UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

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

WEATHERFORD INTERNATIONAL LTD.

(Exact name of registrant as specified in its charter)

001-34258
(Commission file number)

Switzerland (State or other jurisdiction of incorporation or organization)		98-0606750 (I.R.S. Employer Identification No.)
4-6 Rue Jean-Francois Bartholoni, 1204 Geneva, Switzerland (Address of principal executive offices)		Not Applicable (Zip Code)

Registrant’s telephone number, including area code: 41.22.816.1500
(Former name, former address and former fiscal year, if changed since last report)

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 þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

     Yes þ No o

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

Large accelerated filer þ		Accelerated filer o		Non-accelerated filer   o (Do not check if a smaller reporting company)		Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

     Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of July 28, 2010, there were 741,028,800 shares of Weatherford registered shares, 1.16 Swiss francs par value per share, outstanding.

 

 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)

		June 30,				December 31,
		2010				2009
		(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents		$	222,783			$	252,519
Accounts Receivable, Net of Allowance for Uncollectible Accounts of $23,780 and $20,466, Respectively			2,471,078				2,504,876
Inventories			2,371,489				2,239,762
Current Deferred Tax Assets			258,536				259,077
Other Current Assets			994,725				884,372
Total Current Assets			6,318,611				6,140,606
Property, Plant and Equipment, Net of Accumulated Depreciation of $3,773,166 and $3,438,248, Respectively			6,774,500				6,991,579
Goodwill			4,128,966				4,156,105
Other Intangible Assets, Net of Accumulated Amortization of $401,392 and $359,052, Respectively			749,654				778,786
Equity Investments			539,817				542,667
Other Assets			303,179				256,440
Total Assets		$	18,814,727			$	18,866,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term Borrowings and Current Portion of Long-term Debt		$	628,108			$	869,581
Accounts Payable			1,127,875				1,002,359
Other Current Liabilities			994,757				924,948
Total Current Liabilities			2,750,740				2,796,888
Long-term Debt			6,005,472				5,847,258
Other Liabilities			383,871				423,333
Total Liabilities			9,140,083				9,067,479
Shareholders’ Equity:
Shares, CHF 1.16 Par Value: Authorized 1,137,670 Shares, Conditionally Authorized 379,223 Shares, Issued 758,447 Shares at June 30, 2010; Authorized 1,093,303 Shares, Conditionally Authorized 364,434 Shares, Issued 758,447 Shares at December 31, 2009			761,077				761,077
Capital in Excess of Par Value			4,659,471				4,642,800
Treasury Shares, Net			(566,501	)			(616,048	)
Retained Earnings			4,750,528				4,817,101
Accumulated Other Comprehensive Income (Loss)			(795	)			114,742
Weatherford Shareholders’ Equity			9,603,780				9,719,672
Noncontrolling Interests			70,864				79,032
Total Shareholders’ Equity			9,674,644				9,798,704
Total Liabilities and Shareholders’ Equity		$	18,814,727			$	18,866,183

The accompanying notes are an integral part of these condensed consolidated financial statements.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share amounts)

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2010				2009				2010				2009
Revenues:
Products		$	831,158			$	650,553			$	1,612,214			$	1,393,453
Services			1,607,113				1,344,279				3,164,305				2,857,520
			2,438,271				1,994,832				4,776,519				4,250,973
Costs and Expenses:
Cost of Products			603,144				525,180				1,176,941				1,094,236
Cost of Services			1,205,734				917,662				2,381,257				1,883,126
Research and Development			53,530				46,113				102,387				95,134
Selling, General and Administrative Attributable to Segments			418,998				296,625				755,843				605,369
Corporate General and Administrative			54,001				55,887				140,316				109,018
Operating Income			102,864				153,365				219,775				464,090
Other Expense:
Interest Expense, Net			(95,719	)			(93,498	)			(191,058	)			(184,561	)
Devaluation of Venezuelan Bolivar			—				—				(63,859	)			—
Other, Net			(14,186	)			(3,871	)			(23,404	)			(17,410	)
Income (Loss) Before Income Taxes			(7,041	)			55,996				(58,546	)			262,119
Provision for Income Taxes			(16,207	)			(5,441	)			(676	)			(37,904	)
Net Income (Loss)			(23,248	)			50,555				(59,222	)			224,215
Net Income Attributable to Noncontrolling Interests			(3,316	)			(8,574	)			(7,351	)			(17,432	)
Net Income (Loss) Attributable to Weatherford		$	(26,564	)		$	41,981			$	(66,573	)		$	206,783
Earnings (Loss) Per Share Attributable to Weatherford:
Basic		$	(0.04	)		$	0.06			$	(0.09	)		$	0.30
Diluted		$	(0.04	)		$	0.06			$	(0.09	)		$	0.29
Weighted Average Shares Outstanding:
Basic			743,209				700,424				740,537				699,375
Diluted			743,209				709,412				740,537				706,024

The accompanying notes are an integral part of these condensed consolidated financial statements.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)

		Six Months
		Ended June 30,
		2010				2009
Cash Flows from Operating Activities:
Net Income (Loss)		$	(59,222	)		$	224,215
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization			507,649				415,087
Loss on Sales of Assets and Businesses, Net			13,508				3,964
Employee Share-Based Compensation Expense			49,869				55,046
Deferred Income Tax Benefit			(117,368	)			(61,770	)
Devaluation of Venezuelan Bolivar			63,859				—
Supplemental Executive Retirement Plan			38,021				—
Revaluation of Contingent Consideration			89,563				—
Other, Net			13,915				1,224
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired
Accounts Receivable			(41,214	)			285,915
Inventories			(170,993	)			(132,380	)
Accounts Payable			115,855				(57,303	)
Other			(94,137	)			(435,866	)
Net Cash Provided by Operating Activities			409,305				298,132
Cash Flows from Investing Activities:
Acquisitions of Businesses, Net of Cash Acquired			(51,131	)			(22,049	)
Capital Expenditures for Property, Plant and Equipment			(448,751	)			(970,384	)
Acquisition of Intellectual Property			(13,851	)			(16,456	)
Acquisition of Equity Investments in Unconsolidated Affiliates			(1,031	)			(26,509	)
Proceeds from Sale of Assets and Businesses, Net			134,022				40,873
Other Investing Activities			41,840				—
Net Cash Used by Investing Activities			(338,902	)			(994,525	)
Cash Flows from Financing Activities:
Borrowings (Repayments) of Short-term Debt, Net			(242,252	)			(564,808	)
Borrowings (Repayments) of Long-term Debt, Net			162,235				1,230,214
Other Financing Activities, Net			3,284				(3,920	)
Net Cash Provided (Used) by Financing Activities			(76,733	)			661,486
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(23,406	)			1,781
Net Decrease in Cash and Cash Equivalents			(29,736	)			(33,126	)
Cash and Cash Equivalents at Beginning of Period			252,519				238,398
Cash and Cash Equivalents at End of Period		$	222,783			$	205,272
Supplemental Cash Flow Information:
Interest Paid		$	209,620			$	167,332
Income Taxes Paid, Net of Refunds			224,117				258,482

The accompanying notes are an integral part of these condensed consolidated financial statements.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands)

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2010				2009				2010				2009
Net Income (Loss)		$	(23,248	)		$	50,555			$	(59,222	)		$	224,215
Other Comprehensive Income:
Curtailment and Remeasurement of Supplemental Executive Retirement Plan			(10,126	)			—				35,111				—
Amortization of Pension Components			133				3,348				1,646				4,528
Foreign Currency Translation Adjustment			(85,217	)			210,282				(152,604	)			160,222
Other			156				152				311				303
Comprehensive Income (Loss)			(118,302	)			264,337				(174,758	)			389,268
Comprehensive Income Attributable to Noncontrolling Interests			(3,316	)			(8,574	)			(7,351	)			(17,311	)
Comprehensive Income (Loss) Attributable to Weatherford		$	(121,618	)		$	255,763			$	(182,109	)		$	371,957

The accompanying notes are an integral part of these condensed consolidated financial statements.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1. General

     The accompanying unaudited condensed consolidated financial statements of Weatherford International Ltd. and all majority-owned subsidiaries (the “Company”) are prepared in accordance with U.S. generally accepted accounting principles and include all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly our Condensed Consolidated Balance Sheet at June 30, 2010, Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2010 and 2009. Although we believe the disclosures in these financial statements are adequate to make the interim information presented not misleading, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in this Form 10-Q pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2009 and the related notes included in our Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2010 are not necessarily indicative of the results expected for the full year.

     The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and disclosure of contingent liabilities. On an ongoing basis, we evaluate our estimates, including those related to uncollectible accounts receivable, lower of cost or market of inventories, equity investments, intangible assets and goodwill, property, plant and equipment, income taxes, percentage-of-completion accounting for long-term contracts, self-insurance, pension and post retirement benefit plans and contingent liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.

     Principles of Consolidation

     The consolidated financial statements include the accounts of Weatherford International Ltd., all majority-owned subsidiaries, all controlled joint ventures and variable interest entities where the Company has determined it is the primary beneficiary. When referring to Weatherford and using phrases such as “we”, “us”, and “our”, the intent is to refer to Weatherford International Ltd. and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made.

     Investments in affiliates in which we exercise significant influence over operating and financial policies are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation.

2. Business Combinations

     We have acquired businesses we feel are important to our long-term growth strategy. Results of operations for acquisitions are included in the accompanying Condensed Consolidated Statements of Income from the date of acquisition. The balances included in the Condensed Consolidated Balance Sheets related to recent acquisitions are based on preliminary information and are subject to change when final asset valuations are obtained and the potential for liabilities has been evaluated. The purchase price is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition.

     In July 2009, we acquired the Oilfield Services Division (“OFS”) of TNK-BP. In this transaction, we acquired drilling, well workover and cementing services operations in West Siberia, East Siberia and the Volga-Urals region. We issued 24.3 million shares valued at approximately $450 million. Under our sale and purchase agreement dated May 29, 2009, if TNK-BP sold the shares it received in consideration for the transaction for a price less than $18.50 per share prior to June 29, 2010, we were obligated to pay TNK-BP additional consideration in an amount equal to the difference between the price at which the shares were sold and $18.50. On June 24, 2010, we entered into an amendment that modifies the provisions relating to the value guarantee mechanism to allow the parties additional

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

time to settle the amount of consideration received by TNK-BP under the agreement. The settlement date has been extended from June 29, 2010 to the earlier of (a) December 1, 2010, or (b) 30 days after the third business day following our public announcement of our quarterly earnings for the third quarter of 2010. In addition, the base dollar amount used to calculate potential guarantee payments was increased from $18.50 to $19.50, and our option to pay the guarantee payment in stock was ended. We made a preliminary allocation of the purchase price as of the date of the acquisition. We will continue to adjust the allocations until final valuation of the assets and liabilities are completed.

     Accounting guidance for business combinations requires contingent consideration to be recognized at its acquisition date fair value. Based on the terms of the arrangement, we classified the contingent consideration for the OFS acquisition as a liability. Such liabilities are required to be remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value being recognized in earnings. We estimated the fair value of the contingent consideration for the OFS acquisition to be a liability of $84 million at the date of acquisition and $63 million at December 31, 2009. This liability was estimated to have a fair value of $152 million at June 30, 2010, resulting in the recognition of an $89 million loss during the first half of 2010. This loss was recorded in the Selling, General and Administrative Attributable to Segments line in the Condensed Consolidated Statements of Income. The valuation of the contingent consideration was determined using a lattice-based model incorporating the term of the contingency, the price of our shares over the relevant periods and the volatility of our stock price.

     In November 2008, we acquired a group of affiliated companies in Latin America. Consideration for the transaction totaled approximately $160 million, which was comprised of approximately six million shares valued at approximately $65 million, non-cash consideration of approximately $75 million and cash of approximately $20 million. Additional consideration of up to $65 million is contingent on the occurrence of future events and circumstances. The additional consideration, if any, is payable in cash or our common shares at our option. We will record this contingent consideration when and if these events occur.

3. Inventories

     The components of inventory were as follows:

		June 30,				December 31,
		2010				2009
		(In thousands)
Raw materials, components and supplies		$	348,174			$	328,253
Work in process			112,045				115,564
Finished goods			1,911,270				1,795,945
		$	2,371,489			$	2,239,762

     Work in process and finished goods inventories include the cost of materials, labor and plant overhead.

4. Goodwill

     Goodwill is evaluated for impairment on at least an annual basis. We perform our annual goodwill impairment test as of October 1. Our 2009 impairment tests indicated goodwill was not impaired. We will continue to test our goodwill annually as of October 1 unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

     The changes in the carrying amount of goodwill for the six months ended June 30, 2010, were as follows:

						Middle East/				Europe/
		North				North Africa/				West Africa/				Latin
		America				Asia				FSU				America				Total
		(In thousands)
As of December 31, 2009		$	2,097,549			$	698,896			$	1,045,577			$	314,083			$	4,156,105
Acquisitions			2,914				22,633				—				—				25,547
Purchase price and other adjustments			(4,543	)			(643	)			8,135				(6,364	)			(3,415	)
Foreign currency translation			6,311				(1,494	)			(52,346	)			(1,742	)			(49,271	)
As of June 30, 2010		$	2,102,231			$	719,392			$	1,001,366			$	305,977			$	4,128,966

5. Short-term Borrowings and Current Portion of Long-term Debt

     The components of short-term borrowings were as follows:

		June 30,				December 31,
		2010				2009
		(In thousands)
Revolving credit facilities		$	559,768			$	798,500
Other short-term bank loans			49,349				53,007
Total short-term borrowings			609,117				851,507
Current portion of long-term debt			18,991				18,074
Short-term borrowings and current portion of long-term debt		$	628,108			$	869,581

     We maintain various revolving credit facilities with syndicates of banks that can be used for a combination of borrowings, support for our commercial paper program and issuances of letters of credit. At June 30, 2010, these facilities allow for an aggregate availability of $1.8 billion and mature in May 2011. The weighted average interest rate on outstanding borrowings of these facilities at June 30, 2010, was 0.9%. There were $67 million in outstanding letters of credit under these facilities at June 30, 2010.

     These borrowing facilities require us to maintain a debt-to-capitalization ratio of less than 60% and contain other covenants and representations customary for an investment-grade commercial credit. We are in compliance with these covenants at June 30, 2010.

     We have a $1.5 billion commercial paper program under which we may from time to time issue short-term unsecured notes. The commercial paper program is supported by our revolving credit facilities. There was no commercial paper outstanding at June 30, 2010.

     We have short-term borrowings with various domestic and international institutions pursuant to uncommitted facilities. At June 30, 2010, we had $49 million in short-term borrowings under these arrangements with a weighted average interest rate of 3.8%. In addition, we had $292 million of letters of credit and bid and performance bonds under these uncommitted facilities. The carrying value of our short-term borrowings approximates their fair value as of June 30, 2010.

     In June 2010, we entered into a secured loan agreement with a third-party financial institution and received proceeds of $180 million. The note bears interest at a rate of 4.8% and will be repaid in monthly installments over seven years. The loan is secured by equipment located in the United States, and is included in long-term debt on our Condensed Consolidated Balance Sheet.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

6. Financial Instruments

     Accounts Receivable Factoring

     During June 2010, we entered into an accounts receivable sales program to sell accounts receivable related to Latin America to a third party financial institution. In June 2010, one of our subsidiaries sold approximately $150 million under this program. We received cash totaling $142 million and recognized a loss of $1 million on the sale. This transaction qualified for sale accounting under the accounting standards. The remainder of the amounts due to us were recorded as other receivables in the Condensed Consolidated Balance Sheet at June 30, 2010. The initial proceeds received on the sale are included in operating cash flows in our Condensed Consolidated Statement of Cash Flows.

     Financial Instruments Measured and Recognized at Fair Value

     The accounting guidance for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based upon our own assumptions used to measure assets and liabilities at fair value. Classification of a financial asset or liability within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

     The following table presents our non-derivative assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of June 30, 2010 and December 31, 2009:

		June 30, 2010
		Level 1				Level 2				Level 3				Total
						(In thousands)
Other Assets:
Other investments		$	—			$	—			$	—			$	—
Other Current Liabilities:
Contingent consideration on acquisition (See Note 2)			—				—				152,326				152,326

		December 31, 2009
		Level 1				Level 2				Level 3				Total
						(In thousands)
Other Assets:
Other investments		$	—			$	40,822			$	—			$	40,822
Other Current Liabilities:
Contingent consideration on acquisition (See Note 2)			—				—				62,763				62,763

     During the first quarter of 2010, we received proceeds of approximately $42 million from the redemption of our other investments recorded at fair value at December 31, 2009. The proceeds are included in investing activities in the Consolidated Statement of Cash Flows for the period ended June 30, 2010.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

     The following table provides a summary of changes in fair value of our Level 3 financial liability for the three and six months ended June 30, 2010:

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2010				2010
		(In thousands)
Balance at beginning of period		$	70,573			$	62,763
Unrealized loss on contingent consideration on acquisition included in earnings			81,753				89,563
Balance at end of period		$	152,326			$	152,326

     The $89 million loss recorded during the first half of 2010 is included in the Selling, General and Administrative Attributable to Segments line in the Condensed Consolidated Statements of Income.

     Fair Value of Other Financial Instruments

     Our other financial instruments include cash and cash equivalents, foreign currency exchange contracts, interest rate swaps, accounts receivable, notes receivable, accounts payable and short and long-term debt. With the exception of long-term debt, the carrying value of these financial instruments approximates their fair value.

     The fair value of outstanding debt fluctuates with changes in applicable interest rates. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The fair value of a company’s debt is a measure of its current value under present market conditions. It does not impact the financial statements under current accounting rules. The fair value of our long-term debt was established based on quoted market prices.

     The fair value and carrying value of our long-term debt is as follows:

		June 30,				December 31,
		2010				2009
		(In thousands)
Fair value		$	6,354,462			$	6,285,129
Carrying value			6,005,472				5,847,258

7. Derivative Instruments

     We are exposed to market risk from changes in foreign currency and changes in interest rates. From time to time, we may enter into derivative financial instrument transactions to manage or reduce our market risk. We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and we may employ interest rate swaps as a tool to achieve that goal. The major risks from interest rate derivatives include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties in such transactions. In light of events in the global credit markets and the potential impact of these events on the liquidity of the banking industry, we continue to monitor the creditworthiness of our counterparties, which are multinational commercial banks.

     The fair values of all our outstanding derivative instruments are determined using a model with Level 2 inputs including quoted market prices for contracts with similar terms and maturity dates.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

     Interest Rate Swaps

     We use interest rate swaps to help mitigate exposures related to interest rate movements. Amounts paid or received upon termination of interest rate swaps accounted for as fair value hedges represent the fair value of the agreements at the time of termination and are recorded as an adjustment to the carrying value of the related debt. These amounts are amortized as a reduction (in the case of gains) or as an increase (in the case of losses) to interest expense over the remaining term of the debt. As of June 30, 2010, we had net unamortized gains of $65 million associated with interest rate swap terminations.

     Cash Flow Hedges

     In 2008, we entered into interest rate derivative instruments to hedge projected exposures to interest rates in anticipation of a debt offering. Those hedges were terminated at the time of the issuance of the debt, and the loss on these hedges is being amortized from Accumulated Other Comprehensive Income (Loss) to interest expense over the remaining term of the debt. As of June 30, 2010, we had net unamortized losses of $13 million associated with our cash flow hedge terminations.

     Other Derivative Instruments

     As of June 30, 2010, we had foreign currency forward and option contracts with notional amounts aggregating to $995 million, which were entered into to hedge exposure to currency fluctuations in various foreign currencies, including, but not limited to, the British pound sterling, the Canadian dollar, the euro and the Norwegian krone. The total estimated fair value of these contracts at June 30, 2010, resulted in a net liability of approximately $5 million. These derivative instruments were not designated as hedges and the changes in fair value of the contracts are recorded each period in Other, Net in the accompanying Condensed Consolidated Statements of Income.

     We have cross-currency swaps between the U.S. dollar and Canadian dollar to hedge certain exposures to the Canadian dollar. At June 30, 2010, we had notional amounts outstanding of $215 million. The total estimated fair value of these contracts at June 30, 2010, resulted in a liability of $28 million. These derivative instruments were not designated as hedges and the changes in fair value of the contracts are recorded each period in Other, Net in the accompanying Condensed Consolidated Statements of Income.

     The fair values of outstanding derivative instruments are summarized as follows:

		June 30,				December 31,
		2010				2009				Classifications
		(In thousands)
Derivative assets not designated as hedges:
Foreign exchange contracts		$	13,228			$	9,831			Other Current Assets
Derivative liabilities not designated as hedges:
Foreign exchange contracts			18,552				18,939			Other Current Liabilities
Cross-currency swap contracts			28,475				26,170			Other Liabilities

8. Income Taxes

     For the three months ended June 30, 2010, we had a tax provision of $16 million on a pretax loss of $7 million that includes an $89 million loss on the fair value adjustment to the put option issued in connection with the OFS acquisition for which no tax benefit has been recorded. For the six months ended June 30, 2010, we had a tax provision of $1 million on a pretax loss of $59 million that includes the loss related to the put option issued in connection with the OFS acquisition and curtailment expense on our Supplemental Executive Retirement Plan (“SERP”) for which no related tax benefit was recorded, which was partially offset by a tax benefit related to the devaluation of the Venezuelan bolivar. Our effective tax rates were 9.7% and 14.5% for the three and six months ended June 30, 2009.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

9. Shareholders’ Equity

     The following summarizes our shareholders’ equity activity for the period presented:

										Noncontrolling
		Total				Company				Interests in
		Shareholders’				Shareholders’				Consolidated
		Equity				Equity				Subsidiaries
		(In thousands)
Balance at December 31, 2009		$	9,798,704			$	9,719,672			$	79,032
Comprehensive Income:
Net Income (Loss)			(59,222	)			(66,573	)			7,351
Curtailment and Remeasurement of Supplemental Executive Retirement Plan			35,111				35,111				—
Amortization of Pension Components			1,646				1,646				—
Foreign Currency Translation Adjustments			(152,604	)			(152,604	)			—
Other			311				311				—
Comprehensive Income (Loss)			(174,758	)			(182,109	)			7,351
Transactions with Shareholders			66,217				66,217				—
Dividends paid to Noncontrolling Interests			(16,881	)			—				(16,881	)
Other			1,362				—				1,362
Balance at June 30, 2010		$	9,674,644			$	9,603,780			$	70,864

10. Earnings Per Share

     Basic earnings per share for all periods presented equals net income divided by the weighted average number of our shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of our shares outstanding during the period, adjusted for the dilutive effect of our stock options, restricted shares, performance units and our outstanding warrants. Our diluted earnings per share calculation excludes three million potential shares for the three and six months ended June 30, 2010, four million potential shares for the three months ended June 30, 2009 and 11 million potential shares for the six months ended June 30, 2009, due to their antidilutive effect. Our diluted earnings per share calculation for the three and six months ended June 30, 2010 also excludes five million and six million potential shares, respectively, that would have been included if we had net income for those periods, but are excluded as we had a net losses and their inclusion would have been anti-dilutive.

     The following reconciles basic and diluted weighted average of shares outstanding:

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2010				2009				2010				2009
		(In thousands)
Basic weighted average shares outstanding			743,209				700,424				740,537				699,375
Dilutive effect of:
Warrants			—				2,105				—				1,053
Stock options and restricted shares			—				6,883				—				5,596
Diluted weighted average shares outstanding			743,209				709,412				740,537				706,024

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

11. Share-Based Compensation

     In June 2010, the Weatherford International Ltd. 2010 Omnibus Incentive Plan (“2010 Omnibus Plan”) was approved by our shareholders. This plan permits the grant of options, stock appreciation rights, restricted shares awards, restricted share units, performance share awards, performance unit awards, other share-based awards and cash-based awards to any employee, non-employee director and other individual service providers or any affiliate. The 2010 Omnibus Plan is similar to our 2006 Omnibus Plan. The aggregate number of shares available for grant under this plan is 10,144,000.

     During the six months ended June 30, 2010, we issued one million performance units, which will vest ratably over a three-year period assuming continued employment and if the Company meets certain market-based performance goals. The performance units have a weighted-average grant date fair value of $12.41 based on the Monte Carlo simulation method.

     We recognized the following employee share-based compensation expense during the three and six months ended June 30, 2010 and 2009:

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2010				2009				2010				2009
		(In thousands)
Share-based compensation		$	26,895			$	28,617			$	49,869			$	55,046
Related tax benefit			9,413				10,016				17,454				19,266

     During the six months ended June 30, 2010, we granted one million restricted share awards and units at a weighted average grant date fair value of $16.40 per share.

     As of June 30, 2010, there was $197 million of total unrecognized compensation cost related to our unvested stock options, restricted share grants and performance units. This cost is expected to be recognized over a weighted average period of two years.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

12. Retirement and Employee Benefit Plans

     We have defined benefit pension and other postretirement benefit plans covering certain employees. The components of net periodic benefit cost for the three and six months ended June 30, 2010 and 2009 were as follows:

		Three Months Ended June 30,
		2010								2009
		United								United
		States				International				States				International
		(In thousands)
Service cost		$	27			$	1,437			$	906			$	1,681
Interest cost			1,219				1,746				2,079				1,654
Expected return on plan assets			(149	)			(1,141	)			(166	)			(979	)
Amortization of transition obligation			—				—				—				—
Amortization of prior service cost (credit)			22				(13	)			1,535				(12	)
Amortization of loss			142				39				2,209				235
Curtailment/settlement loss			495				—				1,063				—
Net periodic benefit cost		$	1,756			$	2,068			$	7,626			$	2,579

		Six Months Ended June 30,
		2010								2009
		United								United
		States				International				States				International
		(In thousands)
Service cost		$	978			$	2,965			$	1,781			$	3,285
Interest cost			3,156				3,576				3,785				3,250
Expected return on plan assets			(298	)			(2,342	)			(331	)			(1,933	)
Amortization of transition obligation			—				—				—				(1	)
Amortization of prior service cost (credit)			1,534				(26	)			1,993				(23	)
Amortization of loss			914				81				3,234				463
Curtailment/settlement loss			35,453				—				1,063				—
Net periodic benefit cost		$	41,737			$	4,254			$	11,525			$	5,041

     Our SERP was amended effective March 31, 2010 to freeze the benefits under the plan. This resulted in the net curtailment loss shown above. The projected benefit obligation of the SERP after recording the curtailment charge in the first quarter of 2010 was $100 million.

     In April 2010, one executive in the plan left the Company and a distribution payment of $11 million was made and a settlement charge of less than one million was recorded. Three additional executives left the Company in June 2010, and we expect to pay out approximately $21 million for their SERP benefits in the fourth quarter of 2010. The settlement charge related to the fourth quarter SERP payments is not expected to be material.

     Effective April 8, 2010, our SERP was further amended to allow participants a one-time option to convert their vested, fixed-amount, dollar-denominated benefits under the SERP into equity-denominated benefits. The amendment permitted participants in the SERP to make a one-time irrevocable election before June 7, 2010 to convert between 50% and 100% of their cash balance under the plan into units representing the right to receive registered shares in the Company. During May 2010, the remaining participants elected to convert approximately $76 million of their cash entitlement into approximately 4.7 million shares, which was based on the closing share price on the date of the election.

     At June 30, 2010, the projected benefit obligation of the SERP is $100 million.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

     We previously disclosed in our financial statements for the year ended December 31, 2009, that we expected to contribute approximately $7 million to our pension and other postretirement benefit plans during 2010. As of June 30, 2010, we have contributed approximately $6 million to these plans and anticipate total annual contributions to approximate original estimates previously disclosed.

13. Segment Information

     Financial information by segment is summarized below. Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services.

		Three Months Ended June 30, 2010
		Net				Income				Depreciation
		Operating				from				and
		Revenues				Operations				Amortization
		(In thousands)
North America		$	921,443			$	129,361			$	81,040
Middle East/North Africa/Asia			600,777				78,009				75,139
Europe/West Africa/FSU			505,774				62,834				52,058
Latin America			410,277				37,984				44,753
			2,438,271				308,188				252,990
Corporate and Research and Development			—				(96,262	)			5,267
Revaluation of Contingent Consideration			—				(81,753	)			—
Other (a)			—				(27,309	)			—
Total		$	2,438,271			$	102,864			$	258,257

		Three Months Ended June 30, 2009
		Net				Income				Depreciation
		Operating				from				and
		Revenues				Operations				Amortization
		(In thousands)
North America		$	571,415			$	(709	)		$	77,253
Middle East/North Africa/Asia			592,908				123,553				60,921
Europe/West Africa/FSU			364,968				62,614				35,190
Latin America			465,541				85,759				35,971
			1,994,832				271,217				209,335
Corporate and Research and Development			—				(86,947	)			4,358
Other (b)			—				(30,905	)			—
Total		$	1,994,832			$	153,365			$	213,693

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

		Six Months Ended June 30, 2010
		Net				Income				Depreciation
		Operating				from				and
		Revenues				Operations				Amortization
		(In thousands)
North America		$	1,811,987			$	241,688			$	161,700
Middle East/North Africa/Asia			1,165,756				160,805				147,429
Europe/West Africa/FSU			960,475				101,362				101,016
Latin America			838,301				69,063				87,232
			4,776,519				572,918				497,377
Corporate and Research and Development			—				(192,239	)			10,272
Revaluation of Contingent Consideration			—				(89,563	)			—
Other (c)			—				(71,341	)			—
Total		$	4,776,519			$	219,775			$	507,649

		Six Months Ended June 30, 2009
		Net				Income				Depreciation
		Operating				from				and
		Revenues				Operations				Amortization
		(In thousands)
North America		$	1,408,768			$	122,327			$	152,351
Middle East/North Africa/Asia			1,174,854				257,579				118,555
Europe/West Africa/FSU			733,811				137,557				69,868
Latin America			933,540				177,976				66,413
			4,250,973				695,439				407,187
Corporate and Research and Development			—				(175,567	)			7,900
Other (d)			—				(55,782	)			—
Total		$	4,250,973			$	464,090			$	415,087

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

14. Disputes, Litigation and Contingencies

     U.S. Government and Internal Investigations

     We are currently involved in government and internal investigations involving various areas of our operations.

     Until 2003, we participated in the United Nations oil-for-food program governing sales of goods and services into Iraq. The U.S. Department of Justice (“DOJ”) and the SEC have undertaken investigations of our participation in the oil-for-food program and have subpoenaed certain documents in connection with these investigations. We have cooperated fully with these investigations. We have retained legal counsel, reporting to our audit committee, to investigate this matter. We have begun negotiations with the government agencies to resolve these matters, but we cannot yet anticipate the timing, outcome or possible impact of the ultimate resolution of the investigations, financial or otherwise.

     The U.S. Department of Commerce, Bureau of Industry & Security, Office of Foreign Assets Control (“OFAC”), DOJ and SEC have undertaken investigations of allegations of improper sales of products and services by the Company and its subsidiaries in certain sanctioned countries. We have cooperated fully with this investigation. We have retained legal counsel, reporting to our audit committee, to investigate these matters and to cooperate fully with these agencies. We have begun negotiations with the government agencies to resolve these matters, but we cannot yet anticipate the timing, outcome or possible impact of the ultimate resolution of the investigation, financial or otherwise.

     In light of this investigation and of U.S. and foreign policy environment and the inherent uncertainties surrounding these countries, we decided in September 2007 to direct our foreign subsidiaries to discontinue doing business in countries that are subject to comprehensive U.S. economic and trade sanctions, specifically Cuba, Iran, and Sudan, as well as Syria. Effective September 2007, we ceased entering into any new contracts in these countries and began an orderly discontinuation and winding down of our existing business in these sanctioned countries. Effective March 31, 2008, we substantially completed our winding down of business in these countries. We can complete the withdrawal process only pursuant to licenses issued by OFAC. Our remaining activities in Iran, Sudan and Syria include ongoing withdrawal activities such as attempts to collect accounts receivable, attempts to settle tax liabilities or legal claims and attempts to recover or liquidate assets, including equipment and funds. Certain of our subsidiaries continue to conduct business in countries such as Myanmar that are subject to more limited U.S. trading sanctions.

     The DOJ and SEC are investigating our compliance with the Foreign Corrupt Practices Act (“FCPA”) and other laws worldwide. We have retained legal counsel, reporting to our audit committee, to investigate these matters and to cooperate fully with the DOJ and SEC. As part of our investigations, we have uncovered potential violations of U.S. law in connection with activities in West Africa. We have begun negotiations with the government agencies to resolve these matters, but we cannot yet anticipate the timing, outcome or possible impact of the ultimate resolution of the investigations, financial or otherwise.

     The DOJ, SEC and other agencies and authorities have a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of trade sanctions laws, the FCPA and other federal statutes including, but not limited to, injunctive relief, disgorgement, fines, penalties and modifications to business practices and compliance programs. In recent years, these agencies and authorities have entered into agreements with, and obtained a range of penalties against, several public corporations and individuals in similar investigations, under which civil and criminal penalties were imposed, including in some cases fines and other penalties and sanctions in the tens and hundreds of millions of dollars. These agencies are seeking to impose penalties against us for past conduct, but the ultimate amount of any penalties we may pay currently cannot be reasonably estimated. Under trade sanctions laws, the DOJ may also seek to impose modifications to business practices, including immediate cessation of all business activities in specific countries or other limitations that decrease our business, and modifications to compliance programs, which may increase compliance costs. Any injunctive relief, disgorgement, fines, penalties, sanctions or imposed modifications to business practices resulting from these investigations could adversely affect our results of operations. In addition, our historical activities in sanctioned countries, such as Sudan and Iran, could result in certain investors, such as government sponsored

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

pension funds, divesting or not investing in our registered shares. Based on available information, we cannot predict what, if any, actions the DOJ, SEC or other authorities will take in our situation or the effect any such actions will have on our consolidated financial position or results of operations. To the extent we violated trade sanctions laws, the FCPA, or other laws or regulations, fines and other penalties may be imposed. Because these matters are now pending before the indicated agencies, there can be no assurance that actual fines or penalties, if any, will not have a material adverse affect on our business, financial condition, liquidity or results of operations.

     During the six months ended June 30, 2010 and 2009, we incurred $2 million and $27 million, respectively, in connection with these on-going investigations.

     Other Litigation

      We have been named as a co-defendant in lawsuits stemming from the explosion of the Deepwater Horizon rig at the Macondo well in the Gulf of Mexico in April 2010 and the resulting pollution. Under our contract with the operator, we provided certain equipment used in drilling the Macondo well. We also were contracted to assemble some of the casing on the rig that was used in the well. Based on the information currently available to us, we do not believe that our equipment or services caused or contributed to the incident, and we intend to defend these claims vigorously. Further, based on our contracts with the operator, we believe we should be fully indemnified for these claims. We do not expect that we will have liability for these claims, but the litigation surrounding these matters is complex and likely to continue for some time, and we cannot predict the ultimate outcome of the claims.

     In June and July 2010, shareholders filed suit in Weatherford’s name against those directors in place before June 2010 and certain current and former members of management relating to the U.S. government and internal investigations disclosed above and in our SEC filings since 2007. We will investigate these claims appropriately. We cannot predict the ultimate outcome of these claims.

     Additionally, we are aware of various disputes and potential claims and are a party in various litigation involving claims against us, some of which are covered by insurance. For claims, disputes and pending litigation in which we believe a negative outcome is probable and a loss can be reasonably estimated, we have recorded a liability for the expected loss. These liabilities are immaterial to our financial condition and results of operations. In addition we have certain claims, disputes and pending litigation in which we do not believe a negative outcome is probable. If one or more negative outcomes were to occur, the impact to our financial condition could be as high as $180 million.

     Other Disputes

     As a result of discussions with a customer, we are currently reviewing how the dual exchange rate might affect amounts we receive for our U.S. dollar-denominated receivables in Venezuela. We believe our contracts are legally enforceable and our customers continue to accept our invoices. However, if a negative outcome were to occur on this matter, the impact could be as high as a $30 million charge to our consolidated statement of operations.

     Our former Senior Vice President and General Counsel (the “Executive”) left the Company in June 2009. The Executive had employment agreements with us that terminated on his departure. There is currently a dispute between the Executive and us as to the amount of compensation we are obligated to pay under these employment agreements based on the Executive’s separation. This dispute has not resulted in a lawsuit being filed. It is our belief that an unfavorable outcome regarding this dispute is not probable, and as such, we have not accrued for $9 million of the Executive’s claimed severance and other benefits.

15. New Accounting Pronouncements

     In October 2009, the FASB issued an update to existing guidance on revenue recognition for arrangements with multiple deliverables. This update will allow companies to allocate consideration received for qualified separate deliverables using estimated selling price for both delivered and undelivered items when vendor-specific objective evidence or third-party evidence is unavailable. Additional disclosures discussing the nature of multiple element arrangements, the types of deliverables under the arrangements, the general timing of their delivery, and significant factors and estimates used to determine estimated selling prices are required. We will adopt this update for new

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

revenue arrangements entered into or materially modified beginning January 1, 2011. We do not expect the provisions of this update to have a material impact on our condensed consolidated financial statements.

16. Condensed Consolidating Financial Statements

     A Swiss corporation named Weatherford International Ltd. is the ultimate parent of the Weatherford group (“Parent”). The Parent guarantees the obligations of Weatherford International Ltd. incorporated in Bermuda (“Weatherford Bermuda”) and Weatherford International, Inc. incorporated in Delaware (“Weatherford Delaware”) noted below.

     The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at June 30, 2010 and December 31, 2009: (i) the 6.625% Senior Notes, (ii) the 5.95% Senior Notes, (iii) the 6.35% Senior Notes and (iv) the 6.80% Senior Notes.

     The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at June 30, 2010 and December 31, 2009: (i) the revolving credit facilities, (ii) the 4.95% Senior Notes, (iii) the 5.50% Senior Notes, (iv) the 6.50% Senior Notes, (v) the 5.15% Senior Notes, (vi) the 6.00% Senior Notes, (vii) the 7.00% Senior Notes, (viii) the 9.625% Senior Notes, (ix) the 9.875% Senior Notes and (x) issuances of notes under the commercial paper program.

     As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The accompanying guarantor financial information is presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions.

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Condensed Consolidating Balance Sheet
June 30, 2010
(unaudited)
(In thousands)

														Other
		Parent				Bermuda				Delaware				Subsidiaries				Eliminations				Consolidation
ASSETS
Current Assets:
Cash and Cash Equivalents		$	273			$	27			$	986			$	221,497			$	—			$	222,783
Other Current Assets			6,548				14,865				96,282				5,978,133				—				6,095,828
Total Current Assets			6,821				14,892				97,268				6,199,630				—				6,318,611
Equity Investments in Affiliates			9,190,465				15,335,666				6,919,300				11,438,347				(42,883,778	)			—
Shares Held in Parent			—				—				97,701				468,800				(566,501	)			—
Intercompany Receivables, Net			—				1,571,318				900,527				—				(2,471,845	)			—
Other Assets			8,890				26,434				197,796				12,262,996				—				12,496,116
Total Assets		$	9,206,176			$	16,948,310			$	8,212,592			$	30,369,773			$	(45,922,124	)		$	18,814,727
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term Borrowings and Current Portion of Long-term Debt		$	—			$	311,968			$	1,926			$	314,214			$	—			$	628,108
Accounts Payable and Other Current Liabilities			167,709				112,236				107,828				1,734,859				—				2,122,632
Total Current Liabilities			167,709				424,204				109,754				2,049,073				—				2,750,740
Long-term Debt			—				3,985,718				1,847,545				172,209				—				6,005,472
Intercompany Payables, Net			564,863				—				—				1,906,982				(2,471,845	)			—
Other Long-term Liabilities			8,032				99,963				2,220				273,656				—				383,871
Total Liabilities			740,604				4,509,885				1,959,519				4,401,920				(2,471,845	)			9,140,083
Weatherford Shareholders’ Equity			8,465,572				12,438,425				6,253,073				25,896,989				(43,450,279	)			9,603,780
Noncontrolling Interests			—				—				—				70,864				—				70,864
Total Liabilities and Shareholders’ Equity		$	9,206,176			$	16,948,310			$	8,212,592			$	30,369,773			$	(45,922,124	)		$	18,814,727

WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Condensed Consolidating Balance Sheet
December 31, 2009
(In thousands)

														Other
		Parent				Bermuda				Delaware				Subsidiaries				Eliminations				Consolidation
ASSETS
Current Assets:
Cash and Cash Equivalents		$	102			$	47			$	421			$	251,949			$	—			$	252,519
Other Current Assets			510				11,163				98,033				5,778,381				—				5,888,087
Total Current Assets			612				11,210				98,454				6,030,330				—				6,140,606
Equity Investments in Affiliates			8,615,365				15,160,748				6,754,566				12,092,950				(42,623,629	)			—
Shares Held in Parent			—				—				108,268				507,780				(616,048	)			—
Intercompany Receivables, Net			—				1,671,487				1,017,215				—				(2,688,702	)			—
Other Assets			9,376				68,960				190,175				12,457,066				—				12,725,577
Total Assets		$	8,625,353			$	16,912,405			$	8,168,678			$	31,088,126			$	(45,928,379	)		$	18,866,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt		$	—			$	352,373			$	1,868			$	515,340			$	—			$	869,581
Accounts Payable and Other Current Liabilities			46,160				107,984				116,404				1,656,759				—				1,927,307
Total Current Liabilities			46,160				460,357				118,272				2,172,099				—				2,796,888
Long-term Debt			—				3,988,162				1,848,191				10,905				—				5,847,258
Intercompany Payables, Net			36,606				—				—				2,652,096				(2,688,702	)			—
Other Long-term Liabilities			8,132				132,155				2,309				280,737				—				423,333
Total Liabilities			90,898				4,580,674				1,968,772				5,115,837				(2,688,702	)			9,067,479
Weatherford Shareholders’ Equity			8,534,455				12,331,731				6,199,906				25,893,257				(43,239,677	)			9,719,672
Noncontrolling Interests			—				—				—				79,032				—				79,032
Total Liabilities and Shareholders’ Equity		$	8,625,353			$	16,912,405			$	8,168,678			$	31,088,126			$	(45,928,379	)		$	18,866,183