National Oilwell Varco 2015 Annual Report Download - page 52
Download and view the complete annual report
Please find page 52 of the 2015 National Oilwell Varco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
 |
 |
Table of Contents
Other
The effect of the change in exchange rates on cash was a decrease of $111 million, $67 million and $11 million for the years ended December 31, 2015, 2014
and 2013, respectively.
During the third quarter of 2015 the Company completed its $3 billion share repurchase program. As shares were repurchased, they were constructively
retired and returned to an unissued state. During the years ended December 31, 2015 and 2014, the Company repurchased 44.0 million and 11.6 million
shares, respectively, under the program for an average price of $50.53 and $66.97 per share, respectively, for an aggregate amount of $2,221 million and $779
million, respectively.
We believe that cash on hand, cash generated from operations and amounts available under our credit facilities and from other sources of debt will be
sufficient to fund operations, working capital needs, capital expenditure requirements, dividends and financing obligations.
We intend to pursue additional acquisition candidates, but the timing, size or success of any acquisition effort and the related potential capital commitments
cannot be predicted. We continue to expect to fund future cash acquisitions primarily with cash flow from operations and borrowings, including the
unborrowed portion of the revolving credit facility or new debt issuances, but may also issue additional equity either directly or in connection with
acquisitions. There can be no assurance that additional financing for acquisitions will be available at terms acceptable to us.
A summary of the Company’s outstanding contractual obligations at December 31, 2015 is as follows (in millions):
Total debt $3,930 $ 2 $1,404 $ 10 $2,514
Operating leases 922 202 211 140 369
Total Contractual Obligations $4,852 $ 204 $1,615 $150 $2,883
Standby letters of credit $2,378 $1,399 $ 923 $ 54 $ 2
As of December 31, 2015, the Company entered into a capital lease agreement covering a period of 25 years, totaling approximately $270 million. This lease
becomes effective in 2016.
As of December 31, 2015, the Company had $46 million of unrecognized tax benefits. This represents the tax benefits associated with various tax positions
taken, or expected to be taken, on domestic and international tax returns that have not been recognized in our financial statements due to uncertainty
regarding their resolution. Due to the uncertainty of the timing of future cash flows associated with these unrecognized tax benefits, we are unable to make
reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing authorities. Accordingly, unrecognized tax benefits have been
excluded from the contractual obligations table above. For further information related to unrecognized tax benefits, see Note 14 to the Consolidated
Financial Statements included in this Report.
51