þ
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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, 2011 | ||
OR
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||
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
Switzerland (State or other jurisdiction of incorporation or organization) |
98-0606750 (IRS Employer Identification No.) |
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4-6 Rue Jean-Francois Bartholoni, 1204 Geneva, Switzerland (Address of principal executive offices) |
Not Applicable (Zip Code) |
Title of each class
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Name of each exchange on which registered
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Registered Shares, par value 1.16 Swiss francs per share
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New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
PART I
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PAGE
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Item 1
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1
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Item 1A
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14
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Item 1B
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21
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Item 2
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22
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Item 3
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23
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Item 4
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23
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PART II
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Item 5
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24
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Item 6
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26
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Item 7
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27
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Item 7A
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43
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Item 8
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46
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Item 9
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117
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Item 9A
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117
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Item 9B
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122
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PART III
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Item 10
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122
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Item 11
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122
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Item 12
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122
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Item 13
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124
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Item 14
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124
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PART IV
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Item 15
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125
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139
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·
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Continuously improving the efficiency, productivity and quality of our products and services and their respective delivery in order to grow revenues and operating margins in all of our geographic markets at a rate exceeding underlying market activity;
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·
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Through a commitment to innovation, invention and integration, developing and commercializing new products and services that meet the evolving needs of our clients across the reservoir lifecycle; and
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·
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Further extending process, productivity, quality, safety and competency across our global infrastructure in scope and scale at a level consistent with meeting client demand for our products and services in an operationally efficient manner.
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Measurement while drilling (MWD) and logging while drilling (LWD) - MWD and LWD measure, respectively, wellbore trajectory and formation properties, in real time, while the well is being drilled, to enable it to be steered into its optimum position.
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·
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Rotary steerable systems (RSS) - These systems allow control of wellbore trajectory while maintaining continuous rotation of the drillstring at the surface. RSS technology is crucial for enabling long, step-out, directional wells and for reducing completion-running complications resulting from abrupt small-scale hole-angle changes caused by conventional drilling methods.
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·
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Directional drilling services - These services include surveying, design and operational support for directional and horizontal drilling and performance drilling in vertical wells; products include drilling motors and other associated equipment, software and expertise required to deliver the well on target as efficiently as possible.
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·
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Managed Pressure Drilling (MPD) – This technique provides an advanced method of controlling the well using a closed, pressurized fluid system and software-based monitoring and control system that more precisely controls the wellbore pressure profile than mud weight adjustments alone. The main objective of MPD is to optimize drilling processes by decreasing non-productive time and mitigating drilling hazards.
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·
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Underbalanced Drilling (UBD) – This technique is used in development, exploration and mature field applications to minimize formation damage and maximize productivity. UBD is drilling with bottomhole pressure that is maintained below reservoir pressure to intentionally invite fluid influx. This technique permits the reservoir to flow while drilling takes place, thereby improving well productivity by protecting the formation from damage by the drilling fluids.
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·
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Air Drilling – This technique applies reduced density fluid systems to drill sub-hydrostatically. Air drilling is used primarily in hard rock applications to reduce drilling costs by increasing the rate of penetration.
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·
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Conventional Sand Screens – These products are used in the fluid-solid separation processes and have a variety of product applications. Our primary application of well screens is for the control of sand in unconsolidated formations. We offer premium, pre-pack and wire-wrap sand screens. We also offer a FloReg™ line of inflow control devices that balance horizontal wellbore production, ultimately maximizing reservoir drainage. We also operate the water well and industrial screen business of Johnson Screens. Served markets include water well, petrochemical, wastewater treatment and surface water intake, mining and general industrial applications.
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·
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Expandable Sand Screens (ESS) – Our ESS systems are proprietary step-change sand control devices that reduce cost and improve production. These systems aid productivity because they stabilize the wellbore, prevent sand migration and have a larger inner diameter. ESS technology can replace complex gravel-packing techniques in many sand control situations.
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·
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Drillpipe and related drillstem tools, drill collars, and heavyweight pipe;
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·
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Downhole tools, including drilling jars, shock tools and underreamers;
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·
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Pressure-control equipment such as blowout preventers, high-pressure valves, accumulators, adapters and choke-and-kill manifolds; and
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·
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Tubular handling equipment such as elevators, spiders, slips, tongs and kelly spinners.
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·
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Open Hole Wireline – This service helps locate oil and gas by measuring certain characteristics of geological formations and providing permanent records called "logs." Open hole logging can be performed at different intervals during the well drilling process or immediately after a well is drilled. The logging data provides a valuable benchmark to which future well management decisions may be referenced. The open hole sensors are used to determine well lithology and the presence of hydrocarbons. Formation characteristics such as resistivity, density and porosity are measured using electrical, nuclear, acoustic, magnetic and mechanical technologies.
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·
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Petroleum Consulting — Our Petroleum Consulting business provides services to operators worldwide in the geoscience and engineering domain. It offers clients integrated formation evaluation and well engineering support and consultancy. The business further offers domain experts in the area of unconventional resources, geomechanics, field development planning, production optimization, well engineering and project management.
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·
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Cased Hole Wireline – This service is performed at various times throughout the life of the well and includes perforating, completion logging, production logging and casing integrity services. Perforating creates the flow path between the reservoir and the wellbore. Production logging can be performed throughout the life of the well to measure temperature, fluid type, flow rate, pressure and other reservoir characteristics. In addition, cased hole services may involve wellbore diagnostics and remediation, which could include the positioning and installation of various plugs and packers to maintain production or repair well problems, and casing inspection for internal or external abnormalities in the casing string.
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·
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Slickline Services – This service uses a solid steel or braided nonconductor line, in place of a single or multiple conductor braided line used in electric logging, to run downhole memory tools, manipulate downhole production devices and provide fishing services primarily in producing wells.
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·
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Global political, economic and market conditions could affect projected results. Our operating results and the forward-looking information we provide are based on our current assumptions about oil and natural gas supply and demand, oil and natural gas prices, rig count and other market trends. Our assumptions on these matters are in turn based on currently available information, which is subject to change. The oil and natural gas industry is extremely volatile and subject to change based on political and economic factors outside our control. A weakened global economic climate generally results in lower demand and lower prices for oil and natural gas, which reduces drilling and production activity, which in turn results in lower revenues and income for us. Worldwide drilling activity and global demand for oil and natural gas may also be affected by changes in governmental policies and sovereign debt, laws and regulations related to environmental or energy security matters, including those addressing alternative energy sources and the risks of global climate change. Worldwide economic conditions, and the related demand for oil and natural gas, may in future periods be significantly weaker than we have assumed.
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·
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We may be unable to recognize our expected revenues from current and future contracts. Our customers, many of whom are national oil companies, often have significant bargaining leverage over us and may elect to cancel or revoke contracts, not renew contracts, modify the scope of contracts or delay contracts, in some cases preventing us from realizing expected revenues and/or profits. The 2011 conflict in Libya and the continued security problems have slowed, and may continue to slow or ultimately prevent, collection of certain accounts receivable generated in Libya. Our projections assume that our customers will honor the contracts we have been awarded and that those contracts and the business that we believe is otherwise substantially firm will result in anticipated revenues in the periods for which they are scheduled.
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·
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Currency fluctuations and exchange contracts could have a material adverse financial impact on our business. A material change in currency rates in our markets could affect our future results as well as affect the carrying values of our assets. Any hedging activity in which we engage may not adequately protect us from these fluctuations. The terms and size of our hedges are based on the information available to us at the time we enter into them. As a result, our hedging activity may not entirely off set our exposures. World currencies have been subject to significant volatility. Due to the volatility we may be unable to enter into foreign currency contracts at a reasonable cost. Further, due to local currency exchange controls in certain jurisdictions, we may not be able to convert revenues received in local currency into dollars as quickly as we desire, thus exposing us to currency volatility.As we are not able to predict changes in currency valuations, our forward-looking statements assume no material impact from future changes in currency exchange rates.
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Our ability to manage our workforce could affect our projected results. We employ tens of thousands of people on six continents in a multitude of legal jurisdictions with differing labor laws. Our need for human resources varies from time to time and place to place corresponding largely to global drilling and production activity. In a climate of decreasing demand, we are faced with managing our workforce levels to control costs without impairing our ability to provide services to our customers and in compliance with various local laws. Conversely, in a climate of increasing demand, we are faced with the challenge of recruiting and retaining a skilled workforce at a reasonable cost. Our forward-looking statements assume we will be able to manage, cost effectively, our workforce in all jurisdictions in which we operate in both up cycles and down cycles.
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Increases in the prices and availability of our raw materials could affect our results of operations. We use large amounts of raw materials (including steel and other metals, chemicals, plastics, polymers and energy inputs) for manufacturing our products and some of our fixed assets. The price of these raw materials has a significant impact on our cost of producing products for sale or constructing fixed assets used in our business. We have assumed that the prices of our raw materials will remain within a manageable range and will be readily available. If we are unable to obtain necessary raw materials or if we are unable to minimize the impact of increased raw material costs or to realize the benefit of cost decreases in a timely fashion through our supply chain initiatives or pricing, our margins and results of operations could be adversely affected.
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·
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Our ability to manage our supply chain and business processes could affect our projected results. We have undertaken efforts to improve our supply chain, invoicing and collection processes and procedures. These undertakings include costs which we expect will result in long-term benefits for our business processes. Our forward-looking statements assume we will realize the benefits of these efforts.
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Rapid increases in demand for our products may challenge our supply chain. Many of our products have months-long manufacturing lead times, and we must maintain appropriate levels of manufacturing capacity and trained personnel to ensure the quality and safety of our supply chain. During periods of rapidly increasing or unexpected demand, we may not be able to manufacture sufficient quantities of certain products to meet our customers' demands, which could result in lost opportunities and reputational damage. Conversely, during periods of rapidly decreasing or unexpected declines in demand, we may have committed resources to manufacturing resulting in excess inventories, or we may have underutilized manufacturing capacity, which could adversely affect our financial condition. Our forward-looking statements assume we will be able to forecast and manage our supply chain needs and inventory levels efficiently.
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·
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Our long-term growth depends upon technological innovation and commercialization. Our ability to deliver our long-term growth strategy depends in part on the commercialization of new technology. A central aspect of our growth strategy is to improve our products and services through innovation, to obtain technologically advanced products through internal research and development and/or acquisitions, to protect proprietary technology from unauthorized use and to expand the markets for new technology by leveraging our worldwide infrastructure. Our success will depend on our ability to commercialize the technology that we have acquired and demonstrate the enhanced value our technology brings to our customers' operations. Our major technological advances include, but are not limited to, those related to controlled pressure drilling and testing systems, expandable solid tubulars, expandable sand screens and intelligent well completion. Our forward-looking statements have assumed successful commercialization of, and above-average growth from, our new products and services, as well as legal protection of our intellectual property rights.
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·
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Nonrealization of expected benefits from our redomestication could affect our projected results. We operate through our various subsidiaries in numerous countries throughout the world including the United States. During the first quarter of 2009, we completed a transaction in which our former Bermuda incorporated parent company became a wholly-owned subsidiary of Weatherford Switzerland, a Swiss joint-stock corporation, and holders of common shares of the Bermuda company received one registered share of Weatherford Switzerland in exchange for each common share that they held. Consequently, we are or may become subject to changes in tax laws, treaties or regulations or the interpretation or enforcement thereof in the U.S., Bermuda, Switzerland or any other jurisdictions in which we or any of our subsidiaries operate or are resident. Our income tax expense is based upon our interpretation of the tax laws in effect in various countries at the time that the expense was incurred. If the U.S. Internal Revenue Service or other taxing authorities do not agree with our assessment of the effects of such laws, treaties and regulations, this could have a material adverse effect on us, including the imposition of a higher effective tax rate on our worldwide earnings or a reclassification of the tax impact of our significant corporate restructuring transactions. In addition, our realization of expected tax benefits is based upon the assumption that we take successful planning steps and that we maintain and execute adequate processes to support our planning activities. If we fail to do so, we may not achieve the expected benefits.
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·
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Nonrealization of expected benefits from our acquisitions or business dispositions could affect our projected results. We expect to gain certain business, financial and strategic advantages as a result of business acquisitions we undertake, including synergies and operating efficiencies. Our forward-looking statements assume that we will successfully integrate our business acquisitions and realize the benefits of those acquisitions. Further, we may from time to time undertake to dispose of businesses or capital assets that are no longer core to our long-term growth strategy and the disposition of which may improve our capital structure. Our forward-looking statements assume that if we decide to dispose of a business or asset we will find a buyer willing to pay a price we deem favorable to Weatherford and that we will successfully dispose of the business or asset. Our inability to complete dispositions timely and at attractive prices may impair our ability to improve our capital structure as rapidly as our forward-looking statements may indicate.
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A downturn in our industry could affect the carrying value of our goodwill. As of December 31, 2011, we had approximately $4.4 billion of goodwill. Our estimates of the value of our goodwill could be reduced in the future as a result of various factors, including market factors, some of which are beyond our control. Our forward-looking statements do not assume any future goodwill impairment. Any reduction in the fair value of our businesses may result in an impairment charge and therefore adversely affect our results.
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Adverse weather conditions in certain regions could adversely affect our operations. From time to time, hurricanes, typhoons and severe weather impact our operations in the Gulf of Mexico and Southeast Asia. These storms and associated threats reduce the number of days on which we and our customers operate which results in lower revenues than we otherwise would have achieved. Our Canadian operations, particularly in the second quarter of each year, may vary greatly depending on the timing of "break-up", or the spring thaw, which annually results in a period in which conditions are not conducive to operations. Similarly, unfavorable weather in Russia, Caspian, China, Mexico, Australia and in the North Sea, as well as exceedingly cold winters in other areas of the world, could reduce our operations and revenues from these areas during the relevant period. Our forward-looking statements assume weather patterns in our primary areas of operations will be conducive to our operations.
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·
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U.S. Government and internal investigations could affect our results of operations. We are currently involved in government and internal investigations involving our operations. We are in negotiations with the government agencies to resolve these matters, but we cannot yet anticipate the timing, outcome or possible impact of the ultimate resolution of these investigations, financial or otherwise. The governmental agencies involved in these investigations have a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of trade sanction laws, the Foreign Corrupt Practices Act and other federal statutes including, but not limited to, injunctive relief, disgorgement, fines, penalties and modifications to business practices and compliance programs. In recent years, these agencies and authorities have entered into agreements with, and obtained a range of penalties against, several corporations and individuals in similar investigations, under which civil and criminal penalties were imposed, including in some cases fines and other penalties and sanctions in the tens and hundreds of millions of dollars. These agencies likely will seek to impose penalties of some amount against us for past conduct in several countries, but the ultimate amount of any penalties we may pay currently cannot be reasonably estimated. Under trade sanction laws, the U.S. Department of Justice may also seek to impose modifications to business practices, including immediate cessation of all business activities in specific countries or other limitations that decrease our business, and modifications to compliance programs, which may increase compliance costs. Any injunctive relief, disgorgement, fines, penalties, sanctions or imposed modifications to business practices and the on-going costs resulting from these investigations could adversely affect our results of operations. Through December 31, 2011, we have incurred $40 million for costs in connection with our exit from certain sanctioned countries and incurred $123 million for legal and professional fees in connection with complying with and conducting these on-going investigations. This amount excludes the costs we have incurred to augment and improve our compliance function. We may have additional charges related to these matters in future periods. These costs may include labor claims, contractual claims, penalties assessed by customers, and costs, fines, taxes and penalties assessed by local governments, but we cannot quantify those charges or be certain of their timing. In addition, the SEC and Department of Justice are investigating the circumstances surrounding the material weakness in the Company's internal controls over financial reporting for income taxes that was disclosed on Forms 8-K on March 1, 2011 and February 21, 2012 and the related restatements of historical financial statements. We are cooperating with the government investigations.
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Failure in the future to ensure ongoing compliance with certain laws could affect our results of operations. In 2009, we substantially augmented our compliance infrastructure with increased staff and more rigorous policies, procedures and training of our employees regarding compliance with applicable anti-corruption laws, trade sanctions laws and import/export laws. As part of this effort, we now undertake audits of our compliance performance in various countries. Our forward-looking statements assume that our compliance efforts will be successful and that we will comply with our internal policies and applicable laws regarding these issues. Our failure to do so could result in additional enforcement action in the future, the results of which could be material and adverse to us.
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Political disturbances, war, or terrorist attacks and changes in global trade policies could adversely impact our operations. We operate in over 100 countries, and as such are at risk of various types of political activities, including acts of insurrection, war, terrorism, nationalization of assets and changes in trade policies. We have assumed there will be no material political disturbances or terrorist attacks and there will be no material changes in global trade policies that affect our business. In early 2011, our operations in Libya, Algeria, Tunisia, Egypt, and to a lesser extent Yemen and Bahrain were disrupted by political revolutions and uprisings in these countries. Conflict in Libya and lesser political disturbances elsewhere in the Middle East and North Africa regions are ongoing, and our operations in Libya have not resumed. During 2011, these six countries accounted for approximately 3% of our global revenue, down from 6% in 2010. We take steps to secure our personnel and assets in affected areas and resume or continue operations where it is safe for us to do so; our forward-looking statements assume we will do so successfully. In Libya, we evacuated all of our non-Libyan employees and their families shortly after hostilities commenced. We have assumed our operations in Libya will not resume in 2012 and we are not able to predict when they will resume to a material extent. In the fourth quarter of 2011, following an examination of our assets in affected countries, we recognized an expense of $59 million primarily to establish a reserve for receivables, machinery and equipment and inventory in Libya. Given our evacuation from the country, it may be difficult, if not impossible, for us to safeguard and recover all of our operating assets; our ability to do so will depend on the local turn of events. At December 31, 2011, we had in Libya inventory and property, plant and equipment with a carrying value of approximately $118 million, as well as $9 million of accounts receivable. We risk loss of assets in any location where hostilities arise and persist. In these areas we also may not be able to perform the work we are contracted to perform, which could lead to forfeiture of performance bonds. We have assumed that cessation of business activities in other parts of the Middle East and North Africa regions due to political turmoil will be short-lived, that the negative impact on our business will not be material, and that the region will not experience further disruptive political revolution in the near term. However, if political violence were to curtail our activities in other countries in the region from which we derive greater business, such as Saudi Arabia, Iraq and Algeria, and particularly if political activities were to result in prolonged violence or conflict, we may fail to achieve the results reflected in our forward-looking statements.
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The material weakness in accounting for income taxes could have an adverse effect on our share price or our debt ratings and our ability to report our financial information timely and accurately. If we are unable to effectively remediate this material weakness in a timely manner, we could lose investor confidence in the accuracy and completeness of our financial reports, which could have an adverse effect on our share price and could subject us to additional potentially costly shareholder litigation or government inquiries. Further, if we are unable to effectively remediate this material weakness in a timely manner, our failure to do so could limit our ability to obtain financing, harm our reputation or result in debt rating agencies adjusting the ratings on our debt downward. Our forward-looking statements assume we will be able to remediate the material weakness in a timely manner and will maintain an effective internal control environment in the future.
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Recent turmoil in the credit markets may reduce our access to capital or reduce the availability of financial risk-mitigation tools. The worldwide credit markets experienced turmoil and uncertainty from mid-2008 through most of 2009, and certain markets remained challenging in parts of 2010. In 2011, several important financial and banking institutions were perceived to be overexposed to credit risks with respect to certain sovereign debt. We do not have access to complete information about the exposures of any particular institution, and we cannot predict what systemic risks may exist in the event of failure of any sovereign debtor, major financial institution or bank. Our forward-looking statements assume that the financial institutions that have committed to extend us credit will honor their commitments under our credit facilities and that capital markets will remain orderly. If one or more of those institutions becomes unwilling or unable to honor its commitments, our access to liquidity could be impaired and our cost of capital to fund growth could increase. We use interest rate and foreign exchange swap transactions with financial institutions to mitigate certain interest rate and foreign exchange risks associated with our capital structure and our business. Our forward-looking statements assume that those tools will continue to be available to us at prices we deem reasonable. However, the failure of any counterparty to honor a swap agreement could reduce the availability of these financial risk mitigation tools or could result in the loss of expected financial benefits.
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disruption of oil and natural gas exploration and production activities;
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restriction of the movement and exchange of funds;
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our inability to collect receivables;
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loss of or nationalization of assets in affected jurisdictions;
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enactment of additional or stricter U.S. government or international sanctions; and
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limitation of our access to markets for periods of time.
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Location
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Owned/
Leased
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Principal Services and Products
Offered or Manufactured
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North America:
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Huntsville, Texas
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Owned
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Liner systems and solid expandables
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New Brighton, Minnesota
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Owned
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Water well and industrial screens
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Nisku, Alberta, Canada
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Owned
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Conventional pumping units, drilling services, fishing and wireline
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San Antonio, Texas
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Leased
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Artificial lift systems
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Schriever, Louisiana
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Owned
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Cementation manufacturing, plant and well construction services
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Latin America:
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Altamira, Mexico
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Leased
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Cased hole, directional drilling, testing services
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Ciudad Del Carmen, Mexico
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Leased
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Wireline
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Ojeda, Venezuela
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Owned
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Artificial lift systems
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Reynosa, Mexico
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Leased
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Cased hole completion, drilling tools, fishing and well testing
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Rio de Janeiro, Brazil
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Owned
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Conventional pumping units, manufacturing and service center
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Poza Rica, Mexico
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Leased
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Integrated drilling
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Venustiano Carranza, Mexico
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Owned
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Office, warehouse, housing area
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Villahermosa, Mexico
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Leased
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Borehole seismic, cased hole
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Europe/SSA/Russia:
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Langenhagen, Germany
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Leased
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Manufacturing
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Lukhovitsy, Russia
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Owned
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Pipeline and specialty services
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Nizhnevartovsk, Russia
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Owned
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Drilling, sidetracking, wireline, fishing,well workover and tool rental
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Stavanger, Norway
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Leased
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Casing exit, cementing, directional drilling and fishing
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MENA/Asia Pacific:
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Abu Dhabi, UAE
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Leased
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Manufacturing
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Dongyin, China
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Leased
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Progressing cavity pumps
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Shifang, China
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Owned
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Pump jacks and wellhead
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Corporate:
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Geneva, Switzerland
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Leased
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Headquarters
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Houston, Texas
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Leased
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Corporate offices
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·
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"Item 1. Business – Other Business Data – Federal Regulation and Environmental Matters," which is incorporated by reference into this item.
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·
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"Item 1A. Risk Factors – We are involved in several governmental and internal investigations, which are costly to conduct, have resulted in a loss of revenue and may result in substantial financial penalties," which is incorporated by reference into this item.
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·
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"Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements– Note 16 — Disputes, Litigation and Contingencies".
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Price
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|||||||
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High
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Low
|
||||||
Year ending December 31, 2011
|
||||||||
First Quarter
|
$
|
26.25
|
$
|
19.56
|
||||
Second Quarter
|
23.41
|
16.65
|
||||||
Third Quarter
|
22.76
|
12.12
|
||||||
Fourth Quarter
|
16.85
|
10.85
|
||||||
|
||||||||
Year ending December 31, 2010
|
||||||||
First Quarter
|
$
|
20.88
|
$
|
14.63
|
||||
Second Quarter
|
18.80
|
12.34
|
||||||
Third Quarter
|
17.60
|
12.68
|
||||||
Fourth Quarter
|
22.98
|
16.70
|
Period
|
No. of Shares
|
Average Price
|
||||||
October 1 - October 31, 2011
|
15,767
|
$
|
13.06
|
|||||
November 1 - November 30, 2011
|
7,808
|
16.21
|
||||||
December 1 - December 31, 2011
|
136,965
|
13.49
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||
|
(In millions, except per share amount)
|
|||||||||||||||||||
Statements of Operations Data:
|
||||||||||||||||||||
Revenues
|
$
|
12,988
|
$
|
10,221
|
$
|
8,833
|
$
|
9,601
|
$
|
7,832
|
||||||||||
Operating Income
|
1,307
|
774
|
687
|
1,947
|
1,644
|
|||||||||||||||
Income (Loss) From Continuing Operations Attributable to Weatherford
|
189
|
(217
|
)
|
87
|
1,167
|
898
|
||||||||||||||
Basic Earnings (Loss) Per Share From Continuing Operations Attributable To Weatherford
|
0.25
|
(0.29
|
)
|
0.12
|
1.71
|
1.32
|
||||||||||||||
Diluted Earnings (Loss) Per Share From Continuing Operations Attributable To Weatherford
|
0.25
|
(0.29
|
)
|
0.12
|
1.67
|
1.29
|
||||||||||||||
|
||||||||||||||||||||
Balance Sheet Data:
|
||||||||||||||||||||
Total Assets
|
$
|
21,051
|
$
|
19,199
|
$
|
18,782
|
$
|
16,555
|
$
|
13,222
|
||||||||||
Long-term Debt
|
6,286
|
6,530
|
5,847
|
4,564
|
3,066
|
|||||||||||||||
Shareholders' Equity
|
9,345
|
9,118
|
9,175
|
7,936
|
7,185
|
|||||||||||||||
Cash Dividends Per Share
|
—
|
—
|
—
|
—
|
—
|
|
WTI Oil (a)
|
Henry Hub Gas (b)
|
North American Rig Count (c)
|
International Rig Count (c)
|
||||||||||||
2011
|
$
|
98.83
|
$
|
2.99
|
2,432
|
1,180
|
||||||||||
2010
|
91.38
|
4.41
|
2,108
|
1,118
|
||||||||||||
2009
|
79.36
|
5.57
|
1,485
|
1,113
|
(a)
|
Price per barrel as of the last business day of the year indicated – Source: Thomson Reuters
|
(b)
|
Price per MM/BTU as of the last business day of the year indicated – Source: Thomson Reuters
|
(c)
|
Average rig count for December – Source: Baker Hughes Rig Count and other third-party data
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions, except per share data)
|
|||||||||||
Revenues:
|
||||||||||||
North America
|
$
|
6,023
|
$
|
4,167
|
$
|
2,762
|
||||||
MENA/Asia Pacific
|
2,441
|
2,451
|
2,373
|
|||||||||
Europe/SSA/Russia
|
2,298
|
1,984
|
1,619
|
|||||||||
Latin America
|
2,226
|
1,619
|
2,079
|
|||||||||
|
12,988
|
10,221
|
8,833
|
|||||||||
Operating Income (Expense):
|
||||||||||||
North America
|
1,259
|
693
|
191
|
|||||||||
MENA/Asia Pacific
|
25
|
264
|
445
|
|||||||||
Europe/SSA/Russia
|
287
|
240
|
223
|
|||||||||
Latin America
|
254
|
51
|
277
|
|||||||||
Research and Development
|
(245
|
)
|
(216
|
)
|
(196
|
)
|
||||||
Corporate
|
(177
|
)
|
(172
|
)
|
(177
|
)
|
||||||
Revaluation of Contingent Consideration
|
—
|
13
|
24
|
|||||||||
Other Items
|
(96
|
)
|
(99
|
)
|
(100
|
)
|
||||||
|
1,307
|
774
|
687
|
|||||||||
|
||||||||||||
Interest Expense, Net
|
(453
|
)
|
(406
|
)
|
(367
|
)
|
||||||
Bond Tender Premium
|
—
|
(54
|
)
|
—
|
||||||||
Devaluation of Venezuelan Bolivar
|
—
|
(64
|
)
|
—
|
||||||||
Other, Net
|
(107
|
)
|
(53
|
)
|
(44
|
)
|
||||||
|
||||||||||||
Provision for Income Tax
|
(542
|
)
|
(396
|
)
|
(163
|
)
|
||||||
|
||||||||||||
Net Income per Diluted Share
|
0.25
|
(0.29
|
)
|
0.12
|
||||||||
|
||||||||||||
Depreciation and Amortization
|
1,136
|
1,048
|
909
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
||||||||||||
Artificial Lift Systems
|
17
|
%
|
15
|
%
|
14
|
%
|
||||||
Stimulation and Chemicals Services
|
17
|
12
|
8
|
|||||||||
Drilling Services
|
17
|
17
|
16
|
|||||||||
Well Construction
|
12
|
14
|
15
|
|||||||||
Integrated Drilling
|
11
|
12
|
14
|
|||||||||
Completion Systems.
|
8
|
8
|
11
|
|||||||||
Drilling Tools
|
6
|
8
|
8
|
|||||||||
Wireline and Evaluation Services
|
6
|
6
|
6
|
|||||||||
Re-entry and Fishing
|
5
|
6
|
6
|
|||||||||
Pipeline and Specialty Services
|
1
|
2
|
2
|
|||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
|
2011 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
|
||||||||||||||||||||
Provision for Income Taxes, as Reported
|
$
|
46
|
$
|
76
|
$
|
143
|
$
|
221
|
$
|
486
|
||||||||||
Adjustment
|
—
|
24 | 2 |
30
|
56 | |||||||||||||||
Restated
|
$
|
46 |
$
|
100 |
$
|
145 |
$
|
251
|
$
|
542 |
|
2010 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
|
||||||||||||||||||||
Provision for Income Taxes, as Reported
|
$
|
5
|
$
|
46
|
$
|
59
|
$
|
229
|
$
|
339
|
||||||||||
Adjustment
|
11
|
17 | 17 | 12 | 57 | |||||||||||||||
Restated
|
$
|
16 |
$
|
63 |
$
|
76 |
$
|
241 |
$
|
396 |
Facility
|
$
|
2,250
|
||
|
||||
Less uses of facility:
|
||||
Amount drawn
|
—
|
|||
Commercial paper
|
997
|
|||
Letters of credit
|
64
|
|||
|
||||
Availability
|
$
|
1,189
|
|
Payments Due by Period
|
|||||||||||||||||||
|
2012
|
2013 and 2014
|
2015 and
2016
|
Thereafter
|
Total
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
|
||||||||||||||||||||
Short-term debt
|
$
|
1,011
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,011
|
||||||||||
Long-term debt (a)
|
310
|
598
|
404
|
5,253
|
6,565
|
|||||||||||||||
Interest on long-term debt
|
427
|
799
|
766
|
3,948
|
5,940
|
|||||||||||||||
Noncancellable operating leases
|
173
|
224
|
135
|
179
|
711
|
|||||||||||||||
Purchase obligations
|
582
|
—
|
—
|
—
|
582
|
|||||||||||||||
|
$
|
2,503
|
$
|
1,621
|
$
|
1,305
|
$
|
9,380
|
$
|
14,809
|
(a)
|
Amounts represent the expected cash payments of principal associated with our long-term debt. These amounts do not include the unamortized discounts or deferred gains on terminated interest rate swap agreements.
|
|
Useful Lives
|
Buildings and leasehold improvements
|
10 – 40 years or lease term
|
Rental and service equipment
|
2 – 20 years
|
Machinery and other
|
2 – 12 years
|
Intangible assets
|
2 – 20 years
|
|
Increase (Decrease) of Annual
Pension Expense
|
|||||||
|
50 Basis Point Increase
|
50 Basis Point Decrease
|
||||||
|
(In millions)
|
|||||||
|
||||||||
Discount rate
|
$
|
(2
|
)
|
$
|
2
|
|||
Expected long-term rate of return
|
(1
|
)
|
1
|
·
|
estimates of the available revenue under the contracts;
|
·
|
estimates of the total cost to complete the project;
|
·
|
estimates of project schedule and completion date;
|
·
|
estimates of the extent of progress toward completion; and
|
·
|
amounts of any change orders or claims included in revenue.
|
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
||||||||||||||
|
Carrying
Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
||||||||||||
|
(In millions)
|
|||||||||||||||
|
||||||||||||||||
6.625% Senior Notes due 2011
|
$
|
—
|
$
|
—
|
$
|
184
|
$
|
191
|
||||||||
5.95% Senior Notes due 2012
|
273
|
279
|
273
|
290
|
||||||||||||
5.15% Senior Notes due 2013
|
297
|
306
|
299
|
310
|
||||||||||||
4.95% Senior Notes due 2013
|
252
|
264
|
252
|
266
|
||||||||||||
5.50% Senior Notes due 2016
|
357
|
386
|
358
|
374
|
||||||||||||
6.35% Senior Notes due 2017
|
613
|
674
|
600
|
651
|
||||||||||||
6.00% Senior Notes due 2018
|
498
|
563
|
498
|
551
|
||||||||||||
9.625% Senior Notes due 2019
|
1,030
|
1,323
|
1,033
|
1,287
|
||||||||||||
5.125% Senior Notes due 2020
|
799
|
861
|
799
|
794
|
||||||||||||
6.50% Senior Notes due 2036
|
596
|
680
|
596
|
595
|
||||||||||||
6.80% Senior Notes due 2037
|
298
|
338
|
298
|
312
|
||||||||||||
7.00% Senior Notes due 2038
|
498
|
556
|
498
|
535
|
||||||||||||
9.875% Senior Notes due 2039
|
247
|
350
|
247
|
335
|
||||||||||||
6.75% Senior Notes due 2040
|
598
|
690
|
598
|
624
|
|
Page
|
|
|
47
|
|
48
|
|
49
|
|
50
|
|
51
|
|
52
|
|
Financial Statement Schedule II:
|
|
138
|
|
||||||||
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(Restated)
|
(Restated)
|
||||||
|
(In millions, except par value)
|
|||||||
Current Assets:
|
||||||||
Cash and Cash Equivalents
|
$
|
371
|
$
|
416
|
||||
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $91 in 2011 and $59 in 2010
|
3,233
|
2,629
|
||||||
Inventories
|
3,158
|
2,590
|
||||||
Current Deferred Tax Assets
|
274
|
257
|
||||||
Other Current Assets
|
695
|
603
|
||||||
Total Current Assets
|
7,731
|
6,495
|
||||||
|
||||||||
Property, Plant and Equipment
|
||||||||
Land, Buildings and Leasehold Improvements
|
1,369
|
1,160
|
||||||
Rental and Service Equipment
|
8,867
|
7,977
|
||||||
Machinery and Other
|
2,074
|
2,033
|
||||||
|
12,310
|
11,170
|
||||||
Less: Accumulated Depreciation
|
5,023
|
4,225
|
||||||
|
7,287
|
6,945
|
||||||
|
||||||||
Goodwill
|
4,423
|
4,279
|
||||||
Other Intangible Assets
|
711
|
728
|
||||||
Equity Investments
|
616
|
540
|
||||||
Other Non-current Assets
|
283
|
212
|
||||||
Total Assets
|
$
|
21,051
|
$
|
19,199
|
||||
|
||||||||
|
||||||||
Current Liabilities:
|
||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
1,320
|
$
|
235
|
||||
Accounts Payable
|
1,571
|
1,335
|
||||||
Accrued Salaries and Benefits
|
402
|
330
|
||||||
Income Taxes Payable
|
178
|
103
|
||||||
Other Current Liabilities
|
812
|
698
|
||||||
Total Current Liabilities
|
4,283
|
2,701
|
||||||
|
||||||||
Long-term Debt
|
6,286
|
6,530
|
||||||
Other Non-current Liabilities
|
1,137
|
850
|
||||||
Total Liabilities
|
11,706
|
10,081
|
||||||
|
||||||||
Shareholders' Equity:
|
||||||||
Shares Par Value 1.16 Swiss Francs: Authorized 1,139 Shares, Conditionally Authorized 379 Shares at December 31, 2011 and 2010, Issued 765 Shares, at December 31, 2011; Issued 758 Shares at December 31, 2010
|
769
|
761
|
||||||
Capital in Excess of Par Value
|
4,675
|
4,617
|
||||||
Treasury Shares, at Cost
|
(334
|
)
|
(478
|
)
|
||||
Retained Earnings
|
4,134
|
3,949
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
80
|
202
|
||||||
Weatherford Shareholders' Equity
|
9,324
|
9,051
|
||||||
Noncontrolling Interests
|
21
|
67
|
||||||
Total Shareholders' Equity
|
9,345
|
9,118
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
21,051
|
$
|
19,199
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions, except per share amounts)
|
|||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
4,884
|
$
|
3,580
|
$
|
2,921
|
||||||
Services
|
8,104
|
6,641
|
5,912
|
|||||||||
|
12,988
|
10,221
|
8,833
|
|||||||||
Costs and Expenses:
|
||||||||||||
Cost of Products
|
3,742
|
2,637
|
2,311
|
|||||||||
Cost of Services
|
5,936
|
4,953
|
4,153
|
|||||||||
Research and Development
|
245
|
216
|
196
|
|||||||||
Selling, General and Administrative Attributable to Segments
|
1,532
|
1,404
|
1,260
|
|||||||||
Corporate General and Administrative
|
226
|
237
|
226
|
|||||||||
|
11,681
|
9,447
|
8,146
|
|||||||||
|
||||||||||||
Operating Income
|
1,307
|
774
|
687
|
|||||||||
Other Income (Expense):
|
||||||||||||
Interest Expense, Net
|
(453
|
)
|
(406
|
)
|
(367
|
)
|
||||||
Bond Tender Premium
|
—
|
(54
|
)
|
—
|
||||||||
Devaluation of Venezuelan Bolivar
|
—
|
(64
|
)
|
—
|
||||||||
Other, Net
|
(107
|
)
|
(53
|
)
|
(44
|
)
|
||||||
|
||||||||||||
Income Before Income Taxes
|
747
|
197
|
276
|
|||||||||
Provision for Income Taxes
|
(542
|
)
|
(396
|
)
|
(163
|
)
|
||||||
Net Income (Loss)
|
205
|
(199
|
)
|
113
|
||||||||
Net Income Attributable to Noncontrolling Interests
|
(16
|
)
|
(18
|
)
|
(26
|
)
|
||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
189
|
$
|
(217
|
)
|
$
|
87
|
|||||
|
||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||
Basic
|
$
|
0.25
|
$
|
(0.29
|
)
|
$
|
0.12
|
|||||
Diluted
|
$
|
0.25
|
$
|
(0.29
|
)
|
$
|
0.12
|
|||||
|
||||||||||||
Weighted Average Shares Outstanding:
|
||||||||||||
Basic
|
753
|
743
|
715
|
|||||||||
Diluted
|
760
|
743
|
723
|
|
Issued
Shares
|
Capital In Excess of Par Value
|
Retained Earnings
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Treasury Shares
|
Non-controlling Interests
|
Total Shareholders' Equity
|
|||||||||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||||||
As Reported December 31, 2008
|
$
|
729
|
$
|
4,059
|
$
|
4,122
|
$
|
(253
|
)
|
$
|
(759
|
)
|
$
|
80
|
$
|
7,978
|
||||||||||||
Restatement Adjustment
|
—
|
109
|
(43
|
)
|
1
|
(109
|
) |
—
|
(42
|
)
|
||||||||||||||||||
Balance at December 31, 2008
|
729
|
4,168
|
4,079
|
(252
|
)
|
(868
|
)
|
80
|
7,936
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||
Net Income
|
—
|
—
|
87
|
—
|
—
|
26
|
113
|
|||||||||||||||||||||
Foreign Currency Translation Adjustment
|
—
|
—
|
—
|
393
|
—
|
—
|
393
|
|||||||||||||||||||||
Other, Net of Tax
|
—
|
—
|
—
|
1
|
—
|
—
|
1
|
|||||||||||||||||||||
Comprehensive Income
|
87
|
394
|
26
|
507
|
||||||||||||||||||||||||
Dividends Paid to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
(30
|
)
|
(30
|
)
|
|||||||||||||||||||
Shares Issued for Acquisitions
|
32
|
519
|
—
|
—
|
122
|
—
|
673
|
|||||||||||||||||||||
Equity Awards Granted, Vested and Exercised
|
—
|
(46
|
) |
—
|
—
|
138
|
—
|
92
|
||||||||||||||||||||
Excess Tax Benefit of Share-Based Compensation Plans
|
—
|
4
|
—
|
—
|
—
|
—
|
4
|
|||||||||||||||||||||
Other
|
—
|
(10
|
)
|
—
|
—
|
—
|
3
|
(7
|
)
|
|||||||||||||||||||
Balance at December 31, 2009
|
761
|
4,635
|
4,166
|
142
|
(608
|
)
|
79
|
9,175
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||
Net Loss
|
—
|
—
|
(217
|
)
|
—
|
—
|
18
|
(199
|
)
|
|||||||||||||||||||
Foreign Currency Translation Adjustment
|
—
|
—
|
—
|
3
|
—
|
—
|
3
|
|||||||||||||||||||||
Defined Benefit Pension Plans, Net of Tax
|
—
|
—
|
—
|
56
|
—
|
—
|
56
|
|||||||||||||||||||||
Other, Net of Tax
|
—
|
—
|
—
|
1
|
—
|
—
|
1
|
|||||||||||||||||||||
Comprehensive Income
|
(217
|
)
|
60
|
18
|
(139
|
)
|
||||||||||||||||||||||
Dividends Paid to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
(29
|
)
|
(29
|
)
|
|||||||||||||||||||
Shares Issued for Acquisitions
|
—
|
(10
|
)
|
—
|
—
|
38
|
—
|
28
|
||||||||||||||||||||
Equity Awards Granted, Vested and Exercised
|
—
|
(8
|
) |
—
|
—
|
94
|
—
|
86
|
||||||||||||||||||||
Other
|
—
|
—
|
—
|
—
|
(2
|
)
|
(1
|
)
|
(3
|
)
|
||||||||||||||||||
Balance at December 31, 2010
|
761
|
4,617
|
3,949
|
202
|
(478
|
)
|
67
|
9,118
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Comprehensive Loss:
|
||||||||||||||||||||||||||||
Net Income
|
—
|
—
|
189
|
—
|
—
|
16
|
205
|
|||||||||||||||||||||
Foreign Currency Translation Adjustment
|
—
|
—
|
—
|
(118
|
)
|
—
|
—
|
(118
|
)
|
|||||||||||||||||||
Defined Benefit Pension Plans, Net of Tax
|
—
|
—
|
—
|
(5
|
)
|
—
|
—
|
(5
|
)
|
|||||||||||||||||||
Other, Net of Tax
|
—
|
—
|
—
|
1
|
—
|
—
|
1
|
|||||||||||||||||||||
Comprehensive Loss
|
189
|
(122
|
)
|
16
|
83
|
|||||||||||||||||||||||
Dividends Paid to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
(29
|
)
|
(29
|
)
|
|||||||||||||||||||
Shares Issued for Acquisitions
|
6
|
63
|
—
|
—
|
65
|
—
|
134
|
|||||||||||||||||||||
Equity Awards Granted, Vested and Exercised
|
—
|
(7
|
) |
—
|
—
|
79
|
—
|
72
|
||||||||||||||||||||
Excess Tax Benefit of Share-Based Compensation Plans
|
—
|
4
|
—
|
—
|
—
|
—
|
4
|
|||||||||||||||||||||
Deconsolidation of Joint Ventures
|
—
|
—
|
(4
|
)
|
—
|
—
|
(34
|
)
|
(38
|
)
|
||||||||||||||||||
Other
|
2
|
(2
|
)
|
—
|
—
|
—
|
1
|
1
|
||||||||||||||||||||
Balance at December 31, 2011
|
$
|
769
|
$
|
4,675
|
$
|
4,134
|
$
|
80
|
$
|
(334
|
)
|
$
|
21
|
$
|
9,345
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions)
|
|||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Income (Loss)
|
$
|
205
|
$
|
(199
|
)
|
$
|
113
|
|||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
|
||||||||||||
Depreciation and Amortization
|
1,136
|
1,048
|
909
|
|||||||||
Employee Share-Based Compensation Expense
|
87
|
99
|
110
|
|||||||||
Bad Debt Expense
|
52
|
57
|
11
|
|||||||||
(Gain) Loss on Sale of Assets and Businesses, Net
|
29
|
30
|
(14
|
)
|
||||||||
Deferred Income Tax Provision (Benefit)
|
121
|
82
|
(112
|
)
|
||||||||
Excess Tax Benefits from Share-Based Compensation
|
(4
|
) |
—
|
(4
|
)
|
|||||||
Devaluation of Venezuelan Bolivar
|
—
|
64
|
—
|
|||||||||
Bond Tender Premium
|
—
|
54
|
—
|
|||||||||
Supplemental Executive Retirement Plan
|
—
|
38
|
—
|
|||||||||
Revaluation of Contingent Consideration
|
—
|
(13
|
)
|
(24
|
)
|
|||||||
Other, Net
|
(19
|
)
|
(18
|
)
|
(29
|
)
|
||||||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
||||||||||||
Accounts Receivable
|
(623
|
)
|
(190
|
)
|
94
|
|||||||
Inventories
|
(606
|
)
|
(359
|
)
|
(48
|
)
|
||||||
Other Current Assets
|
(81
|
)
|
82
|
(150
|
)
|
|||||||
Accounts Payable
|
242
|
298
|
41
|
|||||||||
Other Current Liabilities
|
230
|
(20
|
) |
(177
|
)
|
|||||||
Other, Net
|
55
|
72
|
(113
|
)
|
||||||||
Net Cash Provided by Operating Activities
|
824
|
1,125
|
607
|
|||||||||
|
||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
(1,524
|
)
|
(977
|
)
|
(1,569
|
)
|
||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(144
|
)
|
(144
|
)
|
(10
|
)
|
||||||
Acquisition of Intellectual Property
|
(8
|
)
|
(24
|
)
|
(28
|
)
|
||||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
(14
|
)
|
(2
|
)
|
(27
|
)
|
||||||
Proceeds from Sale of Assets and Businesses, Net
|
31
|
197
|
123
|
|||||||||
Other Investing Activities
|
(15
|
)
|
42
|
—
|
||||||||
Net Cash Used by Investing Activities
|
(1,674
|
)
|
(908
|
)
|
(1,511
|
)
|
||||||
|
||||||||||||
Cash Flows From Financing Activities:
|
||||||||||||
Borrowings of Long-term Debt
|
22
|
1,580
|
1,240
|
|||||||||
Repayments of Long-term Debt
|
(216
|
)
|
(721
|
)
|
(14
|
)
|
||||||
Borrowings (Repayments) of Short-term Debt, Net
|
992
|
(834
|
)
|
(393
|
)
|
|||||||
Bond Tender Premium
|
—
|
(54
|
)
|
—
|
||||||||
Proceeds from Interest Rate Derivatives
|
—
|
—
|
64
|
|||||||||
Excess Tax Benefits from Share-Based Compensation
|
4
|
—
|
4
|
|||||||||
Other Financing Activities, Net
|
3
|
(6
|
)
|
6
|
||||||||
Net Cash Provided (Used) by Financing Activities
|
805
|
(35
|
)
|
907
|
||||||||
|
||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
(19
|
)
|
11
|
||||||||
|
||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(45
|
)
|
163
|
14
|
||||||||
Cash and Cash Equivalents at Beginning of Year
|
416
|
253
|
239
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
371
|
$
|
416
|
$
|
253
|
1.
|
Summary of Significant Accounting Policies
|
|
Estimated
Useful Lives
|
Buildings and leasehold improvements
|
10 – 40 years or lease term
|
Rental and service equipment
|
2 – 20 years
|
Machinery and other
|
2 – 12 years
|
·
|
estimates of the available revenue under the contracts;
|
·
|
estimates of the total cost to complete the project;
|
·
|
estimates of project schedule and completion date;
|
·
|
estimates of the extent of progress toward completion; and
|
·
|
amount of any change orders or claims included in revenue.
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(In millions)
|
|||||||||||
Basic weighted average shares outstanding
|
753
|
743
|
715
|
|||||||||
Dilutive effect of:
|
||||||||||||
Warrants
|
2
|
—
|
2
|
|||||||||
Stock options and restricted shares
|
5
|
—
|
6
|
|||||||||
Diluted weighted average shares outstanding
|
760
|
743
|
723
|
Year ended December 31,
|
2008 and
|
|||||||||||||||||||
|
Total
|
2011
|
2010
|
2009
|
Prior
|
|||||||||||||||
|
(In millions)
|
|||||||||||||||||||
|
||||||||||||||||||||
Uncertain tax positions
|
$
|
185
|
$
|
59
|
$
|
55
|
$
|
8
|
$
|
63
|
||||||||||
Withholding taxes
|
10
|
4
|
9
|
7
|
(10
|
)
|
||||||||||||||
Current and deferred taxes
|
(9
|
) |
(7
|
) |
(7
|
) |
11
|
(6
|
) | |||||||||||
Total
|
$
|
186
|
$
|
56
|
$
|
57
|
$
|
26
|
$
|
47
|
|
Year Ended December 31, 2011
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions, except per share amounts)
|
|||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
4,886
|
$
|
(2
|
) |
$
|
4,884
|
|||||
Services
|
8,104
|
—
|
8,104
|
|||||||||
|
12,990
|
(2
|
) |
12,988
|
||||||||
Costs and Expenses:
|
||||||||||||
Cost of Products
|
3,734
|
8
|
3,742
|
|||||||||
Cost of Services
|
5,931
|
5
|
5,936
|
|||||||||
Research and Development
|
245
|
—
|
245
|
|||||||||
Selling, General and Administrative Attributable to Segments
|
1,534
|
(2
|
) |
1,532
|
||||||||
Corporate General and Administrative
|
222
|
4
|
226
|
|||||||||
|
11,666
|
15
|
11,681
|
|||||||||
|
||||||||||||
Operating Income
|
1,324
|
(17
|
) |
1,307
|
||||||||
Other Income (Expense):
|
||||||||||||
Interest Expense, Net
|
(453
|
)
|
—
|
(453
|
)
|
|||||||
Other, Net
|
(107
|
)
|
—
|
(107
|
)
|
|||||||
|
||||||||||||
Income Before Income Taxes
|
764
|
(17
|
) |
747
|
||||||||
Provision for Income Taxes
|
(486
|
)
|
(56
|
) |
(542
|
) | ||||||
Net Income
|
278
|
(73
|
) |
205
|
||||||||
Net Income Attributable to Noncontrolling Interests
|
(16
|
)
|
—
|
(16
|
)
|
|||||||
Net Income Attributable to Weatherford
|
$
|
262
|
$
|
(73
|
) |
$
|
189
|
|||||
|
||||||||||||
Earnings Per Share Attributable to Weatherford:
|
||||||||||||
Basic
|
$
|
0.35
|
$
|
(0.10
|
)
|
$
|
0.25
|
|
||||
Diluted
|
$
|
0.34
|
$
|
(0.09
|
)
|
$
|
0.25
|
|
||||
|
||||||||||||
Weighted Average Shares Outstanding:
|
||||||||||||
Basic
|
753
|
—
|
753
|
|||||||||
Diluted
|
760
|
—
|
760
|
|
Year Ended December 31, 2010
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions, except per share amounts)
|
|||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
3,580
|
$
|
—
|
$
|
3,580
|
||||||
Services
|
6,641
|
—
|
6,641
|
|||||||||
|
10,221
|
—
|
10,221
|
|||||||||
Costs and Expenses:
|
||||||||||||
Cost of Products
|
2,633
|
4
|
2,637
|
|||||||||
Cost of Services
|
4,949
|
4
|
4,953
|
|||||||||
Research and Development
|
216
|
—
|
216
|
|||||||||
Selling, General and Administrative Attributable to Segments
|
1,404
|
—
|
1,404
|
|||||||||
Corporate General and Administrative
|
237
|
—
|
237
|
|||||||||
|
9,439
|
8
|
9,447
|
|||||||||
|
||||||||||||
Operating Income
|
782
|
(8
|
) |
774
|
||||||||
Other Income (Expense):
|
||||||||||||
Interest Expense, Net
|
(406
|
)
|
—
|
(406
|
)
|
|||||||
Bond Tender Premium
|
(54
|
)
|
—
|
(54
|
)
|
|||||||
Devaluation of Venezuelan Bolivar
|
(64
|
)
|
—
|
(64
|
)
|
|||||||
Other, Net
|
(53
|
)
|
—
|
(53
|
)
|
|||||||
|
||||||||||||
Income Before Income Taxes
|
205
|
(8
|
) |
197
|
||||||||
Provision for Income Taxes
|
(339
|
)
|
(57
|
) |
(396
|
) | ||||||
Net Loss
|
(134
|
)
|
(65
|
) |
(199
|
) | ||||||
Net Income Attributable to Noncontrolling Interests
|
(18
|
)
|
—
|
(18
|
)
|
|||||||
Net Loss Attributable to Weatherford
|
$
|
(152
|
)
|
$
|
(65
|
) |
$
|
(217
|
) | |||
|
||||||||||||
Loss Per Share Attributable to Weatherford:
|
||||||||||||
Basic
|
$
|
(0.20
|
)
|
$
|
(0.09
|
)
|
$
|
(0.29
|
)
|
|||
Diluted
|
$
|
(0.20
|
)
|
$
|
(0.09
|
)
|
$
|
(0.29
|
)
|
|||
|
||||||||||||
Weighted Average Shares Outstanding:
|
||||||||||||
Basic
|
743
|
—
|
|
743
|
||||||||
Diluted
|
743
|
—
|
|
743
|
|
Year Ended December 31, 2009
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions, except per share amounts)
|
|||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
2,921
|
$
|
—
|
$
|
2,921
|
||||||
Services
|
5,912
|
—
|
5,912
|
|||||||||
|
8,833
|
—
|
8,833
|
|||||||||
Costs and Expenses:
|
||||||||||||
Cost of Products
|
2,308
|
3
|
2,311
|
|||||||||
Cost of Services
|
4,153
|
—
|
4,153
|
|||||||||
Research and Development
|
196
|
—
|
196
|
|||||||||
Selling, General and Administrative Attributable to Segments
|
1,260
|
—
|
1,260
|
|||||||||
Corporate General and Administrative
|
226
|
—
|
226
|
|||||||||
|
8,143
|
3
|
8,146
|
|||||||||
|
||||||||||||
Operating Income
|
690
|
(3
|
) |
687
|
||||||||
|
||||||||||||
Other Income (Expense):
|
||||||||||||
Interest Expense, Net
|
(367
|
)
|
—
|
(367
|
)
|
|||||||
Other, Net
|
(36
|
)
|
(8
|
) |
(44
|
)
|
||||||
|
||||||||||||
Income Before Income Taxes
|
287
|
(11
|
) |
276
|
||||||||
Provision for Income Taxes
|
(137
|
)
|
(26
|
) |
(163
|
) | ||||||
Net Income
|
150
|
(37
|
) |
113
|
||||||||
Net Income Attributable to Noncontrolling Interests
|
(26
|
)
|
—
|
(26
|
)
|
|||||||
Net Income Attributable to Weatherford
|
$
|
124
|
$
|
(37
|
) |
$
|
87
|
|||||
|
||||||||||||
Earnings Per Share Attributable to Weatherford:
|
||||||||||||
Basic
|
$
|
0.17
|
$
|
(0.05
|
)
|
$
|
0.12
|
|||||
Diluted
|
$
|
0.17
|
$
|
(0.05
|
)
|
$
|
0.12
|
|||||
|
||||||||||||
Weighted Average Shares Outstanding:
|
||||||||||||
Basic
|
715
|
—
|
715
|
|||||||||
Diluted
|
723
|
—
|
723
|
|
As of December 31, 2011
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Current Assets:
|
||||||||||||
Cash and Cash Equivalents
|
$
|
371
|
$
|
—
|
$
|
371
|
||||||
Accounts Receivable
|
3,235
|
(2
|
) |
3,233
|
||||||||
Inventories
|
3,158
|
—
|
3,158
|
|||||||||
Current Deferred Tax Assets
|
250
|
24
|
274
|
|||||||||
Other Current Assets
|
685
|
10
|
695
|
|||||||||
Total Current Assets
|
7,699
|
32
|
7,731
|
|||||||||
|
||||||||||||
Property, Plant and Equipment
|
||||||||||||
Land, Buildings and Leasehold Improvements
|
1,369
|
—
|
1,369
|
|||||||||
Rental and Service Equipment
|
8,867
|
—
|
8,867
|
|||||||||
Machinery and Other
|
2,066
|
8
|
2,074
|
|||||||||
|
12,302
|
8
|
12,310
|
|||||||||
Less: Accumulated Depreciation
|
5,019
|
4
|
5,023
|
|||||||||
|
7,283
|
4
|
7,287
|
|||||||||
|
||||||||||||
Goodwill
|
4,422
|
1
|
4,423
|
|||||||||
Other Intangible Assets
|
711
|
—
|
711
|
|||||||||
Equity Investments
|
616
|
—
|
616
|
|||||||||
Other Assets
|
454
|
(171
|
) |
283
|
||||||||
Total Assets
|
$
|
21,185
|
$
|
(134
|
) |
$
|
21,051
|
|||||
|
||||||||||||
|
||||||||||||
Current Liabilities:
|
||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
1,320
|
$
|
—
|
$
|
1,320
|
||||||
Accounts Payable
|
1,567
|
4
|
1,571
|
|||||||||
Accrued Salaries and Benefits
|
398
|
4
|
402
|
|||||||||
Income Taxes Payable
|
141
|
37
|
178
|
|||||||||
Other Current Liabilities
|
787
|
25
|
812
|
|||||||||
Total Current Liabilities
|
4,213
|
70
|
4,283
|
|||||||||
|
||||||||||||
Long-term Debt
|
6,286
|
—
|
6,286
|
|||||||||
Other Liabilities
|
1,133
|
4
|
1,137
|
|||||||||
Total Liabilities
|
11,632
|
74
|
11,706
|
|||||||||
|
||||||||||||
Shareholders' Equity:
|
||||||||||||
Shares
|
769
|
—
|
769
|
|||||||||
Capital in Excess of Par Value
|
4,824
|
(149
|
) |
4,675
|
||||||||
Treasury Shares, at Cost
|
(483
|
)
|
149
|
(334
|
)
|
|||||||
Retained Earnings
|
4,352
|
(218
|
) |
4,134
|
||||||||
Accumulated Other Comprehensive Income (Loss)
|
70
|
10
|
80
|
|||||||||
Weatherford Shareholders' Equity
|
9,532
|
(208
|
) |
9,324
|
||||||||
Noncontrolling Interests
|
21
|
—
|
21
|
|||||||||
Total Shareholders' Equity
|
9,553
|
(208
|
) |
9,345
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
21,185
|
$
|
(134
|
) |
$
|
21,051
|
|
As of December 31, 2010
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Current Assets:
|
||||||||||||
Cash and Cash Equivalents
|
$
|
416
|
$
|
—
|
$
|
416
|
||||||
Accounts Receivable
|
2,629
|
—
|
2,629
|
|||||||||
Inventories
|
2,590
|
—
|
2,590
|
|||||||||
Current Deferred Tax Assets
|
284
|
(27
|
) |
257
|
||||||||
Other Current Assets
|
601
|
2
|
603
|
|||||||||
Total Current Assets
|
6,520
|
(25
|
) |
6,495
|
||||||||
|
||||||||||||
Property, Plant and Equipment
|
||||||||||||
Land, Buildings and Leasehold Improvements
|
1,160
|
—
|
1,160
|
|||||||||
Rental and Service Equipment
|
7,977
|
—
|
7,977
|
|||||||||
Machinery and Other
|
2,025
|
8
|
2,033
|
|||||||||
|
11,162
|
8
|
11,170
|
|||||||||
Less: Accumulated Depreciation
|
4,222
|
3
|
4,225
|
|||||||||
|
6,940
|
5
|
6,945
|
|||||||||
|
||||||||||||
Goodwill
|
4,277
|
2
|
4,279
|
|||||||||
Other Intangible Assets
|
728
|
—
|
728
|
|||||||||
Equity Investments
|
540
|
—
|
540
|
|||||||||
Other Assets
|
202
|
10
|
212
|
|||||||||
Total Assets
|
$
|
19,207
|
$
|
(8
|
) |
$
|
19,199
|
|||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
Current Liabilities:
|
||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
235
|
$
|
—
|
$
|
235
|
||||||
Accounts Payable
|
1,335
|
—
|
1,335
|
|||||||||
Accrued Salaries and Benefits
|
329
|
1
|
330
|
|||||||||
Income Taxes Payable
|
91
|
12
|
103
|
|||||||||
Other Current Liabilities
|
638
|
60
|
698
|
|||||||||
Total Current Liabilities
|
2,628
|
73
|
2,701
|
|||||||||
|
||||||||||||
Long-term Debt
|
6,530
|
—
|
6,530
|
|||||||||
Other Liabilities
|
789
|
61
|
850
|
|||||||||
Total Liabilities
|
9,947
|
134
|
10,081
|
|||||||||
|
||||||||||||
Shareholders' Equity:
|
||||||||||||
Shares
|
761
|
—
|
761
|
|||||||||
Capital in Excess of Par Value
|
4,702
|
(85
|
) |
4,617
|
||||||||
Treasury Shares, at Cost
|
(563
|
)
|
85
|
(478
|
)
|
|||||||
Retained Earnings
|
4,094
|
(145
|
) |
3,949
|
||||||||
Accumulated Other Comprehensive Income (Loss)
|
199
|
3
|
202
|
|||||||||
Weatherford Shareholders' Equity
|
9,193
|
(142
|
) |
9,051
|
||||||||
Noncontrolling Interests
|
67
|
—
|
67
|
|||||||||
Total Shareholders' Equity
|
9,260
|
(142
|
) |
9,118
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
19,207
|
$
|
(8
|
) |
$
|
19,199
|
|
As of December 31, 2009
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Current Assets:
|
||||||||||||
Cash and Cash Equivalents
|
$
|
253
|
$
|
—
|
$
|
253
|
||||||
Accounts Receivable
|
2,511
|
—
|
2,511
|
|||||||||
Inventories
|
2,238
|
—
|
2,238
|
|||||||||
Current Deferred Tax Assets
|
285
|
35
|
320
|
|||||||||
Other Current Assets
|
721
|
2
|
723
|
|||||||||
Total Current Assets
|
6,008
|
37
|
6,045
|
|||||||||
|
||||||||||||
Property, Plant and Equipment
|
||||||||||||
Land, Buildings and Leasehold Improvements
|
976
|
—
|
976
|
|||||||||
Rental and Service Equipment
|
7,535
|
—
|
7,535
|
|||||||||
Machinery and Other
|
1,919
|
7
|
1,926
|
|||||||||
|
10,430
|
7
|
10,437
|
|||||||||
Less: Accumulated Depreciation
|
3,440
|
2
|
3,442
|
|||||||||
|
6,990
|
5
|
6,995
|
|||||||||
|
||||||||||||
Goodwill
|
4,243
|
—
|
4,243
|
|||||||||
Other Intangible Assets
|
771
|
—
|
771
|
|||||||||
Equity Investments
|
533
|
—
|
533
|
|||||||||
Other Assets
|
225
|
(30
|
) |
195
|
||||||||
Total Assets
|
$
|
18,770
|
$
|
12
|
$
|
18,782
|
||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
Current Liabilities:
|
||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
870
|
$
|
—
|
$
|
870
|
||||||
Accounts Payable
|
1,002
|
—
|
1,002
|
|||||||||
Accrued Salaries and Benefits
|
274
|
—
|
274
|
|||||||||
Income Taxes Payable
|
279
|
9
|
288
|
|||||||||
Other Current Liabilities
|
651
|
(29
|
) |
622
|
||||||||
Total Current Liabilities
|
3,076
|
(20
|
) |
3,056
|
||||||||
|
||||||||||||
Long-term Debt
|
5,847
|
—
|
5,847
|
|||||||||
Other Liabilities
|
593
|
111
|
704
|
|||||||||
Total Liabilities
|
9,516
|
91
|
9,607
|
|||||||||
|
||||||||||||
Shareholders' Equity:
|
||||||||||||
Shares
|
761
|
—
|
761
|
|||||||||
Capital in Excess of Par Value
|
4,643
|
(8
|
) |
4,635
|
||||||||
Treasury Shares, at Cost
|
(616
|
)
|
8
|
(608
|
)
|
|||||||
Retained Earnings
|
4,246
|
(80
|
) |
4,166
|
||||||||
Accumulated Other Comprehensive Income (Loss)
|
141
|
1
|
142
|
|||||||||
Weatherford Shareholders' Equity
|
9,175
|
(79
|
) |
9,096
|
||||||||
Noncontrolling Interests
|
79
|
—
|
79
|
|||||||||
Total Shareholders' Equity
|
9,254
|
(79
|
) |
9,175
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
18,770
|
$
|
12
|
$
|
18,782
|
|
Year Ended December 31, 2011
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Income
|
$
|
278
|
$
|
(73
|
) |
$
|
205
|
|||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||||||
Depreciation and Amortization
|
1,135
|
1
|
1,136
|
|||||||||
Employee Share-Based Compensation Expense
|
87
|
—
|
87
|
|||||||||
Bad Debt Expense
|
52
|
—
|
52
|
|||||||||
Loss on Sale of Assets and Businesses, Net
|
29
|
—
|
29
|
|||||||||
Deferred Income Tax Provision
|
149
|
(28
|
) |
121
|
||||||||
Excess Tax Benefits from Share-Based Compensation
|
4
|
(8
|
) |
(4
|
) | |||||||
Other, Net
|
(10
|
)
|
(9
|
) |
(19
|
) | ||||||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
||||||||||||
Accounts Receivable
|
(626
|
)
|
3
|
(623
|
)
|
|||||||
Inventories
|
(606
|
)
|
—
|
(606
|
)
|
|||||||
Other Current Assets
|
(68
|
)
|
(13
|
) |
(81
|
)
|
||||||
Accounts Payable
|
237
|
5
|
242
|
|||||||||
Other Current Liabilities
|
46
|
184
|
230
|
|||||||||
Other, Net
|
126
|
(71
|
) |
55
|
||||||||
Net Cash Provided by Operating Activities
|
833
|
(9
|
) |
824
|
||||||||
|
||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
(1,524
|
)
|
—
|
(1,524
|
)
|
|||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(144
|
)
|
—
|
(144
|
)
|
|||||||
Acquisition of Intellectual Property
|
(8
|
)
|
—
|
(8
|
)
|
|||||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
(14
|
)
|
—
|
(14
|
)
|
|||||||
Proceeds from Sale of Assets and Businesses, Net
|
31
|
—
|
31
|
|||||||||
Other Investing Activities
|
(15
|
)
|
—
|
(15
|
)
|
|||||||
Net Cash Used by Investing Activities
|
(1,674
|
)
|
—
|
(1,674
|
)
|
|||||||
|
||||||||||||
Cash Flows From Financing Activities:
|
||||||||||||
Borrowings of Long-term Debt
|
22
|
—
|
22
|
|||||||||
Repayments of Long-term Debt
|
(216
|
)
|
—
|
(216
|
)
|
|||||||
Borrowings (Repayments) of Short-term Debt, Net
|
992
|
—
|
992
|
|||||||||
Excess Tax Benefits from Share-Based Compensation
|
(4
|
)
|
8
|
4
|
||||||||
Other Financing Activities, Net
|
2
|
1
|
3
|
|||||||||
Net Cash Provided by Financing Activities
|
796
|
9
|
805
|
|||||||||
|
||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
—
|
—
|
|||||||||
|
||||||||||||
Net Decrease in Cash and Cash Equivalents
|
(45
|
)
|
—
|
(45
|
)
|
|||||||
Cash and Cash Equivalents at Beginning of Year
|
416
|
—
|
416
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
371
|
$
|
—
|
$
|
371
|
|
Year Ended December 31, 2010
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$
|
(134
|
)
|
$
|
(65
|
)
|
$
|
(199
|
) | |||
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
|
||||||||||||
Depreciation and Amortization
|
1,047
|
1
|
1,048
|
|||||||||
Employee Share-Based Compensation Expense
|
99
|
—
|
99
|
|||||||||
Bad Debt Expense
|
57
|
—
|
57
|
|||||||||
Loss on Sale of Assets and Businesses, Net
|
30
|
—
|
30
|
|||||||||
Deferred Income Tax Provision
|
82
|
—
|
82
|
|||||||||
Excess Tax Benefits from Share-Based Compensation
|
—
|
—
|
—
|
|||||||||
Devaluation of Venezuelan Bolivar
|
64
|
—
|
64
|
|||||||||
Bond Tender Premium
|
54
|
—
|
54
|
|||||||||
Supplemental Executive Retirement Plan
|
38
|
—
|
38
|
|||||||||
Revaluation of Contingent Consideration
|
(13
|
)
|
—
|
(13
|
)
|
|||||||
Other, Net
|
(14
|
)
|
(4
|
) |
(18
|
) | ||||||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
||||||||||||
Accounts Receivable
|
(190
|
)
|
—
|
(190
|
)
|
|||||||
Inventories
|
(359
|
)
|
—
|
(359
|
)
|
|||||||
Other Current Assets
|
82
|
—
|
82
|
|||||||||
Accounts Payable
|
298
|
—
|
298
|
|||||||||
Other Current Liabilities
|
(12
|
)
|
(8
|
) |
(20
|
) | ||||||
Other, Net
|
(1
|
)
|
73
|
|
72
|
|||||||
Net Cash Provided by Operating Activities
|
1,128
|
(3
|
)
|
1,125
|
||||||||
|
||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
(977
|
)
|
—
|
(977
|
)
|
|||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(144
|
)
|
—
|
(144
|
)
|
|||||||
Acquisition of Intellectual Property
|
(24
|
)
|
—
|
(24
|
)
|
|||||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
(2
|
)
|
—
|
(2
|
)
|
|||||||
Proceeds from Sale of Assets and Businesses, Net
|
197
|
—
|
197
|
|||||||||
Other Investing Activities
|
42
|
—
|
42
|
|||||||||
Net Cash Used by Investing Activities
|
(908
|
)
|
—
|
(908
|
)
|
|||||||
|
||||||||||||
Cash Flows From Financing Activities:
|
||||||||||||
Borrowings of Long-term Debt
|
1,580
|
—
|
1,580
|
|||||||||
Repayments of Long-term Debt
|
(721
|
)
|
—
|
(721
|
)
|
|||||||
Borrowings (Repayments) of Short-term Debt, Net
|
(834
|
)
|
—
|
(834
|
)
|
|||||||
|
||||||||||||
Bond Tender Premium
|
(54
|
)
|
—
|
(54
|
)
|
|||||||
Excess Tax Benefits from Share-Based Compensation
|
—
|
—
|
—
|
|||||||||
Other Financing Activities, Net
|
(9
|
)
|
3
|
(6
|
)
|
|||||||
Net Cash Used by Financing Activities
|
(38
|
)
|
3
|
(35
|
)
|
|||||||
|
||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
(19
|
)
|
—
|
(19
|
)
|
|||||||
|
||||||||||||
Net Increase in Cash and Cash Equivalents
|
163
|
—
|
163
|
|||||||||
Cash and Cash Equivalents at Beginning of Year
|
253
|
—
|
253
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
416
|
$
|
—
|
$
|
416
|
|
Year Ended December 31, 2009
|
|||||||||||
|
Previously
Reported
|
Adjustments
|
Restated
|
|||||||||
|
(In millions)
|
|||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Income
|
$
|
150
|
$
|
(37
|
) |
$
|
113
|
|||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||||||
Depreciation and Amortization
|
909
|
—
|
909
|
|||||||||
Employee Share-Based Compensation Expense
|
110
|
—
|
110
|
|||||||||
Bad Debt Expense
|
11
|
—
|
11
|
|||||||||
Gain on Sale of Assets and Businesses, Net
|
(14
|
)
|
—
|
(14
|
)
|
|||||||
Deferred Income Tax Provision (Benefit)
|
(123
|
)
|
11
|
(112
|
) | |||||||
Excess Tax Benefits from Share-Based Compensation
|
(4
|
)
|
—
|
(4
|
)
|
|||||||
Revaluation of Contingent Consideration
|
(24
|
)
|
—
|
(24
|
)
|
|||||||
Other, Net
|
(25
|
)
|
(4
|
) |
(29
|
)
|
||||||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
||||||||||||
Accounts Receivable
|
94
|
—
|
94
|
|||||||||
Inventories
|
(48
|
)
|
—
|
(48
|
)
|
|||||||
Other Current Assets
|
(150
|
)
|
—
|
(150
|
)
|
|||||||
Accounts Payable
|
41
|
—
|
41
|
|||||||||
Other Current Liabilities
|
(226
|
)
|
49
|
(177
|
) | |||||||
Other, Net
|
(93
|
)
|
(20
|
) |
(113
|
) | ||||||
Net Cash Provided by Operating Activities
|
608
|
(1
|
) |
607
|
||||||||
|
||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
(1,569
|
)
|
—
|
(1,569
|
)
|
|||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(10
|
)
|
—
|
(10
|
)
|
|||||||
Acquisition of Intellectual Property
|
(28
|
)
|
—
|
(28
|
)
|
|||||||
Acquisition of Equity Investments in Unconsolidated Affiliates
|
(27
|
)
|
—
|
(27
|
)
|
|||||||
Proceeds from Sale of Assets and Businesses, Net
|
123
|
—
|
123
|
|||||||||
Net Cash Used by Investing Activities
|
(1,511
|
)
|
—
|
(1,511
|
)
|
|||||||
|
||||||||||||
Cash Flows From Financing Activities:
|
||||||||||||
Borrowings of Long-term Debt
|
1,240
|
—
|
1,240
|
|||||||||
Repayments of Long-term Debt
|
(14
|
)
|
—
|
(14
|
)
|
|||||||
Borrowings (Repayments) of Short-term Debt, Net
|
(393
|
)
|
—
|
(393
|
)
|
|||||||
|
||||||||||||
Proceeds from Interest Rate Derivatives
|
64
|
—
|
64
|
|||||||||
Excess Tax Benefits from Share-Based Compensation
|
4
|
—
|
4
|
|||||||||
Other Financing Activities, Net
|
5
|
1
|
6
|
|||||||||
Net Cash Provided by Financing Activities
|
906
|
1
|
907
|
|||||||||
|
||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
11
|
—
|
11
|
|||||||||
|
||||||||||||
Net Increase in Cash and Cash Equivalents
|
14
|
—
|
14
|
|||||||||
Cash and Cash Equivalents at Beginning of Year
|
239
|
—
|
239
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
253
|
$
|
—
|
$
|
253
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(In millions)
|
|||||||||||
|
||||||||||||
Interest paid, net of capitalized interest
|
$
|
461
|
$
|
403
|
$
|
332
|
||||||
Income taxes paid, net of refunds
|
291
|
351
|
390
|
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(In millions)
|
|||||||
Raw materials, components and supplies
|
$
|
443
|
$
|
384
|
||||
Work in process
|
149
|
114
|
||||||
Finished goods
|
2,566
|
2,092
|
||||||
$ | 3,158 | $ | 2,590 |
|
North
America
|
MENA/
Asia Pacific
|
Europe/
SSA/
Russia
|
Latin
America
|
Total
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||||
(In millions)
|
||||||||||||||||||||
Balance at December 31, 2009
|
$
|
2,148
|
$
|
714
|
$
|
1,058
|
$
|
323
|
$
|
4,243
|
||||||||||
Acquisitions
|
4
|
25
|
1
|
—
|
30
|
|||||||||||||||
Disposals
|
—
|
(1
|
)
|
—
|
—
|
(1
|
)
|
|||||||||||||
Purchase price and other Adjustments
|
—
|
(1
|
)
|
(16
|
)
|
(3
|
)
|
(20
|
)
|
|||||||||||
Foreign currency translation
|
36
|
10
|
(19
|
)
|
—
|
27
|
||||||||||||||
Balance at December 31, 2010
|
2,188
|
747
|
1,024
|
320
|
4,279
|
|||||||||||||||
Acquisitions
|
78
|
—
|
8
|
73
|
159
|
|||||||||||||||
Disposals
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Purchase price and other Adjustments
|
17
|
(4
|
)
|
2
|
(1
|
) |
14
|
|||||||||||||
Foreign currency translation
|
(11
|
)
|
—
|
(10
|
)
|
(8
|
)
|
(29
|
)
|
|||||||||||
Balance at December 31, 2011
|
$
|
2,272
|
$
|
743
|
$
|
1,024
|
$
|
384
|
$
|
4,423
|
|
December 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||
|
Gross
Carrying
Amount
|
Accumulated Amortization
|
Net
|
Gross
Carrying
Amount
|
Accumulated Amortization
|
Net
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Acquired technology
|
$
|
416
|
$
|
(170
|
)
|
$
|
246
|
$
|
413
|
$
|
(145
|
)
|
$
|
268
|
||||||||||
Licenses
|
281
|
(131
|
)
|
150
|
270
|
(120
|
)
|
150
|
||||||||||||||||
Patents
|
248
|
(101
|
)
|
147
|
213
|
(80
|
)
|
133
|
||||||||||||||||
Customer relationships and contracts
|
205
|
(106
|
)
|
99
|
191
|
(76
|
)
|
115
|
||||||||||||||||
Other
|
107
|
(38
|
)
|
69
|
94
|
(32
|
)
|
62
|
||||||||||||||||
|
$
|
1,257
|
$
|
(546
|
)
|
$
|
711
|
$
|
1,181
|
$
|
(453
|
)
|
$
|
728
|
2012
|
$
|
100
|
||
2013
|
97
|
|||
2014
|
92
|
|||
2015
|
82
|
|||
2016
|
67
|
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(In millions)
|
|||||||
Commercial paper program
|
$
|
997
|
$
|
—
|
||||
Other short-term bank loans
|
14
|
18
|
||||||
Total short-term borrowings
|
1,011
|
18
|
||||||
Current portion of long-term debt
|
309
|
217
|
||||||
Short-term borrowings and current portion of long-term debt
|
$
|
1,320
|
$
|
235
|
||||
Weighted average interest rate on short-term borrowings outstanding at end of year
|
0.81
|
%
|
8.96
|
%
|
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(In millions)
|
|||||||
6.625% Senior Notes due 2011
|
$
|
—
|
$
|
184
|
||||
5.95% Senior Notes due 2012
|
273
|
273
|
||||||
5.15% Senior Notes due 2013
|
297
|
299
|
||||||
4.95% Senior Notes due 2013
|
252
|
252
|
||||||
5.50% Senior Notes due 2016
|
357
|
358
|
||||||
6.35% Senior Notes due 2017
|
613
|
600
|
||||||
6.00% Senior Notes due 2018
|
498
|
498
|
||||||
9.625% Senior Notes due 2019
|
1,030
|
1,033
|
||||||
5.125% Senior Notes due 2020
|
799
|
799
|
||||||
6.50% Senior Notes due 2036
|
596
|
596
|
||||||
6.80% Senior Notes due 2037
|
298
|
298
|
||||||
7.00% Senior Notes due 2038
|
498
|
498
|
||||||
9.875% Senior Notes due 2039
|
247
|
247
|
||||||
6.75% Senior Notes due 2040
|
598
|
598
|
||||||
4.82% Secured Borrowing
|
154
|
172
|
||||||
Foreign Bank and Other Debt Denominated in Foreign Currencies
|
15
|
15
|
||||||
Capital and Other Lease Obligations
|
60
|
24
|
||||||
Other
|
10
|
3
|
||||||
|
6,595
|
6,747
|
||||||
Less amounts due in one year
|
309
|
217
|
||||||
Long-term debt
|
$
|
6,286
|
$
|
6,530
|
|
||||
2012
|
$
|
309
|
||
2013
|
580
|
|||
2014
|
33
|
|||
2015
|
34
|
|||
2016
|
384
|
|||
Thereafter
|
5,255
|
|||
|
$
|
6,595
|
|
||||||||
Balance at beginning of period
|
$
|
60
|
||||||
Payment of contingent consideration on acquisition
|
|
(47
|
)
|
|||||
Gain on contingent consideration on acquisition included in earnings
|
(13
|
)
|
||||||
Balance at end of period
|
$
|
—
|
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(In millions)
|
|||||||
Fair value
|
$
|
7,270
|
$
|
7,329
|
||||
Carrying value
|
6,595
|
6,747
|
|
December 31,
|
|
|||||||
|
2011
|
2010
|
Classifications
|
||||||
|
(In millions)
|
|
|||||||
Derivative assets designated as hedges: Interest rate swaps
|
$
|
13
|
$
|
—
|
Other Assets
|
||||
Derivative assets not designated as hedges: Foreign currency forward contracts
|
20
|
8
|
Other Current Assets
|
||||||
Derivative liabilities not designated as hedges: Foreign currency forward contracts
|
8
|
22
|
Other Current Liabilities
|
||||||
Interest rate locks
|
9
|
—
|
Other Current Liabilities
|
||||||
Cross-currency swap contracts
|
27
|
33
|
Other Liabilities
|
||||||
|
|
|
December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
(Restated)
|
(Restated)
|
|||||||||||
|
(In millions)
|
|||||||||||
Cumulative translation adjustment
|
$
|
127
|
$
|
245
|
$
|
242
|
||||||
Cumulative defined benefit plan adjustments
|
(36
|
)
|
(31
|
)
|
(87
|
)
|
||||||
Deferred loss on derivative instruments, net of amortization
|
(11
|
)
|
(12
|
)
|
(13
|
)
|
||||||
|
$
|
80
|
$
|
202
|
$
|
142
|
|
Issued
|
Treasury
|
||||||
|
(In millions)
|
|||||||
Balance at December 31, 2008
|
729
|
(40
|
)
|
|||||
Shares issued for acquisitions
|
29
|
5
|
||||||
Equity awards granted, vested and exercised
|
—
|
6
|
||||||
|
||||||||
Balance at December 31, 2009
|
758
|
(29
|
)
|
|||||
Shares issued for acquisitions
|
—
|
2
|
||||||
Equity awards granted, vested and exercised
|
—
|
4
|
||||||
|
||||||||
Balance at December 31, 2010
|
758
|
(23
|
)
|
|||||
Shares issued for acquisitions
|
5
|
3
|
||||||
Equity awards granted, vested and exercised
|
—
|
4
|
||||||
Shares issued for warrants
|
2
|
—
|
||||||
|
||||||||
Balance at December 31, 2011
|
765
|
(16
|
)
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(In millions)
|
|||||||||||
Share-based compensation
|
$
|
87
|
$
|
99
|
$
|
110
|
||||||
Related tax benefit
|
30
|
35
|
39
|
|
Options
|
Weighted
Average Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||||
|
(In thousands)
|
(In years)
|
(In thousands)
|
|||||||||||||
Outstanding at December 31, 2010
|
11,820
|
$
|
8.70
|
4.20
|
$
|
166,624
|
||||||||||
Granted
|
—
|
—
|
||||||||||||||
Exercised
|
(713
|
)
|
4.25
|
|||||||||||||
Forfeited
|
—
|
—
|
||||||||||||||
Outstanding and Vested at
December 31, 2011
|
11,107
|
$ |
8.99
|
2.50
|
$ |
69,385
|
||||||||||
|
|
RSA
|
Weighted
Average Grant Date
Fair Value
|
RSU
|
Weighted
Average
Grant Date
Fair Value
|
||||||||||||
|
(In thousands)
|
(In thousands)
|
||||||||||||||
Non-Vested at December 31, 2010
|
4,268
|
$
|
22.59
|
4,215
|
$
|
22.76
|
||||||||||
Granted
|
1,321
|
23.06
|
2,325
|
22.03
|
||||||||||||
Vested
|
(1,994
|
)
|
20.65
|
(2,027
|
)
|
22.10
|
||||||||||
Forfeited
|
(507
|
)
|
22.60
|
(686
|
)
|
22.84
|
||||||||||
Non-Vested at December 31, 2011
|
3,088
|
$ |
24.04
|
3,827
|
$ |
22.65
|
|
Year Ended December 31, 2011
|
Weighted
Average Grant Date
Fair Value
|
Year Ended December 31, 2010
|
Weighted
Average
Grant Date
Fair Value
|
||||||||||||
|
(In thousands)
|
(In thousands)
|
||||||||||||||
Non-Vested at Period Beginning
|
986
|
$
|
—
|
—
|
$
|
—
|
||||||||||
Granted
|
688
|
29.64
|
1,089
|
12.41
|
||||||||||||
Expired
|
(363
|
)
|
12.32
|
—
|
—
|
|||||||||||
Forfeited
|
(70
|
)
|
22.03
|
(103
|
)
|
13.19
|
||||||||||
Non-Vested at Period End
|
1,241
|
$ |
21.35
|
986
|
$ |
12.32
|
||||||||||
|
|
Year Ended December 31,
|
|||||||||||||||
|
2011
|
2010
|
||||||||||||||
|
United States
|
Non-U.S.
|
United
States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Benefit obligation at beginning of year
|
$
|
89
|
$
|
148
|
$
|
143
|
$
|
131
|
||||||||
Service cost
|
—
|
7
|
1
|
5
|
||||||||||||
Interest cost
|
3
|
8
|
5
|
7
|
||||||||||||
Curtailments
|
—
|
—
|
(34
|
)
|
(2
|
)
|
||||||||||
Settlements
|
—
|
—
|
(33
|
)
|
(3
|
)
|
||||||||||
Divestitures
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||
Actuarial (gain)/loss
|
1
|
3
|
8
|
18
|
||||||||||||
Currency fluctuations
|
—
|
—
|
—
|
(4
|
)
|
|||||||||||
Benefits paid
|
(1
|
)
|
(5
|
)
|
(1
|
)
|
(3
|
)
|
||||||||
Benefit obligation at end of year
|
$
|
92
|
$
|
161
|
$
|
89
|
$
|
148
|
|
Year Ended December 31,
|
|||||||||||||||
|
2011
|
2010
|
||||||||||||||
|
United States
|
Non-U.S.
|
United
States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
9
|
$
|
94
|
$
|
8
|
$
|
90
|
||||||||
Actual return on plan assets
|
—
|
1
|
1
|
6
|
||||||||||||
Employer contributions
|
—
|
10
|
1
|
7
|
||||||||||||
Settlements
|
—
|
—
|
—
|
(3
|
)
|
|||||||||||
Currency fluctuations
|
—
|
1
|
—
|
(3
|
)
|
|||||||||||
Benefits paid
|
(1
|
)
|
(3
|
)
|
(1
|
)
|
(3
|
)
|
||||||||
Fair value of plan assets at end of year
|
8
|
103
|
9
|
94
|
||||||||||||
|
||||||||||||||||
Funded status
|
$
|
(84
|
)
|
$
|
(58
|
)
|
$
|
(80
|
)
|
$
|
(54
|
)
|
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
||||||||||||||
|
United
States
|
Non-U.S.
|
United States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Noncurrent assets
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
2
|
||||||||
Current liabilities
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||
Noncurrent liabilities
|
(84
|
)
|
(58
|
)
|
(80
|
)
|
(55
|
)
|
||||||||
|
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
||||||||||||||
|
United States
|
Non-U.S.
|
United States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Net loss
|
$
|
16
|
$
|
32
|
$
|
15
|
$
|
26
|
||||||||
Net prior service credit
|
—
|
(1
|
)
|
—
|
(1
|
)
|
||||||||||
Total accumulated other comprehensive income (loss)
|
$
|
16
|
$
|
31
|
$
|
15
|
$
|
25
|
|
2011
|
2010
|
||||||||||||||
|
United States
|
Non-U.S.
|
United States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Plans with projected benefit obligation in excess of plan assets:
|
||||||||||||||||
Projected benefit obligation
|
$
|
92
|
$
|
161
|
$
|
89
|
$
|
117
|
||||||||
Fair value of plan assets
|
8
|
102
|
9
|
60
|
||||||||||||
Plans with accumulated benefit obligation in excess of plan assets:
|
||||||||||||||||
Accumulated benefit obligation
|
86
|
115
|
84
|
74
|
||||||||||||
Fair value of plan assets
|
8
|
71
|
9
|
33
|
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
|
United
States
|
Non-U.S.
|
United States
|
Non-U.S.
|
United
States
|
Non-U.S.
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Service cost
|
$
|
—
|
$
|
7
|
$
|
1
|
$
|
5
|
$
|
3
|
$
|
7
|
||||||||||||
Interest cost
|
3
|
8
|
5
|
7
|
8
|
7
|
||||||||||||||||||
Expected return on plan assets
|
(1
|
)
|
(5
|
)
|
(1
|
)
|
(5
|
)
|
(1
|
)
|
(4
|
)
|
||||||||||||
Amortization of prior service cost
|
—
|
—
|
2
|
—
|
4
|
—
|
||||||||||||||||||
Settlements/curtailments
|
—
|
—
|
37
|
(1
|
)
|
5
|
—
|
|||||||||||||||||
Amortization of net loss
|
1
|
1
|
1
|
—
|
6
|
1
|
||||||||||||||||||
Net periodic benefit cost
|
$
|
3
|
$
|
11
|
$
|
45
|
$
|
6
|
$
|
25
|
$
|
11
|
|
2011
|
2010
|
||||||||||||||
|
United States
|
Non U.S.
|
United States
|
Non-U.S.
|
||||||||||||
|
(In millions)
|
|||||||||||||||
New Activity:
|
||||||||||||||||
Net (gain) loss for the year
|
$
|
2
|
$
|
7
|
$
|
(27
|
)
|
$
|
14
|
|||||||
Reclassification Adjustments:
|
||||||||||||||||
Net gain (loss)
|
(1
|
)
|
(1
|
)
|
—
|
1
|
||||||||||
Prior service cost
|
—
|
—
|
(40
|
)
|
—
|
|||||||||||
Total other comprehensive income (loss)
|
$
|
1
|
$
|
6
|
$
|
(67
|
)
|
$
|
15
|
|
United
States
|
Non-U.S.
|
||||||
|
(In millions)
|
|||||||
|
||||||||
Net loss
|
$
|
1
|
$
|
2
|
|
Year Ended December 31,
|
|||||||
|
2011
|
2010
|
||||||
Discount rate:
|
||||||||
United States plans
|
2.50 – 4.50
|
%
|
3.25 – 4.50
|
%
|
||||
International plans
|
1.37 – 7.50
|
1.59 – 7.50
|
||||||
Rate of compensation increase:
|
||||||||
United States plans
|
—
|
—
|
||||||
International plans
|
2.00 – 4.30
|
2.00 – 4.50
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
Discount rate:
|
||||||||||||
United States plans
|
3.25 – 5.50
|
%
|
5.25
|
%
|
5.75 – 6.25
|
%
|
||||||
International plans
|
1.59 – 7.50
|
1.68 – 8.00
|
1.68 – 6.00
|
|||||||||
Expected return on plan assets:
|
||||||||||||
United States plans
|
7.00
|
7.00
|
7.00
|
|||||||||
International plans
|
4.60 – 5.96
|
4.60 – 6.46
|
4.20 – 7.05
|
|||||||||
Rate of compensation increase:
|
||||||||||||
United States plans
|
—
|
—
|
8.00
|
|||||||||
International plans
|
2.00 – 4.50
|
2.00 – 4.70
|
2.00 – 5.15
|
|
Level 1
|
Level 2
|
Total
|
|||||||||
|
(In millions)
|
|||||||||||
Investment funds (a)
|
$
|
—
|
$
|
103
|
$
|
103
|
||||||
Common/collective trust funds (b)
|
—
|
8
|
8
|
|||||||||
|
||||||||||||
Total assets at fair value
|
$
|
—
|
$
|
111
|
$
|
111
|
(a) | These international funds invest in the following: 3% cash, 7% U.S. equities, 32% non-U.S. equities, 50% non-U.S. fixed income securities 7%, property and 1% other. |
(b) | These U.S. funds invest in 61% equities and 39% fixed income securities. |
|
Level 1
|
Level 2
|
Total
|
|||||||||
|
(In millions)
|
|||||||||||
Investment funds (a)
|
$
|
—
|
$
|
94
|
$
|
94
|
||||||
Common/collective trust funds (b)
|
—
|
9
|
9
|
|||||||||
|
||||||||||||
Total assets at fair value
|
$
|
—
|
$
|
103
|
$
|
103
|
(a) | These international funds invest in the following: 5% cash, 9% U.S. equities, 39% non-U.S. equities, 37% non-U.S. fixed income securities, 6% property and 4% other. |
(b) | These U.S. funds invest in 63% equities and 37% fixed income securities. |
|
United States
|
Non-U.S.
|
||||||
|
(In millions)
|
|||||||
2012
|
$
|
10
|
$
|
2
|
||||
2013
|
9
|
3
|
||||||
2014
|
8
|
4
|
||||||
2015
|
7
|
3
|
||||||
2016
|
24
|
5
|
||||||
2017 – 2021
|
36
|
29
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions)
|
|||||||||||
Total current provision
|
$
|
(421
|
)
|
$
|
(314
|
)
|
$
|
(275
|
)
|
|||
|
||||||||||||
Total deferred benefit (provision)
|
(121
|
)
|
(82
|
)
|
112
|
|||||||
|
$
|
(542
|
)
|
$
|
(396
|
)
|
$
|
(163
|
)
|
Year Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions)
|
|||||||||||
Swiss federal income tax rate at 7.83%
|
$
|
(59
|
)
|
$
|
(16
|
)
|
$
|
(21
|
)
|
|||
Tax on earnings subject to rates different than the Swiss federal income tax rate
|
(377
|
)
|
(246
|
) |
(42
|
)
|
||||||
Change in valuation allowance
|
(29
|
)
|
(55
|
)
|
(38
|
)
|
||||||
Change in uncertain tax positions
|
(77
|
)
|
(79
|
)
|
(62
|
)
|
||||||
|
$
|
(542
|
)
|
$
|
(396
|
)
|
$
|
(163
|
)
|
|
December 31,
|
|||||||
|
2011
|
2010
|
||||||
|
(Restated)
|
(Restated)
|
||||||
|
(In millions)
|
|||||||
Deferred tax assets:
|
||||||||
Net operating losses carryforwards
|
$
|
301
|
$
|
364
|
||||
Accrued liabilities and reserves
|
212
|
132
|
||||||
Tax credit carryforwards
|
117
|
108
|
||||||
Employee benefits
|
55
|
40
|
||||||
Inventory
|
44
|
60
|
||||||
Other differences between financial and tax basis
|
69
|
25
|
||||||
Valuation allowance
|
(201
|
)
|
(173
|
)
|
||||
Total deferred tax assets
|
597
|
556
|
||||||
|
||||||||
Deferred tax liabilities:
|
||||||||
Property, plant and equipment
|
(424
|
)
|
(301
|
)
|
||||
Intangible assets
|
(218
|
)
|
(195
|
)
|
||||
Deferred Income | (54 | ) | (36 | ) | ||||
Other differences between financial and tax basis
|
(39
|
)
|
(12
|
)
|
||||
Total deferred tax liabilities
|
(735
|
)
|
(544
|
)
|
||||
Net deferred tax assets (liabilities)
|
$
|
(138
|
)
|
$
|
12
|
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||
|
(In millions)
|
|||||||||||
Balance at beginning of year
|
$
|
237
|
$
|
186
|
$
|
131
|
||||||
Additions as a result of tax positions taken during a prior period
|
7
|
—
|
—
|
|||||||||
Reductions as a result of tax positions taken during a prior period
|
(8
|
)
|
—
|
—
|
||||||||
Additions as a result of tax positions taken during the current period
|
65
|
67
|
51
|
|||||||||
Reductions relating to settlements with taxing authorities
|
(3
|
)
|
(5
|
)
|
—
|
|||||||
Reductions as a result of a lapse of the applicable statute of limitations
|
(2
|
)
|
(2
|
)
|
(2
|
)
|
||||||
Foreign Exchange Effects | (4 | ) |
(9
|
) | 6 | |||||||
Balance at end of year
|
$
|
292
|
$
|
237
|
$
|
186
|
2012
|
$
|
173
|
||
2013
|
126
|
|||
2014
|
98
|
|||
2015
|
79
|
|||
2016
|
56
|
|||
Thereafter
|
179
|
|||
|
$
|
711
|
|
Year Ended December 31, 2011
|
|||||||||||||||||||
|
Net
Operating
Revenues
|
Income
from
Operations
|
Depreciation
and
Amortization
|
Capital
Expenditures
|
Assets at
December 31,
2011
|
|||||||||||||||
(Restated) | (Restated) |
(Restated)
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||
North America
|
$
|
6,023
|
$
|
1,259
|
$
|
357
|
$
|
416
|
$
|
7,672
|
||||||||||
MENA/Asia Pacific (a)
|
2,441
|
25
|
328
|
504
|
5,264
|
|||||||||||||||
Europe/SSA/Russia
|
2,298
|
287
|
233
|
226
|
3,963
|
|||||||||||||||
Latin America
|
2,226
|
254
|
198
|
329
|
3,517
|
|||||||||||||||
|
12,988
|
1,825
|
1,116
|
1,475
|
20,416
|
|||||||||||||||
Corporate and Research and Development
|
—
|
(422
|
)
|
20
|
49
|
635
|
||||||||||||||
Severance, Exit and Other Adjustments (b)
|
—
|
(96
|
)
|
—
|
—
|
—
|
||||||||||||||
Total
|
$
|
12,988
|
$
|
1,307
|
$
|
1,136
|
$
|
1,524
|
$
|
21,051
|
|
Year Ended December 31, 2010
|
|||||||||||||||||||
|
Net
Operating
Revenues
|
Income
from
Operations
|
Depreciation
and
Amortization
|
Capital
Expenditures
|
Assets at
December 31,
2010
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||
North America
|
$
|
4,167
|
$
|
693
|
$
|
328
|
$
|
242
|
$
|
6,817
|
||||||||||
MENA/Asia Pacific
|
2,451
|
264
|
304
|
381
|
4,989
|
|||||||||||||||
Europe/SSA/Russia
|
1,984
|
240
|
213
|
106
|
3,614
|
|||||||||||||||
Latin America (c)
|
1,619
|
51
|
181
|
220
|
2,696
|
|||||||||||||||
|
10,221
|
1,248
|
1,026
|
949
|
18,116
|
|||||||||||||||
Corporate and Research and Development
|
—
|
(388
|
)
|
22
|
28
|
1,083
|
||||||||||||||
Revaluation of Contingent Consideration
|
—
|
13
|
—
|
—
|
—
|
|||||||||||||||
Other Items (d)
|
—
|
(99
|
)
|
—
|
—
|
—
|
||||||||||||||
Total
|
$
|
10,221
|
$
|
774
|
$
|
1,048
|
$
|
977
|
$
|
19,199
|
|
Year Ended December 31, 2009
|
|||||||||||||||||||
|
Net
Operating
Revenues
|
Income
from
Operations
|
Depreciation
and
Amortization
|
Capital
Expenditures
|
Assets at
December 31,
2009
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||
North America
|
$
|
2,762
|
$
|
191
|
$
|
316
|
$
|
276
|
$
|
6,245
|
||||||||||
MENA/Asia Pacific
|
2,373
|
445
|
257
|
818
|
3,104
|
|||||||||||||||
Europe/SSA/Russia
|
1,619
|
223
|
167
|
206
|
3,625
|
|||||||||||||||
Latin America
|
2,079
|
277
|
153
|
228
|
4,677
|
|||||||||||||||
|
8,833
|
1,136
|
893
|
1,528
|
17,651
|
|||||||||||||||
Corporate and Research and Development
|
—
|
(373
|
)
|
16
|
41
|
1,131
|
||||||||||||||
Revaluation of Contingent Consideration
|
—
|
24
|
—
|
—
|
—
|
|||||||||||||||
Other Items (e)
|
—
|
(100
|
)
|
—
|
—
|
—
|
||||||||||||||
Total
|
$
|
8,833
|
$
|
687
|
$
|
909
|
$
|
1,569
|
$
|
18,782
|
(a)
|
Early in the year ended December 31, 2011, our operations in Libya were disrupted by civil unrest. Most employees were evacuated and steps were taken to safeguard assets within the country. Due to the on-going hostilities, we were unable to physically verify the existence or condition of the majority of our assets in country for most of 2011 and the information available to us about these assets evolved during the year. Additionally, due to international sanctions against all entities affiliated with the Libyan government, we were unable to pursue collections of accounts receivable from a significant portion of our Libyan customers. In the fourth quarter, hostilities subsided and limited company personnel were able to re-enter the country. Additionally, we were able to engage in discussions with our customers. Following an examination of our Libyan assets and evaluation of our accounts receivable from Libyan customers, we recognized an expense of $59 million primarily to establish a reserve for receivables, machinery and equipment and inventory in Libya. Given our evacuation from the country, it may be difficult, if not impossible, for us to safeguard and recover all of our operating assets; our ability to do so will depend on the local turn of events. We risk loss of assets in any location where hostilities arise and persist. In these areas we also may not be able to perform the work we are contracted to perform, which could lead to forfeiture of performance bonds.
|
(b)
|
Other Items for the year ended December 31, 2011, includes tax restatement and remediation expenses of $21 million, $10 million of costs incurred in connection with on-going investigations by the U.S. government, $9 million associated with the termination of a corporate consulting contract, and severance, exit and other charges of $56 million.
|
(c)
|
Latin America for the year ended December 31, 2010, includes a $76 million charge for revisions to our profitability estimates on our project management contracts in Mexico and a $32 million reserve taken against accounts receivable balances in Venezuela in light of the country's economic prognosis.
|
(d) | Other Items for the year ended December 31, 2010, includes a $38 million charge related to our SERP which was frozen on March 31, 2010, $61 million for severance and facility closure costs and $7 million for legal, professional and other fees incurred in connection with our on-going investigations. These charges were offset by a $7 million benefit related to the reversal of prior cost accruals for our exit from certain sanctioned countries. |
(e) | Other Items for the year ended December 31, 2009, includes $45 million for legal, professional and other fees incurred in connection with on-going investigations by the U.S. government, $51 million for severance and facility closure costs associated with reorganization activities and $4 million in costs related to the Company's withdrawal from certain sanctioned countries. |
|
Year Ended December 31,
|
|||||||||||
|
2011
|
2010
|
2009
|
|||||||||
|
||||||||||||
Artificial Lift Systems
|
17
|
%
|
15
|
%
|
14
|
%
|
||||||
Stimulation and Chemicals Services
|
17
|
12
|
8
|
|||||||||
Drilling Services
|
17
|
17
|
16
|
|||||||||
Well Construction
|
12
|
14
|
15
|
|||||||||
Integrated Drilling
|
11
|
12
|
14
|
|||||||||
Completion Systems.
|
8
|
8
|
11
|
|||||||||
Drilling Tools
|
6
|
8
|
8
|
|||||||||
Wireline and Evaluation Services
|
6
|
6
|
6
|
|||||||||
Re-entry and Fishing
|
5
|
6
|
6
|
|||||||||
Pipeline and Specialty Services
|
1
|
2
|
2
|
|||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Revenues from Unaffiliated Customers
|
Long-lived Assets
|
||||||||||||||||||||||
|
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
United States
|
$
|
4,714
|
$
|
3,197
|
$
|
2,119
|
$
|
4,535
|
$
|
4,215
|
$
|
4,327
|
||||||||||||
Mexico
|
789
|
617
|
1,231
|
401
|
373
|
408
|
||||||||||||||||||
Canada
|
1,309
|
970
|
643
|
1,111
|
1,235
|
1,241
|
||||||||||||||||||
Other Countries
|
6,176
|
5,437
|
4,840
|
7,128
|
6,806
|
6,754
|
||||||||||||||||||
|
$
|
12,988
|
$
|
10,221
|
$
|
8,833
|
$
|
13,175
|
$
|
12,629
|
$
|
12,730
|
|
2011 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues
|
$
|
2,856
|
$
|
3,052
|
$
|
3,370
|
$
|
3,710
|
$
|
12,988
|
||||||||||
Gross Profit
|
723
|
783
|
890
|
914
|
3,310
|
|||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
30
|
51
|
121
|
(13
|
) |
189
|
||||||||||||||
Basic Earnings (Loss) Per Share
|
0.04
|
0.07
|
0.16
|
(0.02
|
) |
0.25
|
||||||||||||||
Diluted Earnings (Loss) Per Share
|
0.04
|
0.07
|
0.16
|
(0.02
|
) |
0.25
|
|
2010 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues
|
$
|
2,331
|
$
|
2,437
|
$
|
2,530
|
$
|
2,923
|
$
|
10,221
|
||||||||||
Gross Profit
|
576
|
628
|
631
|
796
|
2,631
|
|||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
(83
|
)
|
(74
|
)
|
70
|
(130
|
)
|
(217
|
)
|
|||||||||||
Basic Earnings (Loss) Per Share
|
(0.11
|
)
|
(0.10
|
)
|
0.09
|
(0.17
|
)
|
(0.29
|
)
|
|||||||||||
Diluted Earnings (Loss) Per Share
|
(0.11
|
)
|
(0.10
|
)
|
0.09
|
(0.17
|
)
|
(0.29
|
)
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
As Previously Reported | ||||||||||||||||||||
|
2011 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
1,064
|
$
|
1,152
|
$
|
1,254
|
$
|
1,416
|
$
|
4,886
|
||||||||||
Services
|
1,792
|
1,900
|
2,118
|
2,294
|
8,104
|
|||||||||||||||
|
2,856
|
3,052
|
3,372
|
3,710
|
12,990
|
|||||||||||||||
|
||||||||||||||||||||
Cost of Products
|
$
|
791
|
$
|
872
|
$
|
948
|
$
|
1,123
|
$
|
3,734
|
||||||||||
Cost of Services
|
1,340
|
1,393
|
1,527
|
1,671
|
5,931
|
|||||||||||||||
Research and Development
|
60
|
62
|
59
|
64
|
245
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
384
|
384
|
378
|
388
|
1,534
|
|||||||||||||||
Corporate General and Administrative
|
64
|
48
|
43
|
67
|
222
|
|||||||||||||||
|
2,639
|
2,759
|
2,955
|
3,313
|
11,666
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
217
|
293
|
417
|
397
|
1,324
|
|||||||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
(113
|
)
|
(114
|
)
|
(115
|
)
|
(111
|
)
|
(453
|
)
|
||||||||||
Other, Net
|
(19
|
)
|
(22
|
)
|
(26
|
)
|
(40
|
)
|
(107
|
)
|
||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
85
|
157
|
276
|
246
|
764
|
|||||||||||||||
Provision for Income Taxes
|
(46
|
)
|
(76
|
)
|
(143
|
)
|
(221
|
)
|
(486
|
)
|
||||||||||
Net Income (Loss)
|
39
|
81
|
133
|
25
|
278
|
|||||||||||||||
Net Income Attributable to Noncontrolling Interests
|
(2
|
)
|
(5
|
)
|
(3
|
)
|
(6
|
)
|
(16
|
)
|
||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
37
|
$
|
76
|
$
|
130
|
$
|
19
|
$
|
262
|
||||||||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$
|
0.05
|
$
|
0.10
|
$
|
0.17
|
$
|
0.03
|
$
|
0.35
|
||||||||||
Diluted
|
$
|
0.05
|
$
|
0.10
|
$
|
0.17
|
$
|
0.02
|
$
|
0.34
|
||||||||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
747
|
751
|
754
|
758
|
753
|
|||||||||||||||
Diluted
|
758
|
758
|
760
|
763
|
760
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
Restatement Adjustments
|
||||||||||||||||||||
|
2011 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
—
|
$
|
—
|
$
|
(2
|
)
|
$
|
—
|
$
|
(2
|
)
|
||||||||
Services
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
—
|
—
|
(2
|
)
|
—
|
(2
|
)
|
|||||||||||||
|
||||||||||||||||||||
Cost of Products
|
1
|
2
|
4
|
1
|
8
|
|||||||||||||||
Cost of Services
|
1
|
2
|
1
|
1
|
5
|
|||||||||||||||
Research and Development
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
—
|
—
|
—
|
(2
|
) |
(2
|
) | |||||||||||||
Corporate General and Administrative
|
6
|
(3
|
) |
—
|
1
|
4
|
||||||||||||||
|
8
|
1
|
5
|
1
|
15
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
(8
|
)
|
(1
|
) |
(7
|
)
|
(1
|
) |
(17
|
)
|
||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
1
|
—
|
—
|
(1
|
) |
—
|
||||||||||||||
Other, Net
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
(7
|
)
|
(1
|
) |
(7
|
)
|
(2
|
) |
(17
|
)
|
||||||||||
Provision for Income Taxes
|
—
|
(24
|
) |
(2
|
) |
(30
|
) |
(56
|
) | |||||||||||
Net Income (Loss)
|
(7
|
)
|
(25
|
)
|
(9
|
)
|
(32
|
)
|
(73
|
)
|
||||||||||
Net Income Attributable to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$ |
(7
|
)
|
$ |
(25
|
)
|
$
|
(9
|
)
|
$
|
(32
|
)
|
$
|
(73
|
)
|
|||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$
|
(0.01
|
) |
$
|
(0.03
|
) |
$
|
(0.01
|
) |
$
|
(0.05
|
) |
$
|
(0.10
|
)
|
|||||
Diluted
|
$
|
(0.01
|
) |
$
|
(0.03
|
) |
$
|
(0.01
|
) |
$
|
(0.04
|
) |
$
|
(0.09
|
)
|
|||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Diluted
|
—
|
—
|
—
|
—
|
—
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
As Restated
|
||||||||||||||||||||
|
2011 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
1,064
|
$
|
1,152
|
$
|
1,252
|
$
|
1,416
|
$
|
4,884
|
||||||||||
Services
|
1,792
|
1,900
|
2,118
|
2,294
|
8,104
|
|||||||||||||||
|
2,856
|
3,052
|
3,370
|
3,710
|
12,988
|
|||||||||||||||
|
||||||||||||||||||||
Cost of Products
|
792
|
874
|
952
|
1,124
|
3,742
|
|||||||||||||||
Cost of Services
|
1,341
|
1,395
|
1,528
|
1,672
|
5,936
|
|||||||||||||||
Research and Development
|
60
|
62
|
59
|
64
|
245
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
384
|
384
|
378
|
386
|
1,532
|
|||||||||||||||
Corporate General and Administrative
|
70
|
45
|
43
|
68
|
226
|
|||||||||||||||
|
2,647
|
2,760
|
2,960
|
3,314
|
11,681
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
209
|
292
|
410
|
396
|
1,307
|
|||||||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
(112
|
)
|
(114
|
)
|
(115
|
)
|
(112
|
)
|
(453
|
)
|
||||||||||
Other, Net
|
(19
|
)
|
(22
|
)
|
(26
|
)
|
(40
|
)
|
(107
|
)
|
||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
78
|
156
|
269
|
244
|
747
|
|||||||||||||||
Provision for Income Taxes
|
(46
|
)
|
(100
|
)
|
(145
|
)
|
(251
|
)
|
(542
|
)
|
||||||||||
Net Income (Loss)
|
32
|
56
|
124
|
(7
|
) |
205
|
||||||||||||||
Net Income Attributable to Noncontrolling Interests
|
(2
|
)
|
(5
|
)
|
(3
|
)
|
(6
|
)
|
(16
|
)
|
||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
30
|
$
|
51
|
$
|
121
|
$
|
(13
|
) |
$
|
189
|
|||||||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$ |
0.04
|
$
|
0.07
|
$
|
0.16
|
$
|
(0.02
|
) |
$
|
0.25
|
|||||||||
Diluted
|
$
|
0.04
|
$
|
0.07
|
$
|
0.16
|
$
|
(0.02
|
) |
$
|
0.25
|
|||||||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
747
|
751
|
754
|
758
|
753
|
|||||||||||||||
Diluted
|
758
|
758
|
760
|
758
|
760
|
|||||||||||||||
|
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
As Previously Reported
|
||||||||||||||||
|
2011 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
249
|
$
|
330
|
$
|
274
|
$
|
371
|
||||||||
Accounts Receivables
|
2,923
|
3,021
|
3,181
|
3,235
|
||||||||||||
Inventories
|
2,760
|
2,940
|
3,073
|
3,158
|
||||||||||||
Current Deferred Tax Assets
|
297
|
302
|
290
|
250
|
||||||||||||
Other Current Assets
|
695
|
802
|
806
|
685
|
||||||||||||
Total Current Assets
|
6,924
|
7,395
|
7,624
|
7,699
|
||||||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
7,117
|
7,245
|
7,141
|
7,283
|
||||||||||||
Goodwill
|
4,355
|
4,405
|
4,413
|
4,422
|
||||||||||||
Other Intangible Assets
|
734
|
757
|
720
|
711
|
||||||||||||
Equity Investments
|
552
|
558
|
600
|
616
|
||||||||||||
Other Non-current Assets
|
219
|
224
|
217
|
454
|
||||||||||||
Total Assets
|
$
|
19,901
|
$
|
20,584
|
$
|
20,715
|
$
|
21,185
|
||||||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
620
|
$
|
1,114
|
$
|
1,350
|
$
|
1,320
|
||||||||
Accounts Payable
|
1,433
|
1,518
|
1,566
|
1,567
|
||||||||||||
Other Current Liabilities
|
1,007
|
1,244
|
1,282
|
1,326
|
||||||||||||
Total Current Liabilities
|
3,060
|
3,876
|
4,198
|
4,213
|
||||||||||||
|
||||||||||||||||
Long-term Debt
|
6,526
|
6,257
|
6,266
|
6,286
|
||||||||||||
Other Non-current Liabilities
|
826
|
788
|
707
|
1,133
|
||||||||||||
Total Liabilities
|
10,412
|
10,921
|
11,171
|
11,632
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
763
|
763
|
769
|
769
|
||||||||||||
Capital in Excess of Par Value
|
4,710
|
4,723
|
4,807
|
4,824
|
||||||||||||
Treasury Shares, at Cost
|
(562
|
)
|
(491
|
)
|
(485
|
)
|
(483
|
)
|
||||||||
Retained Earnings
|
4,132
|
4,208
|
4,329
|
4,352
|
||||||||||||
Accumulated Other Comprehensive Income
|
381
|
398
|
97
|
70
|
||||||||||||
Weatherford Shareholders' Equity
|
9,424
|
9,601
|
9,517
|
9,532
|
||||||||||||
Noncontrolling Interests
|
65
|
62
|
27
|
21
|
||||||||||||
Total Shareholders' Equity
|
9,489
|
9,663
|
9,544
|
9,553
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
19,901
|
$
|
20,584
|
$
|
20,715
|
$
|
21,185
|
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
Restatement Adjustments
|
||||||||||||||||
|
2011 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Accounts Receivables
|
—
|
—
|
(3
|
)
|
(2
|
)
|
||||||||||
Inventories
|
—
|
—
|
—
|
—
|
||||||||||||
Current Deferred Tax Assets
|
(27
|
) |
(27
|
) |
(27
|
) |
24
|
|||||||||
Other Current Assets
|
2
|
2
|
2
|
10
|
||||||||||||
Total Current Assets
|
(25
|
) |
(25
|
) |
(28
|
)
|
32
|
|||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
5
|
4
|
4
|
4
|
||||||||||||
Goodwill
|
1
|
2
|
2
|
1
|
||||||||||||
Other Intangible Assets
|
—
|
—
|
—
|
—
|
||||||||||||
Equity Investments
|
—
|
—
|
—
|
—
|
||||||||||||
Other Non-current Assets
|
11
|
11
|
11
|
(171
|
) | |||||||||||
Total Assets
|
$
|
(8
|
) |
$
|
(8
|
) |
$
|
(11
|
) |
$
|
(134
|
) | ||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Accounts Payable
|
—
|
—
|
3
|
4
|
||||||||||||
Other Current Liabilities
|
81
|
105
|
109
|
66
|
||||||||||||
Total Current Liabilities
|
81
|
105
|
112
|
70
|
||||||||||||
|
||||||||||||||||
Long-term Debt
|
—
|
—
|
—
|
—
|
||||||||||||
Other Non-current Liabilities
|
61
|
62
|
61
|
4
|
||||||||||||
Total Liabilities
|
142
|
167
|
173
|
74
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
—
|
—
|
—
|
—
|
||||||||||||
Capital in Excess of Par Value
|
(114
|
)
|
(122
|
)
|
(140
|
)
|
(149
|
)
|
||||||||
Treasury Shares, at Cost
|
114
|
122
|
140
|
149
|
||||||||||||
Retained Earnings
|
(152
|
)
|
(177
|
)
|
(187
|
)
|
(218
|
)
|
||||||||
Accumulated Other Comprehensive Income
|
2
|
2
|
3
|
10
|
||||||||||||
Weatherford Shareholders' Equity
|
(150
|
)
|
(175
|
)
|
(184
|
)
|
(208
|
)
|
||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
—
|
||||||||||||
Total Shareholders' Equity
|
(150
|
)
|
(175
|
)
|
(184
|
)
|
(208
|
)
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
(8
|
) |
$
|
(8
|
) |
$
|
(11
|
) |
$
|
(134
|
) |
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
As Restated
|
||||||||||||||||
|
2011 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
249
|
$
|
330
|
$
|
274
|
$
|
371
|
||||||||
Accounts Receivables
|
2,923
|
3,021
|
3,178
|
3,233
|
||||||||||||
Inventories
|
2,760
|
2,940
|
3,073
|
3,158
|
||||||||||||
Current Deferred Tax Assets
|
270
|
275
|
263
|
274
|
||||||||||||
Other Current Assets
|
697
|
804
|
808
|
695
|
||||||||||||
Total Current Assets
|
6,899
|
7,370
|
7,596
|
7,731
|
||||||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
7,122
|
7,249
|
7,145
|
7,287
|
||||||||||||
Goodwill
|
4,356
|
4,407
|
4,415
|
4,423
|
||||||||||||
Other Intangible Assets
|
734
|
757
|
720
|
711
|
||||||||||||
Equity Investments
|
552
|
558
|
600
|
616
|
||||||||||||
Other Non-current Assets
|
230
|
235
|
228
|
283
|
||||||||||||
Total Assets
|
$
|
19,893
|
$
|
20,576
|
$
|
20,704
|
$
|
21,051
|
||||||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
620
|
$
|
1,114
|
$
|
1,350
|
$
|
1,320
|
||||||||
Accounts Payable
|
1,433
|
1,518
|
1,569
|
1,571
|
||||||||||||
Other Current Liabilities
|
1,088
|
1,349
|
1,391
|
1,392
|
||||||||||||
Total Current Liabilities
|
3,141
|
3,981
|
4,310
|
4,283
|
||||||||||||
|
||||||||||||||||
Long-term Debt
|
6,526
|
6,257
|
6,266
|
6,286
|
||||||||||||
Other Non-current Liabilities
|
887
|
850
|
768
|
1,137
|
||||||||||||
Total Liabilities
|
10,554
|
11,088
|
11,344
|
11,706
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
763
|
763
|
769
|
769
|
||||||||||||
Capital in Excess of Par Value
|
4,596
|
4,601
|
4,667
|
4,675
|
||||||||||||
Treasury Shares, at Cost
|
(448
|
)
|
(369
|
)
|
(345
|
)
|
(334
|
)
|
||||||||
Retained Earnings
|
3,980
|
4,031
|
4,142
|
4,134
|
||||||||||||
Accumulated Other Comprehensive Income
|
383
|
400
|
100
|
80
|
||||||||||||
Weatherford Shareholders' Equity
|
9,274
|
9,426
|
9,333
|
9,324
|
||||||||||||
Noncontrolling Interests
|
65
|
62
|
27
|
21
|
||||||||||||
Total Shareholders' Equity
|
9,339
|
9,488
|
9,360
|
9,345
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
19,893
|
$
|
20,576
|
$
|
20,704
|
$
|
21,051
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
As Previously Reported
|
||||||||||||||||||||
|
2010 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
781
|
$
|
831
|
$
|
911
|
$
|
1,057
|
$
|
3,580
|
||||||||||
Services
|
1,550
|
1,606
|
1,619
|
1,866
|
6,641
|
|||||||||||||||
|
2,331
|
2,437
|
2,530
|
2,923
|
10,221
|
|||||||||||||||
|
||||||||||||||||||||
Cost of Products
|
574
|
605
|
642
|
812
|
2,633
|
|||||||||||||||
Cost of Services
|
1,179
|
1,203
|
1,255
|
1,312
|
4,949
|
|||||||||||||||
Research and Development
|
49
|
54
|
55
|
58
|
216
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
337
|
417
|
256
|
394
|
1,404
|
|||||||||||||||
Corporate General and Administrative
|
84
|
53
|
47
|
53
|
237
|
|||||||||||||||
|
2,223
|
2,332
|
2,255
|
2,629
|
9,439
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
108
|
105
|
275
|
294
|
782
|
|||||||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
(95
|
)
|
(96
|
)
|
(99
|
)
|
(116
|
)
|
(406
|
)
|
||||||||||
Bond Tender Premium
|
—
|
—
|
(11
|
)
|
(43
|
)
|
(54
|
)
|
||||||||||||
Devaluation of Venezuelan Bolivar
|
(64
|
)
|
—
|
—
|
—
|
(64
|
)
|
|||||||||||||
Other, Net
|
(9
|
)
|
(14
|
)
|
(12
|
)
|
(18
|
)
|
(53
|
)
|
||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
(60
|
)
|
(5
|
)
|
153
|
117
|
205
|
|
||||||||||||
Provision for Income Taxes
|
(5
|
)
|
(46
|
)
|
(59
|
)
|
(229
|
)
|
(339
|
)
|
||||||||||
Net Income (Loss)
|
(65
|
)
|
(51
|
)
|
94
|
(112
|
)
|
(134
|
)
|
|||||||||||
Net Income Attributable to Noncontrolling Interests
|
(5
|
)
|
(5
|
)
|
(5
|
)
|
(3
|
)
|
(18
|
)
|
||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(70
|
)
|
$
|
(56
|
)
|
$
|
89
|
$
|
(115
|
)
|
$
|
(152
|
)
|
||||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$ |
(0.09
|
)
|
$ |
(0.08
|
)
|
$ |
0.12
|
$ |
(0.15
|
)
|
$ |
(0.20
|
)
|
||||||
Diluted
|
$
|
(0.09
|
)
|
$
|
(0.08
|
)
|
$
|
0.12
|
$
|
(0.15
|
)
|
$
|
(0.20
|
)
|
||||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
738
|
743
|
746
|
745
|
743
|
|||||||||||||||
Diluted
|
738
|
743
|
751
|
745
|
743
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
Restatement Adjustments
|
||||||||||||||||||||
|
2010 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||
Services
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
||||||||||||||||||||
Cost of Products
|
1
|
—
|
1
|
2
|
4
|
|||||||||||||||
Cost of Services
|
1
|
1
|
1
|
1
|
4
|
|||||||||||||||
Research and Development
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Corporate General and Administrative
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
2
|
1
|
2
|
3
|
8
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
(2
|
)
|
(1
|
) |
(2
|
)
|
(3
|
)
|
(8
|
)
|
||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Bond Tender Premium
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Devaluation of Venezuelan Bolivar
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Other, Net
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
(2
|
)
|
(1
|
) |
(2
|
)
|
(3
|
)
|
(8
|
)
|
||||||||||
Provision for Income Taxes
|
(11
|
) |
(17
|
) |
(17
|
)
|
(12
|
) |
(57
|
) | ||||||||||
Net Income (Loss)
|
(13
|
)
|
(18
|
) |
(19
|
)
|
(15
|
)
|
(65
|
)
|
||||||||||
Net Income Attributable to Noncontrolling Interests
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(13
|
)
|
$
|
(18
|
) |
$
|
(19
|
)
|
$
|
(15
|
)
|
$
|
(65
|
)
|
|||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$ |
(0.02
|
) | $ |
(0.02
|
)
|
$ |
(0.03
|
) | $ |
(0.02
|
)
|
$ |
(0.09
|
)
|
|||||
Diluted
|
$ |
(0.02
|
) | $ |
(0.02
|
)
|
$ |
(0.03
|
) | $ |
(0.02
|
)
|
$ |
(0.09
|
)
|
|||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Diluted
|
—
|
—
|
—
|
—
|
—
|
|
||||||||||||||||||||
|
Condensed Consolidated Statements of Operations
|
|||||||||||||||||||
As Restated
|
||||||||||||||||||||
|
2010 Quarters
|
|||||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
Total
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
|
$
|
781
|
$
|
831
|
$
|
911
|
$
|
1,057
|
$
|
3,580
|
||||||||||
Services
|
1,550
|
1,606
|
1,619
|
1,866
|
6,641
|
|||||||||||||||
|
2,331
|
2,437
|
2,530
|
2,923
|
10,221
|
|||||||||||||||
|
||||||||||||||||||||
Cost of Products
|
575
|
605
|
643
|
814
|
2,637
|
|||||||||||||||
Cost of Services
|
1,180
|
1,204
|
1,256
|
1,313
|
4,953
|
|||||||||||||||
Research and Development
|
49
|
54
|
55
|
58
|
216
|
|||||||||||||||
Selling, General and Administrative Attributable to Segments
|
337
|
417
|
256
|
394
|
1,404
|
|||||||||||||||
Corporate General and Administrative
|
84
|
53
|
47
|
53
|
237
|
|||||||||||||||
|
2,225
|
2,333
|
2,257
|
2,632
|
9,447
|
|||||||||||||||
|
||||||||||||||||||||
Operating Income
|
106
|
104
|
273
|
291
|
774
|
|||||||||||||||
|
||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||
Interest Expense, Net
|
(95
|
)
|
(96
|
)
|
(99
|
)
|
(116
|
)
|
(406
|
)
|
||||||||||
Bond Tender Premium
|
―
|
―
|
(11
|
)
|
(43
|
)
|
(54
|
)
|
||||||||||||
Devaluation of Venezuelan Bolivar
|
(64
|
)
|
―
|
―
|
―
|
(64
|
)
|
|||||||||||||
Other, Net
|
(9
|
)
|
(14
|
)
|
(12
|
)
|
(18
|
)
|
(53
|
)
|
||||||||||
|
||||||||||||||||||||
Income Before Income Taxes
|
(62
|
)
|
(6
|
)
|
151
|
114
|
197
|
|||||||||||||
Provision for Income Taxes
|
(16
|
)
|
(63
|
)
|
(76
|
)
|
(241
|
)
|
(396
|
)
|
||||||||||
Net Income (Loss)
|
(78
|
)
|
(69
|
)
|
75
|
(127
|
)
|
(199
|
)
|
|||||||||||
Net Income Attributable to Noncontrolling Interests
|
(5
|
)
|
(5
|
)
|
(5
|
)
|
(3
|
)
|
(18
|
)
|
||||||||||
Net Income (Loss) Attributable toWeatherford
|
$
|
(83
|
)
|
$
|
(74
|
)
|
$
|
70
|
$
|
(130
|
)
|
$
|
(217
|
)
|
||||||
|
||||||||||||||||||||
Earnings (Loss) Per Share Attributable To Weatherford:
|
||||||||||||||||||||
Basic
|
$ |
(0.11
|
)
|
$
|
(0.10
|
)
|
$
|
0.09
|
$
|
(0.17
|
)
|
$
|
(0.29
|
)
|
||||||
Diluted
|
$
|
(0.11
|
)
|
$
|
(0.10
|
)
|
$
|
0.09
|
$
|
(0.17
|
)
|
$
|
(0.29
|
)
|
||||||
|
||||||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||||||
Basic
|
738
|
743
|
746
|
745
|
743
|
|||||||||||||||
Diluted
|
738
|
743
|
751
|
745
|
743
|
|||||||||||||||
|
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
As Previously Reported
|
||||||||||||||||
|
2010 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
207
|
$
|
223
|
$
|
951
|
$
|
416
|
||||||||
Accounts Receivables
|
2,654
|
2,469
|
2,529
|
2,629
|
||||||||||||
Inventories
|
2,316
|
2,368
|
2,491
|
2,590
|
||||||||||||
Current Deferred Tax Assets
|
285
|
284
|
286
|
284
|
||||||||||||
Other Current Assets
|
666
|
716
|
655
|
601
|
||||||||||||
Total Current Assets
|
6,128
|
6,060
|
6,912
|
6,520
|
||||||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
6,882
|
6,772
|
6,931
|
6,940
|
||||||||||||
Goodwill
|
4,231
|
4,216
|
4,231
|
4,277
|
||||||||||||
Other Intangible Assets
|
753
|
740
|
731
|
728
|
||||||||||||
Equity Investments
|
533
|
540
|
538
|
540
|
||||||||||||
Other Non-current Assets
|
275
|
271
|
315
|
202
|
||||||||||||
Total Assets
|
$
|
18,802
|
$
|
18,599
|
$
|
19,658
|
$
|
19,207
|
||||||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
991
|
$
|
628
|
$
|
582
|
$
|
235
|
||||||||
Accounts Payable
|
1,121
|
1,128
|
1,201
|
1,335
|
||||||||||||
Other Current Liabilities
|
1,083
|
1,206
|
1,232
|
1,058
|
||||||||||||
Total Current Liabilities
|
3,195
|
2,962
|
3,015
|
2,628
|
||||||||||||
|
||||||||||||||||
Long-term Debt
|
5,845
|
6,005
|
6,695
|
6,530
|
||||||||||||
Other Non-current Liabilities
|
558
|
562
|
623
|
789
|
||||||||||||
Total Liabilities
|
9,598
|
9,529
|
10,333
|
9,947
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
761
|
761
|
761
|
761
|
||||||||||||
Capital in Excess of Par Value
|
4,641
|
4,659
|
4,683
|
4,702
|
||||||||||||
Treasury Shares, at Cost
|
(574
|
)
|
(566
|
)
|
(566
|
)
|
(563
|
)
|
||||||||
Retained Earnings
|
4,177
|
4,121
|
4,209
|
4,094
|
||||||||||||
Accumulated Other Comprehensive Income
|
121
|
23
|
166
|
199
|
||||||||||||
Weatherford Shareholders' Equity
|
9,126
|
8,998
|
9,253
|
9,193
|
||||||||||||
Noncontrolling Interests
|
78
|
72
|
72
|
67
|
||||||||||||
Total Shareholders' Equity
|
9,204
|
9,070
|
9,325
|
9,260
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
18,802
|
$
|
18,599
|
$
|
19,658
|
19,207
|
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
Restatement Adjustments
|
||||||||||||||||
|
2010 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
||||||||
Accounts Receivables
|
―
|
―
|
―
|
―
|
||||||||||||
Inventories
|
―
|
―
|
―
|
―
|
||||||||||||
Current Deferred Tax Assets
|
35
|
36
|
35
|
(27
|
) | |||||||||||
Other Current Assets
|
2
|
2
|
2
|
2
|
||||||||||||
Total Current Assets
|
37
|
38
|
37
|
(25
|
) | |||||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
5
|
6
|
5
|
5
|
||||||||||||
Goodwill
|
―
|
―
|
―
|
2
|
||||||||||||
Other Intangible Assets
|
―
|
―
|
―
|
―
|
||||||||||||
Equity Investments
|
―
|
―
|
―
|
―
|
||||||||||||
Other Non-current Assets
|
(30
|
) |
(31
|
) |
(30
|
) |
10
|
|||||||||
Total Assets
|
$
|
12
|
$
|
13
|
$
|
12
|
$
|
(8
|
) | |||||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
||||||||
Accounts Payable
|
―
|
―
|
―
|
―
|
||||||||||||
Other Current Liabilities
|
(6
|
) |
14
|
31
|
73
|
|||||||||||
Total Current Liabilities
|
(6
|
) |
14
|
31
|
73
|
|||||||||||
|
||||||||||||||||
Long-term Debt
|
―
|
―
|
―
|
―
|
||||||||||||
Other Non-current Liabilities
|
111
|
110
|
110
|
61
|
||||||||||||
Total Liabilities
|
105
|
124
|
141
|
134
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
―
|
―
|
―
|
―
|
||||||||||||
Capital in Excess of Par Value
|
(34
|
)
|
(62
|
)
|
(66
|
)
|
(85
|
)
|
||||||||
Treasury Shares, at Cost
|
34
|
62
|
66
|
85
|
||||||||||||
Retained Earnings
|
(93
|
)
|
(112
|
)
|
(130
|
)
|
(145
|
)
|
||||||||
Accumulated Other Comprehensive Income
|
―
|
1
|
1
|
3
|
||||||||||||
Weatherford Shareholders' Equity
|
(93
|
)
|
(111
|
)
|
(129
|
)
|
(142
|
)
|
||||||||
Noncontrolling Interests
|
―
|
―
|
―
|
―
|
||||||||||||
Total Shareholders' Equity
|
(93
|
)
|
(111
|
)
|
(129
|
)
|
(142
|
)
|
||||||||
Total Liabilities and Shareholders' Equity
|
$
|
12
|
$
|
13
|
$
|
12
|
$
|
(8
|
) |
|
Condensed Consolidated Balance Sheets
|
|||||||||||||||
As Restated
|
||||||||||||||||
|
2010 Quarters
|
|||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Current Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
207
|
$
|
223
|
$
|
951
|
$
|
416
|
||||||||
Accounts Receivables
|
2,654
|
2,469
|
2,529
|
2,629
|
||||||||||||
Inventories
|
2,316
|
2,368
|
2,491
|
2,590
|
||||||||||||
Current Deferred Tax Assets
|
320
|
320
|
321
|
257
|
||||||||||||
Other Current Assets
|
668
|
718
|
657
|
603
|
||||||||||||
Total Current Assets
|
6,165
|
6,098
|
6,949
|
6,495
|
||||||||||||
|
||||||||||||||||
Property, Plant and Equipment
|
6,887
|
6,778
|
6,936
|
6,945
|
||||||||||||
Goodwill
|
4,231
|
4,216
|
4,231
|
4,279
|
||||||||||||
Other Intangible Assets
|
753
|
740
|
731
|
728
|
||||||||||||
Equity Investments
|
533
|
540
|
538
|
540
|
||||||||||||
Other Non-current Assets
|
245
|
240
|
285
|
212
|
||||||||||||
Total Assets
|
$
|
18,814
|
$
|
18,612
|
$
|
19,670
|
$
|
19,199
|
||||||||
|
||||||||||||||||
Current Liabilities:
|
||||||||||||||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
991
|
$
|
628
|
$
|
582
|
$
|
235
|
||||||||
Accounts Payable
|
1,121
|
1,128
|
1,201
|
1,335
|
||||||||||||
Other Current Liabilities
|
1,077
|
1,220
|
1,263
|
1,131
|
||||||||||||
Total Current Liabilities
|
3,189
|
2,976
|
3,046
|
2,701
|
||||||||||||
|
||||||||||||||||
Long-term Debt
|
5,845
|
6,005
|
6,695
|
6,530
|
||||||||||||
Other Non-current Liabilities
|
669
|
672
|
733
|
850
|
||||||||||||
Total Liabilities
|
9,703
|
9,653
|
10,474
|
10,081
|
||||||||||||
|
||||||||||||||||
Shareholders' Equity:
|
||||||||||||||||
Shares
|
761
|
761
|
761
|
761
|
||||||||||||
Capital in Excess of Par Value
|
4,607
|
4,597
|
4,617
|
4,617
|
||||||||||||
Treasury Shares, at Cost
|
(540
|
)
|
(504
|
)
|
(500
|
)
|
(478
|
)
|
||||||||
Retained Earnings
|
4,084
|
4,009
|
4,079
|
3,949
|
||||||||||||
Accumulated Other Comprehensive Income
|
121
|
24
|
167
|
202
|
||||||||||||
Weatherford Shareholders' Equity
|
9,033
|
8,887
|
9,124
|
9,051
|
||||||||||||
Noncontrolling Interests
|
78
|
72
|
72
|
67
|
||||||||||||
Total Shareholders' Equity
|
9,111
|
8,959
|
9,196
|
9,118
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
18,814
|
$
|
18,612
|
$
|
19,670
|
$
|
19,199
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Current Assets:
|
||||||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
371
|
$
|
—
|
$
|
371
|
||||||||||||
Other Current Assets
|
3
|
16
|
147
|
7,293
|
(99
|
) |
7,360
|
|||||||||||||||||
Total Current Assets
|
3
|
16
|
147
|
7,664
|
(99
|
) |
7,731
|
|||||||||||||||||
|
||||||||||||||||||||||||
Equity Investments in Affiliates
|
9,654
|
15,287
|
7,770
|
12,102
|
(44,813
|
)
|
||||||||||||||||||
Shares Held in Parent
|
—
|
—
|
4
|
330
|
(334
|
)
|
—
|
|||||||||||||||||
Intercompany Receivables, Net
|
—
|
1,252
|
64
|
—
|
(1,316
|
)
|
—
|
|||||||||||||||||
Other Assets
|
20
|
37
|
32
|
13,231
|
—
|
13,320
|
||||||||||||||||||
Total Assets
|
$
|
9,677
|
$
|
16,592
|
$
|
8,017
|
$
|
33,327
|
$
|
(46,562
|
)
|
$
|
21,051
|
|||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt
|
$
|
—
|
$
|
1,005
|
$
|
292
|
$
|
23
|
$
|
—
|
$
|
1,320
|
||||||||||||
Accounts Payable and Other Current Liabilities
|
10
|
133
|
—
|
2,919
|
(99
|
) |
2,963
|
|||||||||||||||||
Total Current Liabilities
|
10
|
1,138
|
292
|
2,942
|
(99
|
) |
4,283
|
|||||||||||||||||
|
||||||||||||||||||||||||
Long-term Debt
|
—
|
5,163
|
1,046
|
77
|
—
|
6,286
|
||||||||||||||||||
Intercompany Payables, Net
|
343
|
—
|
—
|
972
|
(1,315
|
)
|
—
|
|||||||||||||||||
Other Long-term Liabilities
|
—
|
81
|
5
|
1,051
|
—
|
1,137
|
||||||||||||||||||
Total Liabilities
|
353
|
6,382
|
1,343
|
5,042
|
(1,414
|
)
|
11,706
|
|||||||||||||||||
|
||||||||||||||||||||||||
Weatherford Shareholders' Equity
|
9,324
|
10,210
|
6,674
|
28,264
|
(45,148
|
)
|
9,324
|
|||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
21
|
—
|
21
|
||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
9,677
|
$
|
16,592
|
$
|
8,017
|
$
|
33,327
|
$
|
(46,562
|
)
|
$
|
21,051
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Current Assets:
|
||||||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
—
|
$
|
114
|
$
|
12
|
$
|
290
|
$
|
—
|
$
|
416
|
||||||||||||
Other Current Assets
|
10
|
9
|
85
|
5,975
|
—
|
6,079
|
||||||||||||||||||
Total Current Assets
|
10
|
123
|
97
|
6,265
|
—
|
6,495
|
||||||||||||||||||
|
||||||||||||||||||||||||
Equity Investments in Affiliates
|
9,287
|
14,087
|
6,906
|
13,335
|
(43,615
|
)
|
||||||||||||||||||
Shares Held in Parent
|
—
|
—
|
4
|
474
|
(478
|
)
|
—
|
|||||||||||||||||
Intercompany Receivables, Net
|
—
|
2,162
|
617
|
—
|
(2,779
|
)
|
—
|
|||||||||||||||||
Other Assets
|
8
|
40
|
149
|
12,507
|
—
|
12,704
|
||||||||||||||||||
Total Assets
|
$
|
9,305
|
$
|
16,412
|
$
|
7,773
|
$
|
32,581
|
$
|
(46,872
|
)
|
$
|
19,199
|
|||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||
Short-Term Borrowings and Current Portion of Long-Term Debt
|
$
|
—
|
$
|
8
|
$
|
202
|
$
|
25
|
$
|
—
|
$
|
235
|
||||||||||||
Accounts Payable and Other Current Liabilities
|
22
|
134
|
114
|
2,196
|
—
|
2,466
|
||||||||||||||||||
Total Current Liabilities
|
22
|
142
|
316
|
2,221
|
—
|
2,701
|
||||||||||||||||||
|
||||||||||||||||||||||||
Long-term Debt
|
—
|
5,170
|
1,325
|
35
|
—
|
6,530
|
||||||||||||||||||
Intercompany Payables, Net
|
226
|
—
|
—
|
2,552
|
(2,778
|
)
|
—
|
|||||||||||||||||
Other Long-term Liabilities
|
6
|
77
|
2
|
765
|
—
|
850
|
||||||||||||||||||
Total Liabilities
|
254
|
5,389
|
1,643
|
5,573
|
(2,778
|
)
|
10,081
|
|||||||||||||||||
|
||||||||||||||||||||||||
Weatherford Shareholders' Equity
|
9,051
|
11,023
|
6,130
|
26,941
|
(44,094
|
)
|
9,051
|
|||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
67
|
—
|
67
|
||||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
9,305
|
$
|
16,412
|
$
|
7,773
|
$
|
32,581
|
$
|
(46,872
|
)
|
$
|
19,199
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
12,988
|
$
|
—
|
$
|
12,988
|
||||||||||||
Costs and Expenses
|
(48
|
)
|
(3
|
)
|
(3
|
)
|
(11,627
|
)
|
—
|
(11,681
|
)
|
|||||||||||||
Operating Income (Loss)
|
(48
|
)
|
(3
|
)
|
(3
|
)
|
1,361
|
—
|
1,307
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(353
|
)
|
(90
|
)
|
(10
|
)
|
—
|
(453
|
)
|
||||||||||||||
Intercompany Charges, Net
|
(61
|
)
|
16
|
(177
|
)
|
222
|
—
|
—
|
||||||||||||||||
Equity in Subsidiary Income
|
299
|
281
|
802
|
—
|
(1,382
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
(33
|
)
|
(1
|
)
|
(73
|
)
|
—
|
(107
|
)
|
||||||||||||||
Income (Loss) Before Income Taxes
|
190
|
(92
|
) |
531
|
1,500
|
(1,382
|
)
|
747
|
||||||||||||||||
(Provision) Benefit for Income Taxes
|
(1
|
)
|
—
|
65
|
(606
|
)
|
—
|
(542
|
)
|
|||||||||||||||
Net Income (Loss)
|
189
|
(92
|
) |
596
|
894
|
(1,382
|
)
|
205
|
||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(16
|
)
|
—
|
(16
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
189
|
$
|
(92
|
) |
$
|
596
|
$
|
878
|
$
|
(1,382
|
)
|
$
|
189
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
10,221
|
$
|
—
|
$
|
10,221
|
||||||||||||
Costs and Expenses
|
(43
|
)
|
(45
|
)
|
(3
|
)
|
(9,356
|
)
|
—
|
(9,447
|
)
|
|||||||||||||
Operating Income (Loss)
|
(43
|
)
|
(45
|
)
|
(3
|
)
|
865
|
—
|
774
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
(1
|
)
|
(286
|
)
|
(113
|
)
|
(6
|
)
|
—
|
(406
|
)
|
|||||||||||||
Bond Tender Premium
|
—
|
(15
|
)
|
(39
|
)
|
—
|
—
|
(54
|
)
|
|||||||||||||||
Devaluation of Venezuelan Bolivar
|
—
|
—
|
—
|
(64
|
)
|
—
|
(64
|
)
|
||||||||||||||||
Intercompany Charges, Net
|
(28
|
)
|
(1
|
)
|
(188
|
)
|
217
|
—
|
—
|
|||||||||||||||
Equity in Subsidiary Income
|
(145
|
)
|
294
|
753
|
—
|
(902
|
)
|
—
|
||||||||||||||||
Other, Net
|
—
|
(44
|
) |
—
|
(9
|
)
|
—
|
(53
|
)
|
|||||||||||||||
Income (Loss) Before Income Taxes
|
(217
|
)
|
(97
|
)
|
410
|
1,003
|
(902
|
)
|
197
|
|||||||||||||||
(Provision) Benefit for Income Taxes
|
—
|
—
|
119
|
(515
|
)
|
—
|
(396
|
)
|
||||||||||||||||
Net Income (Loss)
|
(217
|
)
|
(97
|
)
|
529
|
488
|
(902
|
)
|
(199
|
)
|
||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(18
|
)
|
—
|
(18
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(217
|
)
|
$
|
(97
|
)
|
$
|
529
|
$
|
470
|
$
|
(902
|
)
|
$
|
(217
|
)
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
8,833
|
$
|
—
|
$
|
8,833
|
||||||||||||
Costs and Expenses
|
(11
|
)
|
(17
|
)
|
(3
|
)
|
(8,115
|
)
|
—
|
(8,146
|
)
|
|||||||||||||
Operating Income (Loss)
|
(11
|
)
|
(17
|
)
|
(3
|
)
|
718
|
—
|
687
|
|||||||||||||||
|
||||||||||||||||||||||||
Other Income (Expense):
|
||||||||||||||||||||||||
Interest Expense, Net
|
—
|
(254
|
)
|
(115
|
)
|
2
|
—
|
(367
|
)
|
|||||||||||||||
Intercompany Charges, Net
|
(21
|
)
|
(29
|
)
|
(143
|
)
|
193
|
—
|
—
|
|||||||||||||||
Equity in Subsidiary Income
|
119
|
389
|
419
|
—
|
(927
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
(47
|
) |
(1
|
)
|
4
|
—
|
(44
|
)
|
|||||||||||||||
Income (Loss) Before Income Taxes
|
87
|
42
|
157
|
917
|
(927
|
)
|
276
|
|||||||||||||||||
(Provision) Benefit for Income Taxes
|
—
|
—
|
89
|
(252
|
)
|
—
|
(163
|
)
|
||||||||||||||||
Net Income (Loss)
|
87
|
42
|
246
|
665
|
(927
|
)
|
113
|
|||||||||||||||||
Noncontrolling Interests
|
—
|
—
|
—
|
(26
|
)
|
—
|
(26
|
)
|
||||||||||||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
87
|
$
|
42
|
$
|
246
|
$
|
639
|
$
|
(927
|
)
|
$
|
87
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net Income (Loss)
|
$
|
189
|
$
|
(92
|
) |
$
|
596
|
$
|
894
|
$
|
(1,382
|
)
|
$
|
205
|
||||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided(Used) by Operating Activities:
|
||||||||||||||||||||||||
Charges from Parent or Subsidiary
|
61
|
(16
|
)
|
177
|
(222
|
) |
—
|
—
|
||||||||||||||||
Equity in (Earnings) Loss of Affiliates
|
(299
|
)
|
(281
|
)
|
(802
|
)
|
—
|
1,382
|
—
|
|||||||||||||||
Deferred Income Tax Benefit
|
—
|
—
|
(65
|
) |
186
|
—
|
121
|
|||||||||||||||||
Other Adjustments
|
3
|
(73
|
)
|
(31
|
)
|
599
|
—
|
498
|
||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
(46
|
)
|
(462
|
)
|
(125
|
)
|
1,457
|
—
|
824
|
|||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(4
|
)
|
—
|
—
|
(140
|
)
|
—
|
(144
|
)
|
|||||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
—
|
—
|
(1,524
|
)
|
—
|
(1,524
|
)
|
||||||||||||||||
Acquisition of Intellectual Property
|
—
|
—
|
—
|
(8
|
)
|
—
|
(8
|
)
|
||||||||||||||||
Purchase of Equity Investment in Unconsolidated Affiliates
|
—
|
—
|
—
|
(14
|
)
|
—
|
(14
|
)
|
||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
—
|
—
|
31
|
—
|
31
|
||||||||||||||||||
Capital Contribution to Subsidiary
|
(4
|
)
|
(25
|
)
|
4
|
—
|
25
|
—
|
||||||||||||||||
Other Investing Activities
|
—
|
—
|
—
|
(15
|
)
|
—
|
(15
|
)
|
||||||||||||||||
Net Cash Provided (Used) by Investing Activities
|
(8
|
)
|
(25
|
)
|
4
|
(1,670
|
)
|
25
|
(1,674
|
)
|
||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
996
|
—
|
(4
|
)
|
—
|
992
|
|||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
—
|
(18
|
)
|
(176
|
)
|
—
|
(194
|
)
|
|||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
54
|
(623
|
)
|
127
|
442
|
—
|
—
|
|||||||||||||||||
Proceeds from Capital Contributions
|
—
|
—
|
—
|
25
|
(25
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||||
Net Cash Provided (Used) by Financing Activities
|
54
|
373
|
109
|
294
|
(25
|
)
|
805
|
|||||||||||||||||
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
||||||||||||||||||||||||
Net Increase in Cash and Cash Equivalents
|
—
|
(114
|
)
|
(12
|
)
|
81
|
—
|
(45
|
)
|
|||||||||||||||
Cash and Cash Equivalents at Beginning of Year
|
—
|
114
|
12
|
290
|
—
|
416
|
||||||||||||||||||
Cash and Cash Equivalents at End of Year
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
371
|
$
|
—
|
$
|
371
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net Income (Loss)
|
$
|
(217
|
)
|
$
|
(97
|
)
|
$
|
529
|
$
|
488
|
$
|
(902
|
)
|
$
|
(199
|
)
|
||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
|
||||||||||||||||||||||||
Charges from Parent or Subsidiary
|
28
|
1
|
188
|
(217
|
)
|
—
|
—
|
|||||||||||||||||
Equity in (Earnings) Loss of Affiliates
|
145
|
(294
|
)
|
(753
|
)
|
—
|
902
|
—
|
||||||||||||||||
Deferred Income Tax Benefit
|
—
|
—
|
(119
|
) |
201
|
—
|
82
|
|||||||||||||||||
Other Adjustments
|
15
|
145
|
(155
|
)
|
1,237
|
—
|
1,242
|
|||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
(29
|
)
|
(245
|
)
|
(310
|
)
|
1,709
|
—
|
1,125
|
|||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired
|
(92
|
)
|
—
|
—
|
(52
|
)
|
—
|
(144
|
)
|
|||||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
—
|
—
|
(977
|
)
|
—
|
(977
|
)
|
||||||||||||||||
Acquisition of Intellectual Property
|
—
|
—
|
—
|
(24
|
)
|
—
|
(24
|
)
|
||||||||||||||||
Purchase of Equity Investment in Unconsolidated Affiliates
|
—
|
—
|
—
|
(2
|
)
|
—
|
(2
|
)
|
||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
—
|
—
|
197
|
—
|
197
|
||||||||||||||||||
Capital Contribution to Subsidiary
|
—
|
(13
|
)
|
—
|
—
|
13
|
—
|
|||||||||||||||||
Other Investing Activities
|
—
|
42
|
—
|
—
|
—
|
42
|
||||||||||||||||||
Net Cash Provided (Used) by Investing Activities
|
(92
|
)
|
29
|
—
|
(858
|
)
|
13
|
(908
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
(344
|
)
|
—
|
(490
|
)
|
—
|
(834
|
)
|
|||||||||||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
1,190
|
(340
|
)
|
9
|
—
|
859
|
|||||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
121
|
(497
|
)
|
706
|
(330
|
)
|
—
|
—
|
||||||||||||||||
Proceeds from Capital Contributions
|
—
|
—
|
—
|
13
|
(13
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
(19
|
)
|
(44
|
)
|
3
|
—
|
(60
|
)
|
|||||||||||||||
Net Cash Provided (Used) by Financing Activities
|
121
|
330
|
322
|
(795
|
)
|
(13
|
)
|
(35
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
—
|
—
|
(19
|
)
|
—
|
(19
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Net Increase in Cash and Cash Equivalents
|
—
|
114
|
12
|
37
|
—
|
163
|
||||||||||||||||||
Cash and Cash Equivalents at Beginning of Year
|
—
|
—
|
—
|
253
|
—
|
253
|
||||||||||||||||||
Cash and Cash Equivalents at End of Year
|
$
|
—
|
$
|
114
|
$
|
12
|
$
|
290
|
$
|
—
|
$
|
416
|
|
Weatherford
Switzerland
|
Weatherford
Bermuda
|
Weatherford
Delaware
|
Other
Subsidiaries
|
Eliminations
|
Consolidation
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net Income (Loss)
|
$
|
87
|
$
|
42
|
$
|
246
|
$
|
665
|
$
|
(927
|
)
|
$
|
113
|
|||||||||||
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) By Operating Activities:
|
||||||||||||||||||||||||
Charges from Parent or Subsidiary
|
21
|
29
|
143
|
(193
|
)
|
—
|
—
|
|||||||||||||||||
Equity in (Earnings) Loss of Affiliates
|
(119
|
)
|
(389
|
)
|
(419
|
)
|
—
|
927
|
—
|
|||||||||||||||
Deferred Income Tax Benefit
|
—
|
—
|
88
|
(200
|
)
|
—
|
(112
|
)
|
||||||||||||||||
Other Adjustments
|
8
|
77
|
63
|
458
|
—
|
606
|
||||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
(3
|
)
|
(241
|
)
|
121
|
730
|
—
|
607
|
||||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Acquisitions of Businesses, Net of Cash Acquired
|
—
|
—
|
—
|
(10
|
)
|
—
|
(10
|
)
|
||||||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
—
|
—
|
(1,569
|
)
|
—
|
(1,569
|
)
|
||||||||||||||||
Acquisition of Intellectual Property
|
—
|
—
|
—
|
(28
|
)
|
—
|
(28
|
)
|
||||||||||||||||
Purchase of Equity Investment in Unconsolidated Affiliates
|
—
|
—
|
—
|
(27
|
)
|
—
|
(27
|
)
|
||||||||||||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
—
|
—
|
123
|
—
|
123
|
||||||||||||||||||
Capital Contribution to Subsidiary
|
—
|
(474
|
)
|
—
|
—
|
474
|
—
|
|||||||||||||||||
Other Investing Activities
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net Cash Provided (Used) by Investing Activities
|
—
|
(474
|
)
|
—
|
(1,511
|
)
|
474
|
(1,511
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
(434
|
)
|
—
|
41
|
—
|
(393
|
)
|
||||||||||||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
1,242
|
—
|
(16
|
)
|
—
|
1,226
|
|||||||||||||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
3
|
(93
|
)
|
(194
|
)
|
284
|
—
|
—
|
||||||||||||||||
Proceeds from Capital Contributions
|
—
|
—
|
—
|
474
|
(474
|
)
|
—
|
|||||||||||||||||
Other, Net
|
—
|
—
|
73
|
1
|
—
|
74
|
||||||||||||||||||
Net Cash Provided (Used) By Financing Activities
|
3
|
715
|
(121
|
)
|
784
|
(474
|
)
|
907
|
||||||||||||||||
|
||||||||||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
—
|
—
|
—
|
11
|
—
|
11
|
||||||||||||||||||
|
||||||||||||||||||||||||
Net Increase in Cash and Cash Equivalents
|
—
|
—
|
—
|
14
|
—
|
14
|
||||||||||||||||||
Cash and Cash Equivalents at Beginning of Year
|
—
|
—
|
—
|
239
|
—
|
239
|
||||||||||||||||||
Cash and Cash Equivalents at End of Year
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
253
|
$
|
—
|
$
|
253
|
·
|
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 uncertain tax positions 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 by the end of 2011;
|
·
|
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.
|
·
|
Ongoing evaluation and continued enhancement of tax department personnel and organizational structure, including the use of third-party tax advisors and consultants to both assist with enhancing internal controls over financial reporting and augment our existing tax staff until new appropriately-qualified employees are hired, to ensure effective preparation and review of the income tax provision, account reconciliations and analyses;
|
·
|
Timely preparation of tax basis balance sheets and reconciliations of the tax accounts in all jurisdictions to enable timely detection of potential errors;
|
·
|
Ongoing analysis of uncertain tax positions in all jurisdictions, leveraging the extensive work performed by the Company in connection with the current restatement into a routine process for identifying and assessing uncertain tax positions on a timely basis;
|
·
|
Continued evaluation of the information technology infrastructure supporting our income tax process and implementation of additional technology solutions to further eliminate manual processes and provide long-term sustainability of the process improvements; and
|
·
|
Continued delivery of income tax accounting training for tax and financial accounting personnel.
|
|
Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights
|
Shares Available for Future Issuance (a)
|
|||||||||
|
(In thousands, except share prices)
|
|||||||||||
Plan Category:
|
||||||||||||
Equity compensation plans approved by shareholders (b)
|
7,971
|
$
|
22.91
|
6,224
|
||||||||
Equity compensation plans not approved by shareholders (c)
|
18,829
|
11.10 |
—
|
|||||||||
Total
|
26,800
|
$ |
14.71
|
6,224
|
(a)
|
Excluding shares reflected in the first column of this table.
|
(b)
|
Includes our Omnibus Plan, which was approved by our shareholders in May 2006, and our 2010 Omnibus Plan, which was approved by our shareholders in June 2010.
|
(c)
|
Includes the following compensation plans that were not approved by our shareholders: our 1998 Employee Stock Option Plan; our Non-Employee Director Deferred Compensation Plan; our Foreign Executive Deferred Compensation Stock Ownership Plan; and our 2003 Restricted Share Plan. Those plans and other individual compensation arrangements that were not approved by our shareholders are described below:
|
(a)
|
The following documents are filed as part of this report or incorporated by reference:
|
1.
|
The consolidated financial statements of the Company listed on page 46 of this report.
|
2.
|
The financial statement schedule on page 138 of this report.
|
3.
|
The exhibits of the Company listed below under Item 15(b).
|
(b)
|
Exhibits:
|
Exhibit
Number
|
Description
|
1.1
|
Underwriting Agreement, dated September 16, 2010, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International Ltd., a Swiss joint-stock corporation, Weatherford International, Inc., a Delaware corporation, and Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC and JP Morgan Securities LLC, as representatives of the several underwriters named therein (incorporated by reference to Exhibit 1.1 to the Registrant's Current report on Form 8-K (File No. 1-34258) filed September 22. 2010).
|
2.1
|
Stock Purchase Agreement dated June 6, 2005 by and between Precision Drilling Corporation and Weatherford International Ltd. (incorporated by reference to Exhibit 2.1 to Amendment No. 1 to the Registrant's Current Report on Form 8-K dated June 6, 2005 on Form 8-K/A (File No. 1-31339) filed June 9, 2005).
|
2.2
|
Agreement and Plan of Merger dated May 8, 2002, among Weatherford International, Inc., Weatherford Merger, Inc., Weatherford International Ltd. and Weatherford U.S. Holdings LLC (incorporated by reference to Exhibit 2.1 to Amendment No. 1 to the Registration Statement on Form S-4 (Reg. No. 333-85644) filed on May 22, 2002).
|
2.3
|
Share Exchange Agreement dated as of December 10, 2008, among Weatherford International, Ltd., a Bermuda exempted company, and Weatherford International Ltd., a Swiss joint-stock corporation (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 10, 2008).
|
2.4
|
Sale and Purchase Agreement, dated as of May 29, 2009 between Weatherford International Ltd. and Novy Investments Limited (incorporated by reference to Exhibit 99.1 to the Registrant's Current Report on Form 8-K/A (File No. 1-34258) filed June 3, 2009).
|
3.1
|
Second Amendment dated June 24, 2010 to Sale and Purchase Agreement between Weatherford International Ltd. And Novy Investments Limited dated May 29, 2009 (incorporated by reference to Exhibit 99.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 28, 2010).
|
3.2
|
Organizational Regulations of Weatherford International Ltd. (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
3.3
|
Articles of Association of Weatherford International Ltd. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2012)
|
Exhibit
Number
|
Description
|
4.1
|
Guarantee, dated as of October 25, 2005, of Weatherford International, Inc. for the benefit of holders of any notes issued by Weatherford International Ltd., from time to time pursuant to the Issuing and Paying Agent Agreement, dated as of October 25, 2005, between Weatherford International Ltd., Weatherford International, Inc. and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 31, 2005).
|
4.2
|
Second Amended and Restated Credit Agreement dated as of May 2, 2006, among Weatherford International Ltd., Weatherford International, Inc., Weatherford Liquidity Management Hungary Limited Liability Company, JPMorgan Chase Bank, as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed May 5, 2006).
|
4.3
|
Notice of Commitment Increase dated as of November 14, 2006, among Weatherford International Ltd., Weatherford International, Inc., Weatherford Liquidity Management Hungary Limited Liability Company, JPMorgan Chase Bank, as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed November 16, 2006.
|
4.4
|
Omnibus Consent and Amendment to Second Amended and Restated Credit Agreement dated January 9, 2009 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed January 15, 2009).
|
4.5
|
Credit Agreement, dated March 19, 2008, among Weatherford International Ltd., as borrower, Weatherford International, Inc. as guarantor, and Deutsche Bank AG Cayman Islands Branch as administrative agent, and the other lenders party thereto (incorporated by reference to Exhibit 4.6 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed March 25, 2008).
|
4.6
|
Omnibus Consent and Amendment to Credit Agreement dated January 9, 2009 (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed January 15, 2009).
|
4.7
|
Indenture dated May 17, 1996, between Weatherford Enterra, Inc. and Bank of Montreal Trust Company, as Trustee (incorporated by reference to Exhibit 4.1 to Weatherford Enterra, Inc.'s Current Report on Form 8-K (File No. 1-7867) filed May 31, 1996).
|
4.8
|
Third Supplemental Indenture dated November 16, 2001, between Weatherford International, Inc. and The Bank of New York, as Trustee (incorporated by reference to Exhibit 4.11 to the Registration Statement on Form S-3 (Reg. No. 333-73770) filed November 20, 2001).
|
4.9
|
Fourth Supplemental Indenture dated June 26, 2002, among Weatherford International, Inc., Weatherford International Ltd. and The Bank of New York (as successor in interest to Bank of Montreal Trust Company) (incorporated by reference to Exhibit 4.7 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (File No. 1-13086) filed August 14, 2002).
|
4.10
|
Indenture, dated October 1, 2003, among Weatherford International Ltd., Weatherford International, Inc., and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 2, 2003).
|
Exhibit
Number
|
Description
|
4.11
|
Officers' Certificate dated as of February 17, 2006, establishing the series of 5.50% Senior Notes due 2016 (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed February 17, 2006).
|
4.12
|
Officer's Certificate, dated August 7, 2006, establishing the series of 6.50% Senior Notes due 2036 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed August 7, 2006).
|
4.13
|
First Supplemental Indenture, dated March 25, 2008 among Weatherford International Ltd., Weatherford International, Inc., and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed March 25, 2008).
|
4.14
|
Indenture, dated June 18, 2007, among Weatherford International, Inc., as issuer, Weatherford International Ltd., as guarantor, and Deutsche Bank Trust Company Americas, as trustee, (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed on June 18, 2007).
|
4.15
|
First Supplemental Indenture, dated June 18, 2007, among Weatherford International, Inc., as issuer, Weatherford International Ltd., as guarantor, and Deutsche Bank Trust Company Americas, as trustee (including forms of notes) (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed on June 18, 2007).
|
4.16
|
Second Supplemental Indenture, dated as of January 8, 2009, among Weatherford International Ltd., Weatherford International, Inc., and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed January 8, 2009).
|
4.17
|
Form of global note for 5.95% Senior Notes due 2012 (incorporated by reference to Exhibit 4.15 to the Registrant's Registration Statement on Form S-4 (Registration No. 333-146695) filed November 8, 2007).
|
4.18
|
Form of global note for 5.15% Senior Notes due 2013 (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed March 25, 2008).
|
4.19
|
Form of global note for 4.95% Senior Notes due 2013 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 7, 2003).
|
4.20
|
Form of global note for 5.50% Senior Notes due 2016 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed February 17, 2006).
|
4.21
|
Form of global note for 6.00% Senior Notes due 2018 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed March 25, 2008).
|
4.22
|
Form of global note for 9.625% Senior Notes due 2019 (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed January 8, 2009).
|
Exhibit
Number
|
Description
|
4.23
|
Form of $500,000 global note for 6.50% Senior Notes due 2036 (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed August 7, 2006).
|
4.24
|
Form of $100,000 global note for 6.50% Senior Notes due 2036 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed August 7, 2006).
|
4.25
|
Form of global note for 6.80% Senior Notes due 2037 (incorporated by reference to Exhibit 4.17 to the Registrant's Registration Statement on Form S-4 (Registration No. 333-146695) filed November 8, 2007).
|
4.26
|
Form of global note for 7.00% Senior Notes due 2038 (incorporated by reference to Exhibit 4.4 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed March 25, 2008).
|
4.27
|
Form of global note for 9.875% Senior Notes due 2039 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed January 8, 2009).
|
4.28
|
Amended and Restated Warrant Agreement, dated effective as of July 12, 2006, by and among Weatherford International Ltd., Weatherford International, Inc. and Shell Technology Ventures, Inc. (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed July 14, 2006).
|
4.29
|
Fifth Supplemental Indenture, dated as of February 26, 2009, among Weatherford International, Inc., a Delaware corporation, Weatherford International Ltd., a Bermuda exempted company, Weatherford International Ltd., a Swiss joint-stock corporation, and The Bank of New York, as successor trustee, to the Indenture dated as of May 17, 1996 (the "1996 Indenture") (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
4.30
|
Third Supplemental Indenture, dated as of February 26, 2009, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International, Inc., Weatherford International Ltd., a Swiss joint-stock corporation, and Deutsche Bank Trust Company Americas, as trustee, to the Indenture dated as of October 1, 2003 (the "2003 Indenture") (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
4.31
|
Second Supplemental Indenture, dated as of February 26, 2009, among Weatherford International, Inc., Weatherford International Ltd., a Bermuda exempted company, Weatherford International Ltd., a Swiss joint-stock corporation, and Deutsche Bank Trust Company Americas, as trustee, to the Indenture dated as of June 18, 2007 (the "2007 Indenture") (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
4.32
|
Registration Rights Agreement, dated as of July 27, 2009 between Weatherford International Ltd. and Novy Investments Limited (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed July 27, 2009).
|
4.33
|
Registration Rights Agreement, dated as of September 16, 2009 between Weatherford International Ltd. and Integrity Energy International, LLC. (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed September 17, 2009).
|
Exhibit
Number
|
Description
|
4.34
|
Fourth Supplemental Indenture, dated September 23, 2010, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International Ltd., a Swiss joint-stock corporation, Weatherford International, Inc. and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 (File No. 1-34258) filed November 2, 2010).
|
4.35
|
Form of global note for 5.125% Senior Notes due 2020 (incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed September 22, 2010).
|
4.36
|
Form of global note for 6.750% Senior Notes due 2040 (incorporated by reference to Exhibit 4.4 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed September 22, 2010).
|
4.37
|
Form of guarantee notation (incorporated by reference to Exhibit 4.5 to the Registrant's Current Report on Form 8-K (File No. 1034258) filed September 22, 2010).
|
4.38
|
Registration Rights Agreement among Weatherford International Ltd. And certain shareholders dated September 13, 2011 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed September 15, 2011).
|
10.1
|
Issuing and Paying Agent Agreement, dated as of October 25, 2005, among Weatherford International Ltd., Weatherford International, Inc. and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 31, 2005).
|
10.2
|
Commercial Paper Dealer Agreement, dated as of October 25, 2005, among Weatherford International Ltd., Weatherford International, Inc. and JPMorgan Securities Inc. (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 31, 2005).
|
10.3
|
Commercial Paper Dealer Agreement, dated as of October 25, 2005, among Weatherford International Ltd., Weatherford International, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 31, 2005).
|
10.4
|
Commercial Paper Dealer Agreement, dated as of October 25, 2005, among Weatherford International Ltd., Weatherford International, Inc. and Merrill Lynch Money Markets Inc. (for notes with maturities up to 270 days) and Merrill Lynch, Pierce, Fenner & Smith Incorporated, (for notes with maturities over 270 days up to 397 days) (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 31, 2005).
|
*10.5
|
Weatherford International Ltd. Restricted Share Plan, including form of agreement for officers and non-officers (incorporated by reference to Exhibit 10.2 to Amendment No. 1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 on Form 10-Q/A (File No. 1-31339) filed September 15, 2004).
|
*10.6
|
Trust under Weatherford International Ltd. Nonqualified Executive Retirement Plan dated March 23, 2004 (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 (File No. 1-31339) filed May 6, 2004).
|
Exhibit
Number
|
Description
|
*10.7
|
Amended and Restated Non-Employee Director Stock Option Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 1995 (File No. 1-13086) filed August 12, 1995).
|
*10.8
|
General Amendment of Employee Stock Option Programs of Weatherford International, Inc. dated May 9, 2003 (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 (File No. 1-31339) filed August 14, 2003).
|
*10.9
|
General Amendment of Director's Stock Option Plans and Agreements dated May 9, 2003 (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 (File No. 1-31339) filed August 14, 2003).
|
*10.10
|
Weatherford International, Inc. 1998 Employee Stock Option Plan, as amended, including form of agreement for officers (incorporated by reference to Exhibit 10.18 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 1-13086) filed March 24, 2004).
|
*10.11
|
Amendment to Stock Option Programs (incorporated by reference to Exhibit 4.19 to the Registrant's Registration Statement on Form S-8 (Reg. No. 333-36598) filed May 19, 2000).
|
*10.12
|
Indemnification Agreement, dated as of September 29, 2005, between Weatherford International Ltd. and Andrew P. Becnel (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 5, 2005).
|
*10.13
|
Indemnification Agreements with Robert K. Moses, Jr. (incorporated by reference to Exhibit 10.10 to Weatherford Enterra, Inc.'s Annual Report on Form 10-K for the year ended December 31, 1987 (File No. 1-7867)); and William E. Macaulay (incorporated by reference to Exhibit 10.2 to Weatherford Enterra, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 1995 (File No. 1-7867)).
|
*10.14
|
Indemnification Agreements with each of Bernard J. Duroc-Danner, Burt M. Martin, Stuart E. Ferguson, David J. Butters, Robert A. Rayne, Robert K. Moses, Jr., Robert B. Millard, and William E. Macaulay (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002 (File No. 1-13086) filed November 13, 2002).
|
*10.15
|
Form of Stock Option Agreement for Non-Employee Directors dated September 8, 1998 (incorporated by reference to Exhibit 10.23 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 1-13086) filed March 31, 1999).
|
*10.16
|
Form of Amendment to Stock Option Agreements dated September 8, 1998 for Non-Employee Directors (incorporated by reference to Exhibit 4.17 to the Registration Statement on Form S-8 (Reg. No. 333-36598) filed May 9, 2000).
|
*10.17
|
Form of Stock Option Agreement for Non-employee Directors dated July 5, 2000 (incorporated by reference to Exhibit 4.16 to the Registration Statement on Form S-8 (Reg. No. 333-48322) filed October 20, 2000).
|
*10.18
|
Form of Stock Option Agreement for Non-employee Directors dated September 26, 2001 (incorporated by reference to Exhibit 4.19 to the Registration Statement on Form S-8 (Reg. No. 333-81678) filed January 30, 2002).
|
Exhibit
Number
|
Description
|
*10.19
|
Assumption and General Amendment of Directors' Stock Option and Benefit Programs and General Amendment of Employee Stock Option and Benefit Programs of Weatherford International, Inc. dated June 26, 2002 (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (File No. 1-13086) filed August 14, 2002).
|
*10.20
|
Indemnification Agreement dated October 27, 2006, between Weatherford International Ltd. and Jessica Abarca (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed October 27, 2006).
|
*10.21
|
Form of Restricted Share Unit Award Agreement for Officers pursuant to Weatherford International Ltd. 2006 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.45 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 1-31339) filed February 23, 2007).
|
*10.22
|
Form of Stock Option Award Agreement for Officers pursuant to Weatherford International Ltd. 2006 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.46 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 1-31339) filed February 23, 2007).
|
*10.23
|
Form of Restricted Share Award Agreement for Non-employee Directors pursuant to Weatherford International Ltd. 2006 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.47 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 1-31339) filed February 23, 2007).
|
*10.24
|
Form of Restricted Share Award Agreement for Officers pursuant to Weatherford International Ltd. 2006 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.48 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 1-31339) filed February 23, 2007).
|
*10.25
|
Form of Stock Option Award Agreement for Non-Employee Directors pursuant to Weatherford International Ltd. 2006 Omnibus Plan (incorporated by reference to Exhibit 10.49 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 1-31339) filed February 23, 2007).
|
*10.26
|
Indemnification Agreement, dated as of June 11, 2007, between Weatherford International Ltd. and Keith R. Morley (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed June 11, 2007).
|
*10.27
|
Amended and Restated Employment Agreements dated December 31, 2008, between Weatherford International Ltd. and each of Jessica Abarca, Andrew P. Becnel, M. David Colley, Bernard J. Duroc-Danner, Stuart E. Ferguson, Burt M. Martin and Keith R. Morley (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.28
|
Employment Agreements effective as of January 1, 2009, between Weatherford International, Inc. and each of Jessica Abarca, Andrew P. Becnel, M. David Colley, Bernard J. Duroc-Danner, Stuart E. Ferguson, Burt M. Martin and Keith R. Morley (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.29
|
Weatherford International, Inc. Executive Deferred Compensation Stock Ownership Plan, as amended and restated as of December 31, 2008 (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
Exhibit
Number
|
Description
|
*10.30
|
Weatherford International, Inc. Foreign Executive Deferred Compensation Stock Plan, as amended and restated as of December 31, 2008 (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.31
|
Weatherford International Ltd. Non-Employee Director Deferred Compensation, as amended and restated as of December 31, 2008 (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.32
|
Weatherford International Ltd. Non-Employee Director Retirement Plan, as amended and restated as of December 31, 2008 (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.33
|
Weatherford Management Incentive Plan, including Form of Award Letter, as amended and restated as of December 31, 2008 (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.34
|
Amended and Restated Weatherford International Ltd. Nonqualified Executive Retirement Plan (incorporated by reference to Exhibit 10.8 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.35
|
Weatherford International, Inc. Supplemental Retirement Plan (incorporated by reference to Exhibit 10.9 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.36
|
Weatherford International Ltd. 2006 Omnibus Incentive Plan, as amended (incorporated by reference to Exhibit 10.10 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.37
|
Amendment to Weatherford International, Inc. 1998 Employee Stock Option Plan (incorporated by reference to Exhibit 10.11 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.38
|
Amendment to Weatherford International Ltd. Non-Employee Director Stock Option Agreements (incorporated by reference to Exhibit 10.12 to the Registrant's Current Report on Form 8-K (File No. 1-31339) filed December 31, 2008).
|
*10.39
|
Amended and Restated Employment Agreement, dated December 31, 2008, between Weatherford International Ltd. and Carel W. Hoyer (incorporated by reference to Exhibit 10.39 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.40
|
Employment Agreement, dated February 2, 2009, between Weatherford International, Inc. and Carel W. Hoyer (incorporated by reference to Exhibit 10.40 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.41
|
Indemnification Agreement, dated as of February 9, 2009, between Weatherford International Ltd. and Carel W. Hoyer (incorporated by reference to Exhibit 10.41 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
Exhibit
Number
|
Description
|
*10.42
|
Indemnification Agreement, dated as of February 9, 2009, between Weatherford International, Inc. and Carel W. Hoyer (incorporated by reference to Exhibit 10.42 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.43
|
Amended and Restated Employment Agreement, dated December 31, 2008, between Weatherford International Ltd. and James M. Hudgins (incorporated by reference to Exhibit 10.43 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.44
|
Employment Agreement, dated February 9, 2009, between Weatherford International, Inc. and James M. Hudgins (incorporated by reference to Exhibit 10.44 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.45
|
Indemnification Agreement, dated as of September 4, 2002, between Weatherford International Ltd. and James M. Hudgins (incorporated by reference to Exhibit 10.45 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
*10.46
|
Indemnification Agreement, dated as of September 4, 2002, between Weatherford International, Inc. and James M. Hudgins (incorporated by reference to Exhibit 10.46 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-31339) filed February 24, 2009).
|
10.47
|
Warrant Assignment and Assumption Agreement, dated February 26, 2009, between Weatherford International Ltd., a Bermuda exempted company, and Weatherford International Ltd., a Swiss joint-stock corporation (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
10.48
|
Guaranty Agreement, dated as of February 26, 2009, by Weatherford International Ltd., a Swiss joint-stock corporation, in favor of the lenders and certain other parties under the Second Amended and Restated Credit Agreement dated as of May 2, 2006, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International, Inc., Weatherford Liquidity Management Hungary Limited Liability Company, JPMorgan Chase Bank, as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
10.49
|
Guaranty Agreement, dated as of February 26, 2009, by Weatherford International Ltd., a Swiss joint-stock corporation, in favor of the lenders and certain other parties under the Credit Agreement dated as of March 19, 2008, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International, Inc., Deutsche Bank AG Cayman Islands Branch, as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
10.50
|
Guaranty Agreement, dated as of February 26, 2009, by Weatherford International Ltd., a Swiss joint-stock corporation, in favor of the lenders and certain other parties under the Credit Agreement dated as of October 20, 2008, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International, Inc., UBS AG, Stamford Branc, as administrative agent, and the other Lenders party thereto (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
Exhibit
Number
|
Description
|
10.51
|
Assumption and General Amendment Agreement, dated February 25, 2009, between Weatherford International Ltd., a Bermuda exempted company, and Weatherford International Ltd., a Swiss joint-stock corporation (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
10.52
|
Form of Indemnification Agreement of Weatherford International Ltd., a Swiss joint-stock corporation, for use with directors and executive officers (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 26, 2009).
|
*10.53
|
Employment Agreement, dated as of June 8, 2009, between Weatherford International Ltd. and Joseph C. Henry (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.54
|
Employment Agreement, dated as of June 8, 2009, between Weatherford International, Inc. and Joseph C. Henry (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.55
|
Indemnification Agreement, dated as of February 26, 2009, between Weatherford International Ltd. and Joseph C. Henry (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.56
|
Employment Agreement, dated as of March 30, 2009, between Weatherford International Ltd. and William B. Jacobson (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.57
|
Employment Agreement, dated as of March 30, 2009, between Weatherford International, Inc. and William B. Jacobson (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.58
|
Indemnification Agreement, dated as of March 30, 2009 between Weatherford International Ltd. and William B. Jacobson (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed June 9, 2009).
|
*10.59
|
Employment Agreement, dated as of July 21, 2009, between Weatherford International Ltd. and Peter T. Fontana (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed July 22, 2009).
|
*10.60
|
Employment Agreement, dated as of July 21, 2009, between Weatherford International, Inc. and Peter T. Fontana (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed July 22, 2009).
|
*10.61
|
Indemnification Agreement, dated as of July 21, 2009, between Weatherford International Ltd. and Peter T. Fontana (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed July 22, 2009).
|
*10.62
|
Form of Employment Agreement, between Weatherford International Ltd. and each of Jessica Abarca, Andrew P. Becnel, M. David Colley, Stuart E. Ferguson, and Keith R. Morley (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed December 31, 2009).
|
Exhibit
Number
|
Description
|
*10.63
|
Supplemental Executive Retirement Plan effective as of January 1, 2010, between Weatherford International Ltd. and each of Jessica Abarca, Andrew P. Becnel, M. David Colley, Bernard J. Duroc-Danner, Stuart E. Ferguson and Keith R. Morley (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed December 31, 2009).
|
*10.64
|
First amendment to the Weatherford International Ltd., Supplemental Executive Retirement Plan, effective March 31, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant's Current report on Form 8-K (File No. 1-34258) filed March 23, 2010).
|
*10.65
|
Weatherford International Ltd. Performance Unit Award Agreement, (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed March 23, 2010).
|
*10.66
|
Second amendment to the Weatherford International Ltd. Supplemental Executive Retirement Plan, effective April 8, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed April 9, 2010).
|
*10.67
|
Form of amended and restated Employment Agreement, between Weatherford International Ltd. and each of Bernard J. Duroc-Danner, Peter T. Fontana, Nicholas W. Gee, Joseph C. Henry, Carel W. J. Hoyer, James M. Hudgins and William B. Jacobson (incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed April 13, 2010).
|
*10.68
|
Form of Performance Unit Award Agreement pursuant to Weatherford International Ltd. 2010 Omnibus Incentive Plan (incorporated by references to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 (File No. 1-34258) filed August 3, 2010).
|
*10.69
|
Employment Agreement, dated September 14, 2010, between Andrew P. Becnel and Weatherford International Ltd. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed September 15, 2010).
|
10.70
|
Credit Agreement, dated as of October 15, 2010, among Weatherford International Ltd., a Bermuda exempted company, Weatherford International Ltd., a Swiss joint-stock corporation, and other Borrowers party thereto, and Wells Fargo Bank, National Association, as a Swingline Lender, JP Morgan Chase Bank, N.A., as Administrative Agent and a Swingline Lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed October 19, 2010).
|
10.71
|
Guarantee Agreement, dated October 15, 2010 among Weatherford International Ltd., Weatherford International, Inc. and JP Morgan Chase Bank, N.A. as administrative agent (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 (File No. 1-34258) filed November 2, 2010).
|
*10.72
|
Weatherford International Ltd. 2010 Omnibus Incentive Plan (incorporated by reference to Annex C of the Registrant's Proxy Statement (File No. 1-34258) filed May 13, 2010).
|
*10.73
|
Form of Performance Unit Award Agreement for use under the Weatherford International Ltd. 2010 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2011).
|
Exhibit
Number
|
Description
|
*10.74
|
Form of Restricted Share Unit Award Agreement for use under the Weatherford International Ltd. 2010 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2011).
|
*10.75
|
Form of Restricted Share Unit Award Agreement (U.K. version) for use under the Weatherford International Ltd. 2010 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2011).
|
*10.76
|
Form of Restricted Share Award Agreement for use under the Weatherford International Ltd. 2006 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2011).
|
*10.77
|
Weatherford International Ltd. Non-Equity Incentive Compensation Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed February 22, 2011).
|
10.78
|
Amendment No. 1, dated July 13, 2011, to Credit Agreement with Weatherford Bermuda, Weatherford Delaware, Weatherford Liquidity Management Hungary Limited Liability Company, A Hungarian limited liability company and subsidiary of Weatherford Bermuda, Weatherford Capital Management Services Limited Liability Company, a Hungarian limited liability company and subsidiary of Weatherford Bermuda, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 1-34258) filed July 13, 2011.
|
†21.1
|
Subsidiaries of Weatherford International, Ltd.
|
†23.1
|
Consent of Ernst & Young LLP.
|
†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 Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Operations, (3) the Consolidated Statements of Cash Flows, (4) the Consolidated Statements of Shareholders' Equity and (5) related notes to the Consolidated Financial Statements.
|
|
|
(c)
|
Financial Statement Schedules
|
1.
|
Valuation and qualifying accounts and allowances.
|
Additions
|
||||||||||||||||||||
Description
|
Balance at
Beginning
of Period
|
Charged to
Costs and
Expenses
|
Collections
|
Reductions
|
Balance at
End of
Period
|
|||||||||||||||
(In millions)
|
||||||||||||||||||||
Year Ended December 31, 2011:
|
||||||||||||||||||||
Allowance for uncollectible accounts receivable
|
$
|
59
|
$
|
52
|
$
|
(1
|
)
|
$
|
(19
|
)
|
$
|
91
|
||||||||
Valuation allowance on deferred tax assets
|
173
|
42
|
—
|
(14
|
)
|
201
|
||||||||||||||
Year Ended December 31, 2010:
|
||||||||||||||||||||
Allowance for uncollectible accounts receivable
|
20
|
57
|
—
|
(18
|
)
|
59
|
||||||||||||||
Valuation allowance on deferred tax assets
|
117
|
62
|
—
|
(6
|
)
|
173
|
||||||||||||||
Year Ended December 31, 2009:
|
||||||||||||||||||||
Allowance for uncollectible accounts receivable
|
16
|
11
|
—
|
(7
|
)
|
20
|
||||||||||||||
Valuation allowance on deferred tax assets
|
79
|
43
|
—
|
(5
|
)
|
117
|
||||||||||||||
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
President, Chief Executive Officer,
|
|
|
/s/Bernard J. Duroc-Danner
|
|
Chairman of the Board and Director
|
|
December 17, 2012
|
Bernard J. Duroc-Danner
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/John H. Briscoe
|
|
Senior Vice President and
|
|
December 17, 2012
|
John H. Briscoe
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
/s/Samuel Bodman
|
|
Director
|
|
December 17, 2012
|
Samuel Bodman
|
|
|
|
|
|
|
|
|
|
/s/Nicholas F. Brady
|
|
Director
|
|
December 17, 2012
|
Nicholas F. Brady
|
|
|
|
|
|
|
|
|
|
/s/David J. Butters
|
|
Director
|
|
December 17, 2012
|
David J. Butters
|
|
|
|
|
|
|
|
|
|
/s/Emyr Jones Parry
|
|
Director
|
|
December 17, 2012
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Emyr Jones Parry
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/s/William E. Macaulay
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Director
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December 17, 2012
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William E. Macaulay
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/s/Robert K. Moses, Jr.
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Director
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December 17, 2012
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Robert K. Moses, Jr.
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/s/Guillermo Ortiz
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Director
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December 17, 2012
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Guillermo Ortiz
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/s/Robert A. Rayne
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Director
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December 17, 2012
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Robert A. Rayne
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