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8-K - FORM 8-K - Weatherford International Ltd./Switzerland | h83697e8vk.htm |
Exhibit 99.1
News Release |
Weatherford Reports Second Quarter Results
International improvements drive earnings of $0.17 per diluted share, before items
International improvements drive earnings of $0.17 per diluted share, before items
GENEVA, SWITZERLAND, July 26, 2011 Weatherford International Ltd. (NYSE and SIX: WFT) today
reported second quarter 2011 income of $126 million, or $0.17 per diluted share, excluding an
after-tax loss of $16 million. On a GAAP basis, our net income for the second quarter of 2011 was
$110 million, or $0.15 per diluted share. The excluded after-tax loss is comprised of $13 million
in severance and exit charges and $3 million in government investigation costs.
Second quarter diluted earnings per share reflect an increase of $0.09 over the second quarter of
2010 diluted earnings per share of $0.08, before charges. Sequentially, the companys second
quarter diluted earnings per share, before charges, were $0.07 higher than the first quarter of
2011. International markets drove the entire sequential improvement in both revenue and
profitability.
Second quarter revenues of $3,052 million were the highest in the companys history, despite the
severe negative impact of Canadas spring break-up. Revenues were 25 percent higher than the same
period last year and seven percent higher than the prior quarter. International revenues were up
14 percent sequentially and up 12 percent versus the year ago quarter. North America revenue was
down one percent sequentially and up 46 percent versus the second quarter of 2010. The sequential
decline in North America was due to the severe impact of the Canadian break-up. The Canadian
results overshadowed a very strong performance in the U.S., where sequential revenue growth
outpaced rig count by more than two-to-one and operating margins expanded.
Segment operating income of $421 million improved 36 percent year-over-year and 19 percent
sequentially. The companys international operations provided all of the sequential growth
compared to the first quarter of 2011 and delivered 51 percent incremental margins. International
operating income was down three percent compared to the year ago quarter.
The company expects earnings per share before excluded items of approximately $0.24 to $0.26 in the
third quarter of 2011, supported by a seasonal recovery in Canada and steady improvement in the
U.S. and international markets. For full-year 2011, the company anticipates that revenue growth
will be approximately 25 percent, which is higher than the 20 percent growth rate estimated last
quarter. In addition, the company expects international margins in the fourth quarter of 2011 to
be meaningfully higher than full-year 2010 margins of 11 percent.
North America
Revenues for the quarter were $1,344 million, which is a 46 percent increase over the same quarter
in the prior year and down one percent sequentially. The Stimulation and Chemicals, Artificial
Lift and Well Construction product lines contributed strong results for the quarter.
The current quarters operating income was $244 million, up $117 million from the second quarter of
2010 and was down $40 million, or 14 percent, compared to the prior quarter. On a sequential
basis, strong growth and steadily expanding margins in the U.S. were offset by the impact of the
Canadian break-up.
Middle East/North Africa/Asia
Second quarter revenues of $617 million were two percent higher than the second quarter of 2010 and
seven percent higher than the prior quarter. Weather improvements in China and Australia and a
stronger Iraq helped offset the impact of a full quarter of reduced activity due to political
unrest in the Middle East and North Africa. Libya operating expenses cost almost $0.01 per share.
The Well Construction, Integrated Drilling and Artificial Lift product lines posted strong
sequential performances.
The current quarters operating income of $34 million decreased 54 percent as compared to the same
quarter in the prior year and increased $23 million compared to the first quarter of 2011.
Europe/West Africa/FSU
Second quarter revenues of $592 million were 17 percent higher than the second quarter of 2010 and
16 percent higher than the prior quarter. The region had strong performances in the North Sea,
Russia and Caspian as the winter seasonality abated. The Completion, Stimulation and Chemicals,
Drilling Services and Integrated Drilling product lines had the strongest sequential growth.
The current quarters operating income of $93 million was up 37 percent compared to the same
quarter in the prior year and up $55 million compared to the prior quarter.
Latin America
Second quarter revenues of $498 million were 21 percent higher than both the second quarter of 2010
and the first quarter of 2011. Argentina, Colombia and Venezuela posted strong sequential
performances. The Drilling Services, Stimulation and Chemicals and Artificial Lift product lines
benefited from improved demand.
The current quarters operating income of $51 million increased 22 percent as compared to the same
quarter in the prior year and increased $30 million compared to the prior quarter.
Liquidity and Net Debt
Net debt for the quarter increased $144 million, with working capital increasing $193 million
during the quarter. Recently, the company successfully renegotiated its unsecured revolving credit
facility to increase the size of the facility from $1.75 billion to $2.25 billion and extend the
scheduled maturity to July 16, 2016.
Reclassifications and Non-GAAP
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have
been provided for meaningful comparisons between current results and results in prior operating
periods.
Conference Call
The company will host a conference call with financial analysts to discuss the 2011 second quarter
results on July 26, 2011 at 7:00 a.m. (CDT). The company invites investors to listen to a play
back of the conference call and to access the call transcript at the companys website,
http://www.weatherford.com in the investor relations section.
Weatherford is a Swiss-based, multi-national oilfield service company. It is one of the largest
global providers of innovative mechanical solutions, technology and services for the drilling and
production sectors of the oil and gas industry. Weatherford operates in over 100 countries and
employs over 58,000 people worldwide.
# # #
Contacts:
|
Andrew P. Becnel | +41.22.816.1502 | ||
Chief Financial Officer | ||||
Karen David-Green | +1.713.693.2530 | |||
Vice President Investor Relations |
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 concerning, among other things, Weatherfords prospects
for its operations which are subject to certain risks, uncertainties and assumptions. These risks
and uncertainties, which are more fully described in Weatherford International Ltd.s reports and
registration statements filed with the SEC, include the impact of oil and natural gas prices and
worldwide economic conditions on drilling activity, the outcome of pending government
investigations, the demand for and pricing of Weatherfords products and services, domestic and
international economic and regulatory conditions and changes in tax and other laws affecting our
business. Should one or more of these risks or uncertainties materialize, or should the
assumptions prove incorrect, actual results may vary materially from those currently anticipated.
Weatherford International Ltd.
Consolidated Condensed Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
Consolidated Condensed Statements of Income
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Revenues: |
||||||||||||||||
North America |
$ | 1,344,245 | $ | 917,696 | $ | 2,704,717 | $ | 1,806,275 | ||||||||
Middle East/North Africa/Asia |
617,376 | 602,602 | 1,192,902 | 1,164,658 | ||||||||||||
Europe/West Africa/FSU |
592,458 | 506,177 | 1,102,881 | 959,936 | ||||||||||||
Latin America |
497,735 | 410,688 | 907,500 | 837,361 | ||||||||||||
3,051,814 | 2,437,163 | 5,908,000 | 4,768,230 | |||||||||||||
Operating Income (Expense): |
||||||||||||||||
North America |
243,613 | 127,001 | 527,310 | 235,433 | ||||||||||||
Middle East/North Africa/Asia |
33,964 | 73,993 | 44,768 | 149,707 | ||||||||||||
Europe/West Africa/FSU |
92,511 | 67,366 | 130,015 | 113,664 | ||||||||||||
Latin America |
51,081 | 41,991 | 72,172 | 68,065 | ||||||||||||
Research and Development |
(62,231 | ) | (53,530 | ) | (126,778 | ) | (102,387 | ) | ||||||||
Corporate Expenses |
(43,030 | ) | (42,670 | ) | (98,859 | ) | (87,728 | ) | ||||||||
Revaluation of Contingent Consideration |
| (81,753 | ) | | (92,763 | ) | ||||||||||
Severance, Exit and Other Adjustments |
(18,693 | ) | (27,309 | ) | (39,525 | ) | (71,341 | ) | ||||||||
297,215 | 105,089 | 509,103 | 212,650 | |||||||||||||
Other Income (Expense): |
||||||||||||||||
Interest Expense, Net |
(113,684 | ) | (95,719 | ) | (226,190 | ) | (191,058 | ) | ||||||||
Devaluation of Venezuelan Bolivar |
| | | (63,859 | ) | |||||||||||
Other, Net |
(22,367 | ) | (14,186 | ) | (40,933 | ) | (23,404 | ) | ||||||||
Income (Loss) Before Income Taxes |
161,164 | (4,816 | ) | 241,980 | (65,671 | ) | ||||||||||
Benefit (Provision) for Income Taxes: |
||||||||||||||||
Provision for Operations |
(48,955 | ) | (42,646 | ) | (70,753 | ) | (72,529 | ) | ||||||||
Benefit from Devaluation of Venezuelan Bolivar |
| | | 23,973 | ||||||||||||
Benefit from Severance, Exit and Other Adjustments |
2,827 | 2,888 | 5,348 | 5,331 | ||||||||||||
(46,128 | ) | (39,758 | ) | (65,405 | ) | (43,225 | ) | |||||||||
Net Income (Loss) |
115,036 | (44,574 | ) | 176,575 | (108,896 | ) | ||||||||||
Net Income Attributable to Noncontrolling Interest |
(4,938 | ) | (3,316 | ) | (7,276 | ) | (7,351 | ) | ||||||||
Net Income (Loss) Attributable to Weatherford |
$ | 110,098 | $ | (47,890 | ) | $ | 169,299 | $ | (116,247 | ) | ||||||
Earnings (Loss) Per Share Attributable to Weatherford: |
||||||||||||||||
Basic |
$ | 0.15 | $ | (0.06 | ) | $ | 0.23 | $ | (0.16 | ) | ||||||
Diluted |
$ | 0.15 | $ | (0.06 | ) | $ | 0.22 | $ | (0.16 | ) | ||||||
Weighted Average Shares Outstanding: |
||||||||||||||||
Basic |
750,539 | 743,209 | 749,003 | 740,537 | ||||||||||||
Diluted |
757,910 | 743,209 | 757,763 | 740,537 |
Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In Thousands)
Selected Income Statement Information
(Unaudited)
(In Thousands)
Three Months Ended | ||||||||||||||||||||
6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | ||||||||||||||||
Net Revenues: |
||||||||||||||||||||
North America |
$ | 1,344,245 | $ | 1,360,472 | $ | 1,263,643 | $ | 1,096,963 | $ | 917,696 | ||||||||||
Middle East/North Africa/Asia |
617,376 | 575,526 | 684,630 | 601,215 | 602,602 | |||||||||||||||
Europe/West Africa/FSU |
592,458 | 510,423 | 528,380 | 496,113 | 506,177 | |||||||||||||||
Latin America |
497,735 | 409,765 | 446,162 | 335,461 | 410,688 | |||||||||||||||
$ | 3,051,814 | $ | 2,856,186 | $ | 2,922,815 | $ | 2,529,752 | $ | 2,437,163 | |||||||||||
Operating Income (Expense): |
||||||||||||||||||||
North America |
$ | 243,613 | $ | 283,697 | $ | 261,145 | $ | 199,029 | $ | 127,001 | ||||||||||
Middle East/North Africa/Asia |
33,964 | 10,804 | 49,222 | 65,718 | 73,993 | |||||||||||||||
Europe/West Africa/FSU |
92,511 | 37,504 | 64,398 | 63,236 | 67,366 | |||||||||||||||
Latin America |
51,081 | 21,091 | 52,960 | 40,914 | 41,991 | |||||||||||||||
Research and Development |
(62,231 | ) | (64,547 | ) | (57,637 | ) | (54,457 | ) | (53,530 | ) | ||||||||||
Corporate Expenses |
(43,030 | ) | (55,829 | ) | (43,283 | ) | (41,907 | ) | (42,670 | ) | ||||||||||
Revaluation of Contingent Consideration |
| | 15,349 | 90,011 | (81,753 | ) | ||||||||||||||
Severance, Exit and Other Adjustments |
(18,693 | ) | (20,832 | ) | (48,775 | ) | (87,120 | ) | (27,309 | ) | ||||||||||
$ | 297,215 | $ | 211,888 | $ | 293,379 | $ | 275,424 | $ | 105,089 | |||||||||||
Three Months Ended | ||||||||||||||||||||
6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | ||||||||||||||||
Product Line Revenues |
||||||||||||||||||||
Stimulation
and Chemicals |
$ | 544,953 | $ | 457,557 | $ | 396,241 | $ | 333,630 | $ | 330,483 | ||||||||||
Artificial Lift Systems |
535,016 | 443,691 | 471,276 | 417,464 | 358,619 | |||||||||||||||
Drilling Services |
487,559 | 474,440 | 481,687 | 428,930 | 386,592 | |||||||||||||||
Well Construction |
382,077 | 346,052 | 362,668 | 332,118 | 357,096 | |||||||||||||||
Integrated Drilling |
316,554 | 319,661 | 356,871 | 261,974 | 317,160 | |||||||||||||||
Completion Systems |
248,850 | 206,760 | 256,676 | 191,559 | 177,123 | |||||||||||||||
Drilling Tools |
182,956 | 220,538 | 211,823 | 200,555 | 186,236 | |||||||||||||||
Wireline and
Evaluation Services |
160,246 | 188,778 | 159,426 | 155,402 | 129,365 | |||||||||||||||
Re-entry and Fishing |
159,851 | 164,274 | 165,094 | 153,569 | 148,401 | |||||||||||||||
Pipeline
& Specialty Services |
33,752 | 34,435 | 61,053 | 54,551 | 46,088 | |||||||||||||||
$ | 3,051,814 | $ | 2,856,186 | $ | 2,922,815 | $ | 2,529,752 | $ | 2,437,163 | |||||||||||
Three Months Ended | ||||||||||||||||||||
6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | ||||||||||||||||
Depreciation and Amortization: |
||||||||||||||||||||
North America |
$ | 88,006 | $ | 87,793 | $ | 83,996 | $ | 81,843 | $ | 81,040 | ||||||||||
Middle East/North Africa/Asia |
82,548 | 81,380 | 81,596 | 75,968 | 75,139 | |||||||||||||||
Europe/West Africa/FSU |
57,696 | 56,594 | 53,408 | 56,960 | 52,371 | |||||||||||||||
Latin America |
48,722 | 46,388 | 47,377 | 46,527 | 44,753 | |||||||||||||||
Research and Development |
2,471 | 1,964 | 2,398 | 2,420 | 2,324 | |||||||||||||||
Corporate |
2,725 | 2,936 | 3,075 | 3,491 | 2,943 | |||||||||||||||
$ | 282,168 | $ | 277,055 | $ | 271,850 | $ | 267,209 | $ | 258,570 | |||||||||||
We report our financial results in accordance with generally accepted accounting principles
(GAAP). However, Weatherfords management believes that certain non-GAAP performance measures and
ratios may provide users of this financial information additional meaningful comparisons between
current results and results in prior operating periods. One such non-GAAP financial measure we
may present from time to time is operating income or income from continuing operations excluding
certain charges or amounts. This adjusted income amount is not a measure of financial performance
under GAAP. Accordingly, it should not be considered as a substitute for operating income, net
income or other income data prepared in accordance with GAAP. See the table below for supplemental
financial data and corresponding reconciliations to GAAP financial measures for the three months
ended June 30, 2011, March 31, 2011, and June 30, 2010 and for the six months ended June 30, 2011
and June 30, 2010. Non-GAAP financial measures should be viewed in addition to, and not as an
alternative for, the Companys reported results prepared in accordance with GAAP.
Weatherford International Ltd.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Thousands, Except Per Share Amounts)
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Operating Income: |
||||||||||||||||||||
GAAP Operating Income |
$ | 297,215 | $ | 211,888 | $ | 105,089 | $ | 509,103 | $ | 212,650 | ||||||||||
Severance, Exit and Other Adjustments |
18,693 | 20,832 | 27,309 | 39,525 | 71,341 | |||||||||||||||
Revaluation of Contingent Consideration |
| | 81,753 | | 92,763 | |||||||||||||||
Non-GAAP Operating Income |
$ | 315,908 | $ | 232,720 | $ | 214,151 | $ | 548,628 | $ | 376,754 | ||||||||||
Income (Loss) Before Income Taxes: |
||||||||||||||||||||
GAAP Income (Loss) Before Income Taxes |
$ | 161,164 | $ | 80,816 | $ | (4,816 | ) | $ | 241,980 | $ | (65,671 | ) | ||||||||
Severance, Exit and Other Adjustments |
18,693 | 20,832 | 27,309 | 39,525 | 71,341 | |||||||||||||||
Revaluation of Contingent Consideration |
| | 81,753 | | 92,763 | |||||||||||||||
Devaluation of Venezuelan Bolivar |
| | | | 63,859 | |||||||||||||||
Non-GAAP Income (Loss) Before Income Taxes |
$ | 179,857 | $ | 101,648 | $ | 104,246 | $ | 281,505 | $ | 162,292 | ||||||||||
Benefit (Provision) for Income Taxes: |
||||||||||||||||||||
GAAP Benefit (Provision) for Income Taxes |
$ | (46,128 | ) | $ | (19,277 | ) | $ | (39,758 | ) | $ | (65,405 | ) | $ | (43,225 | ) | |||||
Devaluation of Venezuelan Bolivar |
| | | | (23,973 | ) | ||||||||||||||
Severance, Exit and Other Adjustments |
(2,827 | ) | (2,521 | ) | (2,888 | ) | (5,348 | ) | (5,331 | ) | ||||||||||
Non-GAAP Benefit (Provision) for Income Taxes |
$ | (48,955 | ) | $ | (21,798 | ) | $ | (42,646 | ) | $ | (70,753 | ) | $ | (72,529 | ) | |||||
Net Income (Loss) Attributable to Weatherford: |
||||||||||||||||||||
GAAP Net Income (Loss) |
$ | 110,098 | $ | 59,201 | $ | (47,890 | ) | $ | 169,299 | $ | (116,247 | ) | ||||||||
Total Charges, net of tax |
15,866 | (a) | 18,311 | (b) | 106,174 | (c) | 34,177 | 198,659 | (d) | |||||||||||
Non-GAAP Net Income |
$ | 125,964 | $ | 77,512 | $ | 58,284 | $ | 203,476 | $ | 82,412 | ||||||||||
Diluted Earnings (Loss) Per Share Attributable to Weatherford: |
||||||||||||||||||||
GAAP Diluted Earnings (Loss) per Share |
$ | 0.15 | $ | 0.08 | $ | (0.06 | ) | $ | 0.22 | $ | (0.16 | ) | ||||||||
Total Charges, net of tax |
0.02 | (a) | 0.02 | (b) | 0.14 | (c) | 0.05 | 0.27 | (d) | |||||||||||
Non-GAAP Diluted Earnings per Share |
$ | 0.17 | $ | 0.10 | $ | 0.08 | $ | 0.27 | $ | 0.11 | ||||||||||
Note (a): This amount is comprised of severance charges of $12 million, net of tax, and costs incurred in connection with on-going investigations by the U.S. government of $3 million. We also incurred charges totaling $1 million, net of tax, for facility closure costs and termination fees. | ||
Note (b): This amount is comprised of a $9 million charge associated with terminating a corporate consulting contract and $8 million for severance costs. We also incurred investigation costs in connection with on-going investigations by the U.S. government. | ||
Note (c): This amount is comprised of an $82 million charge for the revaluation of contingent consideration included as part of our acquisition of the Oilfield Services Division (OFS) of TNK-BP. We also incurred investigation costs in connection with on-going investigations by the U.S. government and severance charges. | ||
Note (d): This amount is primarily comprised of a $38 million charge, net of tax, related to our supplemental executive retirement plan that was frozen on March 31, 2010 and a $40 million charge, net of tax, related to the devaluation of the Venezuelan Bolivar. In addition, we incurred a charge of $93 million for the revaluation of contingent consideration included as part of our OFS acquisition. We also incurred investigation costs in connection with on-going investigations by the U.S. government and severance charges and facility closure costs. |
Weatherford International Ltd.
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ | 329,555 | $ | 415,772 | ||||
Accounts Receivable, Net |
3,020,645 | 2,629,403 | ||||||
Inventories |
2,939,356 | 2,590,008 | ||||||
Other Current Assets |
1,075,761 | 856,884 | ||||||
7,365,317 | 6,492,067 | |||||||
Long-Term Assets: |
||||||||
Property, Plant and Equipment, Net |
7,244,754 | 6,939,754 | ||||||
Goodwill |
4,311,104 | 4,185,477 | ||||||
Other Intangibles, Net |
758,765 | 730,429 | ||||||
Equity Investments |
558,668 | 539,580 | ||||||
Other Assets |
266,020 | 244,347 | ||||||
13,139,311 | 12,639,587 | |||||||
Total Assets |
$ | 20,504,628 | $ | 19,131,654 | ||||
Current Liabilities: |
||||||||
Short-term Borrowings and Current Portion of Long-term Debt |
$ | 1,113,724 | $ | 235,392 | ||||
Accounts Payable |
1,517,806 | 1,335,020 | ||||||
Other Current Liabilities |
1,143,402 | 1,012,567 | ||||||
3,774,932 | 2,582,979 | |||||||
Long-term Liabilities: |
||||||||
Long-term Debt |
6,256,711 | 6,529,998 | ||||||
Other Liabilities |
551,771 | 553,830 | ||||||
6,808,482 | 7,083,828 | |||||||
Total Liabilities |
10,583,414 | 9,666,807 | ||||||
Shareholders Equity: |
||||||||
Weatherford Shareholders Equity |
9,862,322 | 9,400,931 | ||||||
Noncontrolling Interest |
58,892 | 63,916 | ||||||
Total Shareholders Equity |
9,921,214 | 9,464,847 | ||||||
Total Liabilities and Shareholders Equity |
$ | 20,504,628 | $ | 19,131,654 | ||||
Weatherford International Ltd.
Net Debt
(Unaudited)
(In Thousands)
Net Debt
(Unaudited)
(In Thousands)
Change in Net Debt for the Three Months Ended June 30, 2011: |
||||
Net Debt at March 31, 2011 |
$ | (6,896,637 | ) | |
Operating Income |
297,215 | |||
Depreciation and Amortization |
282,168 | |||
Severance, Exit and Other Adjustments |
18,693 | |||
Capital Expenditures |
(387,587 | ) | ||
Increase in Working Capital |
(179,314 | ) | ||
Income Taxes Paid |
(69,928 | ) | ||
Interest Paid |
(58,504 | ) | ||
Acquisitions and Divestitures of Assets and Businesses, Net |
(19,121 | ) | ||
Foreign Currency Contract Settlements |
(35,818 | ) | ||
Other |
7,953 | |||
Net Debt at June 30, 2011 |
$ | (7,040,880 | ) | |
Change in Net Debt for the Six Months Ended June 30, 2011: |
||||
Net Debt at December 31, 2010 |
$ | (6,349,618 | ) | |
Operating Income |
509,103 | |||
Depreciation and Amortization |
559,223 | |||
Severance, Exit and Other Adjustments |
39,525 | |||
Capital Expenditures |
(743,237 | ) | ||
Increase in Working Capital |
(479,037 | ) | ||
Income Taxes Paid |
(135,460 | ) | ||
Interest Paid |
(234,429 | ) | ||
Acquisitions and Divestitures of Assets and Businesses, Net |
(38,510 | ) | ||
Foreign Currency Contract Settlements |
(89,946 | ) | ||
Other |
(78,494 | ) | ||
Net Debt at June 30, 2011 |
$ | (7,040,880 | ) | |
June 30, | March 31, | December 31, | ||||||||||
2011 | 2011 | 2010 | ||||||||||
Components of Net Debt |
||||||||||||
Cash |
$ | 329,555 | $ | 249,317 | $ | 415,772 | ||||||
Short-term Borrowings and Current Portion of Long-Term Debt |
(1,113,724 | ) | (619,490 | ) | (235,392 | ) | ||||||
Long-term Debt |
(6,256,711 | ) | (6,526,464 | ) | (6,529,998 | ) | ||||||
Net Debt |
$ | (7,040,880 | ) | $ | (6,896,637 | ) | $ | (6,349,618 | ) | |||
Net Debt is debt less cash. Management believes that Net Debt provides useful information regarding the level of
Weatherford indebtedness by reflecting cash that could be used to repay debt.
Working capital is defined as accounts receivable plus inventory less accounts payable.