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|
UNITED STATES
|
|
|
SECURITIES AND EXCHANGE COMMISSION
|
|
|
WASHINGTON, D.C. 20549
|
|
(Mark One)
|
|
Form 10-Q
|
|
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the quarterly period ended June 30, 2017
|
|
|
or
|
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the transition period from __________________________________to __________________________________
|
|
|
Commission file number 001-36504
|
|
Ireland
|
|
98-0606750
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(IRS Employer Identification No.)
|
|
|
|
Weststrasse 1, 6340 Baar, Switzerland
|
|
CH 6340
|
(Address of Principal Executive Offices including Zip Code)
|
|
(Zip Code)
|
|
N/A
|
|
||
|
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
|
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Non-accelerated filer (Do not check if a smaller reporting company)
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
TABLE OF CONTENTS
|
PAGE
|
|
|
||
|
|
|
|
||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars and shares in millions, except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Products
|
$
|
488
|
|
|
$
|
479
|
|
|
$
|
999
|
|
|
$
|
1,039
|
|
Services
|
875
|
|
|
923
|
|
|
1,750
|
|
|
1,948
|
|
||||
Total Revenues
|
1,363
|
|
|
1,402
|
|
|
2,749
|
|
|
2,987
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of Products
|
473
|
|
|
513
|
|
|
959
|
|
|
1,095
|
|
||||
Cost of Services
|
716
|
|
|
725
|
|
|
1,436
|
|
|
1,617
|
|
||||
Research and Development
|
36
|
|
|
41
|
|
|
75
|
|
|
86
|
|
||||
Selling, General and Administrative Attributable to Segments
|
214
|
|
|
230
|
|
|
446
|
|
|
499
|
|
||||
Corporate General and Administrative
|
32
|
|
|
34
|
|
|
65
|
|
|
76
|
|
||||
Asset Write-Downs and Other
|
(12
|
)
|
|
154
|
|
|
(15
|
)
|
|
212
|
|
||||
Restructuring Charges
|
31
|
|
|
51
|
|
|
106
|
|
|
128
|
|
||||
Litigation Charges, Net
|
—
|
|
|
114
|
|
|
—
|
|
|
181
|
|
||||
Total Costs and Expenses
|
1,490
|
|
|
1,862
|
|
|
3,072
|
|
|
3,894
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Loss
|
(127
|
)
|
|
(460
|
)
|
|
(323
|
)
|
|
(907
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
||||||||
Interest Expense, Net
|
(138
|
)
|
|
(119
|
)
|
|
(279
|
)
|
|
(234
|
)
|
||||
Bond Tender Premium, Net
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
||||
Warrant Fair Value Adjustment
|
127
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Currency Devaluation Charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
||||
Other Expense, Net
|
(10
|
)
|
|
(7
|
)
|
|
(21
|
)
|
|
(6
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss Before Income Taxes
|
(148
|
)
|
|
(664
|
)
|
|
(558
|
)
|
|
(1,256
|
)
|
||||
Income Tax (Provision) Benefit
|
(17
|
)
|
|
102
|
|
|
(50
|
)
|
|
203
|
|
||||
Net Loss
|
(165
|
)
|
|
(562
|
)
|
|
(608
|
)
|
|
(1,053
|
)
|
||||
Net Income Attributable to Noncontrolling Interests
|
6
|
|
|
3
|
|
|
11
|
|
|
10
|
|
||||
Net Loss Attributable to Weatherford
|
$
|
(171
|
)
|
|
$
|
(565
|
)
|
|
$
|
(619
|
)
|
|
$
|
(1,063
|
)
|
|
|
|
|
|
|
|
|
||||||||
Loss Per Share Attributable to Weatherford:
|
|
|
|
|
|
|
|
||||||||
Basic & Diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.63
|
)
|
|
$
|
(0.63
|
)
|
|
$
|
(1.24
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic & Diluted
|
990
|
|
|
899
|
|
|
989
|
|
|
856
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Loss
|
$
|
(165
|
)
|
|
$
|
(562
|
)
|
|
$
|
(608
|
)
|
|
$
|
(1,053
|
)
|
|
|
|
|
|
|
|
|
||||||||
Currency Translation Adjustments
|
11
|
|
|
(10
|
)
|
|
74
|
|
|
132
|
|
||||
Defined Benefit Pension Activity
|
(21
|
)
|
|
1
|
|
|
(41
|
)
|
|
1
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Other Comprehensive Income (Loss)
|
(10
|
)
|
|
(9
|
)
|
|
33
|
|
|
134
|
|
||||
Comprehensive Loss
|
(175
|
)
|
|
(571
|
)
|
|
(575
|
)
|
|
(919
|
)
|
||||
Comprehensive Income Attributable to Noncontrolling Interests
|
6
|
|
|
3
|
|
|
11
|
|
|
10
|
|
||||
Comprehensive Loss Attributable to Weatherford
|
$
|
(181
|
)
|
|
$
|
(574
|
)
|
|
$
|
(586
|
)
|
|
$
|
(929
|
)
|
|
June 30,
|
|
December 31,
|
||||
(Dollars and shares in millions, except par value)
|
2017
|
|
2016
|
||||
|
(Unaudited)
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
584
|
|
|
$
|
1,037
|
|
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $91 in 2017 and $129 in 2016
|
1,165
|
|
|
1,383
|
|
||
Inventories, Net
|
1,728
|
|
|
1,802
|
|
||
Prepaid Expenses
|
233
|
|
|
263
|
|
||
Other Current Assets
|
408
|
|
|
402
|
|
||
Assets Held for Sale
|
929
|
|
|
23
|
|
||
Total Current Assets
|
5,047
|
|
|
4,910
|
|
||
|
|
|
|
||||
Property, Plant and Equipment, Net of Accumulated Depreciation of $7,518 in 2017 and $7,362 in 2016
|
4,111
|
|
|
4,480
|
|
||
Goodwill
|
2,293
|
|
|
2,797
|
|
||
Other Intangible Assets, Net of Accumulated Amortization of $836 in 2017 and $801 in 2016
|
234
|
|
|
248
|
|
||
Equity Investments
|
63
|
|
|
66
|
|
||
Other Non-Current Assets
|
304
|
|
|
163
|
|
||
Total Assets
|
$
|
12,052
|
|
|
$
|
12,664
|
|
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Short-term Borrowings and Current Portion of Long-term Debt
|
$
|
152
|
|
|
$
|
179
|
|
Accounts Payable
|
837
|
|
|
845
|
|
||
Accrued Salaries and Benefits
|
295
|
|
|
291
|
|
||
Income Taxes Payable
|
223
|
|
|
255
|
|
||
Other Current Liabilities
|
783
|
|
|
858
|
|
||
Liabilities Held for Sale
|
90
|
|
|
—
|
|
||
Total Current Liabilities
|
2,380
|
|
|
2,428
|
|
||
|
|
|
|
||||
Long-term Debt
|
7,538
|
|
|
7,403
|
|
||
Other Non-Current Liabilities
|
610
|
|
|
765
|
|
||
Total Liabilities
|
10,528
|
|
|
10,596
|
|
||
|
|
|
|
||||
Shareholders’ Equity:
|
|
|
|
||||
Shares - Par Value $0.001; Authorized 1,356 shares, Issued and Outstanding 986 shares at June 30, 2017 and 983 shares at December 31, 2016
|
$
|
1
|
|
|
$
|
1
|
|
Capital in Excess of Par Value
|
6,612
|
|
|
6,571
|
|
||
Retained Deficit
|
(3,569
|
)
|
|
(2,950
|
)
|
||
Accumulated Other Comprehensive Loss
|
(1,577
|
)
|
|
(1,610
|
)
|
||
Weatherford Shareholders’ Equity
|
1,467
|
|
|
2,012
|
|
||
Noncontrolling Interests
|
57
|
|
|
56
|
|
||
Total Shareholders’ Equity
|
1,524
|
|
|
2,068
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
12,052
|
|
|
$
|
12,664
|
|
|
Six Months Ended June 30,
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Cash Flows From Operating Activities:
|
|
|
|
||||
Net Loss
|
$
|
(608
|
)
|
|
$
|
(1,053
|
)
|
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities:
|
|
|
|
||||
Depreciation and Amortization
|
412
|
|
|
499
|
|
||
Employee Share-Based Compensation Expense
|
41
|
|
|
38
|
|
||
Asset Write-Downs and Other Charges
|
34
|
|
|
164
|
|
||
Inventory Charges
|
35
|
|
|
26
|
|
||
Defined Benefit Pension Plan Gains
|
(41
|
)
|
|
—
|
|
||
Litigation Charges
|
—
|
|
|
185
|
|
||
Bond Tender Premium
|
—
|
|
|
78
|
|
||
Deferred Income Tax Provision (Benefit)
|
4
|
|
|
(215
|
)
|
||
Currency Devaluation Charges
|
—
|
|
|
31
|
|
||
Warrant Fair Value Adjustment
|
(65
|
)
|
|
—
|
|
||
Other, Net
|
72
|
|
|
75
|
|
||
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
|
|
|
|
||||
Accounts Receivable
|
(12
|
)
|
|
170
|
|
||
Inventories
|
(47
|
)
|
|
122
|
|
||
Other Current Assets
|
69
|
|
|
67
|
|
||
Accounts Payable
|
(16
|
)
|
|
(167
|
)
|
||
Accrued Litigation and Settlements
|
(62
|
)
|
|
(10
|
)
|
||
Other Current Liabilities
|
(16
|
)
|
|
(282
|
)
|
||
Other, Net
|
(41
|
)
|
|
(67
|
)
|
||
Net Cash Used in Operating Activities
|
(241
|
)
|
|
(339
|
)
|
||
|
|
|
|
||||
Cash Flows From Investing Activities:
|
|
|
|
||||
Capital Expenditures for Property, Plant and Equipment
|
(82
|
)
|
|
(74
|
)
|
||
Acquisition of Assets Held for Sale
|
(243
|
)
|
|
—
|
|
||
Acquisition of Intellectual Property
|
(9
|
)
|
|
(8
|
)
|
||
Insurance Proceeds Related to Asset Casualty Loss
|
—
|
|
|
30
|
|
||
Proceeds from Sale of Assets
|
25
|
|
|
16
|
|
||
Payment Related to Sale of Businesses, Net
|
(1
|
)
|
|
(20
|
)
|
||
Other Investing Activities
|
(5
|
)
|
|
—
|
|
||
Net Cash Used in Investing Activities
|
(315
|
)
|
|
(56
|
)
|
||
|
|
|
|
||||
Cash Flows From Financing Activities:
|
|
|
|
||||
Borrowings of Long-term Debt
|
251
|
|
|
3,156
|
|
||
Repayments of Long-term Debt
|
(36
|
)
|
|
(1,880
|
)
|
||
Repayments of Short-term Debt, Net
|
(96
|
)
|
|
(1,381
|
)
|
||
Proceeds from Issuance of Ordinary Common Shares
|
—
|
|
|
623
|
|
||
Bond Tender Premium
|
—
|
|
|
(78
|
)
|
||
Other Financing Activities
|
(20
|
)
|
|
(25
|
)
|
||
Net Cash Provided by Financing Activities
|
99
|
|
|
415
|
|
||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
4
|
|
|
(35
|
)
|
||
|
|
|
|
||||
Net Decrease in Cash and Cash Equivalents
|
(453
|
)
|
|
(15
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
1,037
|
|
|
467
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
584
|
|
|
$
|
452
|
|
|
|
|
|
||||
Supplemental Cash Flow Information:
|
|
|
|
||||
Interest Paid
|
$
|
251
|
|
|
$
|
261
|
|
Income Taxes Paid, Net of Refunds
|
$
|
47
|
|
|
$
|
120
|
|
|
|
June 30,
|
||
(Dollars in millions)
|
|
2017
|
||
Assets Held for Sale:
|
|
|
||
Other Current Assets
|
|
$
|
4
|
|
Inventory, Net
|
|
83
|
|
|
Property, Plant and Equipment, Net
|
|
260
|
|
|
Goodwill
|
|
555
|
|
|
Total Assets
|
|
$
|
902
|
|
|
|
|
||
Liabilities Held for Sale:
|
|
|
||
Other Current Liabilities
|
|
$
|
8
|
|
Long-term Debt
|
|
29
|
|
|
Other Non-Current Liabilities
|
|
53
|
|
|
Total Liabilities
|
|
$
|
90
|
|
|
Three Months Ended June 30, 2017
|
||||||||
|
|
|
Total
|
||||||
(Dollars in millions)
|
Severance
|
Other
|
Severance and
|
||||||
2016 Plan
|
Charges
|
Charges
|
Other Charges
|
||||||
North America
|
$
|
2
|
|
$
|
6
|
|
$
|
8
|
|
MENA/Asia Pacific
|
4
|
|
1
|
|
5
|
|
|||
Europe/SSA/Russia
|
6
|
|
2
|
|
8
|
|
|||
Latin America
|
8
|
|
—
|
|
8
|
|
|||
Subtotal
|
20
|
|
9
|
|
29
|
|
|||
Land Drilling Rigs
|
1
|
|
—
|
|
1
|
|
|||
Corporate and Research and Development
|
1
|
|
—
|
|
1
|
|
|||
Total
|
$
|
22
|
|
$
|
9
|
|
$
|
31
|
|
|
Three Months Ended June 30, 2016
|
||||||||
|
|
|
Total
|
||||||
(Dollars in millions)
|
Severance
|
Other
|
Severance and
|
||||||
2016 Plan
|
Charges
|
Charges
|
Other Charges
|
||||||
North America
|
$
|
5
|
|
$
|
10
|
|
$
|
15
|
|
MENA/Asia Pacific
|
9
|
|
2
|
|
11
|
|
|||
Europe/SSA/Russia
|
8
|
|
2
|
|
10
|
|
|||
Latin America
|
11
|
|
1
|
|
12
|
|
|||
Subtotal
|
33
|
|
15
|
|
48
|
|
|||
Land Drilling Rigs
|
1
|
|
—
|
|
1
|
|
|||
Corporate and Research and Development
|
2
|
|
—
|
|
2
|
|
|||
Total
|
$
|
36
|
|
$
|
15
|
|
$
|
51
|
|
|
Six Months Ended June 30, 2017
|
||||||||
|
|
|
Total
|
||||||
(Dollars in millions)
|
Severance
|
Other
|
Severance and
|
||||||
2016 Plan
|
Charges
|
Charges
|
Other Charges
|
||||||
North America
|
$
|
2
|
|
$
|
21
|
|
$
|
23
|
|
MENA/Asia Pacific
|
8
|
|
1
|
|
9
|
|
|||
Europe/SSA/Russia
|
8
|
|
21
|
|
29
|
|
|||
Latin America
|
13
|
|
3
|
|
16
|
|
|||
Subtotal
|
31
|
|
46
|
|
77
|
|
|||
Land Drilling Rigs
|
2
|
|
—
|
|
2
|
|
|||
Corporate and Research and Development
|
23
|
|
4
|
|
27
|
|
|||
Total
|
$
|
56
|
|
$
|
50
|
|
$
|
106
|
|
|
Six Months Ended June 30, 2016
|
||||||||
|
|
|
Total
|
||||||
(Dollars in millions)
|
Severance
|
Other
|
Severance and
|
||||||
2016 Plan
|
Charges
|
Charges
|
Other Charges
|
||||||
North America
|
$
|
24
|
|
$
|
15
|
|
$
|
39
|
|
MENA/Asia Pacific
|
18
|
|
2
|
|
20
|
|
|||
Europe/SSA/Russia
|
23
|
|
2
|
|
25
|
|
|||
Latin America
|
26
|
|
1
|
|
27
|
|
|||
Subtotal
|
91
|
|
20
|
|
111
|
|
|||
Land Drilling Rigs
|
5
|
|
—
|
|
5
|
|
|||
Corporate and Research and Development
|
12
|
|
—
|
|
12
|
|
|||
Total
|
$
|
108
|
|
$
|
20
|
|
$
|
128
|
|
|
At June 30, 2017
|
||||||||||||||
|
2016 Plan
|
2015 and 2014 Plans
|
Total
|
||||||||||||
|
|
|
|
|
Severance
|
||||||||||
|
Severance
|
Other
|
Severance
|
Other
|
and Other
|
||||||||||
(Dollars in millions)
|
Liability
|
Liability
|
Liability
|
Liability
|
Liability
|
||||||||||
North America
|
$
|
1
|
|
$
|
20
|
|
$
|
—
|
|
$
|
—
|
|
$
|
21
|
|
MENA/Asia Pacific
|
5
|
|
2
|
|
—
|
|
—
|
|
7
|
|
|||||
Europe/SSA/Russia
|
3
|
|
10
|
|
—
|
|
7
|
|
20
|
|
|||||
Latin America
|
1
|
|
—
|
|
—
|
|
—
|
|
1
|
|
|||||
Subtotal
|
10
|
|
32
|
|
—
|
|
7
|
|
49
|
|
|||||
Land Drilling Rigs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Corporate and Research and Development
|
29
|
|
—
|
|
—
|
|
—
|
|
29
|
|
|||||
Total
|
$
|
39
|
|
$
|
32
|
|
$
|
—
|
|
$
|
7
|
|
$
|
78
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
||||||||||||||
(Dollars in millions)
|
Accrued Balance at December 31, 2016
|
|
Charges
|
|
Cash Payments
|
|
Other
|
|
Accrued Balance at June 30, 2017
|
||||||||||
2016 Plan:
|
|
|
|
|
|
|
|
|
|
||||||||||
Severance liability
|
$
|
52
|
|
|
$
|
56
|
|
|
$
|
(65
|
)
|
|
$
|
(4
|
)
|
|
$
|
39
|
|
Other restructuring liability
|
22
|
|
|
38
|
|
|
(15
|
)
|
|
(13
|
)
|
|
32
|
|
|||||
2015 and 2014 Plan:
|
|
|
|
|
|
|
|
|
|
||||||||||
Severance liability
|
3
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||||
Other restructuring liability
|
9
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
7
|
|
|||||
Total severance and other restructuring liability
|
$
|
86
|
|
|
$
|
94
|
|
|
$
|
(83
|
)
|
|
$
|
(19
|
)
|
|
$
|
78
|
|
(Dollars in millions)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Raw materials, components and supplies
|
$
|
160
|
|
|
$
|
168
|
|
Work in process
|
51
|
|
|
49
|
|
||
Finished goods
|
1,517
|
|
|
1,585
|
|
||
|
$
|
1,728
|
|
|
$
|
1,802
|
|
(Dollars in millions)
|
North
America
|
|
MENA/
Asia Pacific
|
|
Europe/
SSA/
Russia
|
|
Latin
America
|
|
Total
|
||||||||||
Balance at December 31, 2016
|
$
|
1,777
|
|
|
$
|
189
|
|
|
$
|
543
|
|
|
$
|
288
|
|
|
$
|
2,797
|
|
Reclassification to assets held for sale
|
(555
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(555
|
)
|
|||||
Foreign currency translation adjustments
|
28
|
|
|
4
|
|
|
20
|
|
|
(1
|
)
|
|
51
|
|
|||||
Balance at June 30, 2017
|
$
|
1,250
|
|
|
$
|
193
|
|
|
$
|
563
|
|
|
$
|
287
|
|
|
$
|
2,293
|
|
(Dollars in millions)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Other short-term bank loans
|
7
|
|
|
2
|
|
||
Total short-term borrowings
|
7
|
|
|
2
|
|
||
Current portion of long-term debt and term loan agreement
|
145
|
|
|
177
|
|
||
Short-term borrowings and current portion of long-term debt
|
$
|
152
|
|
|
$
|
179
|
|
(Dollars in millions)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Fair value
|
$
|
7,018
|
|
|
$
|
6,739
|
|
Carrying value
|
7,203
|
|
|
7,028
|
|
(Dollars in millions)
|
|
June 30, 2017
|
|
December 31, 2016
|
|
Classification
|
||||
Derivative assets not designated as hedges:
|
|
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
$
|
8
|
|
|
$
|
7
|
|
|
Other Current Assets
|
|
|
|
|
|
|
|
||||
Derivative liabilities not designated as hedges:
|
|
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
(12
|
)
|
|
(14
|
)
|
|
Other Current Liabilities
|
||
Warrant on Weatherford Shares
|
|
(91
|
)
|
|
(156
|
)
|
|
Other Non-current Liabilities
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
||||||||||||
(Dollars in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Classification
|
||||||||
Foreign currency forward contracts
|
|
$
|
(15
|
)
|
|
$
|
(16
|
)
|
|
$
|
(22
|
)
|
|
$
|
10
|
|
|
Other Expense, Net
|
Warrant on Weatherford Shares
|
|
127
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
Warrant Fair Value Adjustment
|
(Dollars in millions)
|
Par Value of Issued Shares
|
|
Capital in Excess of Par Value
|
|
Retained Earnings (Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Non-controlling Interests
|
|
Total Shareholders’ Equity
|
||||||||||||
Balance at December 31, 2015
|
$
|
1
|
|
|
$
|
5,502
|
|
|
$
|
442
|
|
|
$
|
(1,641
|
)
|
|
$
|
61
|
|
|
$
|
4,365
|
|
Net Income (Loss)
|
—
|
|
|
—
|
|
|
(1,063
|
)
|
|
—
|
|
|
10
|
|
|
(1,053
|
)
|
||||||
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
||||||
Dividends Paid to Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||
Issuance of Common Shares
|
—
|
|
|
623
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
623
|
|
||||||
Issuance of Exchangeable Notes
|
—
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||||
Equity Awards Granted, Vested and Exercised
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||||
Balance at June 30, 2016
|
$
|
1
|
|
|
$
|
6,250
|
|
|
$
|
(621
|
)
|
|
$
|
(1,507
|
)
|
|
$
|
64
|
|
|
$
|
4,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2016
|
$
|
1
|
|
|
$
|
6,571
|
|
|
$
|
(2,950
|
)
|
|
$
|
(1,610
|
)
|
|
$
|
56
|
|
|
$
|
2,068
|
|
Net Income (Loss)
|
—
|
|
|
—
|
|
|
(619
|
)
|
|
—
|
|
|
11
|
|
|
(608
|
)
|
||||||
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||
Dividends Paid to Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||
Equity Awards Granted, Vested and Exercised
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Balance at June 30, 2017
|
$
|
1
|
|
|
$
|
6,612
|
|
|
$
|
(3,569
|
)
|
|
$
|
(1,577
|
)
|
|
$
|
57
|
|
|
$
|
1,524
|
|
(Dollars in millions)
|
Currency Translation Adjustment
|
|
Defined Benefit Pension
|
|
Deferred Loss on Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2015
|
$
|
(1,602
|
)
|
|
$
|
(29
|
)
|
|
$
|
(10
|
)
|
|
$
|
(1,641
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Income before Reclassifications
|
132
|
|
|
1
|
|
|
—
|
|
|
133
|
|
||||
Reclassifications
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Net activity
|
132
|
|
|
1
|
|
|
1
|
|
|
134
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2016
|
$
|
(1,470
|
)
|
|
$
|
(28
|
)
|
|
$
|
(9
|
)
|
|
$
|
(1,507
|
)
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2016
|
$
|
(1,614
|
)
|
|
$
|
13
|
|
|
$
|
(9
|
)
|
|
$
|
(1,610
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Income before Reclassifications
|
74
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||
Reclassifications
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
||||
Net activity
|
74
|
|
|
(41
|
)
|
|
—
|
|
|
33
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance at June 30, 2017
|
$
|
(1,540
|
)
|
|
$
|
(28
|
)
|
|
$
|
(9
|
)
|
|
$
|
(1,577
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(Shares in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Basic and Diluted weighted average shares outstanding
|
990
|
|
|
899
|
|
|
989
|
|
|
856
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(Shares in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Anti-dilutive potential shares due to net loss
|
250
|
|
|
43
|
|
|
250
|
|
|
24
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Share-based compensation
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
41
|
|
|
$
|
38
|
|
Related tax benefit
|
—
|
|
|
4
|
|
|
—
|
|
|
8
|
|
|
Three Months Ended June 30, 2017
|
||||||||||
(Dollars in millions)
|
Net
Operating
Revenues
|
|
Income (Loss)
from
Operations
|
|
Depreciation
and
Amortization
|
||||||
North America
|
$
|
475
|
|
|
$
|
2
|
|
|
$
|
40
|
|
MENA/Asia Pacific
|
340
|
|
|
9
|
|
|
51
|
|
|||
Europe/SSA/Russia
|
244
|
|
|
5
|
|
|
39
|
|
|||
Latin America
(a)
|
203
|
|
|
(35
|
)
|
|
48
|
|
|||
Subtotal
|
1,262
|
|
|
(19
|
)
|
|
178
|
|
|||
Land Drilling Rigs
|
101
|
|
|
(20
|
)
|
|
23
|
|
|||
|
1,363
|
|
|
(39
|
)
|
|
201
|
|
|||
Corporate and Research and Development
|
|
|
(69
|
)
|
|
3
|
|
||||
Restructuring Charges
(b)
|
|
|
(31
|
)
|
|
|
|||||
Asset Write-Downs and Other
|
|
|
12
|
|
|
|
|||||
Total
|
$
|
1,363
|
|
|
$
|
(127
|
)
|
|
$
|
204
|
|
(a)
|
As discussed in “
Note 1 – General
”, in the second quarter of 2017, the Company changed its accounting for revenue related to an implied financing arrangement with our largest customer in Venezuela. The total impact of this change in the second quarter of 2017 related to prior periods is a reduction in revenues and income from operations of approximately
$31 million
:
$8 million
for the first quarter of 2017 and
$23 million
for the second half of 2016.
|
(b)
|
Includes restructuring charges of
$31 million
:
$8 million
in Europe/SSA/Russia,
$8 million
in Latin America,
$8 million
in North America,
$5 million
in MENA/Asia Pacific,
$1 million
in Corporate and Research and Development, and
$1 million
in Land Drilling Rigs.
|
|
Three Months Ended June 30, 2016
|
||||||||||
(Dollars in millions)
|
Net
Operating
Revenues
|
|
Income (Loss)
from
Operations
|
|
Depreciation
and
Amortization
|
||||||
North America
|
$
|
401
|
|
|
$
|
(101
|
)
|
|
$
|
58
|
|
MENA/Asia Pacific
|
400
|
|
|
50
|
|
|
60
|
|
|||
Europe/SSA/Russia
|
243
|
|
|
1
|
|
|
48
|
|
|||
Latin America
|
249
|
|
|
1
|
|
|
56
|
|
|||
Subtotal
|
1,293
|
|
|
(49
|
)
|
|
222
|
|
|||
Land Drilling Rigs
|
109
|
|
|
(17
|
)
|
|
23
|
|
|||
|
1,402
|
|
|
(66
|
)
|
|
245
|
|
|||
Corporate and Research and Development
|
|
|
(75
|
)
|
|
4
|
|
||||
Asset Write-Downs and Other Charges
(c)
|
|
|
(154
|
)
|
|
|
|||||
Restructuring Charges
(d)
|
|
|
(51
|
)
|
|
|
|||||
Litigation Charges, Net
|
|
|
(114
|
)
|
|
|
|||||
Total
|
$
|
1,402
|
|
|
$
|
(460
|
)
|
|
$
|
249
|
|
(c)
|
Includes
$84 million
to adjust a note from our largest customer in Venezuela to fair value and other impairments and write-offs of
$70 million
.
|
(d)
|
Includes restructuring charges of
$51 million
:
$15 million
in North America,
$10 million
in Europe/SSA/Russia,
$12 million
in Latin America,
$11 million
in MENA/Asia Pacific,
$2 million
in Corporate and Research and Development, and
$1 million
in
Land Drilling Rigs
.
|
|
Six Months Ended June 30, 2017
|
||||||||||
(Dollars in millions)
|
Net
Operating
Revenues
|
|
Income (Loss)
from
Operations
|
|
Depreciation
and
Amortization
|
||||||
North America
|
$
|
965
|
|
|
$
|
(16
|
)
|
|
$
|
80
|
|
MENA/Asia Pacific
|
661
|
|
|
6
|
|
|
102
|
|
|||
Europe/SSA/Russia
|
488
|
|
|
(5
|
)
|
|
78
|
|
|||
Latin America
(a)
|
445
|
|
|
(26
|
)
|
|
99
|
|
|||
Subtotal
|
2,559
|
|
|
(41
|
)
|
|
359
|
|
|||
Land Drilling Rigs
|
190
|
|
|
(50
|
)
|
|
47
|
|
|||
|
2,749
|
|
|
(91
|
)
|
|
406
|
|
|||
Corporate and Research and Development
|
|
|
(141
|
)
|
|
6
|
|
||||
Restructuring Charges
(b)
|
|
|
(106
|
)
|
|
|
|||||
Asset Write-Downs and Other
|
|
|
15
|
|
|
|
|||||
Total
|
$
|
2,749
|
|
|
$
|
(323
|
)
|
|
$
|
412
|
|
(a)
|
As discussed in “
Note 1 – General
”, in the second quarter of 2017, the Company changed its accounting for revenue related to an implied financing arrangement with our largest customer in Venezuela. The total impact of this change for the first six months of 2017 related to prior periods is a reduction in revenues and income from operations of approximately
$23 million
for the second half of 2016.
|
(b)
|
Includes restructuring charges of
$106 million
:
$29 million
in Europe/SSA/Russia,
$27 million
in Corporate and Research and Development,
$23 million
in North America,
$16 million
in Latin America,
$9 million
in MENA/Asia Pacific, and
$2 million
in Land Drilling Rigs.
|
|
Six Months Ended June 30, 2016
|
||||||||||
(Dollars in millions)
|
Net
Operating
Revenues
|
|
Income (Loss)
from
Operations
|
|
Depreciation
and
Amortization
|
||||||
North America
|
$
|
944
|
|
|
$
|
(229
|
)
|
|
$
|
112
|
|
MENA/Asia Pacific
|
761
|
|
|
4
|
|
|
121
|
|
|||
Europe/SSA/Russia
|
500
|
|
|
—
|
|
|
96
|
|
|||
Latin America
|
554
|
|
|
45
|
|
|
117
|
|
|||
Subtotal
|
2,759
|
|
|
(180
|
)
|
|
446
|
|
|||
Land Drilling Rigs
|
228
|
|
|
(43
|
)
|
|
45
|
|
|||
|
2,987
|
|
|
(223
|
)
|
|
491
|
|
|||
Corporate and Research and Development
|
|
|
(163
|
)
|
|
8
|
|
||||
Asset Write-Downs and Other Charges
(c)
|
|
|
(212
|
)
|
|
|
|||||
Restructuring Charges
(d)
|
|
|
(128
|
)
|
|
|
|||||
Litigation Charges, Net
|
|
|
(181
|
)
|
|
|
|||||
Total
|
$
|
2,987
|
|
|
$
|
(907
|
)
|
|
$
|
499
|
|
(c)
|
Includes
$84 million
to adjust a note from our largest customer in Venezuela to fair value,
$92 million
related to impairments, write-offs and other charges and
$35 million
of pressure pumping related charges.
|
(d)
|
Includes restructuring charges of
$128 million
:
$39 million
in North America,
$27 million
in Latin America,
$25 million
in Europe/SSA/Russia,
$20 million
in MENA/Asia Pacific,
$12 million
in Corporate and Research and Development and
$5 million
in Land Drilling Rigs.
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford Bermuda
|
|
Weatherford Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,363
|
|
|
$
|
—
|
|
|
$
|
1,363
|
|
Costs and Expenses
|
(5
|
)
|
|
19
|
|
|
1
|
|
|
(1,505
|
)
|
|
—
|
|
|
(1,490
|
)
|
||||||
Operating Income (Loss)
|
(5
|
)
|
|
19
|
|
|
1
|
|
|
(142
|
)
|
|
—
|
|
|
(127
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense, Net
|
—
|
|
|
(144
|
)
|
|
1
|
|
|
11
|
|
|
(6
|
)
|
|
(138
|
)
|
||||||
Intercompany Charges, Net
|
3
|
|
|
(82
|
)
|
|
(41
|
)
|
|
120
|
|
|
—
|
|
|
—
|
|
||||||
Equity in Subsidiary Income (Loss)
|
(296
|
)
|
|
(304
|
)
|
|
(39
|
)
|
|
—
|
|
|
639
|
|
|
—
|
|
||||||
Other, Net
|
127
|
|
|
247
|
|
|
191
|
|
|
(255
|
)
|
|
(193
|
)
|
|
117
|
|
||||||
Income (Loss) Before Income Taxes
|
(171
|
)
|
|
(264
|
)
|
|
113
|
|
|
(266
|
)
|
|
440
|
|
|
(148
|
)
|
||||||
(Provision) Benefit for Income Taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Net Income (Loss)
|
(171
|
)
|
|
(264
|
)
|
|
113
|
|
|
(283
|
)
|
|
440
|
|
|
(165
|
)
|
||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(171
|
)
|
|
$
|
(264
|
)
|
|
$
|
113
|
|
|
$
|
(289
|
)
|
|
$
|
440
|
|
|
$
|
(171
|
)
|
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(181
|
)
|
|
$
|
(290
|
)
|
|
$
|
128
|
|
|
$
|
(298
|
)
|
|
$
|
460
|
|
|
$
|
(181
|
)
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,402
|
|
|
$
|
—
|
|
|
$
|
1,402
|
|
Costs and Expenses
|
(81
|
)
|
|
—
|
|
|
5
|
|
|
(1,786
|
)
|
|
—
|
|
|
(1,862
|
)
|
||||||
Operating Income (Loss)
|
(81
|
)
|
|
—
|
|
|
5
|
|
|
(384
|
)
|
|
—
|
|
|
(460
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense, Net
|
—
|
|
|
(106
|
)
|
|
(12
|
)
|
|
(4
|
)
|
|
3
|
|
|
(119
|
)
|
||||||
Intercompany Charges, Net
|
13
|
|
|
5
|
|
|
(45
|
)
|
|
27
|
|
|
—
|
|
|
—
|
|
||||||
Equity in Subsidiary Income
|
(497
|
)
|
|
28
|
|
|
47
|
|
|
—
|
|
|
422
|
|
|
—
|
|
||||||
Other, Net
|
—
|
|
|
(73
|
)
|
|
(27
|
)
|
|
5
|
|
|
10
|
|
|
(85
|
)
|
||||||
Income (Loss) Before Income Taxes
|
(565
|
)
|
|
(146
|
)
|
|
(32
|
)
|
|
(356
|
)
|
|
435
|
|
|
(664
|
)
|
||||||
(Provision) Benefit for Income Taxes
|
—
|
|
|
—
|
|
|
19
|
|
|
83
|
|
|
—
|
|
|
102
|
|
||||||
Net Income (Loss)
|
(565
|
)
|
|
(146
|
)
|
|
(13
|
)
|
|
(273
|
)
|
|
435
|
|
|
(562
|
)
|
||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(565
|
)
|
|
$
|
(146
|
)
|
|
$
|
(13
|
)
|
|
$
|
(276
|
)
|
|
$
|
435
|
|
|
$
|
(565
|
)
|
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(574
|
)
|
|
$
|
(188
|
)
|
|
$
|
(40
|
)
|
|
$
|
(285
|
)
|
|
$
|
513
|
|
|
$
|
(574
|
)
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford Bermuda
|
|
Weatherford Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
|||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,749
|
|
|
$
|
—
|
|
|
$
|
2,749
|
|
|
Costs and Expenses
|
(8
|
)
|
|
39
|
|
|
1
|
|
|
(3,104
|
)
|
|
—
|
|
|
(3,072
|
)
|
|||||||
Operating Income (Loss)
|
(8
|
)
|
|
39
|
|
|
1
|
|
|
(355
|
)
|
|
—
|
|
|
(323
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest Expense, Net
|
—
|
|
|
(283
|
)
|
|
(20
|
)
|
|
15
|
|
|
9
|
|
|
(279
|
)
|
|||||||
Intercompany Charges, Net
|
4
|
|
|
(90
|
)
|
|
(43
|
)
|
|
129
|
|
|
—
|
|
|
—
|
|
|||||||
Equity in Subsidiary Income (Loss)
|
(680
|
)
|
|
(132
|
)
|
|
180
|
|
|
—
|
|
|
632
|
|
|
—
|
|
|||||||
Other, Net
|
65
|
|
|
31
|
|
|
52
|
|
|
(50
|
)
|
|
(54
|
)
|
|
44
|
|
|||||||
Income (Loss) Before Income Taxes
|
(619
|
)
|
|
(435
|
)
|
|
170
|
|
|
(261
|
)
|
|
587
|
|
|
(558
|
)
|
|||||||
(Provision) Benefit for Income Taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|||||||
Net Income (Loss)
|
(619
|
)
|
|
(435
|
)
|
|
170
|
|
|
(311
|
)
|
|
587
|
|
|
(608
|
)
|
|||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
62
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(619
|
)
|
|
$
|
(435
|
)
|
|
$
|
170
|
|
|
$
|
(322
|
)
|
|
$
|
587
|
|
|
$
|
(619
|
)
|
|
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(586
|
)
|
|
$
|
(466
|
)
|
|
$
|
102
|
|
|
$
|
(288
|
)
|
|
$
|
652
|
|
|
$
|
(586
|
)
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,987
|
|
|
$
|
—
|
|
|
$
|
2,987
|
|
Costs and Expenses
|
(147
|
)
|
|
—
|
|
|
5
|
|
|
(3,752
|
)
|
|
—
|
|
|
(3,894
|
)
|
||||||
Operating Income (Loss)
|
(147
|
)
|
|
—
|
|
|
5
|
|
|
(765
|
)
|
|
—
|
|
|
(907
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Expense, Net
|
—
|
|
|
(204
|
)
|
|
(26
|
)
|
|
(7
|
)
|
|
3
|
|
|
(234
|
)
|
||||||
Intercompany Charges, Net
|
12
|
|
|
(41
|
)
|
|
(46
|
)
|
|
(265
|
)
|
|
340
|
|
|
—
|
|
||||||
Equity in Subsidiary Income
|
(928
|
)
|
|
(260
|
)
|
|
(188
|
)
|
|
—
|
|
|
1,376
|
|
|
—
|
|
||||||
Other, Net
|
—
|
|
|
(86
|
)
|
|
(27
|
)
|
|
(12
|
)
|
|
10
|
|
|
(115
|
)
|
||||||
Income (Loss) Before Income Taxes
|
(1,063
|
)
|
|
(591
|
)
|
|
(282
|
)
|
|
(1,049
|
)
|
|
1,729
|
|
|
(1,256
|
)
|
||||||
(Provision) Benefit for Income Taxes
|
—
|
|
|
—
|
|
|
24
|
|
|
179
|
|
|
—
|
|
|
203
|
|
||||||
Net Income (Loss)
|
(1,063
|
)
|
|
(591
|
)
|
|
(258
|
)
|
|
(870
|
)
|
|
1,729
|
|
|
(1,053
|
)
|
||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Net Income (Loss) Attributable to Weatherford
|
$
|
(1,063
|
)
|
|
$
|
(591
|
)
|
|
$
|
(258
|
)
|
|
$
|
(880
|
)
|
|
$
|
1,729
|
|
|
$
|
(1,063
|
)
|
Comprehensive Income (Loss) Attributable to Weatherford
|
$
|
(929
|
)
|
|
$
|
(640
|
)
|
|
$
|
(286
|
)
|
|
$
|
(746
|
)
|
|
$
|
1,672
|
|
|
$
|
(929
|
)
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
1
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
584
|
|
Other Current Assets
|
1
|
|
|
—
|
|
|
509
|
|
|
4,496
|
|
|
(543
|
)
|
|
4,463
|
|
||||||
Total Current Assets
|
2
|
|
|
154
|
|
|
509
|
|
|
4,925
|
|
|
(543
|
)
|
|
5,047
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity Investments in Affiliates
|
1,806
|
|
|
8,496
|
|
|
8,526
|
|
|
1,040
|
|
|
(19,868
|
)
|
|
—
|
|
||||||
Intercompany Receivables, Net
|
—
|
|
|
133
|
|
|
—
|
|
|
3,578
|
|
|
(3,711
|
)
|
|
—
|
|
||||||
Other Assets
|
—
|
|
|
11
|
|
|
3
|
|
|
6,991
|
|
|
—
|
|
|
7,005
|
|
||||||
Total Assets
|
$
|
1,808
|
|
|
$
|
8,794
|
|
|
$
|
9,038
|
|
|
$
|
16,534
|
|
|
$
|
(24,122
|
)
|
|
$
|
12,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt
|
$
|
—
|
|
|
$
|
119
|
|
|
$
|
4
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
152
|
|
Accounts Payable and Other Current Liabilities
|
38
|
|
|
229
|
|
|
—
|
|
|
2,504
|
|
|
(543
|
)
|
|
2,228
|
|
||||||
Total Current Liabilities
|
38
|
|
|
348
|
|
|
4
|
|
|
2,533
|
|
|
(543
|
)
|
|
2,380
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term Debt
|
—
|
|
|
7,127
|
|
|
156
|
|
|
156
|
|
|
99
|
|
|
7,538
|
|
||||||
Intercompany Payables, Net
|
212
|
|
|
—
|
|
|
3,499
|
|
|
—
|
|
|
(3,711
|
)
|
|
—
|
|
||||||
Other Long-term Liabilities
|
91
|
|
|
98
|
|
|
91
|
|
|
421
|
|
|
(91
|
)
|
|
610
|
|
||||||
Total Liabilities
|
341
|
|
|
7,573
|
|
|
3,750
|
|
|
3,110
|
|
|
(4,246
|
)
|
|
10,528
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weatherford Shareholders’ Equity
|
1,467
|
|
|
1,221
|
|
|
5,288
|
|
|
13,367
|
|
|
(19,876
|
)
|
|
1,467
|
|
||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
1,808
|
|
|
$
|
8,794
|
|
|
$
|
9,038
|
|
|
$
|
16,534
|
|
|
$
|
(24,122
|
)
|
|
$
|
12,052
|
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and Cash Equivalents
|
$
|
—
|
|
|
$
|
586
|
|
|
$
|
4
|
|
|
$
|
447
|
|
|
$
|
—
|
|
|
$
|
1,037
|
|
Other Current Assets
|
1
|
|
|
—
|
|
|
512
|
|
|
3,891
|
|
|
(531
|
)
|
|
3,873
|
|
||||||
Total Current Assets
|
1
|
|
|
586
|
|
|
516
|
|
|
4,338
|
|
|
(531
|
)
|
|
4,910
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity Investments in Affiliates
|
2,415
|
|
|
8,669
|
|
|
8,301
|
|
|
1,037
|
|
|
(20,422
|
)
|
|
—
|
|
||||||
Intercompany Receivables, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
3,762
|
|
|
(3,762
|
)
|
|
—
|
|
||||||
Other Assets
|
2
|
|
|
13
|
|
|
—
|
|
|
7,751
|
|
|
(12
|
)
|
|
7,754
|
|
||||||
Total Assets
|
$
|
2,418
|
|
|
$
|
9,268
|
|
|
$
|
8,817
|
|
|
$
|
16,888
|
|
|
$
|
(24,727
|
)
|
|
$
|
12,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term Borrowings and Current Portion of Long-Term Debt
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
94
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
179
|
|
Accounts Payable and Other Current Liabilities
|
105
|
|
|
198
|
|
|
—
|
|
|
2,488
|
|
|
(542
|
)
|
|
2,249
|
|
||||||
Total Current Liabilities
|
105
|
|
|
251
|
|
|
94
|
|
|
2,520
|
|
|
(542
|
)
|
|
2,428
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term Debt
|
—
|
|
|
6,944
|
|
|
148
|
|
|
204
|
|
|
107
|
|
|
7,403
|
|
||||||
Intercompany Payables, Net
|
145
|
|
|
224
|
|
|
3,393
|
|
|
—
|
|
|
(3,762
|
)
|
|
—
|
|
||||||
Other Long-term Liabilities
|
156
|
|
|
152
|
|
|
146
|
|
|
457
|
|
|
(146
|
)
|
|
765
|
|
||||||
Total Liabilities
|
406
|
|
|
7,571
|
|
|
3,781
|
|
|
3,181
|
|
|
(4,343
|
)
|
|
10,596
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weatherford Shareholders’ Equity
|
2,012
|
|
|
1,697
|
|
|
5,036
|
|
|
13,651
|
|
|
(20,384
|
)
|
|
2,012
|
|
||||||
Noncontrolling Interests
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
2,418
|
|
|
$
|
9,268
|
|
|
$
|
8,817
|
|
|
$
|
16,888
|
|
|
$
|
(24,727
|
)
|
|
$
|
12,664
|
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Income (Loss)
|
$
|
(619
|
)
|
|
$
|
(435
|
)
|
|
$
|
170
|
|
|
$
|
(311
|
)
|
|
$
|
587
|
|
|
$
|
(608
|
)
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charges from Parent or Subsidiary
|
(4
|
)
|
|
90
|
|
|
43
|
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
||||||
Equity in (Earnings) Loss of Affiliates
|
680
|
|
|
132
|
|
|
(180
|
)
|
|
—
|
|
|
(632
|
)
|
|
—
|
|
||||||
Deferred Income Tax Provision (Benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
|
|
4
|
|
||||||
Other Adjustments
|
(134
|
)
|
|
7
|
|
|
(7
|
)
|
|
452
|
|
|
45
|
|
|
363
|
|
||||||
Net Cash Provided (Used) by Operating Activities
|
(77
|
)
|
|
(206
|
)
|
|
26
|
|
|
16
|
|
|
—
|
|
|
(241
|
)
|
||||||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(82
|
)
|
||||||
Cash Paid for Assets Held for Sale
|
—
|
|
|
—
|
|
|
—
|
|
|
(243
|
)
|
|
—
|
|
|
(243
|
)
|
||||||
Acquisition of Intellectual Property
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Proceeds from Sale of Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||
Payment Related to Sale of Businesses, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Other Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Net Cash Provided (Used) by Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(315
|
)
|
|
—
|
|
|
(315
|
)
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
(96
|
)
|
||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
|
|
226
|
|
|
(89
|
)
|
|
78
|
|
|
—
|
|
|
215
|
|
||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
78
|
|
|
(452
|
)
|
|
59
|
|
|
315
|
|
|
—
|
|
|
—
|
|
||||||
Other, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
||||||
Net Cash Provided (Used) by Financing Activities
|
78
|
|
|
(226
|
)
|
|
(30
|
)
|
|
277
|
|
|
—
|
|
|
99
|
|
||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
1
|
|
|
(432
|
)
|
|
(4
|
)
|
|
(18
|
)
|
|
—
|
|
|
(453
|
)
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
—
|
|
|
586
|
|
|
4
|
|
|
447
|
|
|
—
|
|
|
1,037
|
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
1
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
584
|
|
(Dollars in millions)
|
Weatherford
Ireland
|
|
Weatherford
Bermuda
|
|
Weatherford
Delaware
|
|
Other
Subsidiaries
|
|
Eliminations
|
|
Consolidation
|
||||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Income (Loss)
|
$
|
(1,063
|
)
|
|
$
|
(591
|
)
|
|
$
|
(258
|
)
|
|
$
|
(870
|
)
|
|
$
|
1,729
|
|
|
$
|
(1,053
|
)
|
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charges from Parent or Subsidiary
|
(12
|
)
|
|
41
|
|
|
46
|
|
|
265
|
|
|
(340
|
)
|
|
—
|
|
||||||
Equity in (Earnings) Loss of Affiliates
|
928
|
|
|
260
|
|
|
188
|
|
|
—
|
|
|
(1,376
|
)
|
|
—
|
|
||||||
Deferred Income Tax Provision (Benefit)
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(191
|
)
|
|
—
|
|
|
(215
|
)
|
||||||
Other Adjustments
|
883
|
|
|
(1,078
|
)
|
|
(18
|
)
|
|
1,155
|
|
|
(13
|
)
|
|
929
|
|
||||||
Net Cash Provided (Used) by Operating Activities
|
736
|
|
|
(1,368
|
)
|
|
(66
|
)
|
|
359
|
|
|
—
|
|
|
(339
|
)
|
||||||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital Expenditures for Property, Plant and Equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
(74
|
)
|
||||||
Acquisition of Intellectual Property
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Insurance Proceeds Related to Rig Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||||
Proceeds from Sale of Assets and Businesses, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Other Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
||||||
Net Cash Provided (Used) by Investing Activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
(56
|
)
|
||||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings (Repayments) Short-term Debt, Net
|
—
|
|
|
(1,450
|
)
|
|
—
|
|
|
69
|
|
|
—
|
|
|
(1,381
|
)
|
||||||
Borrowings (Repayments) Long-term Debt, Net
|
—
|
|
|
3,114
|
|
|
(513
|
)
|
|
(1,325
|
)
|
|
—
|
|
|
1,276
|
|
||||||
Borrowings (Repayments) Between Subsidiaries, Net
|
(736
|
)
|
|
(277
|
)
|
|
557
|
|
|
456
|
|
|
—
|
|
|
—
|
|
||||||
Proceeds from Issuance of Ordinary Shares
|
—
|
|
|
—
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
||||||
Other, Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
|
—
|
|
|
(103
|
)
|
||||||
Net Cash Provided (Used) by Financing Activities
|
(736
|
)
|
|
1,387
|
|
|
44
|
|
|
(280
|
)
|
|
—
|
|
|
415
|
|
||||||
Effect of Exchange Rate Changes On Cash and Cash Equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
—
|
|
|
19
|
|
|
(22
|
)
|
|
(12
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
—
|
|
|
2
|
|
|
22
|
|
|
443
|
|
|
—
|
|
|
467
|
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
431
|
|
|
$
|
—
|
|
|
$
|
452
|
|
•
|
Formation Evaluation and Well Construction
includes Managed-Pressure Drilling, Drilling Services, Tubular Running Services, Drilling Tools and Rental Equipment, Wireline Services, Testing and Production Services, Re-entry and Fishing, Cementing Products, Liner Systems, Reservoir Solutions and Surface Logging Systems.
|
•
|
Completion and Production
includes Artificial Lift Systems, Stimulation and Completion Systems.
|
•
|
Land Drilling Rigs
encompasses our land drilling rigs business, including the products and services ancillary thereto.
|
|
WTI Oil
(a)
|
|
Henry Hub Gas
(b)
|
|
North
American
Rig Count
(c)
|
|
International Rig
Count
(c)
|
||||||
June 30, 2017
|
$
|
46.04
|
|
|
$
|
3.04
|
|
|
1,012
|
|
|
958
|
|
December 31, 2016
|
53.72
|
|
|
3.68
|
|
|
770
|
|
|
925
|
|
||
June 30, 2016
|
48.33
|
|
|
2.92
|
|
|
470
|
|
|
943
|
|
(a)
|
Price per barrel of West Texas Intermediate (“WTI”) crude oil as of the date indicated at Cushing, Oklahoma – Source: Thomson Reuters
|
(b)
|
Price per MM/BTU as of the date indicated at Henry Hub Louisiana – Source: Thomson Reuters
|
(c)
|
Quarterly average rig count – Source: Baker Hughes Rig Count
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
June 30,
|
|
|
|
|
|||||||||
(Dollars and shares in millions, except per share data)
|
2017
|
|
2016
|
|
Favorable (Unfavorable)
|
|
Percentage Change
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
475
|
|
|
$
|
401
|
|
|
$
|
74
|
|
|
18
|
%
|
MENA/Asia Pacific
|
340
|
|
|
400
|
|
|
(60
|
)
|
|
(15
|
)%
|
|||
Europe/SSA/Russia
|
244
|
|
|
243
|
|
|
1
|
|
|
—
|
%
|
|||
Latin America
|
203
|
|
|
249
|
|
|
(46
|
)
|
|
(18
|
)%
|
|||
Subtotal
|
1,262
|
|
|
1,293
|
|
|
(31
|
)
|
|
(2
|
)%
|
|||
Land Drilling Rigs
|
101
|
|
|
109
|
|
|
(8
|
)
|
|
(7
|
)%
|
|||
Total Revenues
|
1,363
|
|
|
1,402
|
|
|
(39
|
)
|
|
(3
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Operating Income (Loss):
|
|
|
|
|
|
|
|
|||||||
North America
|
2
|
|
|
(101
|
)
|
|
103
|
|
|
102
|
%
|
|||
MENA/Asia Pacific
|
9
|
|
|
50
|
|
|
(41
|
)
|
|
(82
|
)%
|
|||
Europe/SSA/Russia
|
5
|
|
|
1
|
|
|
4
|
|
|
400
|
%
|
|||
Latin America
|
(35
|
)
|
|
1
|
|
|
(36
|
)
|
|
(3,600
|
)%
|
|||
Subtotal
|
(19
|
)
|
|
(49
|
)
|
|
30
|
|
|
61
|
%
|
|||
Land Drilling Rigs
|
(20
|
)
|
|
(17
|
)
|
|
(3
|
)
|
|
(18
|
)%
|
|||
Total Segment Operating Loss
|
(39
|
)
|
|
(66
|
)
|
|
27
|
|
|
41
|
%
|
|||
Research and Development
|
(36
|
)
|
|
(41
|
)
|
|
5
|
|
|
12
|
%
|
|||
Corporate Expenses
|
(33
|
)
|
|
(34
|
)
|
|
1
|
|
|
3
|
%
|
|||
Asset Write-Downs and Other
|
12
|
|
|
(154
|
)
|
|
166
|
|
|
108
|
%
|
|||
Restructuring Charges
|
(31
|
)
|
|
(51
|
)
|
|
20
|
|
|
39
|
%
|
|||
Litigation Charges, Net
|
—
|
|
|
(114
|
)
|
|
114
|
|
|
100
|
%
|
|||
Total Operating Loss
|
(127
|
)
|
|
(460
|
)
|
|
333
|
|
|
72
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Interest Expense, Net
|
(138
|
)
|
|
(119
|
)
|
|
(19
|
)
|
|
(16
|
)%
|
|||
Bond Tender Premium, Net
|
—
|
|
|
(78
|
)
|
|
78
|
|
|
100
|
%
|
|||
Warrant Fair Value Adjustment
|
127
|
|
|
—
|
|
|
127
|
|
|
—
|
%
|
|||
Other Expense, Net
|
(10
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
(43
|
)%
|
|||
Income Tax (Provision) Benefit
|
(17
|
)
|
|
102
|
|
|
(119
|
)
|
|
(117
|
)%
|
|||
Net Loss per Diluted Share
|
$
|
(0.17
|
)
|
|
$
|
(0.63
|
)
|
|
$
|
0.46
|
|
|
73
|
%
|
Weighted Average Diluted Shares Outstanding
|
990
|
|
|
899
|
|
|
(91
|
)
|
|
(10
|
)%
|
|||
Depreciation and Amortization
|
$
|
204
|
|
|
$
|
249
|
|
|
$
|
45
|
|
|
18
|
%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
June 30,
|
|
|
|
|
|||||||||
(Dollars and shares in millions, except per share data)
|
2017
|
|
2016
|
|
Favorable (Unfavorable)
|
|
Percentage Change
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
965
|
|
|
$
|
944
|
|
|
$
|
21
|
|
|
2
|
%
|
MENA/Asia Pacific
|
661
|
|
|
761
|
|
|
(100
|
)
|
|
(13
|
)%
|
|||
Europe/SSA/Russia
|
488
|
|
|
500
|
|
|
(12
|
)
|
|
(2
|
)%
|
|||
Latin America
|
445
|
|
|
554
|
|
|
(109
|
)
|
|
(20
|
)%
|
|||
Subtotal
|
2,559
|
|
|
2,759
|
|
|
(200
|
)
|
|
(7
|
)%
|
|||
Land Drilling Rigs
|
190
|
|
|
228
|
|
|
(38
|
)
|
|
(17
|
)%
|
|||
Total Revenues
|
2,749
|
|
|
2,987
|
|
|
(238
|
)
|
|
(8
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Operating Income (Expense):
|
|
|
|
|
|
|
|
|||||||
North America
|
(16
|
)
|
|
(229
|
)
|
|
213
|
|
|
93
|
%
|
|||
MENA/Asia Pacific
|
6
|
|
|
4
|
|
|
2
|
|
|
50
|
%
|
|||
Europe/SSA/Russia
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
%
|
|||
Latin America
|
(26
|
)
|
|
45
|
|
|
(71
|
)
|
|
(158
|
)%
|
|||
Subtotal
|
(41
|
)
|
|
(180
|
)
|
|
139
|
|
|
77
|
%
|
|||
Land Drilling Rigs
|
(50
|
)
|
|
(43
|
)
|
|
(7
|
)
|
|
(16
|
)%
|
|||
Total Segment Operating Loss
|
(91
|
)
|
|
(223
|
)
|
|
132
|
|
|
59
|
%
|
|||
Research and Development
|
(75
|
)
|
|
(86
|
)
|
|
11
|
|
|
13
|
%
|
|||
Corporate Expenses
|
(66
|
)
|
|
(77
|
)
|
|
11
|
|
|
14
|
%
|
|||
Asset Write-Downs and Other
|
15
|
|
|
(212
|
)
|
|
227
|
|
|
107
|
%
|
|||
Restructuring Charges
|
(106
|
)
|
|
(128
|
)
|
|
22
|
|
|
17
|
%
|
|||
Litigation Charges, Net
|
—
|
|
|
(181
|
)
|
|
181
|
|
|
100
|
%
|
|||
Total Operating Loss
|
(323
|
)
|
|
(907
|
)
|
|
584
|
|
|
64
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Interest Expense, Net
|
(279
|
)
|
|
(234
|
)
|
|
(45
|
)
|
|
(19
|
)%
|
|||
Bond Tender Premium, Net
|
—
|
|
|
(78
|
)
|
|
78
|
|
|
100
|
%
|
|||
Warrant Fair Value Adjustment
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
%
|
|||
Currency Devaluation Charges
|
—
|
|
|
(31
|
)
|
|
31
|
|
|
100
|
%
|
|||
Other Expense, Net
|
(21
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
(250
|
)%
|
|||
Income Tax (Provision) Benefit
|
(50
|
)
|
|
203
|
|
|
(253
|
)
|
|
(125
|
)%
|
|||
Net Loss per Diluted Share
|
$
|
(0.63
|
)
|
|
$
|
(1.24
|
)
|
|
$
|
0.61
|
|
|
49
|
%
|
Weighted Average Diluted Shares Outstanding
|
989
|
|
|
856
|
|
|
(133
|
)
|
|
(16
|
)%
|
|||
Depreciation and Amortization
|
$
|
412
|
|
|
$
|
499
|
|
|
$
|
87
|
|
|
17
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Formation Evaluation and Well Construction
|
60
|
%
|
|
57
|
%
|
|
59
|
%
|
|
56
|
%
|
Completion and Production
|
33
|
|
|
35
|
|
|
34
|
|
|
36
|
|
Land Drilling Rigs
|
7
|
|
|
8
|
|
|
7
|
|
|
8
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
North America revenues increased
$74 million
, or
18%
, in the
second quarter
of
2017
and
$21 million
, or
2%
, during the first
six months
of
2017
compared to the
second quarter
and the first
six months
of
2016
, respectively, in most product lines due to higher activity and sales. The increase was related to the
115%
increase in North American rig count since the
second
quarter of
2016
, which was partially offset by the shutdown of our U.S. pressure pumping operations in the fourth quarter of 2016. Revenues, excluding pressure pumping operations, improved
$126 million
, or
37%
, in the
second quarter
of
2017
and improved
$158 million
, or
20%
, during the first
six months
of
2017
compared to the
second quarter
and the first
six months
of
2016
, respectively.
|
•
|
International segment revenues declined
$105 million
, or
12%
, in the
second quarter
of
2017
and
$221 million
, or
12%
, during the first
six months
of
2017
compared to the
second quarter
and the first
six months
of
2016
, respectively. The revenue decline was primarily in Latin America, Asia Pacific and the Middle East.
|
◦
|
In Latin America, the
second quarter
and year-to-date declines compared to the same periods of the prior year were primarily due to a change in the accounting for revenue related to an implied financing arrangement with our largest customer in Venezuela as discussed in “
Note 1 – General
”
to our Condensed Consolidated Financial Statements
.
The total reduction in revenues from this change in accounting in the second quarter of 2017 includes a reduction of
$31 million
related to prior periods
and
$11 million
related to the second quarter of 2017, for a total of
$42 million
.
|
◦
|
Th
e MENA/Asia Pacific revenue decline in the second quarter of 2017 compared to the same period last year was primarily due to lower activity on the Zubair project. The MENA/Asia Pacific revenue decline in the first six months of 2017 compared to the same period last year was primarily due to an overall lower demand for services and continued pricing pressures, causing a broad decline in the Asia Pacific countries and in a concentration of countries in the Middle East.
|
•
|
Land Drilling Rigs revenue declined
$8 million
, or
7%
, in the
second quarter
of
2017
and
$38 million
, or
17%
, during the first
six months
of
2017
primarily in Saudi Arabia and Oman, partially offset by an improved operational efficiency and fully operational contracts in Algeria and Kuwait.
|
•
|
$31 million
in
2017
compared to
$51 million
in
2016
of severance and other restructuring charges;
|
•
|
$12 million
in net credits in
2017
primarily related to the amortization of unrecognized net gains associated with our supplemental executive retirement plan net of a
sset write-downs and other charges compared to
other charges of
$154 million
in
2016
, which primarily includes a fair value adjustment to a note from our largest customer in Venezuela, asset write-offs, pressure pumping business related charges, rig casualty loss and other charges; and
|
•
|
$114 million
in
2016
of litigation charges, net.
|
•
|
$106 million
in
2017
compared to
$128 million
in
2016
of severance and other restructuring charges;
|
•
|
$15 million
in net credits in
2017
primarily related to the amortization of unrecognized net gains associated with our supplemental executive retirement plan
net of asset write-downs and other charges compared to
other charges of
$212 million
in
2016
, which primarily includes a fair value adjustment to a note from our largest customer in Venezuela, asset write-offs, pressure pumping business related charges, rig casualty loss and other charges; and
|
•
|
$181 million
in
2016
of litigation charges, net.
|
|
Six Months Ended June 30,
|
||||||
(Dollars in millions)
|
2017
|
|
2016
|
||||
Net Cash Used in Operating Activities
|
$
|
(241
|
)
|
|
$
|
(339
|
)
|
Net Cash Used in Investing Activities
|
(315
|
)
|
|
(56
|
)
|
||
Net Cash Provided by Financing Activities
|
99
|
|
|
415
|
|
Facility
|
$
|
1,599
|
|
Less uses of facility:
|
|
||
Revolving credit facility, secured term loan before debt issuance cost
|
400
|
|
|
Letters of credit
|
73
|
|
|
Borrowing Availability
|
$
|
1,126
|
|
•
|
the price and price volatility of oil, natural gas and natural gas liquids;
|
•
|
global political, economic and market conditions, political disturbances, war, terrorist attacks, changes in global trade policies, weak local economic conditions and international currency fluctuations;
|
•
|
nonrealization of expected benefits from our acquisitions or business dispositions and our ability to execute or close such acquisitions and dispositions;
|
•
|
our ability to realize expected revenues and profitability levels from current and future contracts;
|
•
|
our ability to manage our workforce, supply chain and business processes, information technology systems and technological innovation and commercialization, including the impact of our cost and support reduction plans;
|
•
|
our high level of indebtedness;
|
•
|
increases in the prices and availability of our raw materials;
|
•
|
potential non-cash asset impairment charges for long-lived assets, goodwill, intangible assets or other assets;
|
•
|
changes to our effective tax rate;
|
•
|
nonrealization of potential earnouts associated with business dispositions;
|
•
|
downturns in our industry which could affect the carrying value of our goodwill;
|
•
|
member-country quota compliance within the Organization of Petroleum Exporting Countries;
|
•
|
adverse weather conditions in certain regions of our operations;
|
•
|
our ability to realize the expected benefits from our redomestication from Switzerland to Ireland and to maintain our Swiss tax residency;
|
•
|
failure to ensure on-going compliance with current and future laws and government regulations, including but not limited to environmental and tax and accounting laws, rules and regulations; and
|
•
|
limited access to capital, significantly higher cost of capital, or difficulty raising additional funds in the equity or debt capital markets.
|
Exhibit Number
|
|
Description
|
3.1
|
|
Memorandum and Articles of Association of Weatherford International public limited company (incorporated by reference as Exhibit 2.1 of the Weatherford’s Form 8-K filed April 2, 2014, File No. 1-36504).
|
4.1
|
|
Registration Rights Agreement, dated June 29, 2017, by and among Weatherford International plc, Weatherford International Ltd., Weatherford International, LLC and Morgan Stanley & Co. LLC. (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, File No. 001-36504, filed with the SEC on June 29, 2017).
|
10.1
|
|
Form of Change of Control Agreement, entered into by Mark M. McCollum on April 24, 2017 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed December 15, 2016).
|
10.2
|
|
Form of Deed of Indemnity of Weatherford International plc entered into by Mark M. McCollum on April 24, 2017 (incorporated by reference to Exhibit 10.11 of the Company's Current Report on Form 8-K12B filed June 17, 2014).
|
10.3
|
|
Form of Deed of Indemnity of Weatherford International Ltd. (Bermuda) entered into by Mark M. McCollum on April 24, 2017 (incorporated by reference to Exhibit 10.12 of the Company's Current Report on Form 8-K12B
filed June 17, 2014).
|
†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 plc's Quarterly Report on Form 10-Q for the second quarter ended June 30, 2017, formatted in XBRL (eXtensible Business Reporting Language):
(1) the unaudited Condensed Consolidated Balance Sheets, (2) the unaudited Condensed Consolidated Statements of Operations, (3) the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), (4) the unaudited Condensed Consolidated Statements of Cash Flows, and (5) the related notes to the unaudited Condensed Consolidated Financial Statements. |
**
|
Submitted pursuant to Rule 405 and 406T of Regulation S-T.
|
†
|
Filed herewith.
|
††
|
Furnished herewith.
|
|
|
Weatherford International plc
|
|
|
|
Date: August 1, 2017
|
By:
|
/s/ Christoph Bausch
|
|
|
Christoph Bausch
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
Date: August 1, 2017
|
By:
|
/s/ Doug M. Mills
|
|
|
Doug M. Mills
|
|
|
Vice President and
|
|
|
Chief Accounting Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Customers Found
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