wfrd-20210630
000160392312/312021Q2falseP6MP1YP1YP1Y00016039232021-01-012021-06-30xbrli:shares00016039232021-07-15iso4217:USDxbrli:shares00016039232021-06-3000016039232020-12-31iso4217:USD0001603923us-gaap:ServiceMember2021-04-012021-06-300001603923us-gaap:ServiceMember2020-04-012020-06-300001603923us-gaap:ServiceMember2021-01-012021-06-300001603923us-gaap:ServiceMember2020-01-012020-06-300001603923us-gaap:ProductMember2021-04-012021-06-300001603923us-gaap:ProductMember2020-04-012020-06-300001603923us-gaap:ProductMember2021-01-012021-06-300001603923us-gaap:ProductMember2020-01-012020-06-3000016039232021-04-012021-06-3000016039232020-04-012020-06-3000016039232020-01-012020-06-3000016039232019-12-3100016039232020-06-300001603923wfrd:ImpairmentsAndOtherChargesMember2021-04-012021-06-300001603923wfrd:ImpairmentsAndOtherChargesMember2020-04-012020-06-300001603923wfrd:ImpairmentsAndOtherChargesMember2021-01-012021-06-300001603923wfrd:ImpairmentsAndOtherChargesMember2020-01-012020-06-300001603923us-gaap:CostOfSalesMember2021-04-012021-06-300001603923us-gaap:CostOfSalesMember2020-04-012020-06-300001603923us-gaap:CostOfSalesMember2021-01-012021-06-300001603923us-gaap:CostOfSalesMember2020-01-012020-06-300001603923wfrd:WesternHemisphereMember2020-04-012020-06-300001603923wfrd:EasternHemisphereMember2020-04-012020-06-300001603923wfrd:WesternHemisphereMember2020-01-012020-06-300001603923wfrd:EasternHemisphereMember2020-01-012020-06-300001603923wfrd:EasternHemisphereMember2021-06-300001603923wfrd:DevelopedAndAcquiredTechnologyRightsMember2021-06-300001603923wfrd:DevelopedAndAcquiredTechnologyRightsMember2020-12-310001603923us-gaap:TradeNamesMember2021-06-300001603923us-gaap:TradeNamesMember2020-12-310001603923us-gaap:EmployeeSeveranceMemberus-gaap:RestructuringChargesMember2021-04-012021-06-300001603923us-gaap:EmployeeSeveranceMemberus-gaap:RestructuringChargesMember2020-04-012020-06-300001603923us-gaap:EmployeeSeveranceMemberus-gaap:RestructuringChargesMember2021-01-012021-06-300001603923us-gaap:EmployeeSeveranceMemberus-gaap:RestructuringChargesMember2020-01-012020-06-300001603923us-gaap:FacilityClosingMemberus-gaap:RestructuringChargesMember2021-04-012021-06-300001603923us-gaap:FacilityClosingMemberus-gaap:RestructuringChargesMember2020-04-012020-06-300001603923us-gaap:FacilityClosingMemberus-gaap:RestructuringChargesMember2021-01-012021-06-300001603923us-gaap:FacilityClosingMemberus-gaap:RestructuringChargesMember2020-01-012020-06-300001603923us-gaap:RestructuringChargesMember2021-04-012021-06-300001603923us-gaap:RestructuringChargesMember2020-04-012020-06-300001603923us-gaap:RestructuringChargesMember2021-01-012021-06-300001603923us-gaap:RestructuringChargesMember2020-01-012020-06-300001603923wfrd:WesternHemisphereMemberus-gaap:RestructuringChargesMember2021-04-012021-06-300001603923wfrd:WesternHemisphereMemberus-gaap:RestructuringChargesMember2020-04-012020-06-300001603923wfrd:WesternHemisphereMemberus-gaap:RestructuringChargesMember2021-01-012021-06-300001603923wfrd:WesternHemisphereMemberus-gaap:RestructuringChargesMember2020-01-012020-06-300001603923us-gaap:RestructuringChargesMemberwfrd:EasternHemisphereMember2021-04-012021-06-300001603923us-gaap:RestructuringChargesMemberwfrd:EasternHemisphereMember2020-04-012020-06-300001603923us-gaap:RestructuringChargesMemberwfrd:EasternHemisphereMember2021-01-012021-06-300001603923us-gaap:RestructuringChargesMemberwfrd:EasternHemisphereMember2020-01-012020-06-300001603923us-gaap:CorporateAndOtherMemberus-gaap:RestructuringChargesMember2021-04-012021-06-300001603923us-gaap:CorporateAndOtherMemberus-gaap:RestructuringChargesMember2020-04-012020-06-300001603923us-gaap:CorporateAndOtherMemberus-gaap:RestructuringChargesMember2021-01-012021-06-300001603923us-gaap:CorporateAndOtherMemberus-gaap:RestructuringChargesMember2020-01-012020-06-300001603923wfrd:SeveranceandOtherRestructuringLiabilitiesMember2020-12-310001603923wfrd:SeveranceandOtherRestructuringLiabilitiesMember2021-01-012021-06-300001603923wfrd:SeveranceandOtherRestructuringLiabilitiesMember2021-06-300001603923us-gaap:NotesPayableOtherPayablesMember2021-06-300001603923us-gaap:NotesPayableOtherPayablesMember2020-12-310001603923us-gaap:SeniorNotesMember2021-06-300001603923us-gaap:SeniorNotesMember2020-12-310001603923us-gaap:SecuredDebtMember2021-06-300001603923us-gaap:SecuredDebtMember2020-12-310001603923us-gaap:NotesPayableOtherPayablesMember2021-06-300001603923us-gaap:NotesPayableOtherPayablesMember2020-12-31xbrli:pure0001603923wfrd:ExitNotes11.00PercentDue2024Memberus-gaap:SeniorNotesMember2019-12-120001603923wfrd:SeniorNotes875PercentDue2024Memberus-gaap:SeniorNotesMember2020-08-040001603923wfrd:LCCreditAgreementMember2019-12-120001603923wfrd:AmendedLCCreditAgreementMember2021-06-300001603923wfrd:LCCreditAgreementLettersofCreditMember2021-06-300001603923wfrd:CommittedLettersofCreditMember2020-06-300001603923wfrd:UncommittedLettersofCreditMember2021-06-300001603923wfrd:CommittedLettersofCreditMember2021-06-300001603923us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001603923us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001603923us-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001603923us-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001603923us-gaap:RetainedEarningsMember2021-01-012021-03-310001603923us-gaap:NoncontrollingInterestMember2021-01-012021-03-3100016039232021-01-012021-03-310001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001603923us-gaap:AdditionalPaidInCapitalMember2021-03-310001603923us-gaap:RetainedEarningsMember2021-03-310001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001603923us-gaap:NoncontrollingInterestMember2021-03-3100016039232021-03-310001603923us-gaap:RetainedEarningsMember2021-04-012021-06-300001603923us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001603923us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001603923us-gaap:AdditionalPaidInCapitalMember2021-06-300001603923us-gaap:RetainedEarningsMember2021-06-300001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001603923us-gaap:NoncontrollingInterestMember2021-06-300001603923us-gaap:AdditionalPaidInCapitalMember2019-12-310001603923us-gaap:RetainedEarningsMember2019-12-310001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001603923us-gaap:NoncontrollingInterestMember2019-12-310001603923us-gaap:RetainedEarningsMember2020-01-012020-03-310001603923us-gaap:NoncontrollingInterestMember2020-01-012020-03-3100016039232020-01-012020-03-310001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001603923us-gaap:AdditionalPaidInCapitalMember2020-03-310001603923us-gaap:RetainedEarningsMember2020-03-310001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001603923us-gaap:NoncontrollingInterestMember2020-03-3100016039232020-03-310001603923us-gaap:RetainedEarningsMember2020-04-012020-06-300001603923us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001603923us-gaap:AdditionalPaidInCapitalMember2020-06-300001603923us-gaap:RetainedEarningsMember2020-06-300001603923us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001603923us-gaap:NoncontrollingInterestMember2020-06-300001603923us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001603923us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-06-300001603923us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300001603923us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310001603923us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-06-300001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-06-300001603923us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001603923us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300001603923wfrd:WesternHemisphereMemberwfrd:ProductionAndCompletionsMember2021-04-012021-06-300001603923wfrd:WesternHemisphereMemberwfrd:ProductionAndCompletionsMember2020-04-012020-06-300001603923wfrd:WesternHemisphereMemberwfrd:ProductionAndCompletionsMember2021-01-012021-06-300001603923wfrd:WesternHemisphereMemberwfrd:ProductionAndCompletionsMember2020-01-012020-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:WesternHemisphereMember2021-04-012021-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:WesternHemisphereMember2020-04-012020-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:WesternHemisphereMember2021-01-012021-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:WesternHemisphereMember2020-01-012020-06-300001603923wfrd:WesternHemisphereMember2021-04-012021-06-300001603923wfrd:WesternHemisphereMember2021-01-012021-06-300001603923wfrd:EasternHemisphereMemberwfrd:ProductionAndCompletionsMember2021-04-012021-06-300001603923wfrd:EasternHemisphereMemberwfrd:ProductionAndCompletionsMember2020-04-012020-06-300001603923wfrd:EasternHemisphereMemberwfrd:ProductionAndCompletionsMember2021-01-012021-06-300001603923wfrd:EasternHemisphereMemberwfrd:ProductionAndCompletionsMember2020-01-012020-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:EasternHemisphereMember2021-04-012021-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:EasternHemisphereMember2020-04-012020-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:EasternHemisphereMember2021-01-012021-06-300001603923wfrd:DrillingEvaluationAndInterventionMemberwfrd:EasternHemisphereMember2020-01-012020-06-300001603923wfrd:EasternHemisphereMember2021-04-012021-06-300001603923wfrd:EasternHemisphereMember2021-01-012021-06-300001603923wfrd:WesternHemisphereMembersrt:NorthAmericaMember2021-04-012021-06-300001603923wfrd:WesternHemisphereMembersrt:NorthAmericaMember2020-04-012020-06-300001603923wfrd:WesternHemisphereMembersrt:NorthAmericaMember2021-01-012021-06-300001603923wfrd:WesternHemisphereMembersrt:NorthAmericaMember2020-01-012020-06-300001603923srt:LatinAmericaMemberwfrd:WesternHemisphereMember2021-04-012021-06-300001603923srt:LatinAmericaMemberwfrd:WesternHemisphereMember2020-04-012020-06-300001603923srt:LatinAmericaMemberwfrd:WesternHemisphereMember2021-01-012021-06-300001603923srt:LatinAmericaMemberwfrd:WesternHemisphereMember2020-01-012020-06-300001603923wfrd:MiddleEastandNorthAfricaMemberwfrd:EasternHemisphereMember2021-04-012021-06-300001603923wfrd:MiddleEastandNorthAfricaMemberwfrd:EasternHemisphereMember2020-04-012020-06-300001603923wfrd:MiddleEastandNorthAfricaMemberwfrd:EasternHemisphereMember2021-01-012021-06-300001603923wfrd:MiddleEastandNorthAfricaMemberwfrd:EasternHemisphereMember2020-01-012020-06-300001603923wfrd:EuropeSubSaharaAfricaRussiaMemberwfrd:EasternHemisphereMember2021-04-012021-06-300001603923wfrd:EuropeSubSaharaAfricaRussiaMemberwfrd:EasternHemisphereMember2020-04-012020-06-300001603923wfrd:EuropeSubSaharaAfricaRussiaMemberwfrd:EasternHemisphereMember2021-01-012021-06-300001603923wfrd:EuropeSubSaharaAfricaRussiaMemberwfrd:EasternHemisphereMember2020-01-012020-06-300001603923wfrd:ServiceRevenueMember2021-06-302021-06-3000016039232022-01-01wfrd:ServiceRevenueMember2021-06-300001603923wfrd:ServiceRevenueMember2023-01-012021-06-300001603923wfrd:ServiceRevenueMember2024-01-012021-06-300001603923wfrd:ServiceRevenueMember2025-01-012021-06-300001603923wfrd:ServiceRevenueMember2021-06-3000016039232021-06-302021-06-3000016039232022-01-012021-06-3000016039232023-01-012021-06-3000016039232024-01-012021-06-3000016039232025-01-012021-06-300001603923wfrd:WesternHemisphereMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001603923wfrd:WesternHemisphereMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001603923wfrd:WesternHemisphereMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001603923wfrd:WesternHemisphereMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001603923wfrd:EasternHemisphereMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001603923wfrd:EasternHemisphereMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001603923wfrd:EasternHemisphereMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001603923wfrd:EasternHemisphereMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001603923us-gaap:OperatingSegmentsMember2021-04-012021-06-300001603923us-gaap:OperatingSegmentsMember2020-04-012020-06-300001603923us-gaap:OperatingSegmentsMember2021-01-012021-06-300001603923us-gaap:OperatingSegmentsMember2020-01-012020-06-300001603923us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001603923us-gaap:CorporateNonSegmentMember2020-04-012020-06-300001603923us-gaap:CorporateNonSegmentMember2021-01-012021-06-300001603923us-gaap:CorporateNonSegmentMember2020-01-012020-06-30

            
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)Form10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedJune 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________________________to __________________________________
Commission file number001-36504
Weatherford International plc
(Exact Name of Registrant as Specified in Its Charter)
 Ireland98-0606750
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
2000 St. James Place,Houston,Texas77056
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: 713.836.4000
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ordinary shares, $0.001 par value per shareWFRDThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                      Yes ¨ No þ
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                                     Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Yes     No ☐ 

As of July 15, 2021, there were 70,120,242 Weatherford ordinary shares, $0.001 par value per share, outstanding.




Weatherford International public limited company
Form 10-Q for the Second Quarter and Six Months Ended June 30, 2021
TABLE OF CONTENTS
PAGE
1


Table of Contents
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months EndedSix Months Ended
June 30,June 30,
(Dollars and shares in millions, except per share amounts)2021202020212020
Revenues:
Services588 512 1,111 1,277 
Products$315 $309 $624 $759 
Total Revenues 903 821 1,735 2,036 
Costs and Expenses:
Cost of Services392 356 748 877 
Cost of Products285 253 565 645 
Research and Development21 23 42 56 
Selling, General and Administrative188 223 376 471 
Impairments and Other Charges (Credits), Net(8)406 (8)1,223 
Restructuring Charges 57  83 
Total Costs and Expenses878 1,318 1,723 3,355 
Operating Income (Loss)25 (497)12 (1,319)
Interest Expense, Net
(72)(59)(142)(117)
Reorganization Items   (9)
Other Expense, Net(11)(11)(15)(36)
Loss Before Income Taxes(58)(567)(145)(1,481)
Income Tax Provision(15)(12)(38)(56)
Net Loss(73)(579)(183)(1,537)
Net Income Attributable to Noncontrolling Interests5 2 11 10 
Net Loss Attributable to Weatherford$(78)$(581)$(194)$(1,547)
Basic & Diluted Loss per Share$(1.11)$(8.30)$(2.77)$(22.10)
Basic & Diluted Weighted Average Shares Outstanding70 70 70 70 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
2


Table of Contents
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in millions)2021202020212020
Net Loss$(73)$(579)$(183)$(1,537)
Foreign Currency Translation Adjustments15 29 11 (66)
Comprehensive Loss(58)(550)(172)(1,603)
Comprehensive Income Attributable to Noncontrolling Interests5 2 11 10 
Comprehensive Loss Attributable to Weatherford$(63)$(552)$(183)$(1,613)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3


Table of Contents
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars and shares in millions, except par value)6/30/202112/31/2020
(Unaudited)
Assets:
Cash and Cash Equivalents$1,217 $1,118 
Restricted Cash170 167 
Accounts Receivable, Net of Allowance for Credit Losses of $38 at June 30, 2021 and $32 at December 31, 2020
782 826 
Inventories, Net662 717 
Other Current Assets295 349 
Total Current Assets3,126 3,177 
Property, Plant and Equipment, Net of Accumulated Depreciation of $505 at June 30, 2021 and $367 at December 31, 2020
1,108 1,236 
Intangible Assets, Net of Accumulated Amortization of $251 at June 30, 2021 and $173 at December 31, 2020
734 810 
Operating Lease Right-of-Use Assets126 138 
Other Non-Current Assets66 73 
Total Assets$5,160 $5,434 
Liabilities:
Short-term Borrowings and Current Portion of Finance Leases10 13 
Accounts Payable348 325 
Accrued Salaries and Benefits287 297 
Income Taxes Payable140 185 
Current Portion of Operating Lease Liabilities68 71 
Other Current Liabilities390 471 
Total Current Liabilities1,243 1,362 
Long-term Debt2,605 2,601 
Operating Lease Liabilities149 177 
Other Non-Current Liabilities404 357 
Total Liabilities$4,401 $4,497 
Shareholders’ Equity:
Ordinary Shares - Par Value $0.001; Authorized 1,356 shares, Issued and Outstanding 70 shares at June 30, 2021 and December 31, 2020
$ $ 
Capital in Excess of Par Value2,899 2,897 
Retained Deficit(2,141)(1,947)
Accumulated Other Comprehensive Loss(32)(43)
Weatherford Shareholders’ Equity726 907 
Noncontrolling Interests33 30 
Total Shareholders’ Equity759 937 
Total Liabilities and Shareholders’ Equity$5,160 $5,434 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4


Table of Contents
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30,
(Dollars in millions)20212020
Cash Flows From Operating Activities:
Net Loss$(183)$(1,537)
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization225 270 
Goodwill Impairment 239 
Long-lived Asset Impairments 818 
Inventory Charges39 138 
(Gain) Loss on Disposition of Assets(13)4 
Deferred Income Tax Provision6 21 
Share-Based Compensation9  
Changes in Operating Assets and Liabilities, Net:
Accounts Receivable
41 277 
Inventories
15 (33)
Accounts Payable
16 (197)
Other Assets and Liabilities, Net(35)61 
Net Cash Provided by Operating Activities120 61 
Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment(24)(73)
Proceeds from Disposition of Assets22 8 
Other Investing Activities 3 
Net Cash Used in Investing Activities(2)(62)
Cash Flows From Financing Activities:
Repayments of Long-term Debt(5)(5)
Repayments of Short-term Debt, Net(4)7 
Deferred Consideration Payment (24)
Other Financing Activities(6)(14)
Net Cash Used in Financing Activities(15)(36)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(1)(7)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash102 (44)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period1,285 800 
Cash, Cash Equivalents and Restricted Cash at End of Period$1,387 $756 
Supplemental Cash Flow Information:
Interest Paid$141 $112 
Income Taxes Paid, Net of Refunds$32 $40 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
5


Table of Contents
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  General

The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company,” or “Weatherford”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”).

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates.

In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state the results of operations, financial position and cash flows of Weatherford and its subsidiaries for the periods presented and are not necessarily indicative of the results that may be expected for a full year. Our financial statements have been prepared on a consolidated basis. Under this basis, our financial statements consolidate all wholly owned subsidiaries and controlled joint ventures. All intercompany accounts and transactions have been eliminated.

Summary of Significant Accounting Policies

Please refer to “Note 1 – Summary of Significant Accounting Policies” of our Consolidated Financial Statements from our 2020 Annual Report for the discussion on our significant accounting policies. Certain reclassifications of the financial statements and accompanying footnotes for the three and six months ended June 30, 2020 have been made to conform to the presentation for the three and six months ended June 30, 2021.


2. Impairments and Other Charges (Credits), Net

We recorded the following in “Impairments and Other Charges (Credits), Net” on the accompanying Condensed Consolidated Statements of Operations:
Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in millions)2021202020212020
Long-lived Asset Impairments$ $178 $ $818 
Goodwill Impairment 72  239 
Inventory Charges6 134 7 134 
Other Charges (Credits)(14)22 (15)32 
Total Impairments and Other Charges (Credits), Net$(8)$406 $(8)$1,223 



6


Table of Contents

3.  Accounts Receivable Factoring

From time to time, we participate in factoring arrangements to sell accounts receivable to third-party financial institutions. Our factoring transactions in the three and six months ended June 30, 2021 and 2020 were recognized as sales of accounts receivable, and the proceeds are included as operating cash flows in our Condensed Consolidated Statements of Cash Flows. The loss on sale of accounts receivable sold was immaterial for the three and six months of 2021 and 2020. The following table presents accounts receivable sold and cash proceeds from the sale of accounts receivable, net of discount and hold-back amounts:
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Accounts Receivable Sold$34 $17 $40 $23 
Cash Proceeds from Sale of Accounts Receivable$29 $15 $34 $21 

4.  Inventories, Net

Inventories, net of reserves of $147 million and $119 million as of June 30, 2021 and December 31, 2020, respectively, are presented by category in the table below:
(Dollars in millions)6/30/202112/31/2020
Finished Goods$593 $655 
Work in Process and Raw Materials, Components and Supplies69 62 
Inventories, Net$662 $717 

In the three and six months ended June 30, 2021 and 2020, we recognized inventory charges, including excess and obsolete inventory charges, in the following captions on our Condensed Consolidated Statements of Operations:

Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in millions)2021202020212020
Inventory Charges in “Impairments and Other Charges”$6 $134 $7 $134 
Inventory Charges in “Cost of Products”16 2 32 4 
Total Inventory Charges$22 $136 $39 $138 

5.  Long-lived Asset Impairments

We did not recognize any long-lived asset impairments in the three and six months ended June 30, 2021.

During the first half of 2020, the global economic and industry conditions resulting from the decline in demand and impact from the COVID-19 pandemic were identified as impairment indicators. As a result, we performed interim impairment assessments of our property, plant and equipment, definite-lived intangible assets, and right of use assets with the assistance of third-party valuation advisors. Based on our impairment tests, we determined the carrying amount of certain long-lived assets exceeded their respective fair values and recognized long-lived asset impairments presented in the table below.

The fair values of our long-lived assets were determined using discounted cash flows under the income approach, a Level 3 fair value analysis. The income approach required significant assumptions to determine the fair value of an asset or asset group including the estimated discounted future cash flows, specifically the forecasted revenue, forecasted operating margins and the discount rate.

7


Table of Contents

The table below details the long-lived asset impairments by asset class and segment recognized for the three and six months ended June 30, 2020:
Three Months Ended June 30, 2020Six Months Ended June 30, 2020
(Dollars in millions)Western HemisphereEastern HemisphereTotalWestern HemisphereEastern HemisphereTotal
Property, Plant and Equipment$94 $47 $141 $316 $255 $571 
Intangible Assets13 9 22 44 115 159 
Right of Use Assets7 8 15 56 32 88 
Total Long-Lived Asset Impairments $114 $64 $178 $416 $402 $818 

6.  Goodwill and Intangible Assets

Goodwill

As of June 30, 2021 and December 31, 2020, we had no goodwill. The cumulative impairment loss for goodwill was $239 million, all of which was fully impaired in the first half of 2020.

During 2020, based on our interim goodwill impairment assessments that determined the fair value of our reporting units were less than their carrying values, we recognized goodwill impairment charges presented in “Note 2 – Impairments and Other Charges (Credits), Net.” We identified impairment indicators as discussed in “Note 5 – Long-lived Asset Impairments” that triggered these interim quantitative goodwill assessments. The fair values of our reporting units were determined using a combination of the income approach and the market approach for comparable companies in our industry, a Level 3 fair value analysis. Determining the fair value of the reporting units requires management to develop significant judgments, including estimating and discounting future cash flows by reporting unit, specifically forecasted revenue, forecasted operating margins and discount rates. See goodwill impairment charges presented in “Note 2 – Impairments and Other Charges (Credits), Net.”

Intangible Assets

The components of definite-lived intangible assets, net of accumulated amortization, were as follows:
(Dollars in millions)
6/30/2021
12/31/2020
Developed and Acquired Technology, Net of Accumulated Amortization of $190 at June 30, 2021 and $132 at December 31, 2020
$400 $456 
Trade Names, Net of Accumulated Amortization of $61 at June 30, 2021 and $41 at December 31, 2020
334 354 
Intangible Assets, Net of Accumulated Amortization of $251 at June 30, 2021 and $173 at December 31, 2020
$734 $810 

Amortization expense was $39 million and $78 million in the three and six months ended June 30, 2021, respectively, and $40 million and $86 million in the three and six months ended June 30, 2020, respectively, and is reported in “Selling, General and Administrative” on our Condensed Consolidated Statements of Operations.


8


Table of Contents

7. Restructuring Charges

The following table presents restructuring charges in the three and six months ended June 30, 2021 and 2020 in “Restructuring Charges” on the accompanying Condensed Consolidated Statements of Operations. Additional charges with respect to our ongoing cost reduction actions may be recognized in subsequent periods.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Severance Charges$ $55 $ $78 
Facility Exit Charges 2  5 
Total Restructuring Charges$ $57 $ $83 

The following table presents total restructuring charges by reporting segment and Corporate in the three and six months ended June 30, 2021 and 2020:
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Western Hemisphere$ $26 $ $41 
Eastern Hemisphere 11  17 
Corporate 20  25 
Total Restructuring Charges$ $57 $ $83 

The following table presents total restructuring accrual activity in the six months ended June 30, 2021:
(Dollars in millions)Accrued Balance at December 31, 2020ChargesCash Payments
(Credits)/Other
Accrued Balance at June 30, 2021
Restructuring Reserve$53 $ $(21)$(5)$27 

9


Table of Contents

8.  Borrowings and Other Obligations
(Dollars in millions)6/30/202112/31/2020
Finance Lease Current Portion$10 $9 
Other Short-term Financing Arrangements 4 
Short-term Borrowings$10 $13 
11.00% Exit Notes due 2024
$2,098 $2,098 
8.75% Senior Secured Notes due 2024
460 455 
Finance Lease Long-term Portion47 48 
Long-term Debt$2,605 $2,601 

Exit Notes

Upon our emergence from bankruptcy on December 13, 2019, we entered into an indenture and issued unsecured 11.00% Exit Notes in an aggregate principal amount of $2.1 billion maturing on December 1, 2024 (the “Exit Notes”). Interest on the Exit Notes accrues at the rate of 11.00% per annum and is payable semiannually in arrears on June 1 and December 1, which commenced on June 1, 2020.

Senior Secured Notes

On August 28, 2020, we entered into an indenture and issued the 8.75% Senior Secured Notes in an aggregate principal amount of $500 million maturing September 1, 2024 (the “Senior Secured Notes”). Interest on the Senior Secured Notes accrues at the rate of 8.75% per annum and is payable semiannually in arrears on March 1 and September 1, which commenced on March 1, 2021.

LC Credit Agreement

On December 13, 2019, we entered into the senior secured letter of credit agreement in an aggregate amount of $195 million maturing on June 13, 2024 (the “LC Credit Agreement”). The LC Credit Agreement is used for the issuance of bid and performance letters of credit of the Company and certain of its subsidiaries. On August 28, 2020, we amended the LC Credit Agreement to, among other things, increase the aggregate commitments to $215 million, modify the maturity date to May 29, 2024 and reduce the minimum liquidity covenant to $175 million.

At June 30, 2021, we had approximately $160 million in outstanding letters of credit under the LC Credit Agreement and availability of $55 million.
 
As of June 30, 2021, we had $331 million of letters of credit outstanding, consisting of the $160 million mentioned above under the LC Credit Agreement and another $171 million under various uncommitted facilities (of which there was $165 million in cash collateral held and recorded in “Restricted Cash” on our Condensed Consolidated Balance Sheets).

Accrued Interest

As of June 30, 2021 and December 31, 2020, we had accrued interest primarily related to the Exit Notes and Senior Secured Notes of $34 million in both periods, respectively, in “Other Current Liabilities” on our Condensed Consolidated Balance Sheets.

Fair Value of Short and Long-term Borrowings

The carrying value of our short-term borrowings approximates their fair value due to their short maturities. These short-term borrowings are classified as Level 2 in the fair value hierarchy.

10


Table of Contents

The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The table below presents the fair value and carrying value of the Exit Notes and Senior Secured Notes.
6/30/202112/31/2020
(Dollars in millions)Carrying ValueFair ValueCarrying ValueFair Value
11.00% Exit Notes due 2024
$2,098 $2,190 $2,098 $1,628 
8.75% Senior Secured Notes due 2024
460 524 455 507 


9. Disputes, Litigation and Legal Contingencies

We are subject to lawsuits and claims arising out of the nature of our business. We have certain claims, disputes and pending litigation for which we do not believe a negative outcome is probable or for which we can only estimate a range of liability. It is possible, however, that an unexpected judgment could be rendered against us, or we could decide to resolve a case or cases, that would result in a liability that could be uninsured and beyond the amounts we currently have reserved and in some cases those losses could be material. If one or more negative outcomes were to occur relative to these cases, the aggregate impact to our financial condition could be material. Due to the COVID-19 pandemic, many of the Company’s litigation matters and other disputes have been delayed due to court closures or other mandated accommodations.

GAMCO Shareholder Litigation

On September 6, 2019, GAMCO Asset Management, Inc. (“GAMCO”), purportedly on behalf of itself and other similarly situated shareholders, filed a lawsuit asserting violations of the federal securities laws against certain then-current and former officers and directors of the Company. GAMCO alleges violations of Sections 10(b) and 20(b) of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”), and violations of Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”) based on allegations that the Company and certain of its officers made false and/or misleading statements, and alleged non-disclosure of material facts, regarding our business, operations, prospects and performance. GAMCO seeks damages on behalf of purchasers of the Company’s ordinary shares from October 26, 2016 through May 10, 2019. GAMCO’s lawsuit was filed in the United States District Court for the Southern District of Texas, Houston Division, and it is captioned GAMCO Asset Management, Inc. v. McCollum, et al., Case No. 4:19-cv-03363. The District Court Judge appointed Utah Retirement Systems (“URS”) as Lead Plaintiff, and on March 16, 2020, URS filed its Amended Complaint. URS added the Company as a defendant but dropped the claims against non-officer board members and all the claims under the Securities Act. The defendants filed their motion to dismiss on May 18, 2020, and plaintiffs filed their response on July 3, 2020. The defendants filed a reply brief on August 3, 2020. On May 14, 2021, the District Court dismissed the case with prejudice for failure to state a claim. On June 11, 2021, the plaintiffs filed their Notice of Appeal with the District Court. The Appellate Court clerk will receive the District Court’s docket and issue a briefing schedule. We cannot reliably predict the outcome of the claims, including the amount of any possible loss.


11


Table of Contents

10.  Shareholders’ Equity

The following summarizes our shareholders’ equity activity in the three and six months ended June 30, 2021 and 2020:
(Dollars in millions)Capital in Excess of Par ValueRetained
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Non-controlling InterestsTotal Shareholders’ Equity
Balance at December 31, 2020$2,897 $(1,947)$(43)$30 $937 
Net Income (Loss)— (116)— 6 (110)
Other— — — (2)(2)
Other Comprehensive Loss— — (4)— (4)
Balance at March 31, 2021$2,897 $(2,063)$(47)$34 $821 
Net Income (Loss)— (78)— 5 (73)
Other Comprehensive Loss— — 15 — 15 
Dividends to Noncontrolling Interests— — — (4)(4)
Equity Awards Granted, Vested and Exercised2 — — — 2 
Other— — — (2)(2)
Balance at June 30, 2021$2,899 $(2,141)$(32)$33 $759 
Balance at December 31, 2019$2,897 $(26)$9 $36 $2,916 
Net Income (Loss)— (966)— 8 (958)
Other Comprehensive Loss— — (95)— (95)
Balance at March 31, 2020$2,897 $(992)$(86)$44 $1,863 
Net Income (Loss)— (581)— 2 (579)
Other Comprehensive Loss— — 29 — 29 
Dividends to Noncontrolling Interests— — — (8)(8)
Balance at June 30, 2020$2,897 $(1,573)$(57)$38 $1,305 

The following table presents the changes in our accumulated other comprehensive income (loss) by component in the six months ended June 30, 2021 and 2020:
(Dollars in millions)Currency Translation AdjustmentDefined Benefit PensionTotal
Balance at December 31, 2020$(31)$(12)$(43)
Other Comprehensive Loss$11 $ $11 
Balance at June 30, 2021$(20)$(12)$(32)
Balance at December 31, 2019$7 $2 $9 
Other Comprehensive Loss(66) (66)
Balance at June 30, 2020$(59)$2 $(57)

12


Table of Contents

11.  Loss per Share

Basic earnings (loss) per share for all periods presented equals net income (loss) divided by our weighted average shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by our weighted average shares outstanding during the period including potential dilutive ordinary shares.

The following table presents our basic and diluted weighted average shares outstanding and loss per share in the three and six months ended June 30, 2021 and 2020:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars and shares in millions, except per share amounts)2021202020212020
Net Loss Attributable to Weatherford$(78)$(581)$(194)$(1,547)
Basic and Diluted Weighted Average Shares Outstanding70 70 70 70 
Basic and Diluted Loss Per Share Attributable to Weatherford$(1.11)$(8.30)$(2.77)$(22.10)

Our basic and diluted weighted average shares outstanding for the periods presented are equivalent due to the net loss attributable to shareholders. Diluted weighted average shares outstanding in the three and six months ended June 30, 2021 and 2020 exclude 10 million and 8 million potential ordinary shares, respectively, for restricted share units, performance share units, phantom restricted share units, and warrants outstanding as we had net losses for those periods and their inclusion would be anti-dilutive.
12. Revenues

Revenue by Product Line and Geographic Region

Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. Our two product lines are as follows: (1) Completion and Production and (2) Drilling, Evaluation and Intervention. The unmanned equipment that we lease to customers as operating leases consists primarily of drilling rental tools (in the Drilling, Evaluation and Intervention product line) and artificial lift pumping equipment (in the Completion and Production product line). These equipment rental revenues are generally provided based on call-out work orders that include fixed per unit prices and are derived from short-term contracts.

The following tables disaggregate our product and service revenues by major product line and geographic region for the three and six months ended June 30, 2021 and 2020 and includes equipment revenues recognized under lease accounting standards of $35 million and $63 million in the three and six months ended June 30, 2021, respectively, and $32 million and $89 million for the three and six months ended June 30, 2020, respectively.

13


Table of Contents

Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Product Line Revenue for Western Hemisphere
  Completion and Production$231 $165 $456 $462 
  Drilling, Evaluation and Intervention194 145 359 436 
Total Western Hemisphere Revenue425 310 $815 $898 
Product Line Revenue for Eastern Hemisphere
  Completion and Production214 240 $412 $542 
  Drilling, Evaluation and Intervention264 271 508 596 
Total Eastern Hemisphere Revenue478 511 $920 $1,138 
Total Revenues$903 $821 $1,735 $2,036 

Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Revenue by Geographic Areas:
  North America$220 $172 $434 $513 
  Latin America205 138 381 385 
 Western Hemisphere 425 310 $815 $898 
  Middle East & North Africa and Asia289 341 $556 $744 
  Europe/Sub-Sahara Africa/Russia189 170 364 394 
 Eastern Hemisphere 478 511 $920 $1,138 
Total Revenues$903 $821 $1,735 $2,036 

Contract Balances

The timing of our revenue recognition, billings and cash collections results in the recording of billed accounts receivable, contract assets (including unbilled receivables), customer advances and deposits (contract liabilities classified as deferred revenues). Our receivables are primarily derived from contract sales of products and services, which are included in “Accounts Receivable, Net” on the Condensed Consolidated Balance Sheets. Contract assets were immaterial as of June 30, 2021 and December 31, 2020. Revenue recognized during the six months ended June 30, 2021 that was included in the contract liabilities balance at the beginning of 2021 was $25 million. The following table summarizes these balances as of June 30, 2021 and December 31, 2020:
(Dollars in millions)
6/30/2021
12/31/2020
Receivables for Product and Services in Accounts Receivable, Net$744 $792 
Total Accounts Receivables$782 $826 
Contract Liabilities$36 $37 



14


Table of Contents

Performance Obligations

In the following table, estimated revenue for contracts with original performance obligations greater than twelve months are expected to be recognized in the future related to performance obligations that are either unsatisfied or partially unsatisfied as of June 30, 2021.
(Dollars in millions)2021202220232024ThereafterTotal
Service Revenue$27 $42 $39 $40 $54 $202 

13. Segment Information
 
Financial information by segment is summarized below. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our 2020 Annual Report.
 Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2021202020212020
Revenue:
Western Hemisphere$425 $310 $815 $898 
Eastern Hemisphere478 511 920 $1,138 
  Total Revenue903 821 $1,735 $2,036 
Operating Income (Loss):
Western Hemisphere28 (23)$52 $6 
Eastern Hemisphere 6 15 (13)33 
Total Segment Operating Income (Loss)34 (8)39 39 
Corporate (a)
(17)(26)(35)(52)
Total Operating Income (Loss) Before Impairments, Restructuring and Other (Charges) Credits17 (34)4 (13)
Impairments and Other (Charges) Credits, Net (b)
8 (406)8 (1,223)
Restructuring Charges (57) (83)
Total Operating Income (Loss)25 (497)$12 (1,319)
Interest Expense, Net(72)(59)(142)(117)
Reorganization Items   (9)
Other Expense, Net(11)(11)(15)(36)