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44
15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early
application not permitted. We are currently evaluating the impact the pronouncement will have on our consolidated
financial statements and related disclosures.
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements and Property, Plant, and
Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which
amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued
operations. The ASU will also require entities to provide additional disclosures about discontinued operations as
well as disposal transactions that do not meet the discontinued operations criteria. The pronouncement is effective
prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components
initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted.
We adopted the ASU in the second quarter of 2014 and it did not impact our consolidated financial statements or
the notes to our financial statements.
RELATED PARTY TRANSACTIONS
There were no significant related party transactions during the three years ended December 31, 2014.
FORWARD-LOOKING STATEMENTS
This Form 10-K, including MD&A and certain statements in the Notes to Consolidated Financial Statements,
contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Exchange Act of 1934, as amended, (each a “forward-looking statement”). The words
“anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,”
“outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “likely” and similar expressions, and the negative
thereof, are intended to identify forward-looking statements. Our forward-looking statements are based on
assumptions that we believe to be reasonable but that may not prove to be accurate. The statements do not
include the potential impact of future transactions, such as an acquisition, disposition, merger, joint venture or other
transaction that could occur, including the pending merger with Halliburton. We undertake no obligation to publicly
update or revise any forward-looking statement. Our expectations regarding our business outlook, including
changes in revenue, pricing, capital spending, profitability, strategies for our operations, impact of any common
stock repurchases, oil and natural gas market conditions, the business plans of our customers, market share and
contract terms, costs and availability of resources, legal, economic and regulatory conditions, and environmental
matters are only our forecasts regarding these matters.
All of our forward-looking information is subject to risks and uncertainties that could cause actual results to differ
materially from the results expected. Although it is not possible to identify all factors, these risks and uncertainties
include the risk factors and the timing of any of those risk factors identified in Item 1A. Risk Factors and those set
forth from time to time in our filings with the SEC. These documents are available through our website or through
the SEC’s Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to certain market risks that are inherent in our financial instruments and arise from changes in
interest rates and foreign currency exchange rates. We may enter into derivative financial instrument transactions
to manage or reduce market risk but do not enter into derivative financial instrument transactions for speculative
purposes. A discussion of our primary market risk exposure in financial instruments is presented below.
INTEREST RATE RISK
We have debt in fixed and floating rate instruments. We are subject to interest rate risk on our debt and
investment portfolio. We maintain an interest rate risk management strategy which primarily uses a mix of fixed and
variable rate debt that is intended to mitigate the risk exposure to changes in interest rates in the aggregate. We
may use interest rate swaps to manage the economic effect of fixed rate obligations associated with certain debt.
There were no outstanding interest rate swap agreements as of December 31, 2014 or 2013.