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42
net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less
reasonably predictable costs of completion, disposal, and transportation. Currently, inventory measured using these
methods is required to be subsequently measured at the lower of cost or market with market defined as
replacement cost, net realizable value or net realizable value less a normal profit margin. This pronouncement is
effective for annual reporting periods beginning after December 15, 2016 on a prospective basis. Early adoption is
permitted. We have not completed an evaluation of the impact the pronouncement will have on our consolidated
financial statements and related disclosures.
In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which
amends existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as
noncurrent on the balance sheet. The pronouncement is effective for annual reporting periods beginning after
December 15, 2016, and may be applied either prospectively or retrospectively. We have not completed an
evaluation of the impact the pronouncement will have on our consolidated financial statements and related
disclosures.
RELATED PARTY TRANSACTIONS
There were no significant related party transactions during the three years ended December 31, 2015.
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 risk factors, these risks and
uncertainties include the factors and the timing of any of those factors identified in this annual report under Item 1A.
Risk Factors and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
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. In light of such risks and uncertainties, we caution you not to place undue reliance on these forward-
looking statements. These forward-looking statements speak only as of the date of this annual report, or if earlier,
as of the date they were made. We do not intend to, and disclaim any obligation to, update or revise any forward-
looking statements unless required by securities law.
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.