Consolidating Financial Statements

Weatherford Ireland, a public limited company organized under the laws of Ireland and the ultimate parent of the Weatherford group, guarantees the obligations of our subsidiaries – Weatherford Bermuda, a Bermuda exempted company, and Weatherford Delaware, a Delaware limited liability company, including the notes and credit facilities listed below.

The following obligations of Weatherford Delaware were guaranteed by Weatherford Bermuda at December 31, 2015 and 2014: (1) 6.35% senior notes and (2) 6.80% senior notes.

The following obligations of Weatherford Bermuda were guaranteed by Weatherford Delaware at December 31, 2015 and 2014: (1) revolving credit facility, (2) 5.50% senior notes, (3) 6.50% senior notes, (4) 6.00% senior notes, (5) 7.00% senior notes, (6) 9.625% senior notes, (7) 9.875% senior notes, (8) 5.125% senior notes, (9) 6.75% senior notes, (10) 4.50% senior notes and (11) 5.95% senior notes. In 2014, we refinanced the 364-day term loan facility with a new 364-day term loan facility, which was an obligation of Weatherford Bermuda, was guaranteed by Weatherford Delaware as of December 31, 2014 and was repaid in 2015.

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.

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Year Ended December 31, 2015



(Dollars in Millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	9,433		$	—	$	9,433
Costs and Expenses	(101		)	(7		)	2			(10,873		)	—		(10,979		)
Operating Income (Loss)	(101		)	(7		)	2			(1,440		)	—		(1,546		)

Other Income (Expense):
Interest Expense, Net	—			(398		)	(57		)	(13		)	—		(468		)
Intercompany Charges, Net	(83		)	(110		)	(282		)	(403		)	878		—
Equity in Subsidiary Income	(1,801		)	(1,868		)	(492		)	—			4,161		—
Other, Net	—			51			11			(144		)	—		(82		)
Income (Loss) Before Income Taxes	(1,985		)	(2,332		)	(818		)	(2,000		)	5,039		(2,096		)
(Provision) Benefit for Income Taxes	—			—			114			31			—		145
Net Income (Loss)	(1,985		)	(2,332		)	(704		)	(1,969		)	5,039		(1,951		)
Net Income Attributable to Noncontrolling Interests	—			—			—			34			—		34
Net Income (Loss) Attributable to Weatherford	$	(1,985	)	$	(2,332	)	$	(704	)	$	(2,003	)	$	5,039	$	(1,985	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(2,745	)	$	(2,610	)	$	(754	)	$	(2,762	)	$	6,126	$	(2,745	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Year Ended December 31, 2014



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations		Consolidation
Revenues	$	—		$	—		$	—		$	14,911		$	—	$	14,911
Costs and Expenses	(59		)	(18		)	3			(14,332		)	—		(14,406		)
Operating Income (Loss)	(59		)	(18		)	3			579			—		505

Other Income (Expense):
Interest Expense, Net	—			(422		)	(57		)	(19		)	—		(498		)
Intercompany Charges, Net	(99		)	7,291			(266		)	(8,802		)	1,876		—
Equity in Subsidiary Income	(424		)	(430		)	407			(2		)	449		—
Other, Net	—			20			(3		)	(279		)	—		(262		)
Income (Loss) Before Income Taxes	(582		)	6,441			84			(8,523		)	2,325		(255		)
(Provision) Benefit for Income Taxes	(2		)	—			131			(413		)	—		(284		)
Net Income (Loss)	(584		)	6,441			215			(8,936		)	2,325		(539		)
Net Income Attributable to Noncontrolling Interests	—			—			—			45			—		45
Net Income (Loss) Attributable to Weatherford	$	(584	)	$	6,441		$	215		$	(8,981	)	$	2,325	$	(584	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(1,278	)	$	5,811		$	(128	)	$	(9,674	)	$	3,991	$	(1,278	)

Condensed Consolidating Statement of Operations and

Comprehensive Income (Loss)

Year Ended December 31, 2013



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	—		$	—		$	15,263		$	—		$	15,263
Costs and Expenses	(50		)	(139		)	(3		)	(14,548		)	—			(14,740		)
Operating Income (Loss)	(50		)	(139		)	(3		)	715			—			523

Other Income (Expense):
Interest Expense, Net	—			(430		)	(61		)	(25		)	—			(516		)
Intercompany Charges, Net	(53		)	49			(337		)	341			—			—
Equity in Subsidiary Income	(242		)	30			461			—			(249		)	—
Other, Net	—			(31		)	(2		)	(144		)	—			(177		)
Income (Loss) Before Income Taxes	(345		)	(521		)	58			887			(249		)	(170		)
(Provision) Benefit for Income Taxes	—			—			145			(289		)	—			(144		)
Net Income (Loss)	(345		)	(521		)	203			598			(249		)	(314		)
Net Income Attributable to Noncontrolling Interests	—			—			—			31			—			31
Net Income (Loss) Attributable to Weatherford	$	(345	)	$	(521	)	$	203		$	567		$	(249	)	$	(345	)
Comprehensive Income (Loss) Attributable to Weatherford	$	(695	)	$	(788	)	$	39		$	214		$	535		$	(695	)

Condensed Consolidating Balance Sheet

December 31, 2015



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	—	$	2		$	22	$	443	$	—		$	467
Other Current Assets	4		—			651		5,146		(704		)	5,097
Total Current Assets	4		2			673		5,589		(704		)	5,564

Equity Investments in Affiliates	5,693		8,709			9,187		3,483		(27,072		)	—
Intercompany Receivables, Net	—		—			—		10,423		(10,423		)	—
Other Assets	3		27			18		9,175		—			9,223
Total Assets	$	5,700	$	8,738		$	9,878	$	28,670	$	(38,199	)	$	14,787

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	1,503		$	6	$	73	$	—		$	1,582
Accounts Payable and Other Current Liabilities	19		212			—		2,922		(704		)	2,449
Total Current Liabilities	19		1,715			6		2,995		(704		)	4,031

Long-term Debt	—		4,910			864		105		—			5,879
Intercompany Payables, Net	1,362		6,147			2,914		—		(10,423		)	—
Other Long-term Liabilities	15		77			10		410		—			512
Total Liabilities	1,396		12,849			3,794		3,510		(11,127		)	10,422

Weatherford Shareholders’ Equity	4,304		(4,111		)	6,084		25,099		(27,072		)	4,304
Noncontrolling Interests	—		—			—		61		—			61
Total Liabilities and Shareholders’ Equity	$	5,700	$	8,738		$	9,878	$	28,670	$	(38,199	)	$	14,787

Condensed Consolidating Balance Sheet

December 31, 2014



(Dollars in millions)	Weatherford Ireland		Weatherford Bermuda			Weatherford Delaware		Other Subsidiaries		Eliminations			Consolidation
Current Assets:
Cash and Cash Equivalents	$	1	$	—		$	22	$	451	$	—		$	474
Other Current Assets	4		12			544		7,524		(614		)	7,470
Total Current Assets	5		12			566		7,975		(614		)	7,944

Equity Investments in Affiliates	8,662		10,490			9,730		3,974		(32,856		)	—
Intercompany Receivables, Net	—		—			—		10,490		(10,490		)	—
Other Assets	5		35			16		10,889		—			10,945
Total Assets	$	8,672	$	10,537		$	10,312	$	33,328	$	(43,960	)	$	18,889

Current Liabilities:
Short-term Borrowings and Current Portion of Long-Term Debt	$	—	$	618		$	6	$	103	$	—		$	727
Accounts Payable and Other Current Liabilities	43		256			—		3,615		(614		)	3,300
Total Current Liabilities	43		874			6		3,718		(614		)	4,027

Long-term Debt	—		5,749			911		137		1			6,798
Intercompany Payables, Net	1,666		6,202			2,622		—		(10,490		)	—
Other Long-term Liabilities	5		82			5		939		—			1,031
Total Liabilities	1,714		12,907			3,544		4,794		(11,103		)	11,856

Weatherford Shareholders’ Equity	6,958		(2,370		)	6,768		28,459		(32,857		)	6,958
Noncontrolling Interests	—		—			—		75		—			75
Total Liabilities and Shareholders’ Equity	$	8,672	$	10,537		$	10,312	$	33,328	$	(43,960	)	$	18,889

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2015



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(1,985	)	$	(2,332	)	$	(704	)	$	(1,969	)	$	5,039		$	(1,951	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	83			110			282			403			(878		)	—
Equity in (Earnings) Loss of Affiliates	1,801			1,868			492			—			(4,161		)	—
Deferred Income Tax Provision (Benefit)	—			—			14			(462		)	—			(448		)
Other Adjustments	(35		)	210			(86		)	3,016			—			3,105
Net Cash Provided (Used) by Operating Activities	(136		)	(144		)	(2		)	988			—			706
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(682		)	—			(682		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(14		)	—			(14		)
Acquisition of Intellectual Property	—			—			—			(8		)	—			(8		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			45			—			45
Net Cash Provided (Used) by Investing Activities	—			—			—			(659		)	—			(659		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			535			—			(30		)	—			505
Borrowings (Repayments) Long-term Debt, Net	—			(411		)	(31		)	(28		)	—			(470		)
Borrowings (Repayments) Between Subsidiaries, Net	135			22			33			(190		)	—			—
Other, Net	—			—			—			(23		)	—			(23		)
Net Cash Provided (Used) by Financing Activities	135			146			2			(271		)	—			12
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(66		)	—			(66		)
Net Increase (decrease) in Cash and Cash Equivalents	(1		)	2			—			(8		)	—			(7		)
Cash and Cash Equivalents at Beginning of Year	1			—			22			451			—			474
Cash and Cash Equivalents at End of Year	$	—		$	2		$	22		$	443		$	—		$	467

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2014



(Dollars in millions)	Weatherford Ireland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(584	)	$	6,441		$	215		$	(8,936	)	$	2,325		$	(539	)
Adjustments to Reconcile Net Income(Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	99			(7,291		)	266			8,802			(1,876		)	—
Equity in (Earnings) Loss of Affiliates	424			430			(407		)	2			(449		)	—
Deferred Income Tax Provision (Benefit)	—			—			(25		)	(41		)	—			(66		)
Other Adjustments	23			(180		)	(42		)	1,767			—			1,568
Net Cash Provided (Used) by Operating Activities	(38		)	(600		)	7			1,594			—			963
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(1,450		)	—			(1,450		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			18			—			18
Acquisition of Intellectual Property	—			—			—			(5		)	—			(5		)
Purchase of Equity Investment in Unconsolidated Affiliates	—			—			—			(3		)	—			(3		)
Proceeds from Sale of Assets and Businesses, Net	—			—			—			1,770			—			1,770
Net Cash Provided (Used) by Investing Activities	—			—			—			330			—			330
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			(827		)	—			(97		)	—			(924		)
Borrowings (Repayments) Long-term Debt, Net	—			(153		)	(92		)	(14		)	—			(259		)
Borrowings (Repayments) Between Subsidiaries, Net	39			1,580			107			(1,726		)	—			—
Proceeds from Capital Contributions	—			—			—			22			—			22
Other, Net	—			—			—			(19		)	—			(19		)
Net Cash Provided (Used) by Financing Activities	39			600			15			(1,834		)	—			(1,180		)
Effect of Exchange Rate Changes On Cash and Cash Equivalents	—			—			—			(74		)	—			(74		)
Net Increase in Cash and Cash Equivalents	1			—			22			16			—			39
Cash and Cash Equivalents at Beginning of Year	—			—			—			435			—			435
Cash and Cash Equivalents at End of Year	$	1		$	—		$	22		$	451		$	—		$	474

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2013



(Dollars in millions)	Weatherford Switzerland			Weatherford Bermuda			Weatherford Delaware			Other Subsidiaries			Eliminations			Consolidation
Cash Flows from Operating Activities:
Net Income (Loss)	$	(345	)	$	(521	)	$	203		$	598		$	(249	)	$	(314	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Charges from Parent or Subsidiary	53			(49		)	337			(341		)	—			—
Equity in (Earnings) Loss of Affiliates	242			(30		)	(461		)	—			249			—
Deferred Income Tax (Provision) Benefit	—			—			28			(61		)	—			(33		)
Other Adjustments	(48		)	748			470			406			—			1,576
Net Cash Provided (Used) by Operating Activities	(98		)	148			577			602			—			1,229
Cash Flows from Investing Activities:
Capital Expenditures for Property, Plant and Equipment	—			—			—			(1,575		)	—			(1,575		)
Acquisitions of Businesses, Net of Cash Acquired	—			—			—			(8		)	—			(8		)
Acquisition of Intellectual Property	—			—			—			(9		)	—			(9		)
Acquisition of Equity Investments in Unconsolidated Affiliates	—			—			—			—			—			—
Proceeds from Sale of Assets and Businesses, Net	—			—			—			488			—			488
Capital Contribution to Subsidiary	—			(1,181		)	—			—			1,181			—
Net Cash Provided (Used) by Investing Activities	—			(1,181		)	—			(1,104		)	1,181			(1,104		)
Cash Flows from Financing Activities:
Borrowings (Repayments) Short-term Debt, Net	—			550			(4		)	66			—			612
Borrowings (Repayments) Long-term Debt, Net	—			(544		)	(30		)	(26		)	—			(600		)
Borrowings (Repayments) Between Subsidiaries, Net	100			1,027			(565		)	(562		)	—			—
Proceeds from Capital Contribution	—			—			—			1,181			(1,181		)	—
Other, Net	(2		)	—			22			(26		)	—			(6		)
Net Cash Provided (Used) by Financing Activities	98			1,033			(577		)	633			(1,181		)	6
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			—			4			—			4
Net Increase in Cash and Cash Equivalents	—			—			—			135			—			135
Cash and Cash Equivalents at Beginning of Period	—			—			—			300			—			300
Cash and Cash Equivalents at End of Period	$	—		$	—		$	—		$	435		$	—		$	435