false Q1 0001021860 --12-31 Large Accelerated Filer P9M P1Y 0 P3Y 0 P5Y P5Y 0001021860 2020-01-01 2020-03-31 xbrli:shares 0001021860 2020-04-17 iso4217:USD 0001021860 2020-03-31 0001021860 2019-12-31 iso4217:USD xbrli:shares 0001021860 2019-01-01 2019-03-31 0001021860 2018-12-31 0001021860 2019-03-31 0001021860 us-gaap:CommonStockMember 2019-12-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001021860 us-gaap:RetainedEarningsMember 2019-12-31 0001021860 us-gaap:ParentMember 2019-12-31 0001021860 us-gaap:NoncontrollingInterestMember 2019-12-31 0001021860 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001021860 us-gaap:ParentMember 2020-01-01 2020-03-31 0001021860 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001021860 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001021860 us-gaap:CommonStockMember 2020-03-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001021860 us-gaap:RetainedEarningsMember 2020-03-31 0001021860 us-gaap:ParentMember 2020-03-31 0001021860 us-gaap:NoncontrollingInterestMember 2020-03-31 0001021860 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001021860 us-gaap:CommonStockMember 2018-12-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001021860 us-gaap:RetainedEarningsMember 2018-12-31 0001021860 us-gaap:ParentMember 2018-12-31 0001021860 us-gaap:NoncontrollingInterestMember 2018-12-31 0001021860 us-gaap:ParentMember 2019-01-01 2019-03-31 0001021860 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001021860 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001021860 us-gaap:CommonStockMember 2019-03-31 0001021860 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001021860 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001021860 us-gaap:RetainedEarningsMember 2019-03-31 0001021860 us-gaap:ParentMember 2019-03-31 0001021860 us-gaap:NoncontrollingInterestMember 2019-03-31 0001021860 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001021860 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001021860 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001021860 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001021860 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001021860 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0001021860 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0001021860 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-31 0001021860 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0001021860 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001021860 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001021860 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001021860 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001021860 nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001021860 nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-03-31 0001021860 nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001021860 nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-03-31 0001021860 nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001021860 nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-03-31 xbrli:pure nov:Segment 0001021860 us-gaap:IntersegmentEliminationMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001021860 nov:GoodwillIndefiniteLivedAndFiniteLivedIntangibleAndLongLivedTangibleAssetsMember 2020-01-01 2020-03-31 0001021860 nov:InventoryChargesMember 2019-01-01 2019-03-31 0001021860 nov:InventoryChargesMember 2020-01-01 2020-03-31 0001021860 nov:SeveranceFacilityClosuresAndOtherItemsMember 2019-01-01 2019-03-31 0001021860 nov:SeveranceFacilityClosuresAndOtherItemsMember 2020-01-01 2020-03-31 0001021860 srt:NorthAmericaMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:InternationalMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:LandDestinationMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 nov:OffshoreDestinationMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 srt:NorthAmericaMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:InternationalMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:LandDestinationMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 nov:OffshoreDestinationMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 srt:NorthAmericaMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:InternationalMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001021860 nov:LandDestinationMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 nov:OffshoreDestinationMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:IntersegmentEliminationMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:IntersegmentEliminationMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 srt:NorthAmericaMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:InternationalMember nov:ContinentalMember 2020-01-01 2020-03-31 0001021860 nov:LandDestinationMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 nov:OffshoreDestinationMember nov:LandAndOffshoreMember 2020-01-01 2020-03-31 0001021860 srt:NorthAmericaMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:InternationalMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:LandDestinationMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 nov:OffshoreDestinationMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:WellboreTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 srt:NorthAmericaMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:InternationalMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:LandDestinationMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 nov:OffshoreDestinationMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:CompletionAndProductionSolutionsMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 srt:NorthAmericaMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:InternationalMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:LandDestinationMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 nov:OffshoreDestinationMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember nov:RigTechnologiesMember us-gaap:OperatingSegmentsMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:IntersegmentEliminationMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-03-31 0001021860 us-gaap:IntersubsegmentEliminationsMember us-gaap:IntersegmentEliminationMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 srt:NorthAmericaMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:InternationalMember nov:ContinentalMember 2019-01-01 2019-03-31 0001021860 nov:LandDestinationMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 nov:OffshoreDestinationMember nov:LandAndOffshoreMember 2019-01-01 2019-03-31 0001021860 2020-04-01 2020-03-31 0001021860 2021-01-01 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandFortyTwoMember 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandFortyTwoMember 2019-12-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyNineMember 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyNineMember 2019-12-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyTwoMember 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyTwoMember 2019-12-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyTwoMember 2020-01-01 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyTwoMember 2019-01-01 2019-12-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyNineMember 2020-01-01 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandTwentyNineMember 2019-01-01 2019-12-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandFortyTwoMember 2020-01-01 2020-03-31 0001021860 nov:SeniorNotesDueOnDecemberOneTwoThousandFortyTwoMember 2019-01-01 2019-12-31 0001021860 nov:FiveYearUnsecuredRevolvingCreditFacilityMember 2020-03-31 0001021860 nov:UnsecuredCreditFacilityMember 2020-01-01 2020-03-31 0001021860 nov:FiveYearUnsecuredRevolvingCreditFacilityMember 2020-01-01 2020-03-31 0001021860 nov:CanadianDollarOfferedRateCDORMember 2020-01-01 2020-03-31 0001021860 us-gaap:ForeignLineOfCreditMember 2020-03-31 0001021860 us-gaap:ForeignLineOfCreditMember 2020-01-01 2020-03-31 0001021860 nov:FiveYearCreditFacilityMember 2020-03-31 0001021860 nov:FiveYearCreditFacilityMember 2020-01-01 2020-03-31 0001021860 us-gaap:UnsecuredDebtMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0001021860 us-gaap:UnsecuredDebtMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001021860 2020-03-26 2020-03-27 0001021860 us-gaap:TaxYear2014Member 2020-03-31 0001021860 nov:TwoThousandEighteenLongTermIncentivePlanMember 2020-03-31 0001021860 2020-02-25 2020-02-25 0001021860 nov:RestrictedStockAndRestrictedStockUnitsMember 2020-02-25 2020-02-25 0001021860 nov:PerformanceBaseRestrictedStockMember nov:SeniorManagementEmployeesMember srt:MinimumMember 2020-02-25 2020-02-25 0001021860 nov:PerformanceBaseRestrictedStockMember nov:SeniorManagementEmployeesMember srt:MaximumMember 2020-02-25 2020-02-25 0001021860 us-gaap:EmployeeStockOptionMember 2020-02-25 2020-02-25 nov:Installment 0001021860 nov:RestrictedStockAndRestrictedStockUnitsMember 2020-01-01 2020-03-31 0001021860 nov:PerformanceBaseRestrictedStockMember 2020-01-01 2020-03-31 0001021860 nov:TSRMember 2020-01-01 2020-03-31 0001021860 nov:NVAMember 2020-01-01 2020-03-31 0001021860 nov:CumulativeShareholderReturnPerformanceStockAwardsMember 2020-01-01 2020-03-31 0001021860 nov:TwoThousandEighteenLongTermIncentivePlanMember 2020-01-01 2020-03-31 0001021860 nov:TwoThousandEighteenLongTermIncentivePlanMember 2019-01-01 2019-03-31 iso4217:KRW 0001021860 us-gaap:ForwardContractsMember 2020-03-31 0001021860 us-gaap:ForwardContractsMember 2019-12-31 iso4217:NOK iso4217:RUB iso4217:MXN iso4217:EUR iso4217:JPY iso4217:ZAR iso4217:GBP iso4217:DKK iso4217:SGD iso4217:CAD 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherAssetsMember 2020-03-31 0001021860 us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherAssetsMember 2020-03-31 0001021860 us-gaap:NondesignatedMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherAssetsMember 2019-12-31 0001021860 us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherAssetsMember 2019-12-31 0001021860 us-gaap:NondesignatedMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccruedLiabilitiesMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherLiabilitiesMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:AccruedLiabilitiesMember 2020-03-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccruedLiabilitiesMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherLiabilitiesMember 2019-12-31 0001021860 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:AccruedLiabilitiesMember 2019-12-31 0001021860 2020-02-27 0001021860 2020-02-27 2020-02-27 iso4217:USD nov:Barrel 0001021860 nov:MarineConstructionMember 2020-03-31 0001021860 nov:RigEquipmentMember 2020-03-31 0001021860 nov:ReedHycalogMember 2020-03-31 0001021860 nov:WellSiteMember 2020-03-31 0001021860 nov:MDTotcoMember 2020-03-31 0001021860 nov:XLSystemsMember 2020-03-31 0001021860 nov:FiberGlassSystemsMember 2020-03-31 0001021860 nov:PFTMember 2020-03-31 0001021860 nov:WellboreTechnologiesMember 2019-12-31 0001021860 nov:CompletionAndProductionSolutionsMember 2019-12-31 0001021860 nov:RigTechnologiesMember 2019-12-31 0001021860 nov:WellboreTechnologiesMember 2020-01-01 2020-03-31 0001021860 nov:CompletionAndProductionSolutionsMember 2020-01-01 2020-03-31 0001021860 nov:RigTechnologiesMember 2020-01-01 2020-03-31 0001021860 nov:WellboreTechnologiesMember 2020-03-31 0001021860 nov:CompletionAndProductionSolutionsMember 2020-03-31 0001021860 nov:RigTechnologiesMember 2020-03-31 0001021860 us-gaap:AccountingStandardsUpdate201613Member 2020-03-31

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-12317

 

NATIONAL OILWELL VARCO, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

76-0475815

(State or other jurisdiction

of incorporation or organization)

(IRS Employer

Identification No.)

 

 

7909 Parkwood Circle Drive

Houston, Texas

77036-6565

(Address of principal executive offices)

(713) 346-7500

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

NOV

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No

As of April 17, 2020 the registrant had 388,223,024 shares of common stock, par value $0.01 per share, outstanding.

 

 

 

 


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except share data)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,115

 

 

$

1,171

 

Receivables, net

 

 

1,879

 

 

 

1,855

 

Inventories, net

 

 

2,032

 

 

 

2,197

 

Contract assets, net

 

 

639

 

 

 

643

 

Prepaid and other current assets

 

 

237

 

 

 

247

 

Total current assets

 

 

5,902

 

 

 

6,113

 

Property, plant and equipment, net

 

 

2,003

 

 

 

2,354

 

Lease right-of-use assets, operating

 

 

399

 

 

 

444

 

Lease right-of-use assets, financing

 

 

211

 

 

 

230

 

Goodwill

 

 

1,515

 

 

 

2,807

 

Intangibles, net

 

 

534

 

 

 

852

 

Investment in unconsolidated affiliates

 

 

57

 

 

 

282

 

Other assets

 

 

69

 

 

 

67

 

Total assets

 

$

10,690

 

 

$

13,149

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

662

 

 

$

715

 

Accrued liabilities

 

 

888

 

 

 

949

 

Contract liabilities

 

 

470

 

 

 

427

 

Current portion of lease liabilities

 

 

115

 

 

 

114

 

Accrued income taxes

 

 

28

 

 

 

42

 

Total current liabilities

 

 

2,163

 

 

 

2,247

 

Lease liabilities

 

 

646

 

 

 

674

 

Long-term debt

 

 

2,002

 

 

 

1,989

 

Deferred income taxes

 

 

69

 

 

 

140

 

Other liabilities

 

 

256

 

 

 

253

 

Total liabilities

 

 

5,136

 

 

 

5,303

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock - par value $.01; 1 billion shares authorized; 388,222,777 and

   385,886,682 shares issued and outstanding at March 31, 2020 and

  December 31, 2019

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

8,518

 

 

 

8,507

 

Accumulated other comprehensive loss

 

 

(1,655

)

 

 

(1,423

)

Retained earnings

 

 

(1,381

)

 

 

690

 

Total Company stockholders' equity

 

 

5,486

 

 

 

7,778

 

Noncontrolling interests

 

 

68

 

 

 

68

 

Total stockholders’ equity

 

 

5,554

 

 

 

7,846

 

Total liabilities and stockholders’ equity

 

$

10,690

 

 

$

13,149

 

 

See notes to unaudited consolidated financial statements.

2


 

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

(In millions, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Revenue

 

$

1,883

 

 

$

1,940

 

Cost of revenue

 

 

1,659

 

 

 

1,684

 

Gross profit

 

 

224

 

 

 

256

 

Selling, general and administrative

 

 

283

 

 

 

304

 

Goodwill and indefinite-lived intangible asset impairment

 

 

1,378

 

 

 

 

Long-lived asset impairment

 

 

513

 

 

 

 

Operating loss

 

 

(1,950

)

 

 

(48

)

Interest and financial costs

 

 

(22

)

 

 

(25

)

Interest income

 

 

3

 

 

 

6

 

Equity loss in unconsolidated affiliates

 

 

(233

)

 

 

 

Other income (expense), net

 

 

(3

)

 

 

(18

)

Loss before income taxes

 

 

(2,205

)

 

 

(85

)

Provision (benefit) for income taxes

 

 

(156

)

 

 

(10

)

Net loss

 

 

(2,049

)

 

 

(75

)

Net income attributable to noncontrolling interests

 

 

(2

)

 

 

2

 

Net loss attributable to Company

 

$

(2,047

)

 

$

(77

)

 

 

 

 

 

 

 

 

 

Net loss attributable to Company per share:

 

 

 

 

 

 

 

 

Basic

 

$

(5.34

)

 

$

(0.20

)

Diluted

 

$

(5.34

)

 

$

(0.20

)

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.05

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

383

 

 

 

380

 

Diluted

 

 

383

 

 

 

380

 

 

See notes to unaudited consolidated financial statements.

 

3


 

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(In millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(2,049

)

 

$

(75

)

Currency translation adjustments

 

 

(180

)

 

 

20

 

Changes in derivative financial instruments, net of tax

 

 

(52

)

 

 

4

 

Comprehensive loss

 

 

(2,281

)

 

 

(51

)

Comprehensive income attributable to noncontrolling interest

 

 

(2

)

 

 

2

 

Comprehensive loss attributable to Company

 

$

(2,279

)

 

$

(53

)

 

See notes to unaudited consolidated financial statements.

 

4


 

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

Net loss

 

$

(2,049

)

 

$

(75

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

105

 

 

 

177

 

Provision for inventory losses

 

 

125

 

 

 

14

 

Deferred income taxes

 

 

(62

)

 

 

(9

)

Equity loss in unconsolidated affiliates

 

 

233

 

 

 

 

Goodwill and indefinite-lived intangible asset impairment

 

 

1,378

 

 

 

 

Long-lived asset impairment

 

 

513

 

 

 

 

Other, net

 

 

45

 

 

 

21

 

Change in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Receivables

 

 

(27

)

 

 

326

 

Inventories

 

 

47

 

 

 

(152

)

Contract assets

 

 

(5

)

 

 

26

 

Prepaid and other current assets

 

 

9

 

 

 

(4

)

Accounts payable

 

 

(54

)

 

 

(49

)

Accrued liabilities

 

 

(142

)

 

 

(234

)

Contract liabilities

 

 

43

 

 

 

(46

)

Income taxes payable

 

 

(15

)

 

 

(45

)

Other assets/liabilities, net

 

 

(105

)

 

 

12

 

Net cash provided by (used by) operating activities

 

 

39

 

 

$

(38

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(68

)

 

 

(43

)

Business acquisitions, net of cash acquired

 

 

 

 

 

(65

)

Other

 

 

15

 

 

 

1

 

Net cash used in investing activities

 

$

(53

)

 

$

(107

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Cash dividends paid

 

 

(19

)

 

 

(19

)

Other

 

 

(24

)

 

 

(1

)

Net cash used in financing activities

 

 

(43

)

 

 

(20

)

Effect of exchange rates on cash

 

 

1

 

 

 

8

 

Increase (decrease) in cash and cash equivalents

 

 

(56

)

 

 

(157

)

Cash and cash equivalents, beginning of period

 

 

1,171

 

 

 

1,427

 

Cash and cash equivalents, end of period

 

$

1,115

 

 

$

1,270

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash payments during the period for:

 

 

 

 

 

 

 

 

Interest

 

$

3

 

 

$

5

 

Income taxes

 

$

14

 

 

$

29

 

 

See notes to unaudited consolidated financial statements.

5


 

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In millions)

 

 

 

Shares

Outstanding

 

 

Common

Stock

 

 

Additional

Paid in

Capital

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Retained

Earnings

(Loss)

 

 

Total

Company

Stockholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2019

 

 

386

 

 

$

4

 

 

$

8,507

 

 

$

(1,423

)

 

$

690

 

 

$

7,778

 

 

$

68

 

 

$

7,846

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,047

)

 

 

(2,047

)

 

 

(2

)

 

 

(2,049

)

Other comprehensive income (loss), net

 

 

 

 

 

 

 

 

 

 

 

(232

)

 

 

 

 

 

(232

)

 

 

 

 

 

(232

)

Cash dividends, $0.05 per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

 

 

(19

)

Adoption of new accounting standard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

(5

)

 

 

 

 

 

(5

)

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Stock-based compensation

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

27

 

Common stock issued

 

 

2

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Withholding taxes

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

(17

)

Balance at March 31, 2020

 

 

388

 

 

$

4

 

 

$

8,518

 

 

$

(1,655

)

 

$

(1,381

)

 

$

5,486

 

 

$

68

 

 

$

5,554

 

 

 

 

Shares

Outstanding

 

 

Common

Stock

 

 

Additional

Paid in

Capital

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Retained

Earnings

(Loss)

 

 

Total

Company

Stockholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2018

 

 

383

 

 

$

4

 

 

$

8,390

 

 

$

(1,437

)

 

$

6,862

 

 

$

13,819

 

 

$

70

 

 

$

13,889

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(77

)

 

 

(77

)

 

 

2

 

 

 

(75

)

Other comprehensive income (loss), net

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Cash dividends, $0.05 per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

 

 

(19

)

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Stock-based compensation

 

 

 

 

 

 

 

 

33

 

 

 

 

 

 

 

 

 

33

 

 

 

 

 

 

33

 

Common stock issued

 

 

3

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Withholding taxes

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

Balance at March 31, 2019

 

 

386

 

 

$

4

 

 

$

8,408

 

 

$

(1,413

)

 

$

6,766

 

 

$

13,765

 

 

$

75

 

 

$

13,840

 

 

See notes to unaudited consolidated financial statements.

6


 

NATIONAL OILWELL VARCO, INC.

Notes to Consolidated Financial Statements (Unaudited)

 

1.

Basis of Presentation

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (“NOV” or the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with the Company’s 2019 Annual Report on Form 10-K.

In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year.

The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 8, and the fair values of derivative financial instruments are provided in Note 11.

2.

Inventories, net

Inventories consist of (in millions):

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Raw materials and supplies

 

$

531

 

 

$

577

 

Work in process

 

 

377

 

 

 

364

 

Finished goods and purchased products

 

 

1,983

 

 

 

2,099

 

 

 

 

2,891

 

 

 

3,040

 

Less: Inventory reserve

 

 

(859

)

 

 

(843

)

Total

 

$

2,032

 

 

$

2,197

 

 

3.

Accrued Liabilities

Accrued liabilities consist of (in millions):

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Compensation

 

$

176

 

 

$

270

 

Vendor costs

 

 

130

 

 

 

121

 

Fair value of derivatives

 

 

97

 

 

 

24

 

Warranties

 

 

86

 

 

 

90

 

Taxes (non-income)

 

 

74

 

 

 

112

 

Insurance

 

 

53

 

 

 

57

 

Commissions

 

 

33

 

 

 

31

 

Interest

 

 

25

 

 

 

8

 

Other

 

 

214

 

 

 

236

 

Total

 

$

888

 

 

$

949

 

 

 

7


 

4.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in millions):

 

 

 

 

 

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

 

Currency

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

 

Translation

 

 

Instruments,

 

 

Plans,

 

 

 

 

 

 

 

Adjustments

 

 

Net of Tax

 

 

Net of Tax

 

 

Total

 

Balance at December 31, 2019

 

$

(1,403

)

 

$

(4

)

 

$

(16

)

 

$

(1,423

)

Accumulated other comprehensive

   income (loss) before reclassifications

 

 

(180

)

 

 

(56

)

 

 

 

 

 

(236

)

Amounts reclassified from accumulated

   other comprehensive income (loss)

 

 

 

 

 

4

 

 

 

 

 

 

4

 

Balance at March 31, 2020

 

$

(1,583

)

 

$

(56

)

 

$

(16

)

 

$

(1,655

)

 

The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

 

Currency

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

Currency

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

 

Translation

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

Translation

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

 

Adjustments

 

 

Instruments

 

 

Plans

 

 

Total

 

 

Adjustments

 

 

Instruments

 

 

Plans

 

 

Total

 

Revenue

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Cost of revenue

 

 

 

 

 

5

 

 

 

 

 

 

5

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Tax effect

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

$

4

 

 

$

 

 

$

4

 

 

$

 

 

$

1

 

 

$

 

 

$

1

 

 

 

The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income (loss). For the three months ended March 31, 2020, a majority of these local currencies weakened against the U.S. dollar, resulting in other comprehensive loss of $180 million compared to other comprehensive income of $20 million for the three months ended March 31, 2019.  

The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions they hedge are realized. The movement in other comprehensive income (loss) from period to period will be the result of the combination of: 1) changes in fair value of open derivatives ($-56 million during the three months ended March 31, 2020); and, 2) the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period ($4 million during the three months ended March 31, 2020).

8


 

5.

Segments

Financial results by operating segment are as follows (in millions):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

 

 

 

 

Wellbore Technologies

 

$

691

 

 

$

807

 

Completion & Production Solutions

 

 

675

 

 

 

581

 

Rig Technologies

 

 

557

 

 

 

603

 

Eliminations

 

 

(40

)

 

 

(51

)

Total revenue

 

$

1,883

 

 

$

1,940

 

 

 

 

 

 

 

 

 

 

Operating profit (loss):