National Oilwell Varco 2012 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2012 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.

Page out of 115

  • 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

Index to Financial Statements
8. Costs and Estimated Earnings on Uncompleted Contracts
Costs and estimated earnings on uncompleted contracts consist of (in millions):
December 31,
2011 2010
Costs incurred on uncompleted contracts $ 5,839 $ 6,676
Estimated earnings 3,775 4,665
9,614 11,341
Less: Billings to date 9,886 11,037
$ (272) $ 304
Costs and estimated earnings in excess of billings on uncompleted contracts $ 593 $ 815
Billings in excess of costs and estimated earnings on uncompleted contracts (865) (511)
$ (272) $ 304
9. Debt
Debt consists of (in millions):
December 31,
2011 2010
Senior Notes, interest at 6.5% payable semiannually,principal due on March 15, 2011 $ $ 150
Senior Notes, interest at 7.25% payable semiannually,principal due on May 1, 2011 201
Senior Notes, interest at 5.65% payable semiannually,principal due on November 15, 2012 200 200
Senior Notes, interest at 5.5% payable semiannually,principal due on November 19, 2012 150 151
Senior Notes, interest at 6.125% payable semiannually,principal due on August 15, 2015 151 151
Other 9 34
Total debt 510 887
Less current portion 351 373
Long-term debt $ 159 $ 514
Principal payments of debt for years subsequent to 2011 are as follows (in millions):
2012 $ 351
2013 2
2014 4
2015 152
2016 1
$ 510
Senior Notes
On March 15, 2011, the Company repaid $150 million of its 6.5% unsecured Senior Notes using available cash balances and on May 1, 2011, the Company repaid $200
million of its 7.25% unsecured Senior Notes using available cash balances. The remaining Senior Notes contain reporting covenants, and the Company was in compliance at
December 31, 2011.
83