View Filing Data

$ 5,550

$ 6,172

$ 17,217

$ 18,059

Operating costs and expenses:

General and administrative

^[1]

308

265

168

195

Total operating costs and expenses

5,014

5,456

16,013

16,200

Interest expense, net of interest income

536

716

1,204

1,859

(141)

(140)

(428)

(417)

Other, net

(23)

(42)

(61)

(86)

Income (loss) from continuing operations before income taxes

372

534

715

1,356

Income tax (provision) benefit

(76)

(100)

(190)

(367)

Net income (loss)

296

434

525

989

Net (income) loss attributable to noncontrolling interest

(1)

(3)

Net income (loss) attributable to company

$ 295

$ 435

$ 522

$ 992

Basic and diluted net income per share

$ 0.34

$ 0.50

$ 0.60

$ 1.13

Basic weighted average common shares outstanding (in shares)

876

877

874

876

Diluted weighted average common shares outstanding (in shares)

876

878

875

879

Services [Member]

Revenue:

Cost of services and sales

$ 4,207

$ 4,800

$ 13,118

$ 13,996

Operating costs and expenses:

3,860

4,280

12,220

12,508

Product sales [Member]

Revenue:

Cost of services and sales

1,343

1,372

4,099

4,063

Operating costs and expenses:

$ 1,101

$ 1,104

$ 3,317

$ 3,232

[1]

For the nine months ended September 30, 2019, amount includes $127 million attributable to Completion and Production, $153 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. During the nine months ended September 30, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela. See Note 2 for further discussion on these impairments and other charges. There were no such impairments and other charges recorded during the three months ended September 30, 2019 or 2018.

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income	$ 6	$ 10	$ 18	$ 33

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income (loss)	$ 296	$ 434	$ 525	$ 989
Other comprehensive income (loss), net of income taxes	0	7	2	6
Comprehensive income (loss)	296	441	527	995
Comprehensive (income) loss attributable to noncontrolling interest	(1)	1	(3)	3
Comprehensive income (loss) attributable to company shareholders	$ 295	$ 442	$ 524	$ 998

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
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-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and equivalents		$ 2,008
Cash and equivalents	$ 1,571
Receivables net of allowances for bad debts	5,290	5,234
Inventories	3,380	3,028
Other current assets	979	881
Total current assets	11,220	11,151
Property, plant, and equipment, net of accumulated depreciation	8,721	8,873
Goodwill	2,832	2,825
Deferred income taxes	1,344	1,384
Operating lease right-of-use assets	985	0
Other assets	1,687	1,749
Total assets	26,789	25,982
Current liabilities:
Accounts payable	2,733	3,018
Accrued employee compensation and benefits	657	714
Current portion of operating lease liabilities	208	0
Other current liabilities	1,094	1,070
Total current liabilities	4,692	4,802
Long-term debt	10,313	10,312
Operating lease liabilities	762	0
Employee compensation and benefits	476	483
Other liabilities	784	841
Total liabilities	17,027	16,438
Shareholders' equity:
Common shares, par value $2.50 per share	2,670	2,671
Paid-in capital in excess of par value	108	211
Accumulated other comprehensive loss	(353)	(355)
Retained earnings	13,800	13,739
Treasury stock, at cost	(6,480)	(6,744)
Company shareholders' equity	9,745	9,522
Noncontrolling interest in consolidated subsidiaries	17	22
Total shareholders' equity	9,762	9,544
Total liabilities and shareholders' equity	$ 26,789	$ 25,982

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Allowance for bad debts	$ 762	$ 738
Accumulated depreciation	$ 13,841	$ 13,153
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	2,000	2,000
Common stock, shares issued (in shares)	1,068	1,069
Treasury shares (in shares)	192	198

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 525	$ 989
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation, depletion and amortization	1,253	1,184
Impairments and other charges	308	265
Changes in assets and liabilities:
Inventories	(380)	(542)
Accounts payable	(283)	601
Receivables	7	(431)
Other operating activities	(152)	239
Total cash flows provided by operating activities	1,278	2,305
Cash flows from investing activities:
Capital expenditures	(1,190)	(1,475)
Proceeds from sales of property, plant and equipment	143	158
Payments to acquire businesses	(31)	(166)
Other investing activities	(52)	44
Total cash flows used in investing activities	(1,130)	(1,439)
Cash flows from financing activities:
Dividends to shareholders	(472)	(473)
Stock repurchase program	(100)	(200)
Payments on long-term borrowings	(11)	(436)
Other financing activities	33	28
Total cash flows used in financing activities	(550)	(1,081)
Effect of exchange rate changes on cash	(35)	(65)
Decrease in cash and equivalents	(437)	(280)
Cash and equivalents at beginning of period	2,008	2,337
Cash and equivalents at end of period	1,571	2,057
Cash payments during the period for:
Interest	394	415
Income taxes	$ 288	$ 191

Basis of Presentation

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our 2018 Annual Report on Form 10-K.

Our accounting policies are in accordance with United States generally accepted accounting principles. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect:


-	the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and


-	the reported amounts of revenue and expenses during the reporting period.

Ultimate results could differ from our estimates.

In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of September 30, 2019 and the results of our operations for the three and nine months ended September 30, 2019 and 2018, and our cash flows for the nine months ended September 30, 2019 and 2018. Such adjustments are of a normal recurring nature.

In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. In conjunction with our adoption of the new lease accounting standard, capital leases, which are now referred to as finance leases, have been reclassified on our balance sheet as of December 31, 2018. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. See Note 5 and Note 11 for further information on the new lease standard.

The results of our operations for the three and nine months ended September 30, 2019 may not be indicative of results for the full year.

Impairments and Other Charges

9 Months Ended

Sep. 30, 2019

Impairments and Other Charges [Abstract]

Restructuring, Impairment, and Other Activities Disclosure

Impairments and Other Charges

During the nine months ended September 30, 2019, we recognized certain impairments and other charges as we continue to adjust our cost structure and footprint to the current operating environment. The following table presents various pre-tax charges we recorded during the nine months ended September 30, 2019 and 2018, which are reflected within "impairments and other charges" on our condensed consolidated statements of operations. There were no impairments and other charges recorded during the three months ended September 30, 2019 or 2018.



	Nine Months Ended
Millions of dollars	September 30, 2019		September 30, 2018
Long-lived asset impairments	$	150	$	—
Severance costs	77		—
Inventory write-downs	33		—
Venezuela investment write-down	—		265
Other	48		—
Total impairments and other charges	$	308	$	265

Business Segment and Geographic Information

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Business Segment and Geographic Information

We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.

The following table presents information on our business segments.



	Three Months Ended September 30						Nine Months Ended September 30
Millions of dollars	2019			2018			2019			2018
Revenue:
Completion and Production	$	3,506		$	4,170		$	10,973		$	12,141
Drilling and Evaluation	2,044			2,002			6,244			5,918
Total revenue	$	5,550		$	6,172		$	17,217		$	18,059
Operating income:
Completion and Production	$	446		$	613		$	1,284		$	1,782
Drilling and Evaluation	150			181			418			560
Total operations	596			794			1,702			2,342
Corporate and other (a)	(60		)	(78		)	(190		)	(218		)
Impairments and other charges (b)	—			—			(308		)	(265		)
Total operating income	$	536		$	716		$	1,204		$	1,859
Interest expense, net of interest income	(141		)	(140		)	(428		)	(417		)
Other, net	(23		)	(42		)	(61		)	(86		)
Income before income taxes	$	372		$	534		$	715		$	1,356

(a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives.

(b) For the nine months ended September 30, 2019, amount includes $127 million attributable to Completion and Production, $153 million attributable to Drilling and Evaluation, and $28 million attributable to Corporate and other. During the nine months ended September 30, 2018, we recognized a pre-tax charge of $265 million related to a write-down of all of our remaining investment in Venezuela. See Note 2 for further discussion on these impairments and other charges. There were no such impairments and other charges recorded during the three months ended September 30, 2019 or 2018.

Receivables

As of September 30, 2019, 39% of our net trade receivables were from customers in the United States. As of December 31, 2018, 43% of our net trade receivables were from customers in the United States. Other than the United States, no other country or single customer accounted for more than 10% of our trade receivables at these dates. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves a high degree of judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit agency ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

Revenue

9 Months Ended

Sep. 30, 2019

Revenue [Abstract]

Leases of Lessee Disclosure

Revenue is recognized based on the transfer of control or our customers' ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize.

Disaggregation of revenue

We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 53% and 59% of our consolidated revenue was from the United States for the nine months ended September 30, 2019 and 2018, respectively. No other country accounted for more than 10% of our revenue. The following table presents information on our disaggregated revenue.



Millions of dollars	Three Months Ended September 30				Nine Months Ended September 30
Revenue by segment:	2019		2018		2019		2018
Completion and Production	$	3,506	$	4,170	$	10,973	$	12,141
Drilling and Evaluation	2,044		2,002		6,244		5,918
Total revenue	$	5,550	$	6,172	$	17,217	$	18,059
Revenue by geographic region:
North America	$	2,949	$	3,739	$	9,551	$	11,090
Latin America	608		522		1,766		1,458
Europe/Africa/CIS	831		757		2,402		2,199
Middle East/Asia	1,162		1,154		3,498		3,312
Total revenue	$	5,550	$	6,172	$	17,217	$	18,059

Contract balances

We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customer’s payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our condensed consolidated financial statements.

Transaction price allocated to remaining performance obligations

Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over time throughout the license period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

We adopted a comprehensive new lease accounting standard effective January 1, 2019. The details of the significant changes to our accounting policies resulting from the adoption of the new standard are set out below. We adopted the standard using the optional modified retrospective transition method; accordingly, the comparative information as of December 31, 2018 and for the three and nine months ending September 30, 2018 has not been adjusted and continues to be reported under the previous lease standard. Under the new lease standard, assets and liabilities that arise from all leases are required to be recognized on the balance sheet for lessees. Previously, only capital leases, which are now referred to as finance leases, were recorded on the balance sheet. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our condensed consolidated balance sheet as of January 1, 2019. The adoption of this standard did not materially impact our condensed consolidated results of operations for the three and nine months ended September 30, 2019. See Note 11 for additional information about the new accounting standard.

Beginning January 1, 2019, for all leases with a term in excess of 12 months, we recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing our right to use the underlying asset for the lease term. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, we elected the practical expedient to not recognize lease assets and liabilities. We recognize lease expense for these short-term leases on a straight-line basis over the lease term.

We are a lessee for numerous operating leases, primarily related to real estate, transportation and equipment. The vast majority of our operating leases have remaining lease terms of 10 years or less, some of which include options to extend the leases, and some of which include options to terminate the leases. We generally do not include renewal or termination options in our assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of our leases may require judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We also have some lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For certain equipment leases, such as offshore vessels and drilling rigs, we account for the lease and non-lease components separately.

The following tables illustrate the financial impact of our leases as of and for the three and nine months ended September 30, 2019, along with other supplemental information about our existing leases:



Millions of dollars	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Components of lease expense:
Finance lease cost:
Amortization of right-of-use assets	$	5		$	14
Interest on lease liabilities	12			40
Operating lease cost	80			266
Short-term lease cost	8			23
Sublease income	(1		)	(4		)
Total lease cost	$	104		$	339



Millions of dollars	As of September 30, 2019
Components of balance sheet:
Operating leases:
Operating lease right-of-use assets (non-current)	$	985
Current portion of operating lease liabilities	208
Operating lease liabilities (non-current)	762
Finance leases:
Other assets (non-current)	$	136
Other current liabilities	18
Other liabilities (non-current)	128



Millions of dollars except years and percentages	Nine Months Ended September 30, 2019
Other supplemental information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	236
Operating cash flows from finance leases	40
Financing cash flows from finance leases	19
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (a)	$	1,220
Finance leases	69
Weighted-average remaining lease term:
Operating leases	9.4 years
Finance leases	5.7 years
Weighted-average discount rate for operating leases	4.5		%

(a) Primarily consists of operating lease right-of-use assets exchanged for lease obligations upon implementation of the

new lease accounting standard on January 1, 2019.

The following table summarizes the maturity of our operating and finance leases as of September 30, 2019:



Millions of dollars	Operating Leases			Finance Leases
2019	$	75		$	15
2020	218			62
2021	172			63
2022	143			63
2023	107			62
Thereafter	524			137
Total lease payments	1,239			402
Less imputed interest	(269		)	(256		)
Total	$	970		$	146

As of December 31, 2018, future total rentals on our noncancellable operating leases were $975 million in the aggregate, which consisted of the following: $275 million in 2019; $146 million in 2020; $122 million in 2021; $100 million in 2022; $78 million in 2023; and $254 million thereafter.

Inventories

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories are stated at the lower of cost and net realizable value. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials and other tools that are recorded using the last-in, first-out method, which totaled $177 million as of September 30, 2019 and $186 million as of December 31, 2018. If the average cost method had been used, total inventories would have been $12 million higher than reported as of September 30, 2019 and $24 million higher as of December 31, 2018. The cost of the remaining inventory was recorded using the average cost method. We had $3.4 billion of inventory as of September 30, 2019, a 12% increase from December 31, 2018, primarily associated with a build-up of our artificial lift, completion tools and directional drilling inventory. Inventories consisted of the following:



Millions of dollars	September 30, 2019		December 31, 2018
Finished products and parts	$	2,122	$	1,947
Raw materials and supplies	1,114		934
Work in process	144		147
Total	$	3,380	$	3,028

All amounts in the table above are reported net of obsolescence reserves of $179 million as of September 30, 2019 and $219 million as of December 31, 2018.

Shareholders' Equity

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Shareholders’ Equity

The following tables summarize our shareholders’ equity activity for the three and nine months ended September 30, 2019 and September 30, 2018, respectively:



Millions of dollars	Common Shares			Paid-in Capital in Excess of Par Value			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest in Consolidated Subsidiaries			Total
Balance at December 31, 2018	$	2,671		$	211		$	(6,744	)	$	13,739		$	(355	)	$	22		$	9,544
Comprehensive income (loss):
Net income	—			—			—			152			—			—			152
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock plans	—			13			74			—			—			—			87
Other	—			—			—			—			—			(2		)	(2		)
Balance at March 31, 2019	$	2,671		$	224		$	(6,670	)	$	13,734		$	(354	)	$	20		$	9,625
Comprehensive income (loss):
Net income	—			—			—			75			—			2			77
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock repurchase program	—			—			(100		)	—			—			—			(100		)
Stock plans	(1		)	(166		)	250			—			—			—			83
Other	—			—			—			—			1			(6		)	(5		)
Balance at June 30, 2019	$	2,670		$	58		$	(6,520	)	$	13,652		$	(352	)	$	16		$	9,524
Comprehensive income (loss):
Net income	—			—			—			295			—			1			296
Other comprehensive income	—			—			—			—			—			—			—
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	—			50			40			—			—			—			90
Other	—			—			—			11			(1		)	—			10
Balance at September 30, 2019	$	2,670		$	108		$	(6,480	)	$	13,800		$	(353	)	$	17		$	9,762



Millions of dollars	Common Shares			Paid-in Capital in Excess of Par Value			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest in Consolidated Subsidiaries			Total
Balance at December 31, 2017	$	2,673		$	207		$	(6,757	)	$	12,668		$	(469	)	$	27		$	8,349
Comprehensive income (loss):
Net Income	—			—			—			46			—			1			47
Other comprehensive income	—			—			—			—			(2		)	—			(2		)
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	(1		)	15			113			—			—			—			127
Other	—			—			—			30			—			(2		)	28
Balance at March 31, 2018	$	2,672		$	222		$	(6,644	)	$	12,586		$	(471	)	$	26		$	8,391
Comprehensive income (loss):
Net Income	—			—			—			511			—			(3		)	508
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	—			(97		)	201			—			—			—			104
Other	—			—			—			—			—			(3		)	(3		)
Balance at June 30, 2018	$	2,672		$	125		$	(6,443	)	$	12,939		$	(470	)	$	20		$	8,843
Comprehensive income (loss):
Net Income	—			—			—			435			—			(1		)	434
Other comprehensive income	—			—			—			—			7			—			7
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock repurchase program	—			—			(200		)	—			—			—			(200		)
Stock plans	—			45			46			—			—			—			91
Other	—			—			—			(1		)	—			—			(1		)
Balance at September 30, 2018	$	2,672		$	170		$	(6,597	)	$	13,216		$	(463	)	$	19		$	9,017

Our Board of Directors has authorized a program to repurchase our common stock from time to time. During the nine months ended September 30, 2019, under that program we repurchased approximately 4.5 million shares of our common stock for a total cost of $100 million. Approximately $5.2 billion remained authorized for repurchases as of September 30, 2019. From the inception of this program in February 2006 through September 30, 2019, we repurchased approximately 217 million shares of our common stock for a total cost of approximately $8.9 billion.

Accumulated other comprehensive loss consisted of the following:



Millions of dollars	September 30, 2019			December 31, 2018
Defined benefit and other postretirement liability adjustments	$	(203	)	$	(203	)
Cumulative translation adjustments	(83		)	(82		)
Other	(67		)	(70		)
Total accumulated other comprehensive loss	$	(353	)	$	(355	)

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Environmental

We are subject to numerous environmental, legal and regulatory requirements related to our operations worldwide. In the United States, these laws and regulations include, among others:


-	the Comprehensive Environmental Response, Compensation, and Liability Act;


-	the Resource Conservation and Recovery Act;


-	the Clean Air Act;


-	the Federal Water Pollution Control Act;


-	the Toxic Substances Control Act; and


-	the Oil Pollution Act.

In addition to the federal laws and regulations, states and other countries where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with environmental, legal and regulatory requirements. Our Health, Safety and Environment group has several programs in place to maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion, we are involved in environmental litigation and claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect on our liquidity, consolidated results of operations, or consolidated financial position. Our accrued liabilities for environmental matters were $64 million as of September 30, 2019 and $42 million as of December 31, 2018. Because our estimated liability is typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous properties.

Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third parties for six federal and state Superfund sites for which we have established reserves. As of September 30, 2019, those six sites accounted for approximately $14 million of our $64 million total environmental reserve. Despite attempts to resolve these Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency; however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims with respect to environmental matters for which we have been named as a potentially responsible party.

Guarantee arrangements

In the normal course of business, we have agreements with financial institutions under which approximately $2.1 billion of letters of credit, bank guarantees or surety bonds were outstanding as of September 30, 2019. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off balance sheet arrangements either has, or is likely to have, a material effect on our condensed consolidated financial statements.

Income (Loss) per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Income (Loss) per Share

Income per Share

Basic income per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive shares represent potential common shares which are excluded from the computation of diluted income per share as their impact would be antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:



	Three Months Ended September 30		Nine Months Ended September 30
Millions of shares	2019	2018	2019	2018
Basic weighted average common shares outstanding	876	877	874	876
Dilutive effect of awards granted under our stock incentive plans	—	1	1	3
Diluted weighted average common shares outstanding	876	878	875	879

Antidilutive shares:
Options with exercise price greater than the average market price	26	15	23	7
Total antidilutive shares	26	15	23	7

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The carrying amount of cash and equivalents, receivables and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows:



	September 30, 2019								December 31, 2018
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	11,012	$	782	$	11,794	$	10,327	$	6,726	$	4,041	$	10,767	$	10,348

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

New Accounting Pronouncements	9 Months Ended
New Accounting Pronouncements	Sep. 30, 2019
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles	New Accounting Pronouncements Leases Effective January 1, 2019, we adopted an accounting standard update issued by the Financial Accounting Standards Board (FASB) related to accounting for leases, which requires lessees to record assets and liabilities that arise for all leases on their balance sheet and expanded financial statement disclosures for both lessees and lessors. Previously, only capital leases were recorded on the balance sheet. This update requires lessees to recognize a lease liability equal to the present value of its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and instead recognize lease expense for such leases generally on a straight-line basis over the lease term. Leases with a term of longer than 12 months will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted this standard using the optional modified retrospective transition method. As such, the comparative financial information has not been restated and continues to be reported under the lease standard in effect during those periods. We also elected other practical expedients provided by the new standard, including the package of practical expedients, the short-term lease recognition practical expedient in which leases with a term of 12 months or less are not recognized on the balance sheet, and the practical expedient to not separate lease and non-lease components for the majority of our leases. The adoption of this standard resulted in the recognition of approximately $1.1 billion of operating lease right-of-use assets and operating lease liabilities on our balance sheet as of January 1, 2019. Additionally, capital leases have been reclassified on our condensed consolidated balance sheet as of December 31, 2018 to conform to current period presentation. This consisted of $88 million reclassified from property, plant and equipment to other assets and $109 million reclassified from long-term debt to other liabilities. The adoption of this standard did not materially impact our condensed consolidated statements of operations for the three and nine months ended September 30, 2019. See Note 5 for our expanded lease disclosures required by the new standard.

Revenue (Policies)	9 Months Ended
Revenue (Policies)	Sep. 30, 2019
Revenue [Abstract]
Revenue Recognition, Policy	The vast majority of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers' ability and intention to pay, which is based on a variety of factors, including our customers' historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize.

Inventories (Policies)	9 Months Ended
Inventories (Policies)	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory, Policy	Inventories are stated at the lower of cost and net realizable value.

Impairments and Other Charges Impairments and Other Charges (Tables)

9 Months Ended

Sep. 30, 2019

Impairments and Other Charges [Abstract]

Restructuring and Related Costs [Table Text Block]

The following table presents various pre-tax charges we recorded during the nine months ended September 30, 2019 and 2018, which are reflected within "impairments and other charges" on our condensed consolidated statements of operations. There were no impairments and other charges recorded during the three months ended September 30, 2019 or 2018.



	Nine Months Ended
Millions of dollars	September 30, 2019		September 30, 2018
Long-lived asset impairments	$	150	$	—
Severance costs	77		—
Inventory write-downs	33		—
Venezuela investment write-down	—		265
Other	48		—
Total impairments and other charges	$	308	$	265

Business Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Information on business segments

The following table presents information on our business segments.



	Three Months Ended September 30						Nine Months Ended September 30
Millions of dollars	2019			2018			2019			2018
Revenue:
Completion and Production	$	3,506		$	4,170		$	10,973		$	12,141
Drilling and Evaluation	2,044			2,002			6,244			5,918
Total revenue	$	5,550		$	6,172		$	17,217		$	18,059
Operating income:
Completion and Production	$	446		$	613		$	1,284		$	1,782
Drilling and Evaluation	150			181			418			560
Total operations	596			794			1,702			2,342
Corporate and other (a)	(60		)	(78		)	(190		)	(218		)
Impairments and other charges (b)	—			—			(308		)	(265		)
Total operating income	$	536		$	716		$	1,204		$	1,859
Interest expense, net of interest income	(141		)	(140		)	(428		)	(417		)
Other, net	(23		)	(42		)	(61		)	(86		)
Income before income taxes	$	372		$	534		$	715		$	1,356

(a) Corporate and other includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives.

Revenue (Tables)

9 Months Ended

Sep. 30, 2019

Revenue [Abstract]

Disaggregation of Revenue

The following table presents information on our disaggregated revenue.



Millions of dollars	Three Months Ended September 30				Nine Months Ended September 30
Revenue by segment:	2019		2018		2019		2018
Completion and Production	$	3,506	$	4,170	$	10,973	$	12,141
Drilling and Evaluation	2,044		2,002		6,244		5,918
Total revenue	$	5,550	$	6,172	$	17,217	$	18,059
Revenue by geographic region:
North America	$	2,949	$	3,739	$	9,551	$	11,090
Latin America	608		522		1,766		1,458
Europe/Africa/CIS	831		757		2,402		2,199
Middle East/Asia	1,162		1,154		3,498		3,312
Total revenue	$	5,550	$	6,172	$	17,217	$	18,059

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lease, Cost



Millions of dollars	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Components of lease expense:
Finance lease cost:
Amortization of right-of-use assets	$	5		$	14
Interest on lease liabilities	12			40
Operating lease cost	80			266
Short-term lease cost	8			23
Sublease income	(1		)	(4		)
Total lease cost	$	104		$	339

Lease supplemental disclosure



Millions of dollars	As of September 30, 2019
Components of balance sheet:
Operating leases:
Operating lease right-of-use assets (non-current)	$	985
Current portion of operating lease liabilities	208
Operating lease liabilities (non-current)	762
Finance leases:
Other assets (non-current)	$	136
Other current liabilities	18
Other liabilities (non-current)	128



Millions of dollars except years and percentages	Nine Months Ended September 30, 2019
Other supplemental information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	236
Operating cash flows from finance leases	40
Financing cash flows from finance leases	19
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (a)	$	1,220
Finance leases	69
Weighted-average remaining lease term:
Operating leases	9.4 years
Finance leases	5.7 years
Weighted-average discount rate for operating leases	4.5		%

(a) Primarily consists of operating lease right-of-use assets exchanged for lease obligations upon implementation of the

new lease accounting standard on January 1, 2019.

Lessee, Operating and Finance Leases, Liability Maturity Table

The following table summarizes the maturity of our operating and finance leases as of September 30, 2019:



Millions of dollars	Operating Leases			Finance Leases
2019	$	75		$	15
2020	218			62
2021	172			63
2022	143			63
2023	107			62
Thereafter	524			137
Total lease payments	1,239			402
Less imputed interest	(269		)	(256		)
Total	$	970		$	146

Inventories (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following:



Millions of dollars	September 30, 2019		December 31, 2018
Finished products and parts	$	2,122	$	1,947
Raw materials and supplies	1,114		934
Work in process	144		147
Total	$	3,380	$	3,028

Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Summary of shareholders' equity activity

The following tables summarize our shareholders’ equity activity for the three and nine months ended September 30, 2019 and September 30, 2018, respectively:



Millions of dollars	Common Shares			Paid-in Capital in Excess of Par Value			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest in Consolidated Subsidiaries			Total
Balance at December 31, 2018	$	2,671		$	211		$	(6,744	)	$	13,739		$	(355	)	$	22		$	9,544
Comprehensive income (loss):
Net income	—			—			—			152			—			—			152
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock plans	—			13			74			—			—			—			87
Other	—			—			—			—			—			(2		)	(2		)
Balance at March 31, 2019	$	2,671		$	224		$	(6,670	)	$	13,734		$	(354	)	$	20		$	9,625
Comprehensive income (loss):
Net income	—			—			—			75			—			2			77
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock repurchase program	—			—			(100		)	—			—			—			(100		)
Stock plans	(1		)	(166		)	250			—			—			—			83
Other	—			—			—			—			1			(6		)	(5		)
Balance at June 30, 2019	$	2,670		$	58		$	(6,520	)	$	13,652		$	(352	)	$	16		$	9,524
Comprehensive income (loss):
Net income	—			—			—			295			—			1			296
Other comprehensive income	—			—			—			—			—			—			—
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	—			50			40			—			—			—			90
Other	—			—			—			11			(1		)	—			10
Balance at September 30, 2019	$	2,670		$	108		$	(6,480	)	$	13,800		$	(353	)	$	17		$	9,762



Millions of dollars	Common Shares			Paid-in Capital in Excess of Par Value			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest in Consolidated Subsidiaries			Total
Balance at December 31, 2017	$	2,673		$	207		$	(6,757	)	$	12,668		$	(469	)	$	27		$	8,349
Comprehensive income (loss):
Net Income	—			—			—			46			—			1			47
Other comprehensive income	—			—			—			—			(2		)	—			(2		)
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	(1		)	15			113			—			—			—			127
Other	—			—			—			30			—			(2		)	28
Balance at March 31, 2018	$	2,672		$	222		$	(6,644	)	$	12,586		$	(471	)	$	26		$	8,391
Comprehensive income (loss):
Net Income	—			—			—			511			—			(3		)	508
Other comprehensive income	—			—			—			—			1			—			1
Cash dividends ($0.18 per share)	—			—			—			(158		)	—			—			(158		)
Stock plans	—			(97		)	201			—			—			—			104
Other	—			—			—			—			—			(3		)	(3		)
Balance at June 30, 2018	$	2,672		$	125		$	(6,443	)	$	12,939		$	(470	)	$	20		$	8,843
Comprehensive income (loss):
Net Income	—			—			—			435			—			(1		)	434
Other comprehensive income	—			—			—			—			7			—			7
Cash dividends ($0.18 per share)	—			—			—			(157		)	—			—			(157		)
Stock repurchase program	—			—			(200		)	—			—			—			(200		)
Stock plans	—			45			46			—			—			—			91
Other	—			—			—			(1		)	—			—			(1		)
Balance at September 30, 2018	$	2,672		$	170		$	(6,597	)	$	13,216		$	(463	)	$	19		$	9,017

Schedule of comprehensive income (loss)

Accumulated other comprehensive loss consisted of the following:



Millions of dollars	September 30, 2019			December 31, 2018
Defined benefit and other postretirement liability adjustments	$	(203	)	$	(203	)
Cumulative translation adjustments	(83		)	(82		)
Other	(67		)	(70		)
Total accumulated other comprehensive loss	$	(353	)	$	(355	)

Income (Loss) per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Weighted average shares outstanding and antidilutive shares

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:



	Three Months Ended September 30		Nine Months Ended September 30
Millions of shares	2019	2018	2019	2018
Basic weighted average common shares outstanding	876	877	874	876
Dilutive effect of awards granted under our stock incentive plans	—	1	1	3
Diluted weighted average common shares outstanding	876	878	875	879

Antidilutive shares:
Options with exercise price greater than the average market price	26	15	23	7
Total antidilutive shares	26	15	23	7

Fair value by balance sheet grouping table (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The carrying amount and fair value of our total debt, including short-term borrowings and current maturities of long-term debt, is as follows:



	September 30, 2019								December 31, 2018
Millions of dollars	Level 1		Level 2		Total fair value		Carrying value		Level 1		Level 2		Total fair value		Carrying value
Total debt	$	11,012	$	782	$	11,794	$	10,327	$	6,726	$	4,041	$	10,767	$	10,348

Basis of Presentation (Details) $ in Millions	Dec. 31, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of Capital Leases to Other Assets	$ 88
Reclassification of Capital Leases to Other Liabilities	$ 109

Impairments and Other Charges (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Restructuring Cost and Reserve [Line Items]

Long-lived asset impairments

$ 150

$ 0

Severance costs

Inventory write-downs

Other

Restructuring Cost and Reserve [Line Items]

^[1]

$ 0

308

265

VENEZUELA

$ 0

$ 265

[1]

Business Segment and Geographic Information (Narrative) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019 Division Countries Customers	Dec. 31, 2018 Countries Customers
Concentration Risk [Line Items]
Number of business segments \| Division	2
Maximum Percentage Gross Trade Receivables From One Geographic Segment	10.00%	10.00%
Maximum Percentage Gross Trade Receivables From One Customer	10.00%	10.00%
Number of Countries Exceed Receivables Threshold \| Countries	1	1
Number of Customers Exceed Receivables Threshold \| Customers	0	0
Geographic Concentration Risk [Member] \| Accounts Receivable [Member] \| UNITED STATES
Concentration Risk [Line Items]
Concentration Risk, Percentage	39.00%	43.00%

Business Segment and Geographic Information (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Revenue:

$ 5,550

$ 6,172

$ 17,217

$ 18,059

^[1]

(308)

(265)

Interest expense, net of interest income

536

716

1,204

1,859

(141)

(140)

(428)

(417)

Other, net

(23)

(42)

(61)

(86)

Income (loss) from continuing operations before income taxes

372

534

715

1,356

Completion and Production

Revenue:

3,506

4,170

10,973

12,141

^[1]

(127)

446

613

1,284

1,782

Drilling and Evaluation

Revenue:

2,044

2,002

6,244

5,918

^[1]

(153)

150

181

418

560

Total operations

Revenue:

5,550

6,172

17,217

18,059

596

794

1,702

2,342

Corporate and other

^[2]

$ (60)

$ (78)

(190)

$ (218)

Corporate and other