Shareholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Changes in our Issued and Treasury shares during the years ended December 31, 2016, 2015 and 2014, were as follows:

(Shares in millions)	Issued		Treasury
Balance at December 31, 2013	840		(73	)
Change in Shares Associated with Redomestication	(840	)	71
Issuance of Weatherford Ireland Shares	774		—
Equity awards granted, vested and exercised	—		2
Balance at December 31, 2014	774		—
Equity awards granted, vested and exercised	5		—
Balance at December 31, 2015	779		—
Share Issuance	200		—
Equity awards granted, vested and exercised	4		—
Balance at December 31, 2016	983		—

In March 2016, we issued 115 million ordinary shares, and the amount in excess of par value of $623 million is reported in “Capital in Excess of Par Value” on the accompanying Consolidated Balance Sheets.

On June 7, 2016, we issued exchangeable notes with a par value of $1.265 billion. The exchange feature carrying value of $97 million is included in “Capital in Excess of Par Value” on the accompanying Consolidated Balance Sheets.

On November 21, 2016, we issued 84.5 million ordinary shares at a price of $5.40 per ordinary share, and a warrant to purchase 84.5 million ordinary shares on or prior to May 21, 2019 at an exercise price of $6.43 per ordinary share to a selected institutional investor. The amount in excess of par value for the ordinary shares net of warrant was $271 million and is reported in “Capital in Excess of Par Value.” At December 31, 2016, the fair value of the warrant of $156 million is classified as “Other Non-current Liabilities” on the accompanying Consolidated Balance Sheets.

On June 17, 2014, we completed the change in our place of incorporation from Switzerland to Ireland, whereby Weatherford Ireland became the new public holding company and the parent of the Weatherford group of companies, pursuant to which each registered share of Weatherford Switzerland was exchanged as consideration for the allotment of one ordinary share of Weatherford Ireland (excluding shares held by, or for the benefit of, Weatherford Switzerland or any of its subsidiaries). The Weatherford Switzerland shares were then cancelled. Weatherford Ireland issued ordinary shares with a par value of $0.001 per share. In conjunction with the redomestication, the shares held by our executive deferred compensation plan were sold and the remaining treasury shares were cancelled.

Accumulated Other Comprehensive Loss

The following table presents the changes in our accumulated other comprehensive loss by component for the year ended December 31, 2016 and 2015:

(Dollars in millions)	Currency Translation Adjustment			Defined Benefit Pension			Deferred Loss on Derivatives			Total
Balance at December 31, 2014	$	(813	)	$	(57	)	$	(11	)	$	(881	)
Other comprehensive (loss) income before reclassifications	(789		)	28			—			(761		)
Reclassifications	—			—			1			1
Net activity	(789		)	28			1			(760		)
Balance at December 31, 2015	(1,602		)	(29		)	(10		)	(1,641		)
Other comprehensive (loss) income before reclassifications	(12		)	41			—			29
Reclassifications	—			1			1			2
Net activity	(12		)	42			1			31
Balance at December 31, 2016	$	(1,614	)	$	13		$	(9	)	$	(1,610	)

For the year ended December 31, 2016, the defined benefit pension component of other comprehensive income before reclassifications relates primarily to a net actuarial gain resulting from the revaluation of the pension obligation associated with our supplemental executive retirement plan. For the year ended December 31, 2015, the defined benefit pension component of other comprehensive income before reclassifications relates primarily to a net actuarial gain resulting from the conversion of one of our international pension plans from a defined benefit plan to a defined contribution plan. In addition, other comprehensive income reflects the reclassification of our deferred loss on derivatives related to the early redemption of our senior notes.

The reclassification from the currency translation adjustment component of other comprehensive income includes $90 million from the sale of our land drilling and workover rig operations in Russia and Venezuela and pipeline and specialty service businesses. This amount was recognized in the “Gain on Sale of Businesses and Investments, Net” line in our Consolidated Statements of Operations for the year ended December 31, 2014.