National Oilwell Varco 2012 Annual Report Download - page 19

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Index to Financial Statements
Backlog
The Company monitors its backlog of orders within its Rig Technology segment to guide its planning. Backlog includes orders greater than $250,000 for most items and
orders for wireline units in excess of $75,000, and which require more than three months to manufacture and deliver.
Backlog measurements are made on the basis of written orders which are firm, but may be defaulted upon by the customer in some instances. Most require reimbursement to
the Company for costs incurred in such an event. There can be no assurance that the backlog amounts will ultimately be realized as revenue, or that the Company will earn a
profit on backlog work. Backlog for equipment at December 31, 2011, 2010 and 2009 was $10.2 billion, $5.0 billion and $6.4 billion, respectively.
Employees
At December 31, 2011, the Company had a total of 49,975 employees, of which 7,792 were temporary employees. Approximately 900 employees in the U.S are subject to
collective bargaining agreements. Additionally, certain of the Companyî‚€s employees in various foreign locations are subject to collective bargaining agreements. The
Company believes its relationship with its employees is good.
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