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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 endedSeptember 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 þ No ¨
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 October 20, 2021, there were 70,161,685 Weatherford ordinary shares, $0.001 par value per share, outstanding.




Weatherford International public limited company
Form 10-Q for the Third Quarter and Nine Months Ended September 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 EndedNine Months Ended
September 30,September 30,
(Dollars and shares in millions, except per share amounts)2021202020212020
Revenues:
Services$623 $485 $1,734 $1,762 
Products322 322 946 1,081 
Total Revenues 945 807 2,680 2,843 
Costs and Expenses:
Cost of Services407 341 1,155 1,218 
Cost of Products279 290 844 935 
Research and Development21 21 63 77 
Selling, General and Administrative175 180 551 651 
Goodwill and Long-Lived Asset Impairments   1,057 
Restructuring Charges 31  114 
Other Charges (Credits), Net(8)4 (16)170 
Total Costs and Expenses874 867 2,597 4,222 
Operating Income (Loss)71 (60)83 (1,379)
Interest Expense Net(69)(64)(211)(181)
Loss on Extinguishment of Debt and Bond Redemption Premium(59) (59) 
Loss on Termination of ABL Credit Agreement (15) (15)
Other Expense, Net(4)(20)(19)(65)
Loss Before Income Taxes(61)(159)(206)(1,640)
Income Tax Provision(28)(8)(66)(64)
Net Loss(89)(167)(272)(1,704)
Net Income Attributable to Noncontrolling Interests6 7 17 17 
Net Loss Attributable to Weatherford$(95)$(174)$(289)$(1,721)
Basic & Diluted Loss per Share$(1.36)$(2.48)$(4.13)$(24.58)
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 EndedNine Months Ended
September 30,September 30,
(Dollars in millions)2021202020212020
Net Loss$(89)$(167)$(272)$(1,704)
Foreign Currency Translation Adjustments(11)(6) (72)
Comprehensive Loss(100)(173)(272)(1,776)
Comprehensive Income Attributable to Noncontrolling Interests6 7 17 17 
Comprehensive Loss Attributable to Weatherford$(106)$(180)$(289)$(1,793)
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)9/30/202112/31/2020
(Unaudited)
Assets:
Cash and Cash Equivalents$1,291 $1,118 
Restricted Cash155 167 
Accounts Receivable, Net of Allowance for Credit Losses of $32 at September 30, 2021 and $32 at December 31, 2020
816 826 
Inventories, Net681 717 
Other Current Assets301 349 
Total Current Assets3,244 3,177 
Property, Plant and Equipment, Net of Accumulated Depreciation of $570 at September 30, 2021 and $367 at December 31, 2020
1,022 1,236 
Intangible Assets, Net of Accumulated Amortization of $289 at September 30, 2021 and $173 at December 31, 2020
695 810 
Operating Lease Right-of-Use Assets117 138 
Other Non-Current Assets70 73 
Total Assets$5,148 $5,434 
Liabilities:
Short-term Borrowings and Current Portion of Finance Leases211 13 
Accounts Payable350 325 
Accrued Salaries and Benefits317 297 
Income Taxes Payable139 185 
Current Portion of Operating Lease Liabilities63 71 
Other Current Liabilities444 471 
Total Current Liabilities1,524 1,362 
Long-term Debt2,431 2,601 
Operating Lease Liabilities135 177 
Other Non-Current Liabilities411 357 
Total Liabilities$4,501 $4,497 
Shareholders’ Equity:
Ordinary Shares - Par Value $0.001; Authorized 1,356 shares, Issued and Outstanding 70 shares at September 30, 2021 and December 31, 2020
$ $ 
Capital in Excess of Par Value2,900 2,897 
Retained Deficit(2,236)(1,947)
Accumulated Other Comprehensive Loss(43)(43)
Weatherford Shareholders’ Equity621 907 
Noncontrolling Interests26 30 
Total Shareholders’ Equity647 937 
Total Liabilities and Shareholders’ Equity$5,148 $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)
Nine Months Ended September 30,
(Dollars in millions)20212020
Cash Flows From Operating Activities:
Net Loss$(272)$(1,704)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
Depreciation and Amortization337 387 
Loss on Extinguishment of Debt37  
Bond Redemption Premium22  
Loss on Termination of ABL Credit Agreement 15 
Goodwill and Long-lived Asset Impairments 1,057 
Inventory Charges50 166 
Loss (Gain) on Disposition of Assets(22)8 
Deferred Income Tax Provision15 10 
Share-Based Compensation13  
Changes in Operating Assets and Liabilities, Net:
Accounts Receivable
5 358 
Inventories
(14)(4)
Accounts Payable
27 (248)
Other Assets and Liabilities, Net36 143 
Net Cash Provided by Operating Activities234 188 
Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment(44)(100)
Proceeds from Disposition of Assets39 13 
Other Investing Activities3 22 
Net Cash Used in Investing Activities(2)(65)
Cash Flows From Financing Activities:
  Borrowings of Long-term Debt, Net491 457 
Repayments of Long-term Debt(510)(7)
Repayments of Short-term Debt, Net(4)(22)
Bond Redemption Premium(22) 
Deferred Consideration Payment (24)
Other Financing Activities(20)(28)
Net Cash Provided by (Used in) Financing Activities(65)376 
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(6)(6)
Net Increase in Cash, Cash Equivalents and Restricted Cash161 493 
Cash, Cash Equivalents and Restricted Cash at Beginning of Period1,285 800 
Cash, Cash Equivalents and Restricted Cash at End of Period$1,446 $1,293 
Supplemental Cash Flow Information:
Interest Paid$171 $114 
Income Taxes Paid, Net of Refunds$44 $60 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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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 nine months ended September 30, 2020 have been made to conform to the presentation for the three and nine months ended September 30, 2021.


2. Impairments and Other Charges (Credits)

We recorded the following in “Goodwill and Long-Lived Asset Impairments” and “Other Charges (Credits), Net” on the accompanying Condensed Consolidated Statements of Operations:
Three Months EndedNine Months Ended
September 30,September 30,
(Dollars in millions)2021202020212020
Long-lived Asset Impairments$ $ $ $818 
Goodwill Impairment   239 
Total Goodwill and Long-lived Asset Impairments$ $ $ $1,057 
Inventory Charges$ $4 $7 $138 
Other Charges (Credits)(8) (23)32 
Total Other Charges (Credits)$(8)$4 $(16)$170 



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3.  Inventories, Net

Inventories, net of reserves of $157 million and $119 million as of September 30, 2021 and December 31, 2020, respectively, are presented by category in the table below:
(Dollars in millions)9/30/202112/31/2020
Finished Goods$611 $655 
Work in Process and Raw Materials, Components and Supplies70 62 
Inventories, Net$681 $717 

In the three and nine months ended September 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 EndedNine Months Ended
September 30,September 30,
(Dollars in millions)2021202020212020
Inventory Charges in “Other Charges (Credits), Net”$ $4 $7 $138 
Inventory Charges in “Cost of Products”11 24 43 28 
Total Inventory Charges$11 $28 $50 $166 

4.  Long-lived Asset Impairments

We did not recognize any long-lived asset impairments in the three and nine months ended September 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. 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.

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 as summarized in “Note 2 – Impairments and Other Charges (Credits), Net.” and further presented by asset class and segment in the table below. We did not recognize any long-lived asset impairments in the third quarter of 2020.
Nine Months Ended September 30, 2020
(Dollars in millions)Western HemisphereEastern HemisphereTotal
Property, Plant and Equipment$316 $255 $571 
Intangible Assets44 115 159 
Right of Use Assets56 32 88 
Total Long-Lived Asset Impairments $416 $402 $818 

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5.  Goodwill and Intangible Assets

Goodwill

As of September 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 4 – 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.

Intangible Assets

The components of definite-lived intangible assets, net of accumulated amortization, were as follows:
(Dollars in millions)
9/30/2021
12/31/2020
Developed and Acquired Technology, Net of Accumulated Amortization of $218 at September 30, 2021 and $132 at December 31, 2020
$371 $456 
Trade Names, Net of Accumulated Amortization of $71 at September 30, 2021 and $41 at December 31, 2020
324 354 
Intangible Assets, Net of Accumulated Amortization of $289 at September 30, 2021 and $173 at December 31, 2020
$695 $810 

Amortization expense was $39 million and $117 million in the three and nine months ended September 30, 2021, respectively, and $38 million and $124 million in the three and nine months ended September 30, 2020, respectively, and is reported in “Selling, General and Administrative” on our Condensed Consolidated Statements of Operations.


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6. Restructuring Charges

We had no restructuring charges in the three and nine months ended September 30, 2021, compared to $31 million and $114 million in the three and nine months ended September 30, 2020, respectively, which are presented in “Restructuring Charges” on the accompanying Condensed Consolidated Statements of Operations.
The following table presents total restructuring charges by reporting segment and Corporate in the three and nine months ended September 30, 2021 and 2020:
Three Months Ended
September 30,
Nine Months Ended September 30,
(Dollars in millions)2021202020212020
Western Hemisphere$ $17 $ $58 
Eastern Hemisphere 12  29 
Corporate 2  27 
Total Restructuring Charges$ $31 $ $114 

The following table presents total restructuring accrual activity in the nine months ended September 30, 2021:
(Dollars in millions)Accrued Balance at December 31, 2020ChargesCash Payments
(Credits)/Other
Accrued Balance at September 30, 2021
Restructuring Reserve$53 $ $(26)$(5)$22 

7.  Borrowings and Other Obligations
(Dollars in millions)9/30/202112/31/2020
Current Portion of Exit Notes and Finance Lease$211 $9 
Other Short-term Financing Arrangements 4 
Short-term Borrowings$211 $13 
Exit Notes
$1,898 $2,098 
2028 Senior Secured Notes488  
2024 Senior Secured Notes
 455 
Finance Lease Long-term Portion45 48 
Long-term Debt$2,431 $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. As of September 30, 2021, $200 million of the Exit Notes were classified as a current obligation. On October 20, 2021 we redeemed $200 million of our Exit Notes and paid related accrued interest of $8 million along with a bond redemption premium of $6 million. See “Note 14 – Subsequent Events” for additional details.

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2024 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 “2024 Senior Secured Notes”). Interest accrued at the rate of 8.75% per annum and was payable semiannually in arrears on March 1 and September 1, which commenced on March 1, 2021. On September 30, 2021, we repaid our 2024 Senior Secured Notes and accrued interest with proceeds from the issuance of the 2028 Senior Secured Notes described below and cash on hand. In addition, we paid and recognized a $22 million bond redemption premium and recognized a $37 million noncash loss on extinguishment of debt related to the unamortized debt issuance costs and discount, which is presented as “Loss on Extinguishment of Debt and Bond Redemption Premium” on the Condensed Consolidated Statements of Operations.

2028 Senior Secured Notes

On September 30, 2021, we entered into an indenture and issued the 6.5% Senior Secured Notes in aggregate principal amount of $500 million maturing September 15, 2028 (the “2028 Senior Secured Notes”). Interest accrues at the rate of 6.5% per annum and is payable semiannually on September 15 and March 15 of each year, commencing on March 15, 2022. The 2028 Senior Secured Notes are guaranteed by the Company and the same subsidiaries of the Company that guaranteed the 2024 Senior Secured Notes. On September 30, 2021 we received $491 million of proceeds net of debt issuance costs paid and the net book value after including accrued debt issuance costs was $488 million. Debt issuance costs will be amortized to “Interest Expense, Net” on the Condensed Consolidated Financial Statements using the effective interest rate method over the term of the debt.

LC Credit Agreement

We have a senior secured letter of credit agreement in an aggregate amount of $215 million maturing on May 29, 2024 (the “LC Credit Agreement”), which is used by the Company and certain of its subsidiaries for the issuance of bid and performance letters of credit.

On September 20, 2021, certain provisions and covenants of the LC Credit Agreement were amended as follows:

Permit the borrowing of up to an additional $400 million of secured indebtedness under an asset-based lending facility or a revolving credit facility upon compliance with certain conditions;
Removed the minimum secured liquidity requirement;
Increased the minimum aggregate liquidity requirement from $175 million to $300 million;
Decreased the minimum aggregate book value of certain pledged assets requirement from $1.25 billion to $1 billion; and
Increased the ability to repay or redeem debt to $500 million subject to minimum aggregate liquidity of $400 million at the time of repayment or redemption.

At September 30, 2021, we had approximately $173 million in outstanding letters of credit under the LC Credit Agreement and availability of $42 million.
 
As of September 30, 2021, we had $329 million of letters of credit outstanding, consisting of the $173 million mentioned above under the LC Credit Agreement and another $156 million under various uncommitted bi-lateral facilities (for which there was $152 million in cash collateral held and recorded in “Restricted Cash” on our Condensed Consolidated Balance Sheets).

Accrued Interest

As of September 30, 2021 and December 31, 2020, we had accrued interest of $77 million and $34 million, 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.

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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.
9/30/202112/31/2020
(Dollars in millions)Carrying ValueFair ValueCarrying ValueFair Value
Exit Notes
$2,098 $2,215 $2,098 $1,628 
2028 Senior Secured Notes$488 $516 $— $— 
2024 Senior Secured Notes
$ $— $455 $507 


8. 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. On May 14, 2021, the District Court dismissed the case with prejudice for failure to state a claim. On August 9, 2021, the plaintiffs filed their Notice of Appeal with the District Court. The case is still pending appeal and we cannot reliably predict the outcome of the claims, including the amount of any possible loss.

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9.  Shareholders’ Equity

The following summarizes our shareholders’ equity activity in the three and nine months ended September 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 
Net Income (Loss)— (95)— $6 (89)
Other Comprehensive Loss— — (11)— (11)
Dividends to Noncontrolling Interests— — — (11)(11)
Equity Awards Granted, Vested and Exercised1 — — — 1 
Other— — — (2)(2)
Balance at September 30, 2021$2,900 $(2,236)$(43)$26 $647 
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 
Net Income (Loss)— (174)— 7 (167)
Other Comprehensive Loss— — (6)— (6)
Dividends to Noncontrolling Interests— — — (9)(9)
Balance at September 30, 2020$2,897 $(1,747)$(63)$36 $1,123 

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The following table presents the changes in our accumulated other comprehensive loss by component in the nine months ended September 30, 2021 and 2020:
(Dollars in millions)Currency Translation AdjustmentDefined Benefit PensionTotal
Balance at December 31, 2020$(31)$(12)$(43)
Other Comprehensive Loss$ $ $ 
Balance at September 30, 2021$(31)$(12)$(43)
Balance at December 31, 2019$7 $2 $9 
Other Comprehensive Loss(72) (72)
Balance at September 30, 2020$(65)$2 $(63)

10.  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 nine months ended September 30, 2021 and 2020:
Three Months Ended September 30, Nine Months Ended September 30,
(Dollars and shares in millions, except per share amounts)2021202020212020
Net Loss Attributable to Weatherford$(95)$(174)$(289)$(1,721)
Basic and Diluted Weighted Average Shares Outstanding70 70 70 70 
Basic and Diluted Loss Per Share Attributable to Weatherford$(1.36)$(2.48)$(4.13)$(24.58)

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 nine months ended September 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 outstanding warrants as we had net losses for those periods and their inclusion would be anti-dilutive.
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11. 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 under 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 nine months ended September 30, 2021 and 2020 and includes equipment revenues recognized under lease accounting standards of $34 million and $97 million in the three and nine months ended September 30, 2021, respectively, and $30 million and $119 million for the three and nine months ended September 30, 2020, respectively.

Three Months Ended
September 30,
Nine Months Ended
September 30,
(Dollars in millions)2021202020212020
Product Line Revenue for Western Hemisphere
  Completion and Production$239 $170 $695 $632 
  Drilling, Evaluation and Intervention202 146 561 582 
Total Western Hemisphere Revenue441 316 $1,256 $1,214 
Product Line Revenue for Eastern Hemisphere
  Completion and Production221 241 $633 $783 
  Drilling, Evaluation and Intervention283 250 791 846 
Total Eastern Hemisphere Revenue504 491 $1,424 $1,629 
Total Revenues$945 $807 $2,680 $2,843 

Three Months Ended
September 30,
Nine Months Ended
September 30,
(Dollars in millions)2021202020212020
Revenue by Geographic Areas:
  North America$224 $175 $658 $688 
  Latin America217 141 598 526 
 Western Hemisphere 441 316 $1,256 $1,214 
  Middle East & North Africa and Asia312 319 $868 $1,063 
  Europe/Sub-Sahara Africa/Russia192 172 556 566 
 Eastern Hemisphere 504 491 $1,424 $1,629 
Total Revenues$945 $807 $2,680 $2,843 
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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 September 30, 2021 and December 31, 2020. Revenue recognized during the nine months ended September 30, 2021 that was included in the contract liabilities balance at the beginning of 2021 was $28 million. The following table summarizes these balances as of September 30, 2021 and December 31, 2020:
(Dollars in millions)
9/30/2021
12/31/2020
Receivables for Product and Services in Accounts Receivable, Net$782 $792 
Total Accounts Receivables$816 $826 
Contract Liabilities$31 $37 

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 September 30, 2021.
(Dollars in millions)2021202220232024ThereafterTotal
Service Revenue$17 $66 $55 $57 $65 $260 

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12. 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
September 30,
Nine Months Ended
September 30,
(Dollars in millions)2021202020212020
Revenues:
Western Hemisphere$441 $316 $1,256 $1,214 
Eastern Hemisphere504 491