false--12-31Q320190001603923falseLarge Accelerated FilerWeatherford International plcfalse578600000059320000001230000001100000000.0011356000000135600000010020000001004000000100200000010040000000.0680.058750.04500.051250.05950.06500.06750.07000.07750.08250.096250.098750.098757430000007850000005000000050000000133000000100000000000 0001603923 2019-01-01 2019-09-30 0001603923 2019-10-15 0001603923 2019-09-30 0001603923 2018-07-01 2018-09-30 0001603923 2017-01-01 2017-12-31 0001603923 2019-07-01 2019-09-30 0001603923 2018-01-01 2018-09-30 0001603923 us-gaap:ServiceMember 2018-07-01 2018-09-30 0001603923 us-gaap:ServiceMember 2019-07-01 2019-09-30 0001603923 us-gaap:ServiceMember 2019-01-01 2019-09-30 0001603923 us-gaap:ServiceMember 2018-01-01 2018-09-30 0001603923 us-gaap:ProductMember 2018-01-01 2018-09-30 0001603923 us-gaap:ProductMember 2019-07-01 2019-09-30 0001603923 us-gaap:ProductMember 2019-01-01 2019-09-30 0001603923 us-gaap:ProductMember 2018-07-01 2018-09-30 0001603923 2017-01-01 2017-03-31 0001603923 2018-12-31 0001603923 2019-03-31 0001603923 2018-06-30 0001603923 2019-01-01 2019-03-31 0001603923 2018-01-01 2018-03-31 0001603923 2018-09-30 0001603923 2017-12-31 0001603923 wft:DebtorEntitiesinBankruptcyMember 2019-07-01 2019-09-30 0001603923 wft:DebtorEntitiesinBankruptcyMember 2019-09-30 0001603923 wft:DebtorEntitiesinBankruptcyMember 2018-12-31 0001603923 wft:DIPCreditAgreementMember 2019-07-03 2019-07-03 0001603923 wft:SeniorNotes7.75Percentdue2021Member us-gaap:SeniorNotesMember 2019-06-15 0001603923 wft:RestructuringSupportAgreementMember wft:ExitNotesTakebackNotesMember us-gaap:SeniorNotesMember 2019-09-09 0001603923 wft:RestructuringSupportAgreementMember us-gaap:SeniorNotesMember 2019-09-11 0001603923 wft:RestructuringSupportAgreementMember wft:ExitNotesMember us-gaap:SeniorNotesMember 2019-09-11 0001603923 wft:CreditAgreementForbearanceAgreementMember 2019-07-01 2019-07-01 0001603923 wft:RestructuringSupportAgreementMember 2019-09-11 0001603923 srt:MinimumMember wft:DIPCreditAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-07-03 2019-07-03 0001603923 wft:SeniorNotes8.25Percentdue2023Member us-gaap:SeniorNotesMember 2019-06-15 0001603923 srt:MaximumMember wft:DIPCreditAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-07-03 2019-07-03 0001603923 wft:TermLoanAgreementMember wft:DIPCreditAgreementMember 2019-07-03 0001603923 wft:RestructuringSupportAgreementMember us-gaap:SeniorNotesMember 2019-05-10 0001603923 wft:BackstopCommitmentAgreementMember 2019-07-01 2019-07-01 0001603923 wft:RestructuringSupportAgreementMember 2019-09-09 2019-09-09 0001603923 wft:BackstopCommitmentAgreementMember 2019-09-09 2019-09-09 0001603923 srt:MaximumMember wft:DIPCreditAgreementMember us-gaap:BaseRateMember 2019-07-03 2019-07-03 0001603923 wft:RestructuringSupportAgreementMember wft:ExitNotesRightsOfferingNotesMember us-gaap:SeniorNotesMember 2019-09-09 0001603923 wft:SeniorNotes6.80Percentdue2037Member us-gaap:SeniorNotesMember 2019-06-15 0001603923 wft:RestructuringSupportAgreementMember wft:ExitNotesRightsOfferingNotesMember us-gaap:SeniorNotesMember 2019-09-11 0001603923 wft:RestructuringSupportAgreementMember us-gaap:CommonStockMember 2019-08-23 0001603923 wft:CreditAgreementForbearanceAgreementMember 2019-07-01 0001603923 wft:TermLoanAgreementMember 2019-07-01 2019-09-30 0001603923 wft:DIPCreditAgreementMember 2019-07-03 0001603923 wft:DebtorinPossessionRevolvingCreditAgreementMember wft:DIPCreditAgreementMember 2019-07-03 0001603923 us-gaap:SeniorNotesMember 2019-06-15 2019-06-15 0001603923 wft:RestructuringSupportAgreementMember wft:ExitNotesMember us-gaap:SeniorNotesMember 2019-09-09 0001603923 wft:SeniorNotes9.875Percentdue2025Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes6.80Percentdue2037Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes8.25Percentdue2023Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes6.75Percentdue2040Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes4.50Percentdue2022Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes7.00Percentdue2038Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes9.875Percentdue2024Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes5.125Percentdue2020Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes5.95Percentdue2042Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes9.875Percentdue2039Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes6.50Percentdue2036Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:SeniorNotes7.75Percentdue2021Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:ExchangeableSeniorNotes5.875Percentdue2021Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:ConventionalContinuousSuckerRodBusinessMember 2018-03-28 0001603923 wft:JointVentureinQatarMember 2018-03-26 2018-03-26 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:LandDrillingRigMember 2019-01-01 2019-03-31 0001603923 wft:JointVentureinQatarMember 2018-03-26 0001603923 wft:ReclassifiedtoHeldforUseMember wft:BusinessOperationsReclassifiedtoHeldforUseMember 2019-09-30 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:LandDrillingRigMember 2019-03-31 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:SurfaceDataLoggingBusinessMember 2019-09-30 0001603923 wft:JointVentureinQatarMember wft:PaidinAccordancewithClosingTermsthroughtheJointVentureMember 2018-03-26 2018-03-26 0001603923 us-gaap:DiscontinuedOperationsHeldforsaleMember wft:LaboratoryServiceBusinessMember 2019-01-01 2019-09-30 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:ConventionalContinuousSuckerRodBusinessMember 2018-03-28 2018-03-28 0001603923 wft:JointVentureinQatarMember wft:WillbeMadeTwoYearsafterClosingMember 2018-03-26 2018-03-26 0001603923 us-gaap:DiscontinuedOperationsHeldforsaleMember wft:LaboratoryServiceBusinessMember 2019-09-30 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:LandDrillingRigMember 2018-07-11 0001603923 us-gaap:DiscontinuedOperationsHeldforsaleMember wft:BusinessOperationsHeldforSaleMember 2018-12-31 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:SurfaceDataLoggingBusinessMember 2019-07-01 2019-09-30 0001603923 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember wft:LandDrillingRigMember 2018-12-31 0001603923 wft:EasternHemisphereMember 2019-01-01 2019-03-31 0001603923 wft:WesternHemisphereMember 2019-04-01 2019-06-30 0001603923 wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:WesternHemisphereMember 2018-12-31 0001603923 wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:EasternHemisphereMember 2018-12-31 0001603923 wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember 2018-07-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:A201617PlanMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:A201617PlanMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember 2018-07-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:A201617PlanMember 2018-07-01 2018-09-30 0001603923 wft:TransformationPlanMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:TransformationPlanMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember 2019-07-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember 2019-07-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:TransformationPlanMember 2019-07-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001603923 wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember 2018-12-31 0001603923 wft:SeveranceandOtherRestructuringLiabilitiesMember 2019-09-30 0001603923 wft:SeveranceandOtherRestructuringLiabilitiesMember 2018-12-31 0001603923 wft:SeveranceandOtherRestructuringLiabilitiesMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember 2018-12-31 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember 2018-12-31 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember 2018-12-31 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:TransformationPlanMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember 2019-01-01 2019-09-30 0001603923 wft:TransformationPlanMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:TransformationPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:EasternHemisphereMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember wft:EasternHemisphereMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember us-gaap:CorporateNonSegmentMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:WesternHemisphereMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember us-gaap:CorporateNonSegmentMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617andPriorPlanMember wft:WesternHemisphereMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember wft:EasternHemisphereMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember us-gaap:CorporateNonSegmentMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:TransformationPlanMember wft:EasternHemisphereMember 2019-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:TransformationPlanMember wft:WesternHemisphereMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember us-gaap:CorporateNonSegmentMember 2019-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617andPriorPlanMember wft:WesternHemisphereMember 2019-09-30 0001603923 wft:A201617PlanMember 2018-01-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember 2018-01-01 2018-09-30 0001603923 wft:OtherRestructuringexcludingwritedownsMember wft:TransformationPlanMember 2019-01-01 2019-09-30 0001603923 us-gaap:ImpairedAssetsToBeDisposedOfByMethodOtherThanSaleAssetNameDomain wft:A201617PlanMember 2019-07-01 2019-09-30 0001603923 us-gaap:ImpairedAssetsToBeDisposedOfByMethodOtherThanSaleAssetNameDomain wft:A201617PlanMember 2019-01-01 2019-09-30 0001603923 wft:OtherRestructuringexcludingwritedownsMember wft:A201617PlanMember 2019-07-01 2019-09-30 0001603923 wft:OtherRestructuringLessAssetWriteOffsMember wft:TransformationPlanMember 2019-07-01 2019-09-30 0001603923 wft:OtherRestructuringexcludingwritedownsMember wft:A201617PlanMember 2018-01-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember 2018-01-01 2018-09-30 0001603923 wft:A201617PlanMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001603923 wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:OtherRestructuringMember wft:A201617PlanMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001603923 us-gaap:EmployeeSeveranceMember wft:A201617PlanMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:A201617PlanMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:AccountingStandardsUpdate201602Member 2019-09-30 0001603923 wft:SeniorNotes9.625Percentdue2019Member 2018-02-28 2018-02-28 0001603923 wft:UncommittedLettersofCreditMember 2019-09-30 0001603923 srt:MinimumMember wft:ARCreditAgreementMember wft:NonextendingLendersMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001603923 srt:MinimumMember wft:ARCreditAgreementMember wft:ExtendingLendersMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001603923 wft:SeniorNotes9.625Percentdue2019Member 2018-02-28 0001603923 wft:A364daycreditagreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001603923 wft:DIPCreditAgreementMember 2019-09-30 0001603923 wft:TermLoanAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001603923 wft:SeniorNotes9.625Percentdue2019Member us-gaap:SeniorNotesMember 2018-02-28 0001603923 us-gaap:RevolvingCreditFacilityMember 2019-09-30 0001603923 wft:CommittedLettersofCreditMember 2019-09-30 0001603923 wft:SeniorNotes9.875Percentdue2025Member us-gaap:SeniorNotesMember 2018-02-28 0001603923 wft:SeniorNotes9.875Percentdue2025Member 2018-02-28 0001603923 wft:SeniorNotes6.00Percentdue2018Member us-gaap:SeniorNotesMember 2018-03-31 0001603923 wft:A364DaySecuredRCFMember 2018-12-31 0001603923 wft:DebtorinPossessionTermLoanMember 2019-09-30 0001603923 wft:DebtorinPossessionRevolvingCreditAgreementMember 2018-12-31 0001603923 wft:DebtorinPossessionRevolvingCreditAgreementMember 2019-09-30 0001603923 us-gaap:NotesPayableOtherPayablesMember 2019-09-30 0001603923 wft:ARCreditAgreementMember 2019-09-30 0001603923 us-gaap:NotesPayableOtherPayablesMember 2018-12-31 0001603923 wft:A364DaySecuredRCFMember 2019-09-30 0001603923 wft:DebtorinPossessionTermLoanMember 2018-12-31 0001603923 wft:ARCreditAgreementMember 2018-12-31 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2018-12-31 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-09-30 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SeniorNotesMember 2018-12-31 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-09-30 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001603923 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001603923 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-30 0001603923 us-gaap:ForeignExchangeContractMember 2019-03-31 0001603923 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-09-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2016-10-01 2016-12-31 0001603923 us-gaap:ForeignExchangeContractMember 2018-12-31 0001603923 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-30 0001603923 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-07-01 2018-09-30 0001603923 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-09-30 0001603923 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-12-31 0001603923 us-gaap:OtherCurrentLiabilitiesMember 2018-12-31 0001603923 us-gaap:OtherNoncurrentLiabilitiesMember 2019-09-30 0001603923 us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0001603923 2015-07-31 2015-07-31 0001603923 wft:Neffv.Bradyetal.Member 2010-01-01 2010-12-31 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001603923 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001603923 us-gaap:NoncontrollingInterestMember 2019-06-30 0001603923 us-gaap:CommonStockMember 2019-06-30 0001603923 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001603923 2019-04-01 2019-06-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001603923 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001603923 us-gaap:RetainedEarningsMember 2019-09-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001603923 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001603923 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001603923 us-gaap:NoncontrollingInterestMember 2018-12-31 0001603923 us-gaap:NoncontrollingInterestMember 2019-03-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001603923 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001603923 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001603923 us-gaap:CommonStockMember 2019-09-30 0001603923 us-gaap:CommonStockMember 2018-12-31 0001603923 us-gaap:CommonStockMember 2019-03-31 0001603923 2019-06-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001603923 us-gaap:RetainedEarningsMember 2018-12-31 0001603923 us-gaap:RetainedEarningsMember 2019-03-31 0001603923 us-gaap:RetainedEarningsMember 2019-06-30 0001603923 us-gaap:NoncontrollingInterestMember 2019-09-30 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-09-30 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-31 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-09-30 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-31 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-01-01 2018-09-30 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-01-01 2019-09-30 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-30 0001603923 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-09-30 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001603923 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0001603923 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:CommonStockMember 2018-06-30 0001603923 2018-04-01 2018-06-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001603923 us-gaap:RetainedEarningsMember 2017-12-31 0001603923 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-03-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001603923 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001603923 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001603923 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001603923 us-gaap:RetainedEarningsMember 2018-06-30 0001603923 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001603923 us-gaap:CommonStockMember 2018-09-30 0001603923 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001603923 2018-03-31 0001603923 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001603923 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001603923 us-gaap:RetainedEarningsMember 2018-03-31 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001603923 2018-01-01 0001603923 us-gaap:NoncontrollingInterestMember 2017-12-31 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001603923 us-gaap:NoncontrollingInterestMember 2018-03-31 0001603923 us-gaap:CommonStockMember 2017-12-31 0001603923 us-gaap:RetainedEarningsMember 2018-09-30 0001603923 us-gaap:NoncontrollingInterestMember 2018-06-30 0001603923 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001603923 us-gaap:RetainedEarningsMember 2018-01-01 0001603923 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001603923 us-gaap:NoncontrollingInterestMember 2018-09-30 0001603923 us-gaap:CommonStockMember 2018-03-31 0001603923 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001603923 us-gaap:RestrictedStockMember 2019-09-30 0001603923 us-gaap:PerformanceSharesMember 2019-09-30 0001603923 us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001603923 wft:WellConstructionMember 2018-07-01 2018-09-30 0001603923 wft:A606revenueMember 2018-07-01 2018-09-30 0001603923 wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:WellConstructionMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:CompletionMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:CompletionMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:ProductionMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:WellConstructionMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember 2018-07-01 2018-09-30 0001603923 wft:ProductionMember 2018-07-01 2018-09-30 0001603923 wft:ProductionMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:CompletionMember 2018-07-01 2018-09-30 0001603923 wft:WellConstructionMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:ProductionMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:ProductionMember 2019-07-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:ProductionMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember 2019-07-01 2019-09-30 0001603923 wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:A606revenueMember 2019-07-01 2019-09-30 0001603923 wft:WellConstructionMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:WellConstructionMember 2019-07-01 2019-09-30 0001603923 wft:CompletionMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:CompletionMember 2019-07-01 2019-09-30 0001603923 wft:CompletionMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:CompletionMember 2018-01-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember 2018-01-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:CompletionMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:ProductionMember 2018-01-01 2018-09-30 0001603923 wft:WellConstructionMember 2018-01-01 2018-09-30 0001603923 wft:DrillingandEvaluationMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:WellConstructionMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:A606revenueMember 2018-01-01 2018-09-30 0001603923 wft:ProductionMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:WellConstructionMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:ProductionMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:CompletionMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:ServiceRevenueMember 2021-01-01 2019-09-30 0001603923 wft:ServiceRevenueMember 2022-01-01 2019-09-30 0001603923 wft:ServiceRevenueMember 2020-01-01 2019-09-30 0001603923 wft:ServiceRevenueMember 2019-04-01 2019-09-30 0001603923 wft:ServiceRevenueMember 2023-01-01 2019-09-30 0001603923 wft:ServiceRevenueMember 2019-09-30 0001603923 wft:ProductionMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:A606revenueMember 2019-01-01 2019-09-30 0001603923 wft:ProductionMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:ProductionMember 2019-01-01 2019-09-30 0001603923 wft:WellConstructionMember 2019-01-01 2019-09-30 0001603923 wft:CompletionMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:CompletionMember 2019-01-01 2019-09-30 0001603923 wft:WellConstructionMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:WellConstructionMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:DrillingandEvaluationMember 2019-01-01 2019-09-30 0001603923 wft:CompletionMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:EuropeSubSaharaAfricaRussiaMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 country:CA wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:MiddleEastandNorthAfricaMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 srt:AsiaMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:CombinedCompanySegment606RevenueMember 2019-07-01 2019-09-30 0001603923 srt:LatinAmericaMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 srt:AsiaMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:EuropeSubSaharaAfricaRussiaMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 country:US wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 country:CA wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 srt:AsiaMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 country:CA wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 srt:AsiaMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 srt:LatinAmericaMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 country:US wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:MiddleEastandNorthAfricaMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 wft:EuropeSubSaharaAfricaRussiaMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 srt:LatinAmericaMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 country:US wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 country:CA wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 wft:MiddleEastandNorthAfricaMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 wft:MiddleEastandNorthAfricaMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 wft:EuropeSubSaharaAfricaRussiaMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 srt:LatinAmericaMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 country:US wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 srt:ScenarioForecastMember 2020-06-30 0001603923 us-gaap:MaterialReconcilingItemsMember 2019-07-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:WesternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:EasternHemisphereMember 2019-07-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:WesternHemisphereMember 2018-07-01 2018-09-30 0001603923 us-gaap:OperatingSegmentsMember 2018-07-01 2018-09-30 0001603923 us-gaap:MaterialReconcilingItemsMember 2018-07-01 2018-09-30 0001603923 us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:EasternHemisphereMember 2018-07-01 2018-09-30 0001603923 us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001603923 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001603923 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:WesternHemisphereMember 2019-01-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:EasternHemisphereMember 2019-01-01 2019-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:WesternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:OperatingSegmentsMember wft:EasternHemisphereMember 2018-01-01 2018-09-30 0001603923 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001603923 us-gaap:OperatingSegmentsMember 2018-01-01 2018-09-30 0001603923 us-gaap:MaterialReconcilingItemsMember 2018-01-01 2018-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001603923 srt:ConsolidationEliminationsMember 2019-01-01 2019-09-30 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001603923 wft:WeatherfordIrelandParentCompanyMember 2019-01-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2019-01-01 2019-09-30 0001603923 srt:NonGuarantorSubsidiariesMember 2019-01-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2019-01-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2018-12-31 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-12-31 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001603923 srt:ConsolidationEliminationsMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2018-12-31 0001603923 srt:NonGuarantorSubsidiariesMember 2018-12-31 0001603923 wft:WeatherfordIrelandParentCompanyMember 2018-12-31 0001603923 wft:WeatherfordIrelandParentCompanyMember 2018-07-01 2018-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2018-07-01 2018-09-30 0001603923 srt:NonGuarantorSubsidiariesMember 2018-07-01 2018-09-30 0001603923 srt:ConsolidationEliminationsMember 2018-07-01 2018-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2018-07-01 2018-09-30 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2017-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001603923 srt:ConsolidationEliminationsMember 2018-01-01 2018-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001603923 srt:ConsolidationEliminationsMember 2018-06-30 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-06-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0001603923 srt:ConsolidationEliminationsMember 2017-12-31 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2018-01-01 2018-09-30 0001603923 wft:WeatherfordIrelandParentCompanyMember 2018-01-01 2018-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2018-01-01 2018-09-30 0001603923 srt:NonGuarantorSubsidiariesMember 2018-01-01 2018-09-30 0001603923 srt:NonGuarantorSubsidiariesMember 2019-07-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2019-07-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2019-07-01 2019-09-30 0001603923 srt:ConsolidationEliminationsMember 2019-07-01 2019-09-30 0001603923 wft:WeatherfordIrelandParentCompanyMember 2019-07-01 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes8.25Percentdue2023Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes4.50Percentdue2022Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes9.875Percentdue2025Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes9.875Percentdue2024Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember wft:SeniorNotes6.80Percentdue2037Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes5.125Percentdue2020Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes7.75Percentdue2021Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes7.00Percentdue2038Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes6.50Percentdue2036Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes6.75Percentdue2040Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:ExchangeableSeniorNotes5.875Percentdue2021Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes5.95Percentdue2042Member us-gaap:SeniorNotesMember 2019-09-30 0001603923 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001603923 srt:ConsolidationEliminationsMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001603923 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember 2019-09-30 0001603923 wft:WeatherfordIrelandParentCompanyMember 2019-09-30 0001603923 srt:NonGuarantorSubsidiariesMember 2019-09-30 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes7.00Percentdue2038Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordBermudaMember wft:SeniorNotes6.80Percentdue2037Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes5.125Percentdue2020Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes7.75Percentdue2021Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes9.875Percentdue2024Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes9.625Percentdue2019Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes5.95Percentdue2042Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes9.875Percentdue2039Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes4.50Percentdue2022Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes6.75Percentdue2040Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes8.25Percentdue2023Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:ExchangeableSeniorNotes5.875Percentdue2021Member us-gaap:SeniorNotesMember 2018-12-31 0001603923 wft:GuarantorSubsidiariesWeatherfordDelawareMember wft:SeniorNotes6.50Percentdue2036Member us-gaap:SeniorNotesMember 2018-12-31 wft:lawsuit xbrli:pure wft:patent xbrli:shares iso4217:USD iso4217:USD xbrli:shares

            

 
UNITED STATES
 
 
SECURITIES AND EXCHANGE COMMISSION
 
 
WASHINGTON, D.C. 20549
 
(Mark One)
 
Form
10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the quarterly period ended
September 30, 2019
 
 
 
 
or
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the transition period from __________________________________to __________________________________
 
 
Commission file number
001-36504
 
 
Weatherford International public limited company
(Exact Name of Registrant as Specified in Its Charter)
Ireland
 
98-0606750
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
 
 
2000 St. James Place
,
Houston
,
Texas
 
77056
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s Telephone Number, Including Area Code: 713.836.4000
 
N/A
 
 
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Ordinary shares, $0.001 par value per share
WFTIQ
New York Stock Exchange

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 ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                                     Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
þ
 
Accelerated filer
 
Non-accelerated filer
 
Smaller reporting company
 
Emerging growth company
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes 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 October 15, 2019, there were 1,004,200,634 Weatherford ordinary shares, $0.001 par value per share, outstanding.




Weatherford International public limited company
Form 10-Q for the Third Quarter and Nine Months Ended September 30, 2019

TABLE OF CONTENTS
PAGE
 
 
 
 
 


1


Table of Contents

PART I FINANCIAL INFORMATION
Item 1. Financial Statements.

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars and shares in millions, except per share amounts)
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Products
$
467

 
$
508

 
$
1,461

 
$
1,471

Services
847

 
936

 
2,508

 
2,844

Total Revenues
1,314

 
1,444

 
3,969

 
4,315

 
 
 
 
 
 
 
 
Costs and Expenses:
 
 
 
 
 
 
 
Cost of Products
408

 
499

 
1,343

 
1,378

Cost of Services
599

 
606

 
1,765

 
2,015

Research and Development
35

 
31

 
107

 
106

Selling, General and Administrative Attributable to Segments
201

 
192

 
615

 
591

Corporate General and Administrative
31

 
31

 
95

 
101

Goodwill Impairment
399

 

 
730

 

Prepetition Charges

 

 
86

 

Asset Write-Downs and Other
42

 
71

 
120

 
159

Transformation, Facility Restructuring and Severance Charges
53

 
27

 
93

 
90

Gain on Operational Assets Sale
(15
)
 

 
(15
)
 

(Gain) Loss on Sale of Businesses, Net
8

 

 
(104
)
 

Total Costs and Expenses
1,761

 
1,457

 
4,835

 
4,440

 
 
 
 
 
 
 
 
Operating Loss
(447
)
 
(13
)
 
(866
)
 
(125
)
 
 
 
 
 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
Reorganization Items
(303
)
 

 
(303
)
 

Interest Expense, Net (Unrecognized Contractual Interest Expense was $133 million for three months ended September 30, 2019)
(26
)
 
(156
)
 
(341
)
 
(457
)
Warrant Fair Value Adjustment

 
11

 

 
67

Bond Tender and Call Premium

 

 

 
(34
)
Currency Devaluation Charges

 
(8
)
 

 
(45
)
Other Expense, Net
(8
)
 
(6
)
 
(18
)
 
(21
)
 
 
 
 
 
 
 
 
Loss Before Income Taxes
(784
)
 
(172
)
 
(1,528
)
 
(615
)
Income Tax Provision
(31
)
 
(22
)
 
(76
)
 
(80
)
Net Loss
(815
)
 
(194
)
 
(1,604
)
 
(695
)
Net Income Attributable to Noncontrolling Interests
6

 
5

 
14

 
13

Net Loss Attributable to Weatherford
$
(821
)
 
$
(199
)
 
$
(1,618
)
 
$
(708
)
 
 
 
 
 
 
 
 
Loss Per Share Attributable to Weatherford:
 
 
 
 
 
 
 
Basic & Diluted
$
(0.82
)
 
$
(0.20
)
 
$
(1.61
)
 
$
(0.71
)
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
Basic & Diluted
1,004

 
998

 
1,004

 
996


The accompanying notes are an integral part of these condensed consolidated financial statements.
2


Table of Contents

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars in millions)
2019
 
2018
 
2019
 
2018
Net Loss
$
(815
)
 
$
(194
)
 
$
(1,604
)
 
$
(695
)
 
 
 
 
 
 
 
 
Currency Translation Adjustments
(28
)
 
(9
)
 
35

 
(170
)
Defined Benefit Pension Activity

 

 

 
1

Interest Rate Derivative Loss
8

 

 
8

 

Other Comprehensive Income (Loss)
(20
)
 
(9
)
 
43

 
(169
)
Comprehensive Loss
(835
)
 
(203
)
 
(1,561
)
 
(864
)
Comprehensive Income Attributable to Noncontrolling Interests
6

 
5

 
14

 
13

Comprehensive Loss Attributable to Weatherford
$
(841
)
 
$
(208
)
 
$
(1,575
)
 
$
(877
)

The accompanying notes are an integral part of these condensed consolidated financial statements.
3


Table of Contents

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONDENSED CONSOLIDATED BALANCE SHEETS
 
September 30,
 
December 31,
(Dollars and shares in millions, except par value)
2019
 
2018
 
(Unaudited)
 
 
Assets:
 
 
 
Cash and Cash Equivalents
$
676

 
$
602

Restricted Cash
374

 

Accounts Receivable, Net of Allowance for Uncollectible Accounts of $110 at September 30, 2019 and $123 at December 31, 2018
1,277

 
1,130

Inventories, Net
1,126

 
1,025

Other Current Assets
466

 
428

Assets Held for Sale
5

 
265

Total Current Assets
3,924

 
3,450

 
 
 
 
Property, Plant and Equipment, Net of Accumulated Depreciation of $5,932 at September 30, 2019 and $5,786 at December 31, 2018
1,881

 
2,086

Goodwill

 
713

Other Non-Current Assets
519

 
352

Total Assets
$
6,324

 
$
6,601

 
 
 
 
Liabilities:
 
 
 
Debtor in Possession Financing
$
1,386

 
$

Short-term Borrowings and Current Portion of Long-term Debt
320

 
383

Accounts Payable
627

 
732

Accrued Salaries and Benefits
250

 
249

Income Taxes Payable
197

 
214

Other Current Liabilities
600

 
722

Total Current Liabilities
3,380

 
2,300

 
 
 
 
Long-term Debt
59

 
7,605

Other Non-Current Liabilities
475

 
362

Total Liabilities Not Subject to Compromise
3,914

 
10,267

 
 
 
 
Liabilities Subject to Compromise
7,634

 

 
 
 
 
Shareholders’ Deficiency:
 
 
 
Shares - Par Value $0.001; Authorized 1,356 shares, Issued and Outstanding 1,004 shares at September 30, 2019 and 1,002 shares at December 31, 2018
$
1

 
$
1

Capital in Excess of Par Value
6,729

 
6,711

Retained Deficit
(10,289
)
 
(8,671
)
Accumulated Other Comprehensive Loss
(1,703
)
 
(1,746
)
Weatherford Shareholders’ Deficiency
(5,262
)
 
(3,705
)
Noncontrolling Interests
38

 
39

Total Shareholders’ Deficiency
(5,224
)
 
(3,666
)
Total Liabilities and Shareholders’ Deficiency
$
6,324

 
$
6,601

 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4


Table of Contents

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
Nine Months Ended September 30,
(Dollars in millions)
2019
 
2018
Cash Flows From Operating Activities:
 
 
 
Net Loss
$
(1,604
)
 
$
(695
)
Adjustments to Reconcile Net Loss to Net Cash From Operating Activities:
 
 
 
Depreciation and Amortization
357

 
419

Goodwill Impairment
730

 

Reorganization Items (Non-Cash)
134

 

Reorganization Items (Debtor in Possession Financing and Backstop Agreement)
110

 

Employee Share-Based Compensation Expense
19

 
38

Asset Write-Downs and Other
108

 
253

Gain on Sale Businesses, Net
(104
)
 

Bond Tender and Call Premium

 
34

Currency Devaluation Charges

 
45

Warrant Fair Value Adjustment

 
(67
)
Other Net Income Adjustments
42

 
(56
)
Change in Operating Assets and Liabilities, Net of Effect of Businesses Acquired:
 
 
 
Accounts Receivable
(147
)
 
(101
)
Inventories
(152
)
 
33

Accounts Payable
(105
)
 
(90
)
Other, Net
(67
)
 
(160
)
Net Cash Used in Operating Activities
(679
)
 
(347
)
 
 
 
 
Cash Flows From Investing Activities:
 
 
 
Capital Expenditures for Property, Plant and Equipment
(177
)
 
(141
)
Acquisitions of Businesses, Net of Cash Acquired

 
4

Acquisition of Intellectual Property
(12
)
 
(11
)
Proceeds from Sale of Assets
80

 
70

Proceeds from Sale of Businesses, Net
319

 
37

Net Cash Provided by (Used in) Investing Activities
210

 
(41
)
 
 
 
 
Cash Flows From Financing Activities:
 
 
 
Borrowings (Repayments) of Debtor in Possession Credit Agreement, Net
1,386

 

Debtor in Possession Financing Fees and Payments on Backstop Agreement
(110
)
 

Borrowings of Long-term Debt

 
586

Repayments of Long-term Debt
(317
)
 
(471
)
Borrowings (Repayments) of Short-term Debt, Net
(25
)
 
170

Bond Tender Premium

 
(34
)
Other Financing Activities
(17
)
 
(28
)
Net Cash Provided by Financing Activities
917

 
223

Effect of Exchange Rate Changes on Cash and Cash Equivalents

 
(55
)
 
 
 
 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
448

 
(220
)
Cash and Cash Equivalents at Beginning of Period
602

 
613

Cash, Cash Equivalents and Restricted Cash at End of Period
$
1,050

 
$
393

 
 
 
 
Supplemental Cash Flow Information:
 
 
 
Interest Paid
$
248

 
$
439

Income Taxes Paid, Net of Refunds
$
65

 
$
87

Non-cash Financing Obligations
$
14

 
$
23

 

The accompanying notes are an integral part of these condensed consolidated financial statements.
5


Table of Contents
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (DEBTOR IN POSSESSION)


1.  General

The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company,” “Weatherford” or “Weatherford Ireland”) are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include all adjustments, consisting of normal recurring adjustments, which in our opinion, are considered necessary to present fairly our Condensed Consolidated Balance Sheets at September 30, 2019 and December 31, 2018, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2019 and 2018 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018. When using phrases such as “we,” “us,” and “our,” the intent is to refer to Weatherford International plc, a public limited company organized under the laws of Ireland, and its subsidiaries as a whole or on a regional basis, depending on the context in which the statements are made.
Although we believe the disclosures in these financial statements are adequate, certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP 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, 2018 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the year ending December 31, 2019 for which we expect to file the related Annual Report on Form 10-K as an accelerated filer, our first period affected by the change in filing status based on our public float as of the last business day of our second fiscal quarter of 2019.
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities.

On an on-going basis, we evaluate our estimates and assumptions, including those related to uncollectible accounts receivable, lower of cost or net realizable value of inventories, assets and liabilities held for sale, derivative financial instruments, intangible assets and goodwill, property, plant and equipment (“PP&E”), right-of-use (“ROU”) lease assets, income taxes, accounting for long-term contracts, self-insurance, foreign currency exchange rates, lease liabilities, pension and post-retirement benefit plans, disputes, litigation, contingencies and share-based compensation. We base our estimates on historical experience, adjusted for current conditions if necessary, 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

We consolidate all wholly owned subsidiaries and controlled joint ventures. All material intercompany accounts and transactions have been eliminated in consolidation.

Bankruptcy Accounting

The consolidated financial statements included herein have been prepared as if we were a going concern and in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 852 – Reorganizations (“ASC 852”.) See “Note 2 – Chapter 11 Proceedings and Ability to Continue as a Going Concern” for additional details regarding the bankruptcy. As a result, we have segregated liabilities and obligations whose treatment and satisfaction are dependent on the outcome of the Chapter 11 proceedings and have classified these items as “Liabilities Subject to Compromise” on our Condensed Consolidated Balance Sheets. In addition, we have classified all income, expenses, gains or losses that were incurred or realized as a result of the Chapter 11 proceedings since filing as “Reorganization Items” in our Condensed Consolidated Statements of Operations.

In accordance with ASC 852, the Company anticipates it will be required to adopt fresh start accounting (“Fresh Start Accounting”) upon its emergence from Chapter 11, becoming a new entity for financial reporting because (i) the holders of the

6


Table of Contents

then existing ordinary shares of the predecessor company received less than 50% of the new ordinary shares of the successor company outstanding upon emergence and (ii) the reorganization value of the Company’s assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims. Upon adoption of Fresh Start Accounting, the reorganization value derived from the enterprise value as disclosed in the Plan will be allocated to the Company’s assets and liabilities based on their fair values (except for deferred income taxes) in accordance with ASC 805, Business Combinations. The amount of deferred income taxes to be recorded will be determined in accordance with ASC 740, Income Taxes. The Plan Effective Date fair values of the Company’s assets and liabilities may differ materially from their recorded values as reflected on the historical balance sheet.

Reclassifications

Certain reclassifications of the financial statements and accompanying footnotes for the three and nine months ended September 30, 2018 have been made to conform to the presentation for the three and nine months ended September 30, 2019. See “Note 3 – New Accounting Pronouncements” for additional details regarding accounting changes impacting the Condensed Consolidated Financial Statements.

2. Chapter 11 Proceedings and Ability to Continue as a Going Concern

Voluntary Reorganization Under Chapter 11 of the U.S. Bankruptcy Code

On July 1, 2019 (“Petition Date”), Weatherford Ireland, Weatherford International Ltd. (“Weatherford Bermuda”), and Weatherford International, LLC (“Weatherford Delaware”) (collectively, “Weatherford Parties,” or “Debtors”), filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). The Debtors obtained joint administration of their Chapter 11 cases under the caption In re Weatherford International plc, et al., Case No. 19-33694 (“Cases”). On June 28, 2019, the Debtors commenced a solicitation for acceptance of their prepackaged plan of reorganization (“Plan”) by causing the Plan and the corresponding disclosure statement to be distributed to certain creditors of the Company that were entitled to vote on the Plan. On September 11, 2019 the Plan, as amended, was confirmed by the Bankruptcy Court.

Weatherford Ireland filed a petition on September 23, 2019 under the Irish Companies Act 2014 in Ireland (“Irish Examinership Proceeding”) to seek approval for its scheme of arrangement following confirmation of the Plan in the U.S. The filing of the Irish Examinership Proceeding commenced a 100-calendar day protection period under Irish law, during which Weatherford Ireland will have the benefit of protection against enforcement and other actions by its creditors. Weatherford Ireland intends to continue operating its business in the ordinary course during the protection period. It is anticipated that the terms of the Irish scheme will mirror the terms of the Plan.

Weatherford Bermuda has commenced provisional liquidation proceedings (“Bermuda Proceedings”) pursuant to the Bermuda Companies Act 1981 by presenting a winding up petition to the Supreme Court of Bermuda (“Bermuda Court”). The Bermuda Court appointed a provisional liquidator who acts as an officer of the Bermuda Court, and is required under the Bermuda Court’s order to report from time to time on the progress of the Bermuda Proceedings. The provisional liquidator will have the power to oversee Weatherford Bermuda’s restructuring process. The Debtors’ management team and board of directors will remain in control of Weatherford Bermuda’s day-to-day operations and its Cases. The appointment of the provisional liquidator provided an automatic statutory stay of proceedings in Bermuda against Weatherford Bermuda and its assets. On the return date of September 6, 2019 for the Bermuda petition – similar to a second day hearing in a Chapter 11 proceeding – Weatherford Bermuda postponed its petition for a specified period, while the Cases are administered. Before the Debtors emerge from Chapter 11, Weatherford Bermuda may, along with the provisional liquidator and subject to the direction of the Bermuda Court, convene meetings of the impaired creditors in order to consider and approve, if appropriate, a scheme of arrangement pursuant to the Bermuda Companies Act 1981. It is anticipated that the terms of the Bermuda scheme will mirror the terms of the Plan and once properly approved, is a mechanism for ensuring that all of the impaired creditors of Weatherford Bermuda are bound by the terms of the Bermuda scheme. On October 25, 2019, Weatherford Bermuda filed its originating summons with the Bermuda Court.

Our remaining non-debtor affiliates that have not filed voluntary petitions under the Bankruptcy Code will continue operating their businesses and facilities without disruption to customers, vendors, partners or employees. The Plan and first day relief provide that vendors and other unsecured creditors who continue to work with the non-debtor affiliates on existing terms will be paid in full and in the ordinary course of business (in the case of creditors of the Debtors, following consummation of the Plan). All existing customer and vendor contracts continue to remain in place and be serviced in the ordinary course of business.

7


Table of Contents


Subject to certain exceptions, under the Bankruptcy Code, the filing of the Cases automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to recover, collect or secure a claim arising prior to the date of the Cases. In addition, all of the Debtors’ prepetition unsecured senior notes and related unpaid interest are liabilities subject to compromise, further discussed below. Since the commencement of the Cases, the Debtors have continued to operate their businesses as debtors in possession under the jurisdiction of and in accordance with the applicable provisions of the Bankruptcy Code, orders of the Bankruptcy Court, the Irish Examinership Proceeding and the Bermuda Proceeding.

Restructuring Support Agreement

On May 10, 2019, the Debtors entered into the Restructuring Support Agreement (“RSA”) with certain holders of our unsecured notes (“Consenting Creditors”). The RSA sets forth, subject to certain conditions, the terms of the capital financial restructuring of the Company (“Transaction”).

On August 23, 2019, the Debtors entered into the second amendment of the RSA (the “Second RSA Amendment”) with certain of the noteholders, and certain equity holders who collectively hold approximately 208 million shares of the Weatherford’s outstanding ordinary shares (the “Consenting Equity Holders”) which joins the Consenting Equity Holders as parties to the RSA. In addition, it provided for the payment of $250 thousand (included in Professional Fees of the Reorganization Items table later in this footnote) to the Consenting Equity Holders’ counsel and amended the terms of the new warrants to be issued under the Plan to the holders of the Company’s existing ordinary shares. The amended new warrant terms include extending the maturity date of the warrants to four years after the effective date of the Plan and reduced the exercise price. 

On September 9, 2019, the Debtors and certain of the noteholders entered into a third amendment to the RSA (the “Third RSA Amendment”). Pursuant to the terms of the Third RSA Amendment the Debtors will issue a single tranche of up to $2.1 billion aggregate principal amount of new unsecured notes (“Exit Notes”) upon emergence from bankruptcy, consisting of up to $1.6 billion of Exit Notes issued for cash to holders of subscription rights issued in a rights offering (the “Rights Offering Notes”) and to holders of Unsecured Notes Claims and $500 million of Exit Notes issued on a pro rata basis (the “Takeback Notes”). The Exit Notes will be issued in lieu of the two tranches of new unsecured notes in aggregate principal amount of $2.5 billion previously contemplated by the original RSA. The Exit Notes will bear interest at a rate of 11% per annum and will otherwise generally have the terms set forth in the form of New Senior Unsecured Notes Indenture (“Notes Indenture”) with modifications to reflect the amendments contemplated by the Third RSA Amendment, the removal of the 125% of Consolidated Cash Flow prong in the Notes Indenture and the addition of a covenant requiring the Company to use commercially reasonable efforts to obtain and maintain a rating for the Exit Notes from both Standard & Poor’s and Moody’s Investors Service.

On September 11, 2019, the Transaction was approved through the confirmation of the Plan filed in the Cases.

The amended RSA and the confirmed Plan contemplates a comprehensive deleveraging of our balance sheet and provides, in pertinent part, as follows (as further described in later paragraphs):

Our existing unsecured notes will be cancelled and exchanged for 99% of the ordinary shares of the reorganized Company (“New Common Stock”) and the Debtors will issue a single tranche of up to $2.1 billion aggregate principal amount of new Exit Notes upon emergence from bankruptcy, consisting of up to $1.6 billion of Rights Offering Notes (fully backstopped by Commitment Parties in the Backstop Commitment Agreement) issued for cash to holders of subscription rights issued in a rights offering and $500 million of Takeback Notes issued on a pro rata basis with a five-year maturity.

On July 3, 2019, our secured Term Loan facility and 364-day Revolving Credit Facility were repaid in full with borrowings from the DIP Credit Agreement, also entered into the same day. We expect to repay the DIP Credit Agreement and A&R Credit Agreement in full with proceeds from the exit financing to include the Rights Offering Notes and a combination of credit facilities in the principal amount of up to $600 million upon the effective date of the Plan.

All trade claims against the Company whether arising prior to or after the commencement of the Cases will be paid in full in the ordinary course of business.


8


Table of Contents

Our existing equity will be cancelled and exchanged for 1% of the New Common Stock and four-year warrants to purchase 10% of the New Common Stock, both subject to dilution on account of the equity issued pursuant to the management incentive plan. The strike price of the warrants is expected to be set at an equity value at which the noteholders would receive a recovery equal to par as of the date of the commencement of the Cases in respect of the existing unsecured notes and all other general unsecured claims that are pari passu with the existing unsecured notes.

The RSA includes certain milestones for the progress of the Cases, which include the dates by which the Weatherford Parties are required to, among other things, obtain certain court orders and complete the Transaction. In addition, the parties to the RSA will have the right to terminate the RSA and their support for the Transaction under certain circumstances, including, in the case of the Weatherford Parties, if the board of directors of any Weatherford Party determines in good faith that performance under the RSA would be inconsistent with its fiduciary duties.

Payments Due on Certain Indebtedness

The Debtors’ 7.75% Senior Notes due 2021, 8.25% Senior Notes due 2023 and 6.80% Senior Notes due 2037 (together, “Certain Senior Notes”) provide for an aggregate $69 million interest payment that became due on June 15, 2019. The applicable indenture governing the Certain Senior Notes provides a 30-day grace period that extended the latest date for making this interest payment to July 16, 2019, before an event of default would occur under the applicable indenture. The Debtors elected to not make this interest payment on the due date and to utilize the 30-day grace period provided by the indentures. As a result of filing the Cases on July 1, 2019, an event of default occurred under each indenture governing these unsecured notes, which automatically accelerated maturity of the principal, plus any accrued and unpaid interest, on such series of unsecured notes and certain other obligations of the Debtors. Any efforts to enforce such payment obligations under the unsecured notes or other accelerated obligations of the Debtors are automatically stayed as a result of the Cases, and the creditors’ rights of enforcement in respect of the unsecured notes and other accelerated obligations of the Debtors are subject to the applicable provisions of the Bankruptcy Code. The interest and principal on this indebtedness remains unpaid as of this report date. In addition, all of the Debtors’ prepetition unsecured senior notes and related unpaid interest are now classified as “Liabilities Subject to Compromise” on our Condensed Consolidated Balance Sheets.

The Debtors’ Term Loan Agreement required a quarterly payment of $12.5 million plus interest that became due on June 30, 2019. On July 1, 2019, the Debtors and the Term Loan Lenders entered into a Term Loan Forbearance Agreement where the lenders agreed to forbear from exercising their rights and remedies available to them, including the right to accelerate any indebtedness, for a specified period of time. As of July 3, 2019, all unpaid principal and interest under the Term Loan Agreement were repaid in full. See discussion below.

Forbearance Agreements

On July 1, 2019, the Debtors and the Credit Agreement Lenders under the Amended and Restated Credit Agreement (the “A&R Credit Agreement”), dated as of May 9, 2016, among WOFS Assurance Limited and Weatherford Bermuda, as borrowers, the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto entered into a forbearance agreement (the “Credit Agreement Forbearance Agreement”) with respect to certain defaults under the A&R Credit Agreement, including those arising from the Debtors’ commencement of the Cases. Specifically, under the Credit Agreement Forbearance Agreement, the Credit Agreement Lenders agreed to forbear from exercising their rights and remedies available to them due to the Specified Defaults defined in the agreement, including the right to accelerate any indebtedness, for a specified period of time. Under the terms of the Credit Agreement Forbearance Agreement, the Debtors paid a fee for the ratable account of the Credit Agreement Lenders in an amount equal to 0.25% on the outstanding principal amount of the loans and total letter of credit exposure under the A&R Credit Agreement. Additionally, (i) to the extent such entities were not already guarantors under the A&R Credit Agreement, all subsidiaries of the Company who are guarantors under the DIP Credit Agreement (defined below) joined as guarantors under the A&R Credit Agreement and (ii) all U.S. and Canadian subsidiaries of the Company granted a second lien security interest in favor of the Credit Agreement Lenders in the same assets that such U.S. and Canadian subsidiaries pledged a first lien security interest in under the DIP Credit Agreement; provided that the aggregate amount of the guaranteed obligations to be secured under the A&R Credit Agreement did not exceed $100 million; and provided, further, that if the obligations under the A&R Credit Agreement are not paid in full by November 30, 2019, such second lien security interest of the Credit Agreement Lenders shall automatically transition from second liens to pari passu liens with the liens under the DIP Credit Agreement.

On July 1, 2019, the Debtors and the Term Loan Lenders under the Term Loan Agreement, dated as of May 4, 2016, among Weatherford Bermuda, as borrower, the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from

9


Table of Contents

time to time party thereto (the “Term Loan Agreement”) entered into a forbearance agreement (the “Term Loan Forbearance Agreement”) with respect to certain defaults under the Term Loan Agreement. Specifically, under the Term Loan Forbearance Agreement, the Term Loan Lenders agreed to forbear from exercising their rights and remedies available to them due to the Specified Defaults defined in the agreement, including the right to accelerate any indebtedness, for a specified period of time. On July 3, 2019, the Company repaid in full its outstanding indebtedness under the Term Loan.

On July 1, 2019, the Debtors and the 364-Day Lenders under the 364-Day Revolving Credit Agreement, dated August 16, 2018, among Weatherford Bermuda, as borrower, the other borrowers party thereto, the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto (“364-Day Credit Agreement”) entered into a forbearance agreement (the “364-Day Revolving Forbearance Agreement”) with respect to certain defaults under the 364-Day Credit Agreement. Specifically, under the 364-Day Revolving Forbearance Agreement, the 364-Day Lenders agreed to forbear from exercising their rights and remedies available to them due to the Specified Defaults defined in the agreement, including the right to accelerate any indebtedness, for a specified period of time. On July 3, 2019, the Company repaid in full its outstanding indebtedness under the 364-Day Revolving Credit Agreement.

On July 1, 2019, the Debtors and three lenders under the DIP Credit Agreement (the “Swap Counterparties”) each party to a hedging agreement with Weatherford Bermuda for the purpose of hedging foreign currency exposure incurred by the Weatherford Parties (each, a “Swap Agreement” and, collectively, the “Swap Agreements”) entered into a consent to swap agreement termination forbearance (the “Swap Forbearance Agreement”) with respect to certain defaults under the Swap Agreements. Specifically, under the Swap Forbearance Agreement, the Swap Counterparties agreed to forbear from exercising their rights and remedies available to them due to certain Events of Default and Termination Events defined in the agreements for a specified period of time. On July 3, 2019, the Weatherford Parties entered into amended and restated Swap Agreements with such Swap Counterparties to govern existing and future foreign currency transactions entered into with such Swap Counterparties.

Backstop Commitment Agreement

On July 1, 2019, the Weatherford Parties and the commitment parties thereto (the “Initial Commitment Parties”) entered into a Backstop Commitment Agreement. Pursuant to the terms of the Plan, and subject to approval by the Bankruptcy Court in connection with confirmation of the Plan, the Company intends to offer to holders of its existing unsecured notes, including the Commitment Parties, subscription rights to purchase the Exit Notes in aggregate principal amount of $1.25 billion, upon the Company’s emergence from bankruptcy. On September 9, 2019, the Weatherford Parties, certain of the Initial Commitment Parties and certain additional commitment parties (the “Additional Commitment Parties” and, together with the Initial Commitment Parties, the “Commitment Parties”) entered into an amendment to the Backstop Commitment Agreement. The Backstop Commitment Agreement Amendment provides for (i) the joinder of the Additional Commitment Parties to the Backstop Commitment Agreement, (ii) the increase in the backstop commitment by $350 million (the “Increased Commitment”) from $1.25 billion to up to $1.6 billion, and (iii) an amendment to the Backstop Commitment Agreement to account for the changes reflected in the Third RSA Amendment.

Subject to the terms and conditions contained in the Backstop Commitment Agreement, the Consenting Creditors agreed to purchase any Exit Notes that are not duly subscribed for pursuant to the rights offering at a price equal to $1,000 per $1,000 in principal amount of the Exit Notes purchased by such Commitment Party. On July 1, 2019, as consideration for the commitment, the Weatherford Parties made an aggregate payment of $62.5 million in cash to the Commitment Parties. Except under certain circumstances set forth in the Backstop Commitment Agreement, the payment is non-refundable, regardless of the principal amount of unsubscribed Exit Notes (if any) purchased by the Commitment Parties. As consideration for the Increased Commitment agreed to on September 9, 2019, the Weatherford Parties will make an aggregate payment of $18.7 million in cash to certain of the Commitment Parties upon our emergence date. Subject to certain termination rights, the payment is non-refundable, regardless of the principal amount of unsubscribed Exit Notes (if any) purchased by the Commitment Parties.

The transactions contemplated by the Backstop Commitment Agreement are conditioned upon the satisfaction or waiver of customary conditions for transactions of this nature, including, without limitation, that (i) the Bankruptcy Court shall have approved the rights offering, (ii) the Bankruptcy Court shall have confirmed the Plan and (iii) the rights offering shall have been conducted, in all material respects, in accordance with the approval of the Bankruptcy Court, the Plan and the Backstop Commitment Agreement.


10


Table of Contents

Debtor in Possession Credit Agreement

On July 3, 2019, the Weatherford Parties entered into a senior secured superpriority debtor in possession credit agreement (the “DIP Credit Agreement”). The DIP Credit Agreement has two debtor in possession (“DIP”) facilities to provide liquidity during the pendency of the Cases. The facilities consist of (a) a DIP revolving credit facility in the principal amount of up to $750 million provided by banks or other lenders and (b) a DIP term loan facility in the amount of up to $1.0 billion, which is fully backstopped by the Consenting Creditors. The DIP Credit Agreement will mature on the earlier of (i) the date that is 12 months after the Weatherford Parties’ entry into the DIP Credit Agreement or (ii) the date of completion of the Transaction. The DIP Credit Agreement bears interest (i) with respect to Eurodollar borrowings, based on an adjusted LIBOR rate plus an applicable margin of 3.00%, with a 0.00% LIBOR floor and (ii) with respect to alternate base rate borrowings, a base rate plus an applicable margin of 2.00%. In addition to paying interest on outstanding principal amounts under the DIP Credit Agreement, the Debtors will be required to pay an unused commitment fee to the revolving facility lenders in respect of the unutilized DIP revolving facility commitments at a rate equal to 0.375% per annum on the average daily amount of the unutilized revolving facility commitments.

The DIP Credit Agreement has a minimum liquidity covenant of $150 million and is secured by substantially all the personal assets and properties of the Debtors and certain of their subsidiaries. The DIP Credit Agreement is also guaranteed on an unsecured basis by certain other subsidiaries of the Debtors. At September 30, 2019, we were in compliance with our covenants under the DIP Credit Agreement.

On July 3, 2019, the Debtors borrowed approximately $1.4 billion under the DIP Credit Agreement and the proceeds of the borrowings under the DIP Credit Agreement were used to repay certain prepetition indebtedness, cash collateralized certain obligations with respect to letters of credit and similar instruments and finance the working capital needs and general corporate purposes of the Debtors and certain of their subsidiaries. On July 3, 2019, the Company repaid all outstanding amounts due under the secured Term Loan Agreement and 364-Day Credit Agreement totaling approximately $616 million with borrowings from our DIP Credit Agreement. In addition, the Company cash collateralized approximately $271 million of letters of credit and similar instruments with borrowings from the DIP Credit Agreement. See “Note 11 – Short-term Borrowings and Other Debt Obligations” for additional details. At September 30, 2019, DIP Credit Agreement borrowings were $1.386 billion.

Liquidity Concerns and Actions to Address Liquidity Needs; Going Concern

Our bond and share price decline, as well as our declining credit ratings, have over time increased the level of uncertainty in our business and have impacted various key stakeholders, including our employees, our customers and suppliers, and our key lenders. Continued weak industry conditions have negatively impacted our results of operations and cash flows and may continue to do so in the future. In order to decrease our level of indebtedness and maintain the liquidity at levels we believed would be sufficient to meet our commitments, we undertook a number of actions, including minimizing capital expenditures, divesting non-core businesses and further reducing our recurring operating expenses. Ultimately, we concluded, even after taking these actions, we would not have sufficient liquidity to satisfy our debt service obligations and meet other financial obligations as they came due. As a result, on May 10, 2019, we announced the Company’s execution of the RSA and on July 1, 2019 the Debtors filed the Cases. We expect the DIP Credit Agreement should provide sufficient liquidity for the Company during the pendency of the Cases.

Upon emergence, we expect the exit financing to include the backstopped Rights Offering Notes of $1.6 billion and a combination of a contemplated senior secured asset based loan revolving credit facility and a contemplated senior secured revolving credit facility dedicated for letters of credit. On October 28, 2019, the Company entered into a proposal letter pursuant to these facilities. We expect the exit financing will provide the necessary liquidity to repay the outstanding DIP Credit Agreement and A&R Credit Agreement, and will provide the necessary liquidity to conduct ongoing operations, including the credit lines for letters of credits and working capital needs.

Industry conditions and the risks and uncertainties associated with the Cases, raise substantial doubt about our ability to continue as a going concern. The consolidated financial statements have been prepared in conformity with U.S. GAAP which contemplate the continuation of the Company as a going concern. There are no assurances that the Transaction as described in the RSA and the Plan will be completed successfully.

As of September 30, 2019, our unaudited Condensed Consolidated Financial Statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. In addition, our unaudited Condensed Consolidated Financial Statements have been prepared in accordance with ASC 852.


11


Table of Contents

Appeal of New York Stock Exchange Determination to Delist our Ordinary Shares

Our ordinary shares are registered on the New York Stock Exchange (the “NYSE”) and were previously traded on the NYSE under the symbol “WFT.” As a result of our failure to satisfy the continued listing requirements of the NYSE, on May 13, 2019, the NYSE suspended trading in our ordinary shares and commenced procedures to delist us, which the Company has appealed. Following the NYSE’s suspension of trading of our ordinary shares, the Company’s ordinary shares commenced trading on the OTC Bulletin Board or “pink sheets” market on May 14, 2019 under the symbol “WFTIF.” After filing the Cases on July 1, 2019, our ordinary shares began trading under the symbol “WFTIQ.”

Prepetition Charges

Expenses, gains and losses that are realized or incurred before July 1, 2019 and in relation to the Cases are recorded under the caption “Prepetition Charges” on our Condensed Consolidated Statements of Operations. The $86 million of prepetition charges were recorded primarily consisted of professional and other fees related to the Cases.

Reorganization Items

Any expenses, gains and losses that are realized or incurred as of or subsequent to the Petition Date and as a direct result of the Cases are recorded under “Reorganization Items” on our Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2019, “Reorganization Items” were $303 million and consisted of the following items:
(Dollars in millions)
 
September 30, 2019
Unamortized Debt Issuance and Discount Expensed
 
$
126

Unamortized Interest Rate Derivative Loss Expensed
 
8

Reorganization Items (Non-Cash)
 
134

 
 
 
Backstop Commitment Fees
 
81

DIP Financing Fees
 
56

Professional Fees
 
32

Reorganization Items (Fees)
 
169

 
 
 
Total Reorganization Items
 
$
303

 
 
 
Reorganization Items (Fees) Unpaid
 
$
45

Reorganization Items (Fees) Paid
 
$
124




12


Table of Contents

Liabilities Subject to Compromise

The Debtors’ prepetition unsecured senior notes and related unpaid accrued interest as of the Petition Date have been classified as “Liabilities Subject to Compromise” on our Condensed Consolidated Balance Sheets. These liabilities are reported at the amounts expected to be allowed as claims by the Bankruptcy Court, although they may be settled for less. At September 30, 2019, liabilities subject to compromise of $7.6 billion consisted of the notes listed below and unpaid accrued interest as of the Petition Date:
 
September 30,
(Dollars in millions)
2019
5.125% Senior Notes due 2020
$
365

5.875% Exchangeable Senior Notes due 2021
1,265

7.75% Senior Notes due 2021
750

4.50% Senior Notes due 2022
646

8.25% Senior Notes due 2023
750

9.875% Senior Notes due 2024
790

9.875% Senior Notes due 2025
600

6.50% Senior Notes due 2036
453

6.80% Senior Notes due 2037
259

7.00% Senior Notes due 2038
461

9.875% Senior Notes due 2039
250

6.75% Senior Notes due 2040
463

5.95% Senior Notes due 2042
375

Accrued Interest on Senior Notes and Exchangeable Senior Notes
207

Liabilities Subject to Compromise
$
7,634



The principal balance on our Senior Notes and Exchangeable Senior Notes have been reclassified from “Long-term Debt” to “Liabilities Subject to Compromise” as of September 30, 2019. See also “Note 11 – Short-term Borrowings and Other Debt Obligations” for further details. Accrued interest on our Senior Notes and Exchangeable Senior Notes was also reclassified from “Other Current Liabilities” to “Liabilities Subject to Compromise” as of September 30, 2019.

The contractual interest expense on our Senior Notes and Exchangeable Senior Notes is in excess of recorded interest expense on these notes by $133 million for the three and nine months ended September 30, 2019. This excess contractual interest is not included as interest expense on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019, because the Company has discontinued accruing interest on the Senior Notes and Exchangeable Senior Notes subsequent to the Petition Date in accordance with ASC 852. We have not made any interest payments on our Senior Notes and Exchangeable Senior Notes since the commencement of the Cases.

13


Table of Contents

Following are the consolidated financial statements of the entities included in the Cases:

WEATHERFORD INTERNATIONAL PLC DEBTOR ENTITIES (DEBTOR IN POSSESSION)
CONDENSED COMBINED STATEMENTS OF OPERATIONS
(UNAUDITED)

(Dollars in millions)
Three Months Ended September 30, 2019
Revenues
$

Operating Expenses
(39
)
 
 
Operating Loss
(39
)
 
 
Other Expense:
 
Reorganization Items
(303
)
Interest Expense, Net
(26
)
Intercompany Charges for Interest and Dividends
(32
)
Equity in Losses of Subsidiaries
(838
)
Other Expense, Net
(8
)
 
 
Loss Before Income Taxes
(1,246
)
Income Tax Provision

Net Loss
$
(1,246
)



14


Table of Contents




WEATHERFORD INTERNATIONAL PLC DEBTOR ENTITIES (DEBTOR IN POSSESSION)
CONDENSED COMBINED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions)
September 30, 2019
Assets:
 
Cash and Cash Equivalents
$
153

Restricted Cash
146

Income Tax Receivable
529

Total Current Assets
828

 
 
Investment in Subsidiaries
8,539

Intercompany Receivables, Net
1,217

Other Non-Current Assets
6

Total Assets
$
10,590

 
 
Liabilities:
 
Debtor in Possession Financing
$
1,386

Short-term Borrowings and Current Portion of Long-term Debt
310

Accounts Payables and Other Current Liabilities
64

Total Current Liabilities
1,760

 
 
Intercompany Payables, Net
2,902

Other Non-Current Liabilities
7

Total Liabilities Not Subject to Compromise
4,669

 
 
Liabilities Subject to Compromise
7,634

 
 
Debtor Entities Shareholders’ Deficit
(1,713
)
Debtor Entities Total Liabilities and Shareholders’ Deficit
$
10,590


15


Table of Contents


WEATHERFORD INTERNATIONAL PLC DEBTOR ENTITIES (DEBTOR IN POSSESSION)
CONDENSED COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in millions)
Three Months Ended September 30, 2019
Cash Flows From Operating Activities:
 
Net Loss
$
(1,246
)
Adjustments to Reconcile Net Loss to Net Cash From Operating Activities:
 
Reorganization Items
134

Charges from Parent of Subsidiary
32

Equity in Losses of Affiliates
838

Other Assets and Liabilities, Net
(583
)
Net Cash Used in Operating Activities
(825
)
 
 
Cash Flows From Financing Activities:
 
Borrowings from Debtor in Possession Credit Facility, net
1,386

Debtor in Possession Financing Payments and Payments on Backstop Agreement
(110
)
Borrowings (Repayments) of Short-term Debt, Net
(526
)
Other Financing Activities Among Subsidiaries
230

Net Cash Provided by Financing Activities
980

 
 
Net Increase in Cash and Cash Equivalents and Restricted Cash
155

Cash and Cash Equivalents and Restricted Cash at Beginning of Period
144

Cash and Cash Equivalents and Restricted Cash at End of Period
$
299




16


Table of Contents

3. New Accounting Pronouncements

Accounting Changes

Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) issued by the Financial Accounting Standards Board (“FASB”) in February 2016 and the series of related updates that followed (collectively referred to as “Topic 842”), which requires a lessee to recognize a ROU lease asset and lease liability for all qualifying leases with terms longer than twelve months on the balance sheet, including those classified as operating leases under previously existing U.S. GAAP. The ASU also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors.

We elected to adopt Topic 842 using the modified retrospective approach. As such, comparative financial information for prior periods has not been restated and continues to be reported under the previous accounting guidance for those periods. We did not elect the hindsight practical expedient. See “Note 10 – Leases” for additional lease information and practical expedients elected.

The impact of Topic 842 on our consolidated balance sheet beginning January 1, 2019 was through the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases (previously referred to as capital leases) remains substantially unchanged. Amounts recognized at January 1, 2019 for operating leases were as follows:
(Dollars in millions)
Balance at January 1, 2019
Assets and Liabilities:
 
Other Non-Current Assets
$
288

Other Current Liabilities
92

Other Non-Current Liabilities
219



In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We adopted this standard in the first quarter of 2019 and an election was not made to reclassify the income tax effects of the Tax Cuts and Jobs Act from Accumulated Other Comprehensive Income to retained earnings.
 
In July 2017, the FASB issued ASU 2017-11, Part I Accounting for Certain Financial Instruments with Down Round Features, which amends the accounting for certain equity-linked financial instruments and states a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. For an equity-linked financial instrument no longer accounted for as a liability at fair value, the amendments require a down round to be treated as a dividend and as a reduction of income available to ordinary shareholders in basic earnings per share. We adopted this standard in the first quarter of 2019 on a retrospective basis and the adoption did not have a significant impact on our Condensed Consolidated Financial Statements.

Accounting Standards Issued Not Yet Adopted

In August 2018, the FASB issued ASU 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans, which makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The ASU is effective for the fiscal year ending December 31, 2020, but early adoption is permitted. The ASU is required to be applied retrospectively. We evaluated the potential impact of this new standard and concluded that its adoption will not have a significant impact on our Condensed Consolidated Financial Statements.
    
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The ASU is effective beginning with the first quarter of 2020, and early adoption is permitted. The ASU is required to be applied retrospectively, except the new Level 3 disclosure requirements which are applied prospectively. We evaluated the potential impact of this new standard and concluded that the adoption of the ASU will not have a significant impact on our Condensed Consolidated Financial Statements.

17


Table of Contents


In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The guidance requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The updated guidance applies to (i) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (ii) loan commitments and other off-balance sheet credit exposures, (iii) debt securities and other financial assets measured at fair value through other comprehensive income, and (iv) beneficial interests in securitized financial assets. The amended guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We will adopt the new standard, including subsequent amendments, on the effective date of January 1, 2020 and are evaluating the effect, if any, that the guidance will have on our Condensed Consolidated Financial Statements and related disclosures.

4.  Accounts Receivable Factoring

From time to time, we participate in factoring arrangements to sell accounts receivable to third-party financial institutions. In the nine months ended September 30, 2019, we sold accounts receivable of $199 million and recognized a loss of $1 million on these sales. We received cash proceeds totaling $186 million. In the nine months ended September 30, 2018, we sold accounts receivable of $284 million and recognized a loss of $2 million. We received cash proceeds totaling $278 million. Our factoring transactions in the nine months ended September 30, 2019 and 2018 were recognized as sales, and the proceeds are included as operating cash flows in our Condensed Consolidated Statements of Cash Flows.

Our accounts receivable factoring arrangements are subject to limitations as result of entering into the DIP Credit Agreement and Credit Agreement Forbearance Agreement, where (a) net cash proceeds from U.S. and Canadian entities will pay down the DIP Credit Agreement and (b) net cash proceeds from other countries up to $75 million in a calendar quarter can be retained for the Company (with any excess to prepay the DIP Credit Agreement). This factoring limitation began in the third quarter of 2019.

5.  Inventories, Net

Inventories, net of reserves, by category were as follows:
(Dollars in millions)
September 30, 2019
 
December 31, 2018
Raw materials, components and supplies
$
144

 
$
131

Work in process
67

 
47

Finished goods
915

 
847

 
$
1,126

 
$
1,025



6.  Business Combinations and Divestitures

Acquisitions

In the first nine months of 2019, we made no acquisitions of businesses.

In the first quarter of 2018, we acquired the remaining 50% equity interest in our Qatari joint venture that we previously accounted for as an equity method investment and consolidated the entity. The joint venture was established in 2008 to provide energy related services required for the drilling and completion of oil and gas wells at onshore and offshore locations within the State of Qatar. The total consideration to purchase the remaining equity interest was $87 million, which is comprised of a cash consideration of $72 million and an estimated contingent consideration of $15 million related to services the Qatari entity will render under new contracts. Of the $72 million in cash consideration, $48 million was paid in accordance with closing terms through the joint venture, with the remaining payment of $24 million to be paid two years from closing, in 2020. As a result of this step acquisition transaction with a change in control, we remeasured our previously held equity investment to fair value and recognized a $12 million gain. The Level 3 fair value of the acquisition was determined using an income approach.

18


Table of Contents


Divestitures

On April 30, 2019, we completed the sale of our Reservoir Solutions business, also known as our laboratory services business to Oil & Gas Labs, LLC, an affiliate of CSL Capital Management, L.P., for an aggregate purchase price of $206 million in cash, subject to escrow release and customary post-closing working capital adjustments. The business disposition included our laboratory and geological analysis business, including the transfer of substantially all personnel and associated contracts related to the business. We recognized a gain of $117 million and divested a carrying amount of $61 million in net assets previously included in held for sale.

On April 30, 2019, we completed the sale of our surface data logging business to Excellence Logging for $50 million in total consideration, subject to customary post-closing working capital adjustments. The business disposition included our surface data logging equipment, technology and associated contracts related to the business. We recognized an insignificant loss and divested a carrying amount of $34 million in net assets previously included in held for sale.

In the first quarter of 2019, we completed the final closings in a series of closings pursuant to the purchase and sale agreements (“Agreements”) entered into with ADES International Holding Ltd. (“ADES”). We entered into the Agreements in July of 2018 to sell our land drilling rig operations in Algeria, Kuwait and Saudi Arabia, as well as two idle land rigs in Iraq, for an aggregate purchase price of $287.5 million. We received gross proceeds of $72 million in the first quarter of 2019. The ADES sale was subject to regulatory approvals, consents and other customary closing conditions, including potential adjustments based on working capital, net cash, loss or destruction of rigs and drilling contract backlog. The $11 million ADES advance of the purchase price held in escrow as of December 31, 2018 was released in the first quarter of 2019 as a credit towards the purchase price. The loss on the sale of land drilling rigs operations recognized in the first quarter of 2019 was $6 million and divested a carrying amount of $66 million in net assets previously included in held for sale. The Agreements divest a majority of our land drilling rig operations.

In the first quarter of 2018, we completed the sale of our continuous sucker rod service business in Canada for a purchase price of $25 million and recognized a gain of $2 million. The carrying amounts of the major classes of assets divested total $23 million and included PP&E, allocated goodwill and inventory. In the third quarter of 2018, we completed the sale of an equity investment in a joint venture for an insignificant gain.

Our divestitures can be subject to deferred closings, escrow release and customary post-closing working capital adjustments and may result in subsequent true-ups that are recorded through the Condensed Consolidated Statements of Operations.

Held for Sale

During the second quarter of 2019, we reclassified remaining land drilling rigs held for sale assets of $53 million to assets held for use. We continue to pursue options to sell all of our remaining land drilling rigs operations however the time required to close the recent land drilling rigs sales indicate that we may not be able to conclude that a sale is probable to occur in an appropriate timeline. At September 30, 2019, assets qualifying as held for sale were insignificant.

At December 31, 2018, assets qualifying as held for sale totaled $265 million and liabilities held for sale totaled $17 million. These amounts primarily consisted of our surface data logging and laboratory services business held for sale (which was completed as of April 30, 2019) and our remaining land drilling rigs operations held for sale (which the unsold portions were reclassified back to held for use).

7.  Long-Lived Asset Impairments

We recognized no long-lived asset impairments in the third quarter of 2019 and $20 million of long-lived asset impairments for the nine months ended September 30, 2019, and $69 million and $161 million for the three and nine months ended September 30, 2018, respectively, to write-down our assets to the lower of carrying amount or fair value less cost to sell for our land drilling rigs. The impairments in 2019 were primarily related to our Western Hemisphere segment in the second quarter of 2019 totaling $13 million and Eastern Hemisphere in the first quarter of 2019 totaling $7 million. The impairments recognized for the nine months ended September 30, 2018, were comprised of $37 million from our Western Hemisphere segment and $124 million from our Eastern Hemisphere segment. During the second quarter of 2019, we reclassified our remaining land drilling rigs assets back into held for use.


19


Table of Contents

The impairments were due to the sustained downturn in the oil and gas industry that resulted in us having to reassess our disposal groups for our land drilling rigs. The change in our expectations of the market’s recovery, in addition to successive negative operating cash flows in certain disposal asset groups represented an indicator that those assets will no longer be recoverable over their remaining useful lives. The Level 3 fair values of the long-lived assets were determined using a combination of the market and income approach. The market approach considered market sales values for similar assets. The unobservable inputs to the income approach included the assets’ estimated future cash flows and estimates of discount rates commensurate with the assets’ risks.

8.  Goodwill

For the third quarter ended September 30, 2019, our goodwill impairment tests indicated that goodwill for our Latin America, Russia/China, and Asia reporting units were impaired and as a result we incurred a goodwill impairment charge of $399 million. For the nine months ended September 30, 2019, our goodwill impairment tests indicated that goodwill for all our reporting units in the Western Hemisphere and Eastern Hemisphere were impaired and as a result we incurred a goodwill impairment charge of $730 million. Our cumulative impairment loss for goodwill was $3.4 billion at September 30, 2019. The changes in the carrying amount of goodwill by reporting segment at September 30, 2019, are presented in the following table.
(Dollars in millions)
Western Hemisphere
 
Eastern Hemisphere
 
Total
Balance at December 31, 2018
$
494

 
$
219

 
$
713

Impairment
(508
)
 
(222
)
 
(730
)
  Reclassification from held for sale
4

 

 
4

  Foreign currency translation adjustments
10

 
3

 
13

Balance at September 30, 2019
$

 
$

 
$



Goodwill Impairment Assessment Factors

The impairment indicators during the nine months ended September 30, 2019 were a result of lower activity levels and lower exploration and production capital spending that resulted in a decline in drilling activity and forecasted growth in all our reporting units. Our lower than expected and forecasted financial results were due to the continued weakness within the energy market and consequently our inability to meet the original timeline of our Transformation Plan savings, defined in “Note 9 – Transformation, Facility Restructuring and Severance Charges”. These circumstances, prompted us to evaluate whether circumstances had changed that would more likely than not reduce the fair value of one or more of our reporting units below their carrying amount as of September 30, 2019.

When conducting this evaluation, we considered macroeconomic and industry conditions, including the outlook for exploration and production spending by our customers and overall financial performance of each of our reporting units. We also considered whether there were any changes in our long-term forecasts, which are impacted by assumptions about the future commodity pricing and supply and demand for our goods and services.

9. Transformation, Facility Restructuring and Severance Charges

Due to the highly competitive nature of our business and the continuing losses we incurred over the last few years, we continue to reduce our overall cost structure and workforce to better align our business with current activity levels. The ongoing transformation plan, which began in 2018 and is expected to extend significantly beyond the originally planned year-end 2019 target (the “Transformation Plan”), includes a workforce reduction, organization restructure, facility consolidations and other cost reduction measures and efficiency initiatives across all of our geographic regions.

The cost reduction plans before the Transformation Plan (“Prior Plans”) included a workforce reduction and other cost reduction measures initiated across our geographic regions due to the ongoing low levels of exploration and production spending. The Prior Plans were initiated to reduce our overall cost structure and workforce to better align with activity levels in the exploration and production markets.

In connection with the Transformation Plan, we recognized restructuring and transformation charges of $53 million and $93 million in the third quarter and first nine months of 2019, respectively, which include severance charges of $7 million and $10

20


Table of Contents

million, respectively, other restructuring charges of $40 million and $69 million, respectively, and restructuring related asset charges of $6 million and $14 million, respectively. Other restructuring charges in both periods included contract termination costs, relocation and other associated costs.

In the third quarter and first nine months of 2018 we recognized restructuring charges of $27 million and $90 million, respectively, which included severance charges of $6 million and $46 million, respectively and other restructuring charges of $21 million and $44 million, respectively.

The following tables present the components of restructuring charges by segment for the third quarter and first nine months ended September 30, 2019 and 2018.
 
Three Months Ended September 30, 2019
 
 
 
Total