|
11,622
|
$
|
8,209
|
$
|
36,565
|
$
|
(42,628
|
)
|
$
|
22,632
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Current Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
300
|
$
|
—
|
$
|
300
|
||||||||||||
Other Current Assets
|
5
|
5
|
256
|
8,682
|
(219
|
)
|
8,729
|
|||||||||||||||||
Total Current Assets
|
5
|
5
|
256
|
8,982
|
(219
|
)
|
9,029
|
|||||||||||||||||
|
||||||||||||||||||||||||
Equity Investments in Affiliates
|
9,184
|
14,790
|
7,675
|
8,458
|
(40,107
|
)
|
—
|
|||||||||||||||||
Shares Held in Parent
|
—
|
—
|
10
|
172
|
(182
|
)
|
—
|
|||||||||||||||||
Intercompany Receivables, Net
|
—
|
1,872
|
—
|
—
|
(1,872
|
)
|
—
|
|||||||||||||||||
Other Non-current Assets
|
17
|
45
|
14
|
13,690
|
—
|
13,766
|
||||||||||||||||||
Total Assets
|
$
|
9,206
|
$
|
16,712
|
$
|
7,955
|
$
|
31,302
|
$
|
(42,380
|
)
|
$
|
22,795
|
|||||||||||
|
||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
—
|
$
|
1,439
|
$
|
26
|
$
|
120
|
$
|
—
|
$
|
1,585
|
||||||||||||
Accounts Payable and Other Current Liabilities
|
8
|
246
|
—
|
4,089
|
(218
|
)
|
4,125
|
|||||||||||||||||
Total Current Liabilities
|
8
|
1,685
|
26
|
4,209
|
(218
|
)
|
5,710
|
|||||||||||||||||
|
||||||||||||||||||||||||
Long-term Debt
|
—
|
5,895
|
1,019
|
135
|
—
|
7,049
|
||||||||||||||||||
Intercompany Payables, Net
|
400
|
—
|
477
|
995
|
(1,872
|
)
|
—
|
|||||||||||||||||
Other Non-current Liabilities
|
12
|
76
|
3
|
1,127
|
—
|
1,218
|
||||||||||||||||||
Total Liabilities
|
420
|
7,656
|
1,525
|
6,466
|
(2,090
|
)
|
13,977
|
|||||||||||||||||
|
||||||||||||||||||||||||
Weatherford Shareholders' Equity
|
8,786
|
9,056
|
6,430
|
24,804
|
(40,290
|
)
|
8,786
|
|||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
32
|
—
|
32
|
||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
9,206
|
$
|
16,712
|
$
|
7,955
|
$
|
31,302
|
$
|
(42,380
|
)
|
$
|
22,795
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
3,868
|
$
|
—
|
$
|
3,868
|
||||||||||||
Costs and Expenses
|
(9
|
)
|
(132
|
)
|
(1
|
)
|
(3,671
|
)
|
—
|
(3,813
|
)
|
|||||||||||||
Operating Income (Loss)
|
(9
|
)
|
(132
|
)
|
(1
|
)
|
197
|
—
|
55
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(107
|
)
|
(15
|
)
|
(6
|
)
|
—
|
(128
|
)
|
||||||||||||||
Intercompany Charges, Net
|
(25
|
)
|
13
|
(109
|
)
|
121
|
—
|
—
|
||||||||||||||||
Equity in Subsidiary Income (Loss)
|
(85
|
)
|
(17
|
)
|
114
|
—
|
(12
|
)
|
—
|
|||||||||||||||
Other, Net
|
1
|
24
|
(1
|
)
|
(42
|
)
|
—
|
(18
|
)
|
|||||||||||||||
Income (Loss) Before Income Taxes
|
(118
|
)
|
(219
|
)
|
(12
|
)
|
270
|
(12
|
)
|
(91
|
)
|
|||||||||||||
Benefit (Provision) for Income Taxes
|
—
|
—
|
45
|
(65
|
)
|
—
|
(20
|
)
|
||||||||||||||||
Net Income (Loss)
|
(118
|
)
|
(219
|
)
|
33
|
205
|
(12
|
)
|
(111
|
)
|
||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(7
|
)
|
—
|
(7
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(118
|
)
|
$
|
(219
|
)
|
$
|
33
|
$
|
198
|
$
|
(12
|
)
|
$
|
(118
|
)
|
||||||||
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(291
|
)
|
$
|
(325
|
)
|
$
|
(21
|
)
|
$
|
25
|
$
|
321
|
$
|
(291
|
)
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
3,747
|
$
|
—
|
$
|
3,747
|
||||||||||||
Costs and Expenses
|
(110
|
)
|
—
|
—
|
(4,269
|
)
|
—
|
(4,379
|
)
|
|||||||||||||||
Operating Income (Loss)
|
(110
|
)
|
—
|
—
|
(522
|
)
|
—
|
(632
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(101
|
)
|
(17
|
)
|
(3
|
)
|
—
|
(121
|
)
|
||||||||||||||
Intercompany Charges, Net
|
(27
|
)
|
7
|
(52
|
)
|
72
|
—
|
—
|
||||||||||||||||
Equity in Subsidiary Income (Loss)
|
(711
|
)
|
(785
|
)
|
(447
|
)
|
—
|
1,943
|
—
|
|||||||||||||||
Other, Net
|
(1
|
)
|
55
|
(1
|
)
|
(80
|
)
|
—
|
(27
|
)
|
||||||||||||||
Income (Loss) Before Income Taxes
|
(849
|
)
|
(824
|
)
|
(517
|
)
|
(533
|
)
|
1,943
|
(780
|
)
|
|||||||||||||
Benefit (Provision) for Income Taxes
|
—
|
—
|
25
|
(88
|
)
|
—
|
(63
|
)
|
||||||||||||||||
Net Income (Loss)
|
(849
|
)
|
(824
|
)
|
(492
|
)
|
(621
|
)
|
1,943
|
(843
|
)
|
|||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(849
|
)
|
$
|
(824
|
)
|
$
|
(492
|
)
|
$
|
(627
|
)
|
$
|
1,943
|
$
|
(849
|
)
|
|||||||
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(849
|
)
|
$
|
(824
|
)
|
$
|
(492
|
)
|
$
|
(943
|
)
|
$
|
1,943
|
$
|
(1,165
|
)
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
7,705
|
$
|
—
|
$
|
7,705
|
||||||||||||
Costs and Expenses
|
(18
|
)
|
(122
|
)
|
(1
|
)
|
(7,230
|
)
|
—
|
(7,371
|
)
|
|||||||||||||
Operating Income (Loss)
|
(18
|
)
|
(122
|
)
|
(1
|
)
|
475
|
—
|
334
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(218
|
)
|
(31
|
)
|
(10
|
)
|
—
|
(259
|
)
|
||||||||||||||
Intercompany Charges, Net
|
(25
|
)
|
13
|
(79
|
)
|
91
|
—
|
—
|
||||||||||||||||
Equity in Subsidiary Income (Loss)
|
(54
|
)
|
178
|
231
|
—
|
(355
|
)
|
—
|
||||||||||||||||
Other, Net
|
1
|
10
|
(1
|
)
|
(141
|
)
|
—
|
(131
|
)
|
|||||||||||||||
Income (Loss) Before Income Taxes
|
(96
|
)
|
(139
|
)
|
119
|
415
|
(355
|
)
|
(56
|
)
|
||||||||||||||
Benefit (Provision) for Income Taxes
|
—
|
—
|
39
|
(64
|
)
|
—
|
(25
|
)
|
||||||||||||||||
Net Income (Loss)
|
(96
|
)
|
(139
|
)
|
158
|
351
|
(355
|
)
|
(81
|
)
|
||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(15
|
)
|
—
|
(15
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(96
|
)
|
$
|
(139
|
)
|
$
|
158
|
$
|
336
|
$
|
(355
|
)
|
$
|
(96
|
)
|
||||||||
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(418
|
)
|
$
|
(396
|
)
|
$
|
(35
|
)
|
$
|
14
|
$
|
417
|
$
|
(418
|
)
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
7,338
|
$
|
—
|
$
|
7,338
|
||||||||||||
Costs and Expenses
|
(126
|
)
|
(1
|
)
|
(1
|
)
|
(7,472
|
)
|
—
|
(7,600
|
)
|
|||||||||||||
Operating Income (Loss)
|
(126
|
)
|
(1
|
)
|
(1
|
)
|
(134
|
)
|
—
|
(262
|
)
|
|||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(190
|
)
|
(36
|
)
|
(7
|
)
|
—
|
(233
|
)
|
||||||||||||||
Intercompany Charges, Net
|
(27
|
)
|
15
|
(27
|
)
|
39
|
—
|
—
|
||||||||||||||||
Equity in Subsidiary Income (Loss)
|
(572
|
)
|
(524
|
)
|
(193
|
)
|
—
|
1,289
|
—
|
|||||||||||||||
Other, Net
|
(1
|
)
|
20
|
(1
|
)
|
(63
|
)
|
—
|
(45
|
)
|
||||||||||||||
Income (Loss) Before Income Taxes
|
(726
|
)
|
(680
|
)
|
(258
|
)
|
(165
|
)
|
1,289
|
(540
|
)
|
|||||||||||||
Benefit (Provision) for Income Taxes
|
—
|
—
|
23
|
(196
|
)
|
—
|
(173
|
)
|
||||||||||||||||
Net Income (Loss)
|
(726
|
)
|
(680
|
)
|
(235
|
)
|
(361
|
)
|
1,289
|
(713
|
)
|
|||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(13
|
)
|
—
|
(13
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(726
|
)
|
$
|
(680
|
)
|
$
|
(235
|
)
|
$
|
(374
|
)
|
$
|
1,289
|
$
|
(726
|
)
|
|||||||
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(726
|
)
|
$
|
(680
|
)
|
$
|
(235
|
)
|
$
|
(506
|
)
|
$
|
1,289
|
$
|
(858
|
)
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||||||||||||||
Net Income (Loss)
|
$
|
(96
|
)
|
$
|
(139
|
)
|
$
|
158
|
$
|
351
|
$
|
(355
|
)
|
$
|
(81
|
)
|
||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
|
||||||||||||||||||||||||
Charges from Parent or Subsidiary
|
25
|
(13
|
)
|
79
|
(91
|
)
|
—
|
—
|
||||||||||||||||
Equity in (Earnings) Loss of Affiliates
|
54
|
(178
|
)
|
(231
|
)
|
—
|
355
|
—
|
||||||||||||||||
Deferred Income Tax Provision (Benefit)
|
—
|
—
|
(39
|
)
|
(54
|
)
|
—
|
(93
|
)
|
|||||||||||||||
Other Adjustments
|
217
|
696
|
(223
|
)
|
(275
|
)
|
—
|
415
|
||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
200
|
366
|
(256
|
)
|
(69
|
)
|
—
|
241
|
||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
—
|
—
|
(846
|
)
|
—
|
(846
|
)
|
||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired
|
—
|
—
|
—
|
(7
|
)
|
—
|
(7
|
)
|
||||||||||||||||
Acquisition of Intellectual Property
|
—
|
—
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
—
|
—
|
66
|
—
|
66
|
||||||||||||||||||
Capital Contribution to Subsidiary
|
(129
|
)
|
—
|
—
|
—
|
129
|
—
|
|||||||||||||||||
Net Cash Provided (Used) by Investing Activities
|
(129
|
)
|
—
|
—
|
(790
|
)
|
129
|
(790
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
836
|
—
|
18
|
—
|
854
|
||||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
(294
|
)
|
(15
|
)
|
(1
|
)
|
—
|
(310
|
)
|
||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
(70
|
)
|
(908
|
)
|
272
|
706
|
—
|
—
|
||||||||||||||||
Proceeds from Capital Contribution
|
—
|
—
|
—
|
129
|
(129
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
—
|
—
|
4
|
—
|
4
|
||||||||||||||||||
Net Cash Provided (Used) by Financing Activities
|
(70
|
)
|
(366
|
)
|
257
|
856
|
(129
|
)
|
548
|
|||||||||||||||
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
—
|
—
|
(4
|
)
|
—
|
(4
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
1
|
—
|
1
|
(7
|
)
|
—
|
(5
|
)
|
||||||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
—
|
—
|
—
|
300
|
—
|
300
|
||||||||||||||||||
Cash and Cash Equivalents at End of Period
|
$
|
1
|
$
|
—
|
$
|
1
|
$
|
293
|
$
|
—
|
$
|
295
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||||||||||||||
Net Income (Loss)
|
$
|
(726
|
)
|
$
|
(680
|
)
|
$
|
(235
|
)
|
$
|
(361
|
)
|
$
|
1,289
|
$
|
(713
|
)
|
|||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
|
||||||||||||||||||||||||
Charges from Parent or Subsidiary
|
27
|
(15
|
)
|
27
|
(39
|
)
|
—
|
—
|
||||||||||||||||
Equity in (Earnings) Loss of Affiliates
|
572
|
524
|
193
|
—
|
(1,289
|
)
|
—
|
|||||||||||||||||
Deferred Income Tax Provision (Benefit)
|
—
|
—
|
(31
|
)
|
71
|
—
|
40
|
|||||||||||||||||
Other Adjustments
|
80
|
(67
|
)
|
268
|
677
|
—
|
958
|
|||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
(47
|
)
|
(238
|
)
|
222
|
348
|
—
|
285
|
||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
—
|
—
|
(1,098
|
)
|
—
|
(1,098
|
)
|
||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(29
|
)
|
—
|
—
|
(127
|
)
|
—
|
(156
|
)
|
|||||||||||||||
Acquisition of Intellectual Property
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
||||||||||||||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
—
|
—
|
—
|
(8
|
)
|
—
|
(8
|
)
|
||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
—
|
—
|
16
|
—
|
16
|
||||||||||||||||||
Capital Contribution to Subsidiary
|
29
|
—
|
(118
|
)
|
118
|
(29
|
)
|
—
|
||||||||||||||||
Net Cash Provided (Used) by Investing Activities
|
—
|
—
|
(118
|
)
|
(1,105
|
)
|
(29
|
)
|
(1,252
|
)
|
||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
(85
|
)
|
—
|
(1
|
)
|
—
|
(86
|
)
|
|||||||||||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
1,295
|
(10
|
)
|
(272
|
)
|
—
|
1,013
|
||||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
47
|
(972
|
)
|
(91
|
)
|
1,016
|
—
|
—
|
||||||||||||||||
Proceeds from Capital Contribution
|
—
|
—
|
—
|
(29
|
)
|
29
|
—
|
|||||||||||||||||
Other, Net
|
—
|
—
|
—
|
53
|
—
|
53
|
||||||||||||||||||
Net Cash Provided (Used) by Financing Activities
|
47
|
238
|
(101
|
)
|
767
|
29
|
980
|
|||||||||||||||||
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
—
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
—
|
—
|
3
|
7
|
—
|
10
|
||||||||||||||||||
Cash and Cash Equivalents at Beginning of Period
|
—
|
—
|
—
|
371
|
—
|
371
|
||||||||||||||||||
Cash and Cash Equivalents at End of Period
|
$
|
—
|
$
|
—
|
$
|
3
|
$
|
378
|
$
|
—
|
$
|
381
|
-
|
Formation Evaluation and Well Construction includes Drilling Services, Well Construction, Integrated Drilling, Wireline and Evaluation Services, Drilling Tools and Re-entry and Fishing.
|
-
|
Completion and Production includes Artificial Lift Systems, Stimulation and Chemicals, Completion Systems and Pipeline and Specialty Services.
|
|
WTI Oil (a)
|
Henry Hub Gas (b)
|
North American Rig Count (c)
|
International Rig Count (c)
|
||||||||||||
|
|
|
|
|
||||||||||||
June 30, 2013
|
$
|
96.56
|
$
|
3.57
|
1,918
|
1,306
|
||||||||||
December 31, 2012
|
91.82
|
3.35
|
2,178
|
1,260
|
||||||||||||
June 30, 2012
|
84.96
|
2.82
|
2,148
|
1,230
|
(a)
|
Price per barrel of West Texas Intermediate ("WTI") crude oil of the date indicated at Cushing Oklahoma –
Source:
Thomson Reuters
|
(b)
|
Price per MM/BTU as of the date indicated at Henry Hub Louisiana –
Source:
Thomson Reuters
|
(c)
|
Average rig count for the period indicated –
Source:
Baker Hughes Rig Count
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||
Revenues:
|
|
|
|
|
||||||||||||
North America
|
$
|
1,529
|
$
|
1,663
|
$
|
3,221
|
$
|
3,417
|
||||||||
MENA/Asia Pacific
|
919
|
649
|
1,704
|
1,244
|
||||||||||||
Europe/SSA/Russia
|
681
|
653
|
1,314
|
1,224
|
||||||||||||
Latin America
|
739
|
782
|
1,466
|
1,453
|
||||||||||||
|
3,868
|
3,747
|
7,705
|
7,338
|
||||||||||||
|
||||||||||||||||
Operating Income:
|
||||||||||||||||
North America
|
167
|
226
|
391
|
584
|
||||||||||||
MENA/Asia Pacific
|
45
|
(38
|
)
|
87
|
(16
|
)
|
||||||||||
Europe/SSA/Russia
|
83
|
102
|
148
|
168
|
||||||||||||
Latin America
|
90
|
90
|
188
|
173
|
||||||||||||
Research and Development
|
(71
|
)
|
(64
|
)
|
(138
|
)
|
(126
|
)
|
||||||||
Corporate Expenses
|
(49
|
)
|
(49
|
)
|
(97
|
)
|
(99
|
)
|
||||||||
Goodwill and Equity Investment Impairment
|
—
|
(793
|
)
|
—
|
(793
|
)
|
||||||||||
US Government Investigation Loss Contingency
|
(153
|
)
|
(100
|
)
|
(153
|
)
|
(100
|
)
|
||||||||
Other Items
|
(57
|
)
|
(6
|
)
|
(92
|
)
|
(53
|
)
|
||||||||
|
55
|
(632
|
)
|
334
|
(262
|
)
|
||||||||||
|
||||||||||||||||
Interest Expense, Net
|
(128
|
)
|
(121
|
)
|
(259
|
)
|
(233
|
)
|
||||||||
Devaluation of Venezuelan Bolivar
|
—
|
—
|
(100
|
)
|
||||||||||||
Other, Net
|
(18
|
)
|
(27
|
)
|
(31
|
)
|
(45
|
)
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Net Loss per Diluted Share
|
$
|
(0.15
|
)
|
$
|
(1.11
|
)
|
$
|
(0.12
|
)
|
$
|
(0.95
|
)
|
||||
|
||||||||||||||||
Depreciation and Amortization
|
341
|
311
|
687
|
610
|
||||||||||||
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Formation Evaluation and Well Construction
|
61
|
%
|
55
|
%
|
60
|
%
|
56
|
%
|
||||||||
Completion and Production
|
39
|
%
|
45
|
%
|
40
|
%
|
44
|
%
|
||||||||
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Facilities
|
$
|
2,250
|
||
|
||||
Less:
|
||||
Amount drawn
|
525
|
|||
Commercial paper
|
840
|
|||
Letters of credit
|
121
|
|||
|
||||
Availability
|
$
|
764
|
|
June 30, 2013
|
December 31, 2012
|
||||||||||||||
|
Carrying
Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
||||||||||||
|
(In millions)
|
|||||||||||||||
|
|
|
|
|
||||||||||||
5.15% Senior Notes due 2013
|
$
|
—
|
$
|
—
|
$
|
294
|
$
|
296
|
||||||||
4.95% Senior Notes due 2013
|
250
|
253
|
250
|
258
|
||||||||||||
5.50% Senior Notes due 2016
|
354
|
379
|
354
|
380
|
||||||||||||
6.35% Senior Notes due 2017
|
611
|
670
|
613
|
690
|
||||||||||||
6.00% Senior Notes due 2018
|
498
|
561
|
497
|
570
|
||||||||||||
9.625% Senior Notes due 2019
|
1,023
|
1,261
|
1,025
|
1,307
|
||||||||||||
5.125% Senior Notes due 2020
|
797
|
834
|
797
|
875
|
||||||||||||
4.50% Senior Notes due 2022
|
747
|
734
|
747
|
794
|
||||||||||||
6.50% Senior Notes due 2036
|
595
|
609
|
595
|
645
|
||||||||||||
6.80% Senior Notes due 2037
|
298
|
311
|
298
|
339
|
||||||||||||
7.00% Senior Notes due 2038
|
497
|
525
|
497
|
564
|
||||||||||||
9.875% Senior Notes due 2039
|
247
|
336
|
247
|
370
|
||||||||||||
6.75% Senior Notes due 2040
|
596
|
618
|
596
|
680
|
||||||||||||
5.95% Senior Notes due 2042
|
545
|
528
|
545
|
600
|
||||||||||||
|
·
|
Engaged third-party tax advisors and consultants to assist with enhancing internal controls over financial reporting for income taxes and developing and implementing a remediation plan;
|
·
|
Revised the process for the quarterly and annual tax provisions including additional resources focused on the review and oversight of the tax accounts, reserves for unrecognized tax benefits and preparation of the income tax provision;
|
·
|
Began recruitment of various positions within the tax and financial reporting departments and completed the hiring of several newly created positions;
|
·
|
Completed the review and validation of the current and deferred tax balance sheet accounts at significant locations; and
|
·
|
Provided income tax accounting training to tax and financial personnel within each region.
|
·
|
On-going evaluation of the tax organizational structure, including the continued use of third-party tax advisors and consultants. We have hired approximately 50 qualified tax professionals to date and we have significantly reduced our reliance on consultants as many responsibilities have transitioned to our staff.
|
·
|
On-going evaluation of our tax accounting processes and controls to ensure that they are appropriate for our organization and make enhancements when appropriate to improve effectiveness including testing and assessments of our quarterly execution;
|
·
|
Prepare tax basis balance sheets and reconciliations of the tax accounts to validate the balances reported as of December 31, 2012;
|
·
|
On-going analysis and assessment of uncertain tax positions in all jurisdictions as part of our normal process, leveraging the extensive work performed by the Company in connection with the December 17, 2012 restatement,
|
·
|
Confirm that the information technology infrastructure supporting our income tax processes are appropriate.
|
·
|
Continued delivery of income tax accounting training for tax and financial accounting personnel.
|
Period
|
No. of Shares
|
Average Price
|
||||||
|
|
|
||||||
April 1 – April 30, 2013
|
37,046
|
$
|
12.11
|
|||||
May 1 – May 31, 2013
|
29,387
|
14.65
|
||||||
June 1 – June 30, 2013
|
11,266
|
13.68
|
Exhibit
Number
|
Description
|
3.1
|
Articles of Association of Weatherford International Ltd. dated June 20, 2013 (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K (File No. 1-34258) filed June 20, 2013).
|
|
|
*10.1
|
Employment Agreement, dated June 20, 2013, between Weatherford International Ltd. and Douglas M. Mills.
|
|
|
10.2
|
364-Day Term Loan Agreement dated as of May 1, 2013 among Weatherford International Ltd. (Bermuda), as borrower, Weatherford International Ltd. (Switzerland), the lenders party thereto and JPMorgan Chase Bank, N. A. as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 1-34258) filed May 2, 2013).
|
|
|
*31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
*31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
**32.1
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
**32.2
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
**101
|
The following materials from Weatherford International Ltd.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, formatted in XBRL (Extensible Business Reporting Language): (1) the unaudited Condensed Consolidated Balance Sheets, (2) the unaudited Condensed Consolidated Statements of Operations, (3) the unaudited Condensed Consolidated Statements of Cash Flows, (4) the unaudited Condensed Consolidated Statements of Comprehensive Income and (5) related notes to the unaudited Condensed Consolidated Financial Statements.
|
|
|
Weatherford International Ltd.
|
|
|
|
|
|
|
|
By:
|
/s/ Bernard J. Duroc-Danner
|
|
|
Bernard J. Duroc-Danner
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ John H. Briscoe
|
|
|
John H. Briscoe
|
|
|
Senior Vice President and
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
Date: July 31, 2013
|
Date: June 20, 2013
|
|
|
|
|
|
|
|
|
Applicable Multiple:
two (2)
|
|
|
|
|
|
Position:
|
|
/s/ Douglas M. Mills
|
|
|
Douglas M. Mills
|
Vice President & Chief Accounting Officer
|
|
|
|
|
|
|
|
|
Reporting to:
|
|
Weatherford International Ltd.
,
|
|
|
a Swiss joint-stock corporation
|
Chief Financial Officer
|
|
|
|
|
|
Address for notices to Executive:
|
|
By:
/s/ Bernard J. Duroc-Danner
|
|
|
Name: Bernard J. Duroc-Danner
|
|
|
Title: Chairman, President & CEO
|
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/ Bernard J. Duroc-Danner
|
Name:
|
Bernard J. Duroc-Danner
|
Title:
|
Chief Executive Officer
|
Date:
|
July 31, 2013
|
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/ John H. Briscoe
|
Name:
|
John H. Briscoe
|
Title:
|
Senior Vice President and Chief Financial Officer
|
Date:
|
July 31, 2013
|