Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Feb. 17, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	NATIONAL OILWELL VARCO INC
Entity Central Index Key	0001021860
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 13.9
Entity Common Stock, Shares Outstanding		421,070,856

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 3,333	$ 2,622
Receivables, net	2,425	2,187
Inventories, net	3,388	3,490
Costs in excess of billings	815	740
Deferred income taxes	316	290
Prepaid and other current assets	258	269
Total current assets	10,535	9,598
Property, plant and equipment, net	1,840	1,836
Deferred income taxes	341	92
Goodwill	5,790	5,489
Intangibles, net	4,103	4,052
Investment in unconsolidated affiliate	386	393
Other assets	55	72
Total assets	23,050	21,532
Current liabilities:
Accounts payable	628	584
Accrued liabilities	2,105	2,267
Billings in excess of costs	511	1,090
Current portion of long-term debt and short-term borrowings	373	7
Accrued income taxes	468	226
Deferred income taxes	451	340
Total current liabilities	4,536	4,514
Long-term debt	514	876
Deferred income taxes	1,885	1,751
Other liabilities	253	163
Total liabilities	7,188	7,304
Commitments and contingencies
Stockholders' equity:
Common stock - par value $.01; 421,141,751 and 418,451,731 shares issued and outstanding at December 31, 2010 and December 31, 2009	4	4
Additional paid-in capital	8,353	8,214
Accumulated other comprehensive income	91	90
Retained earnings	7,300	5,805
Total Company stockholders' equity	15,748	14,113
Noncontrolling interests	114	115
Total stockholders' equity	15,862	14,228
Total liabilities and stockholders' equity	$ 23,050	$ 21,532

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2010	Dec. 31, 2009
Stockholders' equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	421,141,751	418,451,731
Common stock, shares outstanding	421,141,751	418,451,731

Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenue
Sales	$ 9,956	$ 10,812	$ 11,162
Services	2,200	1,900	2,269
Total	12,156	12,712	13,431
Cost of revenue
Cost of sales	6,598	7,297	7,784
Cost of services	1,726	1,631	1,575
Total	8,324	8,928	9,359
Gross profit	3,832	3,784	4,072
Selling, general and administrative	1,385	1,322	1,154
Intangible asset impairment		147
Operating profit	2,447	2,315	2,918
Interest and financial costs	(50)	(53)	(67)
Interest income	13	9	45
Equity income in unconsolidated affiliate	36	47	42
Other income (expense), net	(49)	(110)	23
Income before income taxes	2,397	2,208	2,961
Provision for income taxes	738	735	993
Net income	1,659	1,473	1,968
Net income (loss) attributable to noncontrolling interests	(8)	4	16
Net income attributable to Company	$ 1,667	$ 1,469	$ 1,952
Net income attributable to Company per share:
Basic	$ 3.99	$ 3.53	$ 4.91
Diluted	$ 3.98	$ 3.52	$ 4.90
Cash dividends per share	$ 0.41	$ 1.10
Weighted average shares outstanding:
Basic	417	416	397
Diluted	419	417	399

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 1,659	$ 1,473	$ 1,968
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	507	490	402
Deferred income taxes	(165)	(174)	(33)
Stock-based compensation	66	68	67
Excess tax benefit from the exercise of stock options	(10)	(1)	(37)
Equity income in unconsolidated affiliate	(36)	(47)	(42)
Dividend from unconsolidated affiliate	17	86
Intangible asset impairment		147
Other	135	75	115
Change in operating assets and liabilities, net of acquisitions:
Receivables	(189)	1,033	(626)
Inventories	39	468	(643)
Costs in excess of billings	(4)	(122)	25
Prepaid and other current assets	15	23	230
Accounts payable	40	(361)	95
Billings in excess of costs	(620)	(1,071)	765
Other assets/liabilities, net	88	8	8
Net cash provided by operating activities	1,542	2,095	2,294
Cash flows from investing activities:
Purchases of property, plant and equipment	(232)	(250)	(379)
Business acquisitions, net of cash acquired	(556)	(573)	(3,008)
Business divestitures, net of cash disposed			801
Sale of equity interest, net		251
Dividend from unconsolidated affiliate	16	8	113
Other, net	29	12
Net cash used in investing activities	(743)	(552)	(2,473)
Cash flows from financing activities:
Borrowings against lines of credit and other debt	3	7	2,731
Payments against lines of credit and other debt	(16)	(47)	(2,920)
Dividends paid	(172)	(460)
Excess tax benefits from exercise of stock options	10	1	37
Proceeds from stock options exercised	73	8	78
Net cash used in financing activities	(102)	(491)	(74)
Effect of exchange rates on cash	14	27	(46)
Increase (decrease) in cash and cash equivalents	711	1,079	(299)
Cash and cash equivalents, beginning of period	2,622	1,543	1,842
Cash and cash equivalents, end of period	3,333	2,622	1,543
Cash payments during the period for:
Interest	56	56	76
Income taxes	$ 551	$ 929	$ 1,261

Consolidated Statements of Stockholders' Equity and Comprehensive Income (USD $) In Millions, unless otherwise specified	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total Company Stockholders' Equity	Noncontrolling Interests
Beginning Balance at Dec. 31, 2007	$ 6,724	$ 3	$ 3,617	$ 195	$ 2,846	$ 6,661	$ 63
Beginning Balance, Shares at Dec. 31, 2007		356
Net income	1,968				1,952	1,952	16
Other comprehensive income:
Currency translation adjustments	(176)			(176)		(176)
Derivative financial instruments	(160)			(160)		(160)
Change in defined benefit plans	(20)			(20)		(20)
Comprehensive income	1,612					1,596
Adoption of FAS158, net of tax	(2)				(2)	(2)
Stock issued in acquisition	4,191	1	4,190			4,191
Stock issued in acquisition, Shares		57
Acquired noncontrolling interests	25						25
Dividends to noncontrolling interests	(8)						(8)
Stock-based compensation	67		67			67
Common stock issued	78		78			78
Common stock issued, Shares		4
Excess tax benefit of options exercised	37		37			37
Ending Balance at Dec. 31, 2008	12,724	4	7,989	(161)	4,796	12,628	96
Ending Balance, Shares at Dec. 31, 2008		417
Net income	1,473				1,469	1,469	4
Other comprehensive income:
Currency translation adjustments	100			100		100
Derivative financial instruments	160			160		160
Change in defined benefit plans	(9)			(9)		(9)
Comprehensive income	1,724					1,720
Cash dividends per common share	(460)				(460)	(460)
Dividends to noncontrolling interests	(13)						(13)
Noncontrolling interest contribution	28						28
Gain on sale of equity interest, net of tax	148		148			148
Stock-based compensation	68		68			68
Common stock issued	8		8			8
Common stock issued, Shares		1
Excess tax benefit of options exercised	1		1			1
Ending Balance at Dec. 31, 2009	14,228	4	8,214	90	5,805	14,113	115
Ending Balance, Shares at Dec. 31, 2009		418
Net income	1,659				1,667	1,667	(8)
Other comprehensive income:
Currency translation adjustments	13			13		13
Derivative financial instruments	(13)			(13)		(13)
Change in defined benefit plans	1			1		1
Comprehensive income	1,660					1,668
Cash dividends per common share	(172)				(172)	(172)
Dividends to noncontrolling interests	(2)						(2)
Noncontrolling interest contribution	9						9
Stock-based compensation	66		66			66
Common stock issued	73		73			73
Common stock issued, Shares		3
Withholding taxes	(10)		(10)			(10)
Excess tax benefit of options exercised	10		10			10
Ending Balance at Dec. 31, 2010	$ 15,862	$ 4	$ 8,353	$ 91	$ 7,300	$ 15,748	$ 114
Ending Balance, Shares at Dec. 31, 2010		421

Organization and Basis of Presentation	12 Months Ended
Organization and Basis of Presentation	Dec. 31, 2010
Organization and Basis of Presentation [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation Nature of Business We design, construct, manufacture and sell comprehensive systems, components, and products used in oil and gas drilling and production, provide oilfield services and supplies, and distribute products and provide supply chain integration services to the upstream oil and gas industry. Our revenues and operating results are directly related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies, drilling contractors and oilfield service companies, which in turn are affected by current and anticipated prices of oil and gas. Oil and gas prices have been and are likely to continue to be volatile. Basis of Consolidation The accompanying Consolidated Financial Statements include the accounts of National Oilwell Varco, Inc. and its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Investments that are not wholly-owned, but where we exercise control, are fully consolidated with the equity held by minority owners and their portion of net income (loss) reflected as noncontrolling interests in the accompanying consolidated financial statements. Investments in unconsolidated affiliates, over which we exercise significant influence, but not control, are accounted for by the equity method. We reclassified $340 million of deferred tax liabilities from noncurrent to current on the 2009 balance sheet in order to conform with the 2010 presentation.

- Definition

Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, receivables, and payables approximated fair value because of the relatively short maturity of these instruments. Cash equivalents include only those investments having a maturity date of three months or less at the time of purchase. The carrying values of other financial instruments approximate their respective fair values.

Derivative Financial Instruments

ASC Topic 815, “Derivatives and Hedging” (“ASC Topic 815”) requires companies to recognize all of its derivative instruments as either assets or liabilities in the Consolidated Balance Sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk on forecasted revenue and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge).Other forward exchange contracts against various foreign currencies are entered into to manage the foreign currency exchange rate risk associated with certain firm commitments denominated in currencies other than the functional currency of the operating unit (fair value hedge).In addition, the Company will enter into non-designated forward contracts against various foreign currencies to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge).Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings.

The Company records all derivative financial instruments at their fair value in its Consolidated Balance Sheet. Except for certain non-designated hedges discussed below, all derivative financial instruments that the Company holds are designated as either cash flow or fair value hedges and are highly effective in offsetting movements in the underlying risks. Such arrangements typically have terms between two and 24 months, but may have longer terms depending on the underlying cash flows being hedged, typically related to the projects in our backlog. The Company may also use interest rate contracts to mitigate its exposure to changes in interest rates on anticipated long-term debt issuances.

At December 31, 2010, the Company has determined that its financial assets of $47 million and liabilities of $23 million (primarily currency related derivatives) are level 2 in the fair value hierarchy. At December 31, 2010, the net fair value of the Company’s foreign currency forward contracts totaled an asset of $24 million.

As of December 31, 2010, the Company did not have any interest rate swaps and its financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when the Company’s financial instruments are in net liability positions. We do not use derivative financial instruments for trading or speculative purposes.

Cash Flow Hedging Strategy

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is subject to a particular currency risk),the effective portion of the gain or loss on the derivative instrument is reported as a component of Other Comprehensive Income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues).The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e. the ineffective portion), or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statements of Income during the current period.

To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted sales and expenses, the Company has instituted a cash flow hedging program. The Company hedges portions of its forecasted revenues and expenses denominated in nonfunctional currencies with forward contracts. When the U.S. dollar strengthens against the foreign currencies, the decrease in present value of future foreign currency revenue and costs is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts.

As of December 31, 2010, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and costs (in millions):


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
British Pound Sterling	£	4	£		39
Danish Krone	DKK	31	DKK	180
Euro	€	122	€	199
Norwegian Krone	NOK	4,983	NOK	6,097
U.S. Dollar	$	247	$		224
Korean Won	KRW	—	KRW	2,317

Fair Value Hedging Strategy

For derivative instruments that are designated and qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is subject to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings (e.g., in “revenue” when the hedged item is a contracted sale).

The Company enters into forward exchange contracts to hedge certain firm commitments of revenue and costs that are denominated in currencies other than the functional currency of the operating unit. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to customers will be adversely affected by changes in the exchange rates.

As of December 31, 2010, the Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency fair values of firm commitments of revenues and costs (in millions):


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
U.S. Dollar	$	1	$	52

Non-designated Hedging Strategy

For derivative instruments that are non-designated, the gain or loss on the derivative instrument is recognized in the same line item associated with the hedged item in current earnings.

The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the nonfunctional currency monetary accounts will be adversely affected by changes in the exchange rates.

As of December 31, 2010, the Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts (in millions):


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
British Pound Sterling	£	8	£	10
Danish Krone	DKK	115	DKK	77
Euro	€	97	€	106
Norwegian Krone	NOK	1,442	NOK	3,096
Swedish Krone	SEK	—	SEK	5
U.S. Dollar	$	328	$	501
Russian Ruble	RUB	780	RUB	2,812

As of December 31, 2010 and 2009, the Company has the following respective fair values of its derivative instruments and their balance sheet classifications (in millions):


	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet	December 31,				Balance Sheet	December 31,
	Location	2010		2009		Location	2010		2009
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	28	$	56	Accrued liabilities	$	12	$	39
Foreign exchange contracts	Other Assets		12		17	Other Liabilities		1		7


Total derivatives designated as hedging instruments under ASC Topic 815		$	40	$	73		$	13	$	46


Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	7	$	30	Accrued liabilities	$	10	$	8
Foreign exchange contracts	Other Assets		—		1	Other Liabilities		—		1


Total derivatives not designated as hedging instruments under ASC Topic 815		$	7	$	31		$	10	$	9


Total derivatives		$	47	$	104		$	23	$	55

The Effect of Derivative Instruments on the Consolidated Statement of Income
($ in millions)

Location of Gain (Loss)

Recognized in Income on

Amount of Gain (Loss)

Location of Gain (Loss)

Derivative (Ineffective

Recognized in Income on

Reclassified from

Amount of Gain (Loss)

Portion and Amount

Derivative (Ineffective

Derivatives in ASC Topic 815

Amount of Gain (Loss)

Accumulated OCI into

Reclassified from

Excluded from

Portion and Amount

Cash Flow Hedging

Recognized in OCI on

Income

Accumulated OCI into

Effectiveness

Excluded from

Relationships

Derivative (Effective Portion) (a)

(Effective Portion)

Income (Effective Portion)

Testing)

Effectiveness Testing) (b)

Years Ended

December 31,

2010

2009

2010

2009

2010

2009

Revenue

Foreign exchange contracts

(25

)

164

Cost of revenue

(22

)

(42

)

Other income (expense), net

(24

)

Total

(25

)

164

(12

)

(16

)

(24

)

Derivatives in ASC Topic 815

Location of Gain (Loss)

Amount of Gain (Loss)

ASC Topic 815

Location of Gain (Loss)

Recognized in Income on

Fair Value

Recognized in Income

Recognized in Income on

Fair Value Hedge

Recognized in Income on

Related Hedged

Hedging Relationships

on Derivative

Derivative

Relationships

Related Hedged Item

Items

Years Ended

December 31,

2010

2009

2010

2009

Foreign exchange contracts

Revenue

)

Firm commitments

Revenue

)

Foreign exchange contracts

Cost of revenue

—

(13

)

Firm commitments

Cost of revenue

—

Total

)

Derivatives Not Designated as

Location of Gain (Loss)

Amount of Gain (Loss)

Hedging Instruments under

Recognized in Income

Recognized in Income on

ASC Topic 815

on Derivative

Derivative

Years Ended

December 31,

2010

2009

Foreign exchange contracts

Other income (expense), net

Total


(a)		The Company expects that $(14) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.

(b)		The amount of gain (loss) recognized in income represents $9 million and $(24) million related to the ineffective portion of the hedging relationships for the years ended December 31, 2010 and 2009, respectively, and $12 million and $4 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2010 and 2009, respectively.

Inventories

Inventories consist of raw materials, work-in-process and oilfield and industrial finished products, manufactured equipment and spare parts. Inventories are stated at the lower of cost or market using the first-in, first-out or average cost methods. Allowances for excess and obsolete inventories are determined based on our historical usage of inventory on-hand as well as our future expectations related to our installed base and the development of new products. The allowance, which totaled $270 million and $206 million at December 31, 2010 and 2009, respectively, is the amount necessary to reduce the cost of the inventory to its estimated realizable value.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Expenditures for major improvements that extend the lives of property and equipment are capitalized while minor replacements, maintenance and repairs are charged to operations as incurred. Disposals are removed at cost less accumulated depreciation with any resulting gain or loss reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of individual items. Depreciation expense was $262 million, $249 million and $222 million for the years ended December 31, 2010, 2009 and 2008, respectively. The estimated useful lives of the major classes of property, plant and equipment are included in Note 6 to the consolidated financial statements.

Long-lived Assets

We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The carrying value of assets used in operations that is not recoverable is reduced to fair value if lower than carrying value. In determining the fair market value of the assets, we consider market trends and recent transactions involving sales of similar assets, or when not available, discounted cash flow analysis. There have been no impairments of long-lived assets for the years ended December 31, 2010, 2009 and 2008.

Intangible Assets

The Company has approximately $5.8 billion of goodwill and $4.1 billion of identified intangible assets as of December 31, 2010. Generally accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually or more frequently whenever events or circumstances occur indicating that such assets might be impaired.

Goodwill is identified by segment as follows (in millions):


			Petroleum
	Rig		Services &		Distribution
	Technology		Supplies		Services		Total
Balance at December 31, 2008	$	1,458	$	3,705	$	62	$	5,225

Goodwill acquired during period		97		143		—		240
Translation and other adjustments		12		7		5		24


Balance at December 31, 2009		1,567		3,855		67		5,489

Goodwill acquired during period		287		2		9		298
Translation adjustments		—		2		1		3


Balance at December 31, 2010	$	1,854	$	3,859	$	77	$	5,790

Identified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical drawings acquired in acquisitions, and are being amortized on a straight-line basis over the estimated useful lives of 2-30 years. Amortization expense of identified intangibles is expected to be approximately $260 million in each of the next five years. Included in intangible assets are approximately $643 million of indefinite-lived trade names.

The net book value of identified intangible assets are identified by segment as follows (in millions):


				Petroleum
	Rig			Services &			Distribution
	Technology			Supplies			Services			Total
Balance at December 31, 2008	$	361		$	3,933		$	6		$	4,300

Additions to intangible assets		86			37			—			123
Asset impairment		—			(147	)		—			(147	)
Amortization		(36	)		(204	)		(1	)		(241	)
Translation		5			11			1			17


Balance at December 31, 2009		416			3,630			6			4,052

Additions to intangible assets		291			8			—			299
Amortization		(38	)		(206	)		(1	)		(245	)
Translation		(3	)		—			—			(3	)


Balance at December 31, 2010	$	666		$	3,432		$	5		$	4,103

Identified intangible assets by major classification consist of the following (in millions):


			Accumulated			Net Book
	Gross		Amortization			Value
December 31, 2009:

Customer relationships	$	2,819	$	(366	)	$	2,453
Trademarks		619		(73	)		546
Indefinite-lived trade names		643		—			643
Other		531		(121	)		410


Total identified intangibles	$	4,612	$	(560	)	$	4,052


December 31, 2010:

Customer relationships	$	2,933	$	(536	)	$	2,397
Trademarks		677		(95	)		582
Indefinite-lived trade names		643		—			643
Other		655		(174	)		481


Total identified intangibles	$	4,908	$	(805	)	$	4,103

2009 Asset Impairment

During the second quarter of 2009, the worldwide average rig count was 2,009 rigs, down 41% from the fourth quarter 2008 average of 3,395 and down 25% from the first quarter 2009 average of 2,681. The second quarter 2009 average rig count represented the lowest quarterly average in the past six years. In addition, the Company’s updated forecast was behind the Company’s previous forecast completed at the beginning of 2009. While operating profit for the first quarter of 2009 was in line with the Company’s first quarter 2009 operating profit forecast, the Company’s consolidated operating profit for the second quarter of 2009 was below its second quarter 2009 forecast. As a result of the substantial decline in the worldwide rig count, and the decline in actual/forecasted results compared to the original 2009 forecast, the Company concluded that events or circumstances had occurred indicating that goodwill and other indefinite-lived intangible assets might be impaired as described in ASC Topic 350, “Intangibles — Goodwill and Other” (“ASC Topic 350”).

Therefore, the Company performed its interim impairment test of goodwill for its reporting units and its indefinite-lived intangible assets at the end of the second quarter of 2009. Projections for the remainder of 2009 also reflected declines compared to the original 2009 annual forecast. The Company updated its 2009 operating forecast, long-term forecast, and discounted cash flows based on this information.

The goodwill impairment analysis that the Company performed during the second quarter of 2009 did not result in goodwill impairment as of June 30, 2009. However, based on the Company’s indefinite-lived intangible asset impairment analysis performed during the second quarter of 2009, the Company incurred an impairment charge of $147 million in the Petroleum Services & Supplies segment related to a partial impairment of the Company’s Grant Prideco trade name. The impairment charge was primarily the result of the substantial decline in worldwide rig counts through June 2009, declines in forecasts in rig activity for the remainder of 2009, 2010, and 2011 compared to rig count forecast at the beginning of 2009, and a decline in the revenue forecast for the drill pipe business unit for the remainder of 2009, 2010, and 2011.

The Company performed its annual impairment analysis for its goodwill and indefinite-lived assets during the fourth quarter of 2009 and 2010 each resulting in no further impairment. The valuation techniques used in the annual test were consistent with those used during previous testing. The inputs used in the annual test were updated for current market conditions and forecasts.

Foreign Currency

The functional currency for most of our foreign operations is the local currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the U.S. dollar at current exchange rates are included in accumulated other comprehensive income (loss). Revenues and expenses are translated at average exchange rates in effect during the period. Certain other foreign operations, including our operations in Norway, use the U.S. dollar as the functional currency. Accordingly, financial statements of these foreign subsidiaries are remeasured to U.S. dollars for consolidation purposes using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets and related elements of expense. Revenue and expense elements are remeasured at rates that approximate the rates in effect on the transaction dates. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income. Net foreign currency transaction gains (losses) were ($30) million, ($79) million and $50 million for the years ending December 31, 2010, 2009 and 2008, respectively, and are included in other income (expense) in the accompanying statement of operations.

During the first quarter of 2010, the Venezuelan government officially devalued the Venezuelan bolivar against the U.S. dollar. As a result the Company converted its Venezuela ledgers to U.S. dollar functional currency, devalued monetary assets resulting in a $27 million charge, and wrote-down certain accounts receivable in view of deteriorating business conditions in Venezuela, resulting in an additional $11 million charge. The Company’s net investment in Venezuela was $28 million at December 31, 2010.

Revenue Recognition

The Company’s products and services are sold based upon purchase orders or contracts with the customer that include fixed or determinable prices and that do not generally include right of return or other similar provisions or other significant post delivery obligations. Except for certain construction contracts and drill pipe sales described below, the Company records revenue at the time its manufacturing process is complete, the customer has been provided with all proper inspection and other required documentation, title and risk of loss has passed to the customer, collectability is reasonably assured and the product has been delivered. Customer advances or deposits are deferred and recognized as revenue when the Company has completed all of its performance obligations related to the sale. The Company also recognizes revenue as services are performed. The amounts billed for shipping and handling cost are included in revenue and related costs are included in cost of sales.

Revenue Recognition under Long-term Construction Contracts

The Company uses the percentage-of-completion method to account for certain long-term construction contracts in the Rig Technology segment. These long-term construction contracts include the following characteristics:

	•		the contracts include custom designs for customer specific applications;

	•		the structural design is unique and requires significant engineering efforts; and

	•		construction projects often have progress payments.

This method requires the Company to make estimates regarding the total costs of the project, progress against the project schedule and the estimated completion date, all of which impact the amount of revenue and gross margin the Company recognizes in each reporting period. The Company prepares detailed cost estimates at the beginning of each project. Significant projects and their related costs and profit margins are updated and reviewed at least quarterly by senior management. Factors that may affect future project costs and margins include shipyard access, weather, production efficiencies, availability and costs of labor, materials and subcomponents and other factors. These factors can impact the accuracy of the Company’s estimates and materially impact the Company’s current and future reported earnings.

The asset, “Costs in excess of billings,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs,” represents billings in excess of revenues recognized.

Drill Pipe Sales

For drill pipe sales, if requested in writing by the customer, delivery may be satisfied through delivery to the Company’s customer storage location or to a third-party storage facility. For sales transactions where title and risk of loss have transferred to the customer but the supporting documentation does not meet the criteria for revenue recognition prior to the products being in the physical possession of the customer, the recognition of the revenues and related inventory costs from these transactions are deferred until the customer takes physical possession.

Service and Product Warranties

The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with ASC Topic 450 “Contingencies” (“ASC Topic 450”). Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered. The Company monitors the actual cost of performing these discretionary services and adjusts the accrual based on the most current information available.

The changes in the carrying amount of service and product warranties are as follows (in millions):


Balance at December 31, 2008	$	114


Net provisions for warranties issued during the year		144
Amounts incurred		(62	)
Foreign currency translation		21


Balance at December 31, 2009	$	217


Net provisions for warranties issued during the year		52
Amounts incurred		(45	)
Foreign currency translation and other		(9	)


Balance at December 31, 2010	$	215

Income Taxes

The liability method is used to account for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized.

Concentration of Credit Risk

We grant credit to our customers, which operate primarily in the oil and gas industry. Concentrations of credit risk are limited because we have a large number of geographically diverse customers, thus spreading trade credit risk. We control credit risk through credit evaluations, credit limits and monitoring procedures. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral, but may require letters of credit for certain international sales. Credit losses are provided for in the financial statements. Allowances for doubtful accounts are determined based on a continuous process of assessing the Company’s portfolio on an individual customer basis taking into account current market conditions and trends. This process consists of a thorough review of historical collection experience, current aging status of the customer accounts, and financial condition of the Company’s customers. Based on a review of these factors, the Company will establish or adjust allowances for specific customers. Accounts receivable are net of allowances for doubtful accounts of approximately $107 million and $95 million at December 31, 2010 and 2009, respectively.

Stock-Based Compensation

Compensation expense for the Company’s stock-based compensation plans is measured using the fair value method required by ASC Topic 718 “Compensation — Stock Compensation” (“ASC Topic 718”).Under this guidance the fair value of stock option grants and restricted stock is amortized to expense using the straight-line method over the shorter of the vesting period or the remaining employee service period.

The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans.

Total compensation cost that has been charged against income for all share-based compensation arrangements was $66 million, $68 million and $61 million for 2010, 2009 and 2008, respectively. The total income tax benefit recognized in the income statement for all share-based compensation arrangements was $20 million, $21 million and $19 million for 2010, 2009 and 2008, respectively.

Environmental Liabilities

When environmental assessments or remediations are probable and the costs can be reasonably estimated, remediation liabilities are recorded on an undiscounted basis and are adjusted as further information develops or circumstances change.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates include but are not limited to, estimated losses on accounts receivable, estimated costs and related margins of projects accounted for under percentage-of-completion, estimated realizable value on excess and obsolete inventory, contingencies, estimated liabilities for litigation exposures and liquidated damages, estimated warranty costs, estimates related to pension accounting, estimates related to the fair value of reporting units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment and estimates related to deferred tax assets and liabilities, including valuation allowances on deferred tax assets. Actual results could differ from those estimates.

Contingencies

The Company accrues for costs relating to litigation claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Revisions to contingent liabilities are reflected in income in the period in which different facts or information become known or circumstances change that affect the Company’s previous judgments with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of contingent liabilities may be materially different from previous estimates and could require adjustments to the estimated reserves to be recognized in the period such new information becomes known.

In circumstances where the most likely outcome of a contingency can be reasonably estimated, we accrue a liability for that amount. Where the most likely outcome cannot be estimated, a range of potential losses is established and if no one amount in that range is more likely than others, the low end of the range is accrued.

Net Income Attributable to Company Per Share

The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data):


	Years Ended December 31,
	2010		2009		2008
Numerator:
Net income attributable to Company	$	1,667	$	1,469	$	1,952

Denominator:
Basic—weighted average common shares outstanding		417		416		397
Dilutive effect of employee stock options and other unvested stock awards		2		1		2

Diluted outstanding shares		419		417		399


Basic earnings attributable to Company per share	$	3.99	$	3.53	$	4.91

Diluted earnings attributable to Company per share	$	3.98	$	3.52	$	4.90

Cash dividends per share	$	0.41	$	1.10	$	—

In addition, we had stock options outstanding that were anti-dilutive totaling 7.7 million, 4.0 million, and 0.4 million at December 31, 2010, 2009 and 2008, respectively.

Recently Issued Accounting Standards

In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU No. 2010-06”) as an update to Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”). ASU No. 2010-06 requires additional disclosures about transfers between Levels 1 and 2 of the fair value hierarchy and disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. ASU No. 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company adopted the required provisions of ASU No. 2010-06 in the first quarter of 2010. There was no significant impact to the Company’s Consolidated Financial Statements from the adopted provisions of ASU No. 2010-06.

Grant Prideco Merger

12 Months Ended

Dec. 31, 2010

Mergers and Other Acquisitions [Abstract]

Grand Prideco Merger

3. Grant Prideco Merger

Pursuant to the Agreement and Plan of Merger with Grant Prideco, Inc. (“Grant Prideco”) (the “Merger”), a Delaware Corporation, effective December 16, 2007 (the “Agreement Date”), the Company issued .4498 shares of National Oilwell Varco, Inc. common stock and $23.20 in cash (the “Exchange Ratio”) for each Grant Prideco common share outstanding on April 21, 2008 (the “Merger Date”) totaling approximately 57 million shares and $2.9 billion in cash. The Company has included the financial results of Grant Prideco in its Consolidated Financial Statements beginning on the Merger Date, the date Grant Prideco common shares were exchanged for National Oilwell Varco common shares and cash. The Grant Prideco operations are included in the Petroleum Services & Supplies segment.

Prior to its acquisition, Grant Prideco was a world leader in drill stem technology development and drill pipe manufacturing, sales and service and a global leader in drill bit and specialty tools, manufacturing, sales and service. The Company believes the Merger with Grant Prideco advanced its strategic goal of providing more products and services to its customers and that Grant Prideco’s product range added new growth opportunities to the Company and benefited its customers’ needs worldwide.

The Merger was accounted for as a purchase business combination. Assets acquired and liabilities assumed were recorded at their fair values as of April 21, 2008. The fair value of shares issued was determined using an average price of $72.74, which represents the average closing price of the Company’s common stock for a five-day period beginning two available trading days before the public announcement of the transaction. The total purchase price was $7,199 million, including Grant Prideco stock options assumed and acquisition related transaction costs and is comprised of (in millions):


Shares issued totaled approximately 57 million shares at $72.74 per share	$	4,135
Cash paid at $23.20 per share		2,932
Grant Prideco stock options assumed		56
Merger related transaction costs		76

Total purchase price	$	7,199

For all Grant Prideco stock options and restricted stock granted prior to 2008, vesting was accelerated under the terms of the stock option and restricted stock agreements; therefore, there was no modification of the awards as defined under SFAS 123(R). For stock options and restricted stock granted by Grant Prideco in 2008, 320,500 Grant Prideco stock options and 388,000 shares of restricted stock were replaced with 250,402 National Oilwell Varco stock options and 303,212 shares of National Oilwell Varco restricted stock, respectively. For the 2008 Grant Prideco grants, vesting was not accelerated in connection with the Merger, under the terms of the stock option and restricted stock agreements, except for certain recipients of the 2008 Grant Prideco restricted stock grant.

Merger related costs of $76 million include severance and other external costs directly related to the Merger.

Transaction costs of $11 million for the year ending December 31, 2008 were comprised of $6 million for accelerated vesting of stock-based compensation, $4 million for bridge loan fees and $1 million of other costs and are included in selling, general and administrative expense in the Consolidated Statements of Income.

Purchase Price Allocation

Under the purchase method of accounting, the total purchase price was allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their fair values as of April 21, 2008. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. The following table, set forth below, displays the total purchase price allocated to Grant Prideco’s net tangible and identifiable intangible assets based on their fair values as of April 21, 2008 (in millions):


Cash and cash equivalents	$	171
Receivables		420
Assets held for sale, net		784
Inventories		611
Prepaid and other current assets		210
Property, plant and equipment		392
Goodwill		2,775
Intangibles		3,696
Investment in unconsolidated affiliate		512
Other assets		98
Accounts payable and accrued liabilities		(316	)
Accrued income taxes		(627	)
Long-term debt		(176	)
Deferred income taxes		(1,305	)
Minority interest		(25	)
Other liabilities		(21	)

Total purchase price	$	7,199

Under purchase accounting, a fair value step up adjustment of $89 million was made to inventory and was charged to “Cost of sales” as the applicable inventory sold. Cost of sales included $89 million of these inventory charges for the year ended December 31, 2008.

Additionally, the Company identified other intangible assets associated with tradenames, patents, and customer relationships, and the fair values assigned were $1.2 billion, $0.3 billion, and $2.2 billion, respectively. The initial range of useful lives associated with trade names, patents, and customer relationships were 40 years to an indefinite life, 5 to 15 years and 16 to 17 years, respectively. Of the $1.2 billion associated with trade names, $0.8 billion was initially identified as having an indefinite life.

Disposition of Certain Grant Prideco Businesses

Prior to the Merger, Grant Prideco had entered into a definitive Purchase and Sale Agreement with Vallourec S.A. and Vallourec & Mannesman Holdings, Inc. (collectively referred to as “Vallourec”) to sell four of its tubular businesses for approximately $800 million in cash, subject to final working capital adjustments and standard closing conditions (including regulatory approval). The transaction closed May 16, 2008. The amount included in “Assets held for sale, net” included in the preliminary purchase price allocation above, relates to this disposition. Additionally, $256 million is included above in “Accrued income taxes” for taxes related to the disposition.

Unaudited Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of National Oilwell Varco and Grant Prideco, on a pro forma basis, as though the companies had been combined as of the beginning of 2008. The pro forma financial information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the merger had taken place at the beginning of 2008. The pro forma financial information for the year ended December 31, 2008 includes the business combination accounting effect on historical Grant Prideco revenues, adjustments to depreciation on acquired property, amortization charges from acquired intangible assets, financing costs on new debt in connection with the merger and related tax effects for the year ended December 31, 2008 (in millions, except per share data):


Total revenues	$	14,035

Net income attributable to Company	$	2,080

Basic net income attributable to Company per share	$	5.02

Diluted net income attributable to Company per share	$	4.99

Other Acquisitions and Investments

12 Months Ended

Dec. 31, 2010

Other Acquisitions and Investments [Abstract]

Other Acquisitions and Investments

4. Other Acquisitions and Investments

2010

The Company completed 12 acquisitions for an aggregate purchase price of $556 million, net of cash acquired. These acquisitions included:

	•		The shares of Advanced Production and Loading PLC, a Norway-based designer and manufacturer of turret mooring systems and other products for Floating Production, Storage and Offloading vessels (“FPSOs”) and other offshore vessels and terminals for a purchase price of approximately $500 million.

	•		The business and assets of Ambar Lone Star Fluids Services, LLP, a U.S.-based Drilling and Completions Fluids company.

The preliminary allocation of the purchase price of each acquisition was based upon preliminary valuations. The Company’s estimates and assumptions are subject to change upon the receipt, and management’s review, of the final valuations. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition of the 2010 acquisitions (in millions):


Current assets, net of cash acquired	$	136
Cost in excess of billings		71
Property, plant and equipment		38
Intangible assets		299
Goodwill		298
Other assets		8


Total assets acquired		850


Current liabilities		142
Billings in excess of cost		41
Other liabilities		111


Total liabilities		294


Cash consideration, net of cash acquired	$	556

The Company allocated $299 million to intangible assets (18 year weighted-average life), comprised of: $116 million of customer relationships (15 year weighted-average life), $59 million of trademarks (30 year weighted-average life), and $124 million of other intangible assets (15 year weighted-average life).

2009

The Company completed nine acquisitions for an aggregate purchase price of $573 million, net of cash acquired. These acquisitions included:

	•		The shares of ASEP Group Holding B.V., a Netherlands-based manufacturer of well service equipment.

	•		The shares of ANS (1001) Ltd. (“Anson”), a U.K.-based manufacturer of pumps and fluid expendibles.

	•		The business and assets of Spirit Drilling Fluids Ltd., a U.S.-based company that provides drilling fluids and related well-site services to exploration and production companies.

	•		The business and assets of Spirit Minerals L.P., a U.S.-based company that mines, processes and distributes barite to the oil and gas drilling fluid industry.

	•		The shares of South Seas Inspection (S) Pte. Ltd., a Singapore-based inspection, repair and maintenance provider to the oil and gas industry.

	•		The shares of Hochang Machinery Industries Co., Ltd., a South Korean-based manufacturing and fabrication business.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition of the 2009 acquisitions (in millions):


Current assets, net of cash acquired	$	404
Property, plant and equipment		149
Intangible assets		115
Goodwill		198
Other assets		5


Total assets acquired		871


Current liabilities		242
Long-term debt		48
Other liabilities		8


Total liabilities		298


Cash consideration, net of cash acquired	$	573

The Company allocated $115 million to intangible assets (11 year weighted-average life), comprised of: $60 million of customer relationships (9 year weighted-average life), $46 million of trademarks (18 year weighted-average life), and $9 million of other intangible assets (7 year weighted-average life).

In September 2009, the Company sold 45% of certain of its IntelliServ operations and created the IntelliServ Joint Venture (“IntelliServ”). IntelliServ provides drilling technology that enables downhole drilling conditions to be measured, evaluated and monitored.

2008

In addition to the Grant Prideco Merger, the Company completed nine acquisitions for an aggregate purchase price of $171 million net of cash acquired. These acquisitions included:

	•		Welch Power Source, L.L.C., a Louisiana-based manufacturer of power generation equipment.

	•		CKS, a France-based solids control company.

	•		Mid-South Machine, Inc., a Louisiana-based machine shop.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition of the 2008 acquisitions (in millions):


Current assets, net of cash acquired	$	33
Property, plant and equipment		61
Intangible assets		38
Goodwill		76


Total assets acquired		208


Current liabilities		11
Long-term debt		26


Total liabilities		37


Cash consideration, net of cash acquired	$	171

The Company allocated $38 million to intangible assets (9 year weighted-average life), comprised of: $30 million of customer relationships (15 year weighted-average life), $1 million of trademarks (16 year weighted-average life), and $7 million of other intangible assets (4 year weighted-average life).

Each of the acquisitions were accounted for using the purchase method of accounting and, accordingly, the results of operations of each business are included in the consolidated results of operations from the date of acquisition. Excluding the Grant Prideco merger, a summary of the acquisitions follows (in millions):


	Years Ended December 31,
	2010			2009			2008
Fair value of assets acquired, net of cash acquired	$	850		$	871		$	208
Cash paid, net of cash acquired		(556	)		(573	)		(171	)

Liabilities assumed, debt issued and minority interest	$	294		$	298		$	37


Excess purchase price over fair value of net assets acquired	$	298		$	198		$	76

Inventories, net

12 Months Ended

Dec. 31, 2010

Inventories net [Abstract]

Inventories, net

5. Inventories, net

Inventories consist of (in millions):


	December 31,
	2010		2009
Raw materials and supplies	$	661	$	704
Work in process		953		1,307
Finished goods and purchased products		1,774		1,479

Total	$	3,388	$	3,490

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2010

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

6. Property, Plant and Equipment

Property, plant and equipment consist of (in millions):


	Estimated	December 31,
	Useful Lives	2010			2009
Land and buildings	5-35 Years	$	736		$	678
Operating equipment	3-15 Years		1,539			1,429
Rental equipment	3-12 Years		628			594

			2,903			2,701
Less: Accumulated Depreciation			(1,063	)		(865	)

		$	1,840		$	1,836

Long-Term Debt

12 Months Ended

Dec. 31, 2010

Long-term Debt [Abstract]

Long-Term Debt

9. Long-Term Debt

Debt consists of (in millions):


	December 31,
	2010		2009
Senior Notes, interest at 6.5% payable semiannually, principal due on March 15, 2011	$	150	$	150

Senior Notes, interest at 7.25% payable semiannually, principal due on May 1, 2011		201		205

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		151		151

Senior Notes, interest at 6.125% payable semiannually, principal due on August 15, 2015		151		151

Other		34		26

Total debt		887		883
Less current portion		373		7

Long-term debt	$	514	$	876

Principal payments of debt for years subsequent to 2010 are as follows (in millions):


2011	$	373
2012		355
2013		5
2014		2
2015		151
Thereafter		1

	$	887

Revolving Credit Facilities

On April 21, 2008, the Company replaced its existing $500 million unsecured revolving credit facility with an aggregate of $3 billion of unsecured credit facilities and borrowed $2 billion to finance the cash portion of the Grant Prideco acquisition. These facilities consisted of a $2 billion, five-year revolving credit facility and a $1 billion, 364-day revolving credit facility which was terminated early in February 2009. At December 31, 2010, there were no borrowings against the remaining credit facility, and there were $477 million in outstanding letters of credit issued under this facility, resulting in $1,523 million of funds available under this revolving credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 0.26% subject to a ratings-based grid, or the prime rate.

The Company also had $1,366 million of additional outstanding letters of credit at December 31, 2010, primarily in Norway, that are essentially under various bilateral committed letter of credit facilities. Other letters of credit are issued as bid bonds and performance bonds. The Senior Notes contain reporting covenants and the credit facility contains a financial covenant regarding maximum debt to capitalization. The Company was in compliance with all covenants at December 31, 2010.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2010

Employee Benefit Plans [Abstract]

Employee Benefit Plans

10. Employee Benefit Plans

We have benefit plans covering substantially all of our employees. Defined-contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service, a percentage of current earnings and matching of employee contributions. Employees in our Norwegian operations can elect to participate in a defined-contribution plan in lieu of a local defined benefit plan. For the years ended December 31, 2010, 2009 and 2008, expenses for defined-contribution plans were $41 million, $39 million, and $37 million, respectively, and all funding is current.

Certain retired or terminated employees of predecessor or acquired companies participate in a defined benefit plan in the United States. None of the participants in this plan are eligible to accrue benefits. In addition, approximately 677 U.S. retirees and spouses participate in defined benefit health care plans of predecessor or acquired companies that provide postretirement medical and life insurance benefits. Active employees are ineligible to participate in any of these defined benefit plans. Our subsidiaries in the United Kingdom and Norway also have defined benefit pension plans covering virtually all of their employees.

Net periodic benefit cost for our defined benefit plans aggregated $10 million, $12 million and $7 million for the years ended December 31, 2010, 2009 and 2008, respectively.

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, and Norway and defined postretirement plans in the United States, using a measurement date of December 31, 2010 and December 31, 2009, is as follows (in millions):


	Pension benefits						Postretirement benefits
At year end	2010			2009			2010			2009
Benefit obligation at beginning of year	$	262		$	214		$	39		$	20
Service cost		5			5			—			—
Interest cost		14			14			2			2
Actuarial loss (gain)		10			19			(3	)		1
Benefits paid		(12	)		(10	)		(5	)		(2	)
Participants contributions		1			1			—			—
Exchange rate loss (gain)		(7	)		19			—			18
Other		(1	)		—			—			—

Benefit obligation at end of year	$	272		$	262		$	33		$	39


Accumulated benefit obligation at end of year	$	254		$	244


Fair value of plan assets at beginning of year	$	193		$	153		$	—		$	—
Actual return		18			21			—			—
Benefits paid		(12	)		(10	)		(5	)		(2	)
Company contributions		8			12			5			2
Participants contributions		1			1			—			—
Exchange rate (loss) gain		(4	)		16			—			—
Other		(1	)		—			—			—

Fair value of plan assets at end of year	$	203		$	193		$	—		$	—


Funded status	$	(69	)	$	(69	)	$	(33	)	$	(39	)

Defined Benefit Pension Plans

Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows:


	Years Ended December 31,
	2010			2009
Discount rate:
United States plan		4.95%			5.26%
International plans		5.25% - 5.50	%		5.25% - 5.75	%

Salary increase:
United States plan		N/A			N/A
International plans		2.50% - 4.33	%		2.50% - 4.25	%

The assumption rates used for net periodic benefit costs are as follows:


	Years Ended December 31,
	2010			2009			2008
Discount rate:
United States plan		5.26%			6.23%			6.34%
International plans		5.25% - 5.75	%		5.75% - 6.50	%		5.50% - 5.75	%

Salary increase:
United States plan		N/A			N/A			N/A
International plans		2.50% - 4.25	%		2.50% - 4.50	%		2.50% - 4.50	%

Expected return on assets:
United States plan		7.50%			7.75%			7.75%
International plans		6.00% - 6.85	%		6.00% - 6.85	%		5.50% - 6.86	%

In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio.

The majority of our plans have projected benefit obligations in excess of plan assets.

The Company expects to pay future benefit amounts on its defined benefit plans ranging from $16 million to $17 million for each of the next five years and aggregate payments of $163 million.

Plan Assets

The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets. Our pension investment strategy worldwide prohibits a direct investment in our own stock.

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets carried at fair value (in millions):


	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
December 31, 2009:

Equity securities	$	70	$	—	$	70	$	—
Bonds		53		—		53		—
Mutual funds		36		16		20		—
Other (insurance contracts)		32		—		—		32

		191		16		143		32
Cash		2		—		2		—


Total Fair Value Measurments	$	193	$	16	$	145	$	32


December 31, 2010:

Equity securities	$	66	$	—	$	66	$	—
Bonds		58		—		58		—
Mutual funds		19		19		—		—
Other (insurance contracts)		54		—		22		32

		197		19		146		32
Cash		6		—		6		—


Total Fair Value Measurments	$	203	$	19	$	152	$	32

The following table sets forth a summary of changes in the fair value of the Plan’s Level 3 assets (in millions):


	Level 3
	Plan
	Assets

Balance at January 1, 2009	$	24


Actual return on plan assets still held at reporting date		2
Purchases, sales and settlements		1
Currency impact		5


Balance at December 31, 2009	$	32


Actual return on plan assets still held at reporting date		1
Currency impact		(1	)


Balance at December 31, 2010	$	32

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2010

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

11. Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in millions):


				Cumulative
	Defined			Currency			Derivative
	Benefit			Translation			Financial
	Plans			Adjustment			Instruments			Total
Balance at December 31, 2007	$	(20	)	$	196		$	19		$	195


Current period activity		(30	)		(265	)		(241	)		(536	)
Tax effect		10			89			81			180


Balance at December 31, 2008	$	(40	)	$	20		$	(141	)	$	(161	)


Current period activity		(14	)		150			223			359
Tax effect		5			(50	)		(63	)		(108	)


Balance at December 31, 2009	$	(49	)	$	120		$	19		$	90


Current period activity		1			19			(17	)		3
Tax effect		—			(6	)		4			(2	)


Balance at December 31, 2010	$	(48	)	$	133		$	6		$	91

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitment and Contigencies [Abstract]

Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more

12. Commitments and Contingencies

We are involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters. The total liability on these matters at December 31, 2010 cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, will not materially affect our financial position, cash flow or results of operations.

Our business is affected both directly and indirectly by governmental laws and regulations relating to the oilfield service industry in general, as well as by environmental and safety regulations that specifically apply to our business. Although we have not incurred material costs in connection with our compliance with such laws, there can be no assurance that other developments, such as new environmental laws, regulations and enforcement policies hereunder may not result in additional, presently unquantifiable, costs or liabilities to us.

We have received federal grand jury subpoenas and subsequent inquiries from governmental agencies requesting records related to our compliance with export trade laws and regulations. We have cooperated fully with agents from the Department of Justice, the Bureau of Industry and Security, the Office of Foreign Assets Control, and U.S. Immigration and Customs Enforcement in responding to the inquiries. We have also cooperated with an informal inquiry from the Securities and Exchange Commission in connection with the inquiries previously made by the aforementioned federal agencies. We have conducted our own internal review of this matter. At the conclusion of our internal review in the fourth quarter of 2009, we identified possible areas of concern and discussed these areas of concern with the relevant agencies. We are currently negotiating a potential resolution with the agencies involved related to these matters. We currently anticipate that any administrative fine or penalty agreed to as part of a resolution would be within established accruals, and would not have a material effect on our financial position or results of operations. To the extent a resolution is not negotiated as anticipated, we cannot predict the timing or effect that any resulting government actions may have on our financial position, cash flow or results of operations.

The Company leases certain facilities and equipment under operating leases that expire at various dates through 2066. These leases generally contain renewal options and require the lessee to pay maintenance, insurance, taxes and other operating expenses in addition to the minimum annual rentals. Rental expense related to operating leases approximated $215 million, $199 million, and $184 million in 2010, 2009 and 2008, respectively.

Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more at December 31, 2010 are payable as follows (in millions):


2011	$	130
2012		94
2013		72
2014		56
2015		49
Thereafter		238

Total future lease commitments	$	639

Common Stock

12 Months Ended

Dec. 31, 2010

Common Stock [Abstract]

Common Stock

13. Common Stock

National Oilwell Varco has authorized 500 million shares of $.01 par value common stock. We also have authorized 10 million shares of $.01 par value preferred stock, none of which is issued or outstanding.

On November 17, 2010, the Company’s Board of Directors approved a cash dividend of $0.11 per share. The cash dividend was paid on December 17, 2010 to each stockholder of record on December 3, 2010. Cash dividends aggregated $46 million and $172 million for the three and twelve months ended December 31, 2010, respectively, and $460 million for both the three and twelve months ended December 31, 2009. The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors.

Stock Options

Under the terms of National Oilwell Varco’s Long-Term Incentive Plan, as amended, 25.5 million shares of common stock are authorized for the grant of options to officers, key employees, non-employee directors and other persons. Options granted under our stock option plan generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant. The purchase price of options granted may not be less than the closing market price of National Oilwell Varco common stock on the date of grant. At December 31, 2010, approximately 8 million shares were available for future grants.

We also have inactive stock option plans that were acquired in connection with the acquisitions of Varco International, Inc. in 2005 and Grant Prideco in 2008. We converted the outstanding stock options under these plans to options to acquire our common stock and no further options are being issued under these plans. Stock option information summarized below includes amounts for the National Oilwell Varco Long-Term Incentive Plan and stock plans of acquired companies. Options outstanding at December 31, 2010 under the stock option plans have exercise prices between $8.33 and $73.98 per share, and expire at various dates from January 31, 2011 to May 13, 2020.

The following summarizes options activity:


	Years Ended December 31,
	2010					2009					2008
	Number			Average		Number			Average		Number			Average
	of			Exercise		of			Exercise		of			Exercise
	Shares			Price		Shares			Price		Shares			Price
Shares under option at beginning of year		10,255,982		$	34.19		7,547,822		$	37.24		7,903,832		$	29.12
Granted		3,485,283			44.03		3,234,400			26.03		2,993,000			48.59
Cancelled		(232,488	)		40.53		(156,356	)		29.79		(218,560	)		30.90
Exercised		(2,469,233	)		30.35		(369,884	)		40.86		(3,130,450	)		27.08


Shares under option at end of year		11,039,544		$	38.01		10,255,982		$	34.19		7,547,822		$	37.24


Exercisable at end of year		5,067,186		$	36.31		5,308,465		$	33.14		3,110,462		$	26.17

The following summarizes information about stock options outstanding as of December 31, 2010:


	Weighted-Avg		Options Outstanding				Options Exercisable
	Remaining				Weighted-Avg				Weighted-Avg
Range of Exercise Price	Contractual Life		Shares		Exercise Price		Shares		Exercise Price
8.33 -15.00		2.79		416,027	$	11.42		395,639	$	11.42
15.92 - 33.29		7.25		3,214,610		24.68		1,174,403		22.45
33.57 - 73.98		7.53		7,408,907		45.29		3,497,144		43.89


Total		7.27		11,039,544	$	38.01		5,067,186	$	36.31

The weighted-average fair value of options granted during 2010, 2009 and 2008 was approximately $16.73, $11.89 and $22.16 (excluding options assumed in the Grant Prideco merger) per share, respectively, as determined using the Black-Scholes option-pricing model. The total intrinsic value of options exercised during 2010 and 2009 was $60 million and $6 million, respectively.

The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise activity. The use of the Black Scholes model requires the use of extensive actual employee exercise activity data and the use of a number of complex assumptions including expected volatility, risk-free interest rate, expected dividends and expected term.


	Years Ended December 31,
	2010			2009			2008
Valuation Assumptions:
Expected volatility		55.0	%		63.5	%		41.8	%
Risk-free interest rate		2.3	%		1.8	%		2.9	%
Expected dividends	$	0.4		$	—		$	—
Expected term (in years)		3.2			3.4			3.6

We used the actual volatility for traded options for the past 10 years prior to option date as the expected volatility assumption required in the Black Scholes model.

The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock options. The dividend yield assumption is based on the history and expectation of dividend payouts. The estimated expected term is based on actual employee exercise activity for the past ten years.

As stock-based compensation expense recognized in the Consolidated Statement of Income in 2010 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience.

The following summary presents information regarding outstanding options as of December 31, 2010 and changes during 2010 with regard to options under all stock option plans:


						Weighted
				Weighted-		Remaining
				Average		Contractual
				Exercise		Term		Aggregate
	Shares			Price		(years)		Intrinsic Value
Outstanding at December 31, 2009		10,255,982		$	34.19
Granted		3,485,283		$	44.03
Exercised		(2,469,233	)	$	30.35
Cancelled		(232,488	)	$	40.53


Outstanding at December 31, 2010		11,039,544		$	38.01		7.27	$	312,423,777


Vested or expected to vest		10,669,951		$	38.01		7.27	$	304,394,486


Exercisable at December 31, 2010		5,067,186		$	36.31		5.69	$	152,742,256

As of December 31, 2010, total unrecognized compensation cost related to nonvested stock options was $47 million. This cost is expected to be recognized over a weighted-average period of two years. The total fair value of stock options vested in 2010, 2009 and 2008 was approximately $78 million, $40 million and $43 million, respectively. Cash received from option exercises for 2010, 2009 and 2008 was $73 million, $8 million and $78 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $16 million, $2 million and $46 million for 2010, 2009 and 2008, respectively. Cash used to settle equity instruments granted under all share-based payment arrangements for 2010, 2009 and 2008 was not material for any period.

Restricted Shares

The Company issues restricted stock awards (“RSA”) with no exercise price to officers and key employees in addition to stock options. Out of the total number of restricted stock awards granted, 543,035 were granted on February 16, 2010 and 1,440 were granted on May 12, 2010 and vest on the third anniversary of the date of grant. In addition, on May 12, 2010, 14,056 restricted stock awards were granted to the non-employee members of the Board of Directors. These restricted stock awards vest in equal thirds over three years on the anniversary of the grant date. The performance-based restricted stock awards of 171,400 were granted on February 16, 2010. The performance-based restricted stock awards granted will be 100% vested 36 months from the date of grant, subject to the performance condition of the Company’s average operating income growth, measured on a percentage basis, from January 1, 2010 through December 31, 2012 exceeding the median operating income level growth of a designated peer group over the same period. The estimated forfeiture rate of RSA’s is factored into the share-based compensation expense the Company recognizes.

The following summary presents information regarding outstanding restricted shares as of December 31, 2010, 2009 and 2008 and changes during 2010 and 2009:


				Weighted-Average
				Grant Date
Restricted Shares	Units			Fair Value
Nonvested at December 31, 2007		1,061,002		$	36.56
Granted		755,535		$	64.33
Vested		(307,905	)	$	68.12
Forfeited		(48,136	)	$	42.32


Nonvested at December 31, 2008		1,460,496		$	47.34
Granted		762,692		$	26.02
Vested		(7,322	)	$	36.05
Forfeited		(34,622	)	$	41.52


Nonvested at December 31, 2009		2,181,244		$	40.51

Granted		558,531		$	43.99
Vested		(921,454	)	$	43.28
Forfeited		(52,484	)	$	35.11


Nonvested at December 31, 2010		1,765,837		$	42.15

The weighted-average grant day fair value of RSA’s granted during the years ended 2010, 2009 and 2008 was $43.99, $26.02 and $64.16 (excluding RSA’s assumed in the Grant Prideco merger) per share, respectively. There were 921,454; 7,322 and 307,905 RSA’s that vested during 2010, 2009 and 2008, respectively. As of December 31, 2010, there was $22 million of unrecognized compensation cost related to nonvested RSA’s, which is expected to be recognized over a weighted-average period of two years.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

Income Taxes

14. Income Taxes

The domestic and foreign components of income before income taxes were as follows (in millions):


	Years Ended December 31,
	2010		2009		2008
Domestic	$	727	$	761	$	1,577
Foreign		1,670		1,447		1,384

	$	2,397	$	2,208	$	2,961

The components of the provision for income taxes consisted of (in millions):


	Years Ended December 31,
	2010			2009			2008
Current:
Federal	$	421		$	526		$	691
State		34			35			55
Foreign		448			348			280

Total current income tax provision		903			909			1,026


Deferred:
Federal		(260	)		(249	)		(93	)
State		(8	)		(5	)		(2	)
Foreign		103			80			62

Total deferred income tax provision		(165	)		(174	)		(33	)


Total income tax provision	$	738		$	735		$	993

The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows (in millions):


	Years Ended December 31,
	2010			2009			2008
Federal income tax at U.S. statutory rate	$	839		$	773		$	1,037
Foreign income tax rate differential		(117	)		(120	)		(125	)
State income tax, net of federal benefit		17			18			34
Nondeductible expenses		40			30			12
Tax benefit of manufacturing deduction		(19	)		(17	)		(17	)
Foreign dividends, net of foreign tax credits		15			10			46
Change in contingency reserve and other		(37	)		41			6

Total income tax provision	$	738		$	735		$	993

Significant components of our deferred tax assets and liabilities were as follows (in millions):


	December 31,
	2010			2009			2008
Deferred tax assets:
Allowances and operating liabilities	$	344		$	343		$	364
Net operating loss carryforwards		10			7			6
Postretirement benefits		17			12			12
Capital loss carryforwards		—			—			3
Foreign tax credit carryforwards		220			—			—
Other		75			28			22

		666			390			407
Valuation allowance for deferred tax assets		(9	)		(8	)		(10	)

Total deferred tax assets		657			382			397

Deferred tax liabilities:
Tax over book depreciation		213			168			146
Intangible assets		1,307			1,413			1,542
Deferred income		456			363			215
Accrued U.S. tax on unremitted earnings		149			49			49
Other		211			98			182

Total deferred tax liabilities		2,336			2,091			2,134


Net deferred tax liability	$	1,679		$	1,709		$	1,737

The balance of unrecognized tax benefits at December 31, 2010 and 2009 was $118 million and $58 million, respectively. Included in the change in the balance of unrecognized tax benefits for the period ended December 31, 2010 was an increase of $73 million associated with a foreign tax position previously evaluated as more-likely-than-not to be sustained upon audit. Based on new information obtained in the first quarter of 2010, we now believe it is more-likely-than-not this foreign tax position may not be sustained. Tax payments for this liability can be claimed as a U.S. foreign tax credit due to sufficient excess limitation in prior years to cover the potential exposure. Accordingly, the Company has recorded a corresponding deferred tax asset of $73 million, resulting in no impact to earnings. Also included in the change in the balance of unrecognized tax benefits for the period ended December 31, 2010 was an increase of $10 million of unrecognized tax benefits associated with reductions in tax that are dependent on the achievement of certain operational milestones that may not be achieved plus unreported withholding taxes in foreign jurisdictions, and a $23 million reduction in the balance of unrecognized tax benefits resulting primarily from the completion of prior year audits and appeals plus the lapse of applicable statutes of limitations in foreign jurisdictions. Of the net increase of $60 million in the balance of unrecognized tax benefits, $10 million was recorded as an increase in Goodwill, $73 million was recorded as an increase in deferred tax assets and $23 million was recorded as a reduction of income tax expense in the current year and is reflected in the “other” category in the income tax rate schedule above. These unrecognized tax benefits are included in the balance of other liabilities in the Consolidated Balance Sheet as of December 31, 2010. If the $118 million of unrecognized tax benefits accrued as of December 31, 2010 are ultimately realized, $39 million would be recorded as a reduction of income tax expense.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


	2010			2009			2008
Unrecognized tax benefit at beginning of year	$	58		$	61		$	47
Additions based on tax positions related to the current year		1			10			9
Additions for tax positions of prior years		82			—			9
Reductions for tax positions of prior years		(5	)		(12	)		(4	)
Reductions for lapse of applicable statutes of limitations		(18	)		(1	)		—

Unrecognized tax benefit at end of year	$	118		$	58		$	61

The Company does not anticipate that the total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statutes of limitation within 12 months of this reporting date.

To the extent penalties and interest would be assessed on any underpayment of income tax, such accrued amounts have been classified as a component of income tax expense in the financial statements consistent with the Company’s policy. During the year ended December 31, 2010, the Company recorded as a reduction of income tax expense a $3 million net release of accrued interest and penalties related to uncertain tax positions. As of December 31, 2010, the Company has accrued approximately $8 million of interest and penalties relating to unrecognized tax benefits. These interest and penalties are included in the balance of other liabilities in the Consolidated Balance Sheet as of December 31, 2010.

The Company is subject to taxation in the United States, various states and foreign jurisdictions. The Company has significant operations in the United States, Canada, the United Kingdom, the Netherlands and Norway. Tax years that remain subject to examination by major tax jurisdictions vary by legal entity, but are generally open in the U.S. for the tax years ending after 2006 and outside the U.S. for the tax years ending after 2004.

In the United States, the Company has $20 million of net operating loss carryforwards as of December 31, 2010, which expire at various dates through 2030. The potential benefit of $7 million has been recorded with a $7 million valuation allowance. Future income tax payments will be reduced when the Company ultimately realizes the benefit of these net operating losses. If the Company ultimately realizes the benefit of these net operating loss carryforwards, the valuation allowance of $7 million would reduce future income tax expense.

Outside the United States, the Company has $10 million of net operating loss carryforwards as of December 31, 2010, which expire in the year 2020. The potential benefit of $3 million has been recorded with a $1 million valuation allowance. Future income tax payments will be reduced when the Company ultimately realizes the benefit of these net operating losses. If the Company ultimately realizes the benefit of these net operating loss carryforwards, the valuation allowance of $1 million would reduce future income tax expense.

Also in the United States, the Company has $220 million of excess foreign tax credits as of December 31, 2010, which expire at various dates through 2020. The majority of these credits resulted from an internal restructuring completed during 2010. These credits have been allotted a valuation allowance of $1 million and would be realized as a reduction of future income tax payments.

During 2010, the Company recorded $98 million in net deferred tax liabilities with a corresponding increase in goodwill related to purchase accounting adjustments recorded for the acquisition of Advanced Production and Loading PLC and ASEP Group Holding B.V.

Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to $2,503 million and $2,764 million at December 31, 2010 and 2009, respectively. Those earnings are considered to be permanently reinvested and no provision for U.S. federal and state income taxes has been made. Distribution of these earnings in the form of dividends or otherwise could result in U.S. federal taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable in various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical; however, unrecognized foreign tax credit carryforwards would be available to reduce some portion of the U.S. liability.

Because of the number of tax jurisdictions in which the Company operates, its effective tax rate can fluctuate as operations and the local country tax rates fluctuate. The Company is also subject to audits by federal, state and foreign jurisdictions which may result in proposed assessments. The Company’s future tax provision will reflect any favorable or unfavorable adjustments to its estimated tax liabilities when resolved. The Company is unable to predict the outcome of these matters. However, we believe that none of these matters will have a material adverse effect on the results of operations or financial condition of the Company.

Business Segments and Geographic Areas

12 Months Ended

Dec. 31, 2010

Business Segments and Geographic Areas [Abstract]

Business Segments and Geographic Areas

15. Business Segments and Geographic Areas

The Company’s operations consist of three reportable segments: Rig Technology, Petroleum Services & Supplies and Distribution Services.

Rig Technology: Our Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. The segment offers a comprehensive line of highly-engineered equipment that automates complex well construction and management operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; cranes; and turret mooring systems and other products for Floating Production, Storage and Offloading vessels and other offshore vessels and terminals.

Petroleum Services & Supplies: Our Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service flowlines and other oilfield tubular goods. The segment manufactures, rents and sells a variety of products and equipment used to perform drilling operations, including drill pipe, transfer pumps, solids control systems, drilling motors, drill bits, reamers and other downhole tools, and mud pump consumables.

Distribution Services: Our Distribution Services segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations worldwide. In addition to its comprehensive network of field locations supporting land drilling operations throughout North America, the segment supports major offshore drilling contractors through locations in Mexico, the Middle East, Europe, Southeast Asia and South America. Distribution Services employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies of the Company. The Company evaluates performance of each reportable segment based upon its operating income, excluding non-recurring items.

The Company had revenues of 17% of total revenue from one of its customers for both the years ended December 31, 2010 and 2009. This customer, Samsung Heavy Industries, is a shipyard acting as a general contractor for its customers, who are drillship owners and drilling contractors. This shipyard’s customers have specified that the Company’s drilling equipment be installed on their drillships and have required the shipyard to issue contracts to the Company.

Geographic Areas:

The following table presents consolidated revenues by country based on sales destination of the use of the products or services (in millions):


	Years Ended December 31,
	2010		2009		2008
United States	$	4,104	$	3,444	$	4,369
South Korea		2,616		2,830		291
Canada		656		550		751
Norway		495		629		603
Singapore		491		801		856
United Kingdom		421		578		497
Other Countries		3,373		3,880		6,064

Total	$	12,156	$	12,712	$	13,431

The following table presents long-lived assets by country based on the location (in millions):


	December 31,
	2010		2009
United States	$	1,045	$	1,082
Canada		118		116
United Kingdom		116		110
Norway		40		41
Other Countries		521		487

Total	$	1,840	$	1,836

Business Segments:


			Petroleum
	Rig		Services &		Distribution		Unallocated/
	Technology		Supplies		Services		Eliminations			Total
December 31, 2010:
Revenues	$	6,965	$	4,182	$	1,546	$	(537	)	$	12,156
Operating profit		2,064		585		78		(280	)		2,447
Capital expenditures		59		152		2		19			232
Depreciation and amortization		95		384		7		21			507
Goodwill		1,854		3,859		77		—			5,790
Total assets		7,778		11,807		923		2,542			23,050

December 31, 2009:
Revenues	$	8,093	$	3,745	$	1,350	$	(476	)	$	12,712
Operating profit		2,283		301		50		(319	)		2,315
Capital expenditures		61		161		3		25			250
Depreciation and amortization		90		374		8		18			490
Goodwill		1,567		3,855		67		—			5,489
Total assets		7,203		11,601		781		1,947			21,532

December 31, 2008
Revenues	$	7,528	$	4,651	$	1,772	$	(520	)	$	13,431
Operating profit		1,970		1,044		130		(226	)		2,918
Capital expenditures		79		272		4		24			379
Depreciation and amortization		90		290		9		13			402
Goodwill		1,458		3,705		62		—			5,225
Total assets		9,048		11,153		650		628			21,479

The Company’s 2008 financial statements include Grant Prideco from April 21, 2008, the Merger Date, which includes additional amortization and depreciation of $114 million from the step up to fair market value of Grant Prideco’s assets and liabilities for the year ended December 31, 2008. The Grant Prideco product lines are reported within the Petroleum Services & Supplies segment.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2010

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

16. Quarterly Financial Data (Unaudited)

Summarized quarterly results, were as follows (in millions, except per share data):


	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Year ended December 31, 2010
Revenues	$	3,032	$	2,941	$	3,011	$	3,172
Gross profit		962		928		945		997
Net income attributable to Company		422		401		404		440
Net income attributable to Company per basic share		1.01		0.96		0.97		1.05
Net income attributable to Company per diluted share		1.01		0.96		0.96		1.05
Cash dividends per share		0.10		0.10		0.10		0.11

Year ended December 31, 2009
Revenues	$	3,481	$	3,010	$	3,087	$	3,134
Gross profit		1,039		875		891		979
Net income attributable to Company		470		220		385		394
Net income attributable to Company per basic share		1.13		0.53		0.93		0.95
Net income attributable to Company per diluted share		1.13		0.53		0.92		0.94
Cash dividends per share		—		—		—		1.10

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2010

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

SCHEDULE II
NATIONAL OILWELL VARCO, INC.
VALUATION AND QUALIFYING ACCOUNTS
Years Ended December 31, 2010, 2009 and 2008
(in millions)


			Additions
			(Deductions)
	Balance		charged to					Balance
	beginning of		costs and		Charge off’s			end of
	year		expenses		and other			year
Allowance for doubtful accounts:
2010	$	95	$	39	$	(27	)	$	107
2009		73		53		(31	)		95
2008		45		25		3			73

Allowance for excess and obsolete inventories:
2010	$	206	$	106	$	(42	)	$	270
2009		123		100		(17	)		206
2008		99		27		(3	)		123

Valuation allowance for deferred tax assets:
2010	$	8	$	1	$	—		$	9
2009		10		—		(2	)		8
2008		14		—		(4	)		10

Warranty reserve:
2010	$	217	$	52	$	(54	)	$	215
2009		114		144		(41	)		217
2008		92		81		(59	)		114

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies (Policies) [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Derivative Financial Instruments

Derivative Financial Instruments

Cash Flow Hedging Strategy

Fair Value Hedging strategy

Non-designated Hedging Strategy

For derivative instruments that are non-designated, the gain or loss on the derivative instrument is recognized in the same line item associated with the hedged item in current earnings.

Inventories

Property, Plant and Equipment

Revenue Recognition under Long-term Construction Contracts

	•		the contracts include custom designs for customer specific applications;

	•		the structural design is unique and requires significant engineering efforts; and

	•		construction projects often have progress payments.

Drill Pipe Sales

Service and Product Warranties

Income Taxes

Concentration of Credit Risk

Stock-Based Compensation

The Company provides compensation benefits to employees and non-employee directors under share-based payment arrangements, including various employee stock option plans.

Environmental Liabilities

Use of Estimates

Contingencies

Net Income Attributable to Company Per Share

In addition, we had stock options outstanding that were anti-dilutive totaling 7.7 million, 4.0 million, and 0.4 million at December 31, 2010, 2009 and 2008, respectively.

Recently issued accounting standards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies (Tables) [Abstract]

Outstanding Foreign Currency Forward Contracts


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
British Pound Sterling	£	4	£		39
Danish Krone	DKK	31	DKK	180
Euro	€	122	€	199
Norwegian Krone	NOK	4,983	NOK	6,097
U.S. Dollar	$	247	$		224
Korean Won	KRW	—	KRW	2,317

Outstanding foreign currency forward contracts fair value hedging strategy


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
U.S. Dollar	$	1	$	52

Outstanding foreign currency forward contracts non-designated hedging strategy

As of December 31, 2010, the Company had the following outstanding foreign currency forward contracts that hedge the fair value of nonfunctional currency monetary accounts (in millions):


	Currency Denomination
	December 31,
Foreign Currency	2010		2009
British Pound Sterling	£	8	£	10
Danish Krone	DKK	115	DKK	77
Euro	€	97	€	106
Norwegian Krone	NOK	1,442	NOK	3,096
Swedish Krone	SEK	—	SEK	5
U.S. Dollar	$	328	$	501
Russian Ruble	RUB	780	RUB	2,812

Derivative Instruments and their Balance Sheet Classifications

As of December 31, 2010 and 2009, the Company has the following respective fair values of its derivative instruments and their balance sheet classifications (in millions):


	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet	December 31,				Balance Sheet	December 31,
	Location	2010		2009		Location	2010		2009
Derivatives designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	28	$	56	Accrued liabilities	$	12	$	39
Foreign exchange contracts	Other Assets		12		17	Other Liabilities		1		7


Total derivatives designated as hedging instruments under ASC Topic 815		$	40	$	73		$	13	$	46


Derivatives not designated as hedging instruments under ASC Topic 815

Foreign exchange contracts	Prepaid and other current assets	$	7	$	30	Accrued liabilities	$	10	$	8
Foreign exchange contracts	Other Assets		—		1	Other Liabilities		—		1


Total derivatives not designated as hedging instruments under ASC Topic 815		$	7	$	31		$	10	$	9


Total derivatives		$	47	$	104		$	23	$	55

Effect of Derivative-Instruments on the Consolidated Statement of Income

Location of Gain (Loss)

Recognized in Income on

Amount of Gain (Loss)

Location of Gain (Loss)

Derivative (Ineffective

Recognized in Income on

Reclassified from

Amount of Gain (Loss)

Portion and Amount

Derivative (Ineffective

Derivatives in ASC Topic 815

Amount of Gain (Loss)

Accumulated OCI into

Reclassified from

Excluded from

Portion and Amount

Cash Flow Hedging

Recognized in OCI on

Income

Accumulated OCI into

Effectiveness

Excluded from

Relationships

Derivative (Effective Portion) (a)

(Effective Portion)

Income (Effective Portion)

Testing)

Effectiveness Testing) (b)

Years Ended

December 31,

2010

2009

2010

2009

2010

2009

Revenue

Foreign exchange contracts

(25

)

164

Cost of revenue

(22

)

(42

)

Other income (expense), net

(24

)

Total

(25

)

164

(12

)

(16

)

(24

)

Derivatives in ASC Topic 815

Location of Gain (Loss)

Amount of Gain (Loss)

ASC Topic 815

Location of Gain (Loss)

Recognized in Income on

Fair Value

Recognized in Income

Recognized in Income on

Fair Value Hedge

Recognized in Income on

Related Hedged

Hedging Relationships

on Derivative

Derivative

Relationships

Related Hedged Item

Items

Years Ended

December 31,

2010

2009

2010

2009

Foreign exchange contracts

Revenue

)

Firm commitments

Revenue

)

Foreign exchange contracts

Cost of revenue

—

(13

)

Firm commitments

Cost of revenue

—

Total

)

Derivatives Not Designated as

Location of Gain (Loss)

Amount of Gain (Loss)

Hedging Instruments under

Recognized in Income

Recognized in Income on

ASC Topic 815

on Derivative

Derivative

Years Ended

December 31,

2010

2009

Foreign exchange contracts

Other income (expense), net

Total


(a)		The Company expects that $(14) million of the Accumulated Other Comprehensive Income (Loss) will be reclassified into earnings within the next twelve months with an offset by gains from the underlying transactions resulting in no impact to earnings or cash flow.

(b)		The amount of gain (loss) recognized in income represents $9 million and $(24) million related to the ineffective portion of the hedging relationships for the years ended December 31, 2010 and 2009, respectively, and $12 million and $4 million related to the amount excluded from the assessment of the hedge effectiveness for the years ended December 31, 2010 and 2009, respectively.

Goodwill is identified by segment

Goodwill is identified by segment as follows (in millions):


			Petroleum
	Rig		Services &		Distribution
	Technology		Supplies		Services		Total
Balance at December 31, 2008	$	1,458	$	3,705	$	62	$	5,225

Goodwill acquired during period		97		143		—		240
Translation and other adjustments		12		7		5		24


Balance at December 31, 2009		1,567		3,855		67		5,489

Goodwill acquired during period		287		2		9		298
Translation adjustments		—		2		1		3


Balance at December 31, 2010	$	1,854	$	3,859	$	77	$	5,790

Identified intangible assets identified by segment

The net book value of identified intangible assets are identified by segment as follows (in millions):


				Petroleum
	Rig			Services &			Distribution
	Technology			Supplies			Services			Total
Balance at December 31, 2008	$	361		$	3,933		$	6		$	4,300

Additions to intangible assets		86			37			—			123
Asset impairment		—			(147	)		—			(147	)
Amortization		(36	)		(204	)		(1	)		(241	)
Translation		5			11			1			17


Balance at December 31, 2009		416			3,630			6			4,052

Additions to intangible assets		291			8			—			299
Amortization		(38	)		(206	)		(1	)		(245	)
Translation		(3	)		—			—			(3	)


Balance at December 31, 2010	$	666		$	3,432		$	5		$	4,103

Identified intangible assets by major classification

Identified intangible assets by major classification consist of the following (in millions):


			Accumulated			Net Book
	Gross		Amortization			Value
December 31, 2009:

Customer relationships	$	2,819	$	(366	)	$	2,453
Trademarks		619		(73	)		546
Indefinite-lived trade names		643		—			643
Other		531		(121	)		410


Total identified intangibles	$	4,612	$	(560	)	$	4,052


December 31, 2010:

Customer relationships	$	2,933	$	(536	)	$	2,397
Trademarks		677		(95	)		582
Indefinite-lived trade names		643		—			643
Other		655		(174	)		481


Total identified intangibles	$	4,908	$	(805	)	$	4,103

Changes in the carrying amount of service and product warranties

The changes in the carrying amount of service and product warranties are as follows (in millions):


Balance at December 31, 2008	$	114


Net provisions for warranties issued during the year		144
Amounts incurred		(62	)
Foreign currency translation		21


Balance at December 31, 2009	$	217


Net provisions for warranties issued during the year		52
Amounts incurred		(45	)
Foreign currency translation and other		(9	)


Balance at December 31, 2010	$	215

Computation of weighted average basic and diluted shares outstanding

The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data):


	Years Ended December 31,
	2010		2009		2008
Numerator:
Net income attributable to Company	$	1,667	$	1,469	$	1,952

Denominator:
Basic—weighted average common shares outstanding		417		416		397
Dilutive effect of employee stock options and other unvested stock awards		2		1		2

Diluted outstanding shares		419		417		399


Basic earnings attributable to Company per share	$	3.99	$	3.53	$	4.91

Diluted earnings attributable to Company per share	$	3.98	$	3.52	$	4.90

Cash dividends per share	$	0.41	$	1.10	$	—

Grant Prideco Merger (Tables)

12 Months Ended

Dec. 31, 2010

Company Merger (Tables) [Abstract]

Merger Stock Options Assumed and Acquisition Related Transaction Costs

The total purchase price was $7,199 million, including Grant Prideco stock options assumed and acquisition related transaction costs and is comprised of (in millions):


Shares issued totaled approximately 57 million shares at $72.74 per share	$	4,135
Cash paid at $23.20 per share		2,932
Grant Prideco stock options assumed		56
Merger related transaction costs		76

Total purchase price	$	7,199

Purchase Price Allocation


Cash and cash equivalents	$	171
Receivables		420
Assets held for sale, net		784
Inventories		611
Prepaid and other current assets		210
Property, plant and equipment		392
Goodwill		2,775
Intangibles		3,696
Investment in unconsolidated affiliate		512
Other assets		98
Accounts payable and accrued liabilities		(316	)
Accrued income taxes		(627	)
Long-term debt		(176	)
Deferred income taxes		(1,305	)
Minority interest		(25	)
Other liabilities		(21	)

Total purchase price	$	7,199

Unaudited Pro Forma Financial Information


Total revenues	$	14,035

Net income attributable to Company	$	2,080

Basic net income attributable to Company per share	$	5.02

Diluted net income attributable to Company per share	$	4.99

Other Acquisitions and Investments (Tables)

12 Months Ended

Dec. 31, 2010

Other Acquisitions and Investments (Table) [Abstract]

Fair values of the assets acquired and liabilities


Current assets, net of cash acquired	$	136
Cost in excess of billings		71
Property, plant and equipment		38
Intangible assets		299
Goodwill		298
Other assets		8


Total assets acquired		850


Current liabilities		142
Billings in excess of cost		41
Other liabilities		111


Total liabilities		294


Cash consideration, net of cash acquired	$	556

Preliminary fair values of acquired assets and liabilities


Current assets, net of cash acquired	$	404
Property, plant and equipment		149
Intangible assets		115
Goodwill		198
Other assets		5


Total assets acquired		871


Current liabilities		242
Long-term debt		48
Other liabilities		8


Total liabilities		298


Cash consideration, net of cash acquired	$	573

Estimated fair values of acquired assets and liabilities


Current assets, net of cash acquired	$	33
Property, plant and equipment		61
Intangible assets		38
Goodwill		76


Total assets acquired		208


Current liabilities		11
Long-term debt		26


Total liabilities		37


Cash consideration, net of cash acquired	$	171

Summary of acquisitions


	Years Ended December 31,
	2010			2009			2008
Fair value of assets acquired, net of cash acquired	$	850		$	871		$	208
Cash paid, net of cash acquired		(556	)		(573	)		(171	)

Liabilities assumed, debt issued and minority interest	$	294		$	298		$	37


Excess purchase price over fair value of net assets acquired	$	298		$	198		$	76

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2010

Employee Benefit Plans (Tables) [Abstract]

Change in benefit obligation, plan assets and the funded status of the defined benefit pension plans


	Pension benefits						Postretirement benefits
At year end	2010			2009			2010			2009
Benefit obligation at beginning of year	$	262		$	214		$	39		$	20
Service cost		5			5			—			—
Interest cost		14			14			2			2
Actuarial loss (gain)		10			19			(3	)		1
Benefits paid		(12	)		(10	)		(5	)		(2	)
Participants contributions		1			1			—			—
Exchange rate loss (gain)		(7	)		19			—			18
Other		(1	)		—			—			—

Benefit obligation at end of year	$	272		$	262		$	33		$	39


Accumulated benefit obligation at end of year	$	254		$	244


Fair value of plan assets at beginning of year	$	193		$	153		$	—		$	—
Actual return		18			21			—			—
Benefits paid		(12	)		(10	)		(5	)		(2	)
Company contributions		8			12			5			2
Participants contributions		1			1			—			—
Exchange rate (loss) gain		(4	)		16			—			—
Other		(1	)		—			—			—

Fair value of plan assets at end of year	$	203		$	193		$	—		$	—


Funded status	$	(69	)	$	(69	)	$	(33	)	$	(39	)

Assumption rates used for benefit obligations


	Years Ended December 31,
	2010			2009
Discount rate:
United States plan		4.95%			5.26%
International plans		5.25% - 5.50	%		5.25% - 5.75	%

Salary increase:
United States plan		N/A			N/A
International plans		2.50% - 4.33	%		2.50% - 4.25	%

Assumption rates used for net periodic benefit costs


	Years Ended December 31,
	2010			2009			2008
Discount rate:
United States plan		5.26%			6.23%			6.34%
International plans		5.25% - 5.75	%		5.75% - 6.50	%		5.50% - 5.75	%

Salary increase:
United States plan		N/A			N/A			N/A
International plans		2.50% - 4.25	%		2.50% - 4.50	%		2.50% - 4.50	%

Expected return on assets:
United States plan		7.50%			7.75%			7.75%
International plans		6.00% - 6.85	%		6.00% - 6.85	%		5.50% - 6.86	%

Plan's Assets Carried at Fair Value


	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
December 31, 2009:

Equity securities	$	70	$	—	$	70	$	—
Bonds		53		—		53		—
Mutual funds		36		16		20		—
Other (insurance contracts)		32		—		—		32

		191		16		143		32
Cash		2		—		2		—


Total Fair Value Measurments	$	193	$	16	$	145	$	32


December 31, 2010:

Equity securities	$	66	$	—	$	66	$	—
Bonds		58		—		58		—
Mutual funds		19		19		—		—
Other (insurance contracts)		54		—		22		32

		197		19		146		32
Cash		6		—		6		—


Total Fair Value Measurments	$	203	$	19	$	152	$	32

Summary of Changes in Fair Value of Plan's Level 3 Assets


	Level 3
	Plan
	Assets

Balance at January 1, 2009	$	24


Actual return on plan assets still held at reporting date		2
Purchases, sales and settlements		1
Currency impact		5


Balance at December 31, 2009	$	32


Actual return on plan assets still held at reporting date		1
Currency impact		(1	)


Balance at December 31, 2010	$	32

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies (Tables) [Abstract]

Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more


2011	$	130
2012		94
2013		72
2014		56
2015		49
Thereafter		238

Total future lease commitments	$	639

- Definition

General description of lessee's leasing arrangements including: (1) The basis on which contingent rental payments are determined, (2) The existence and terms of renewal or purchase options and escalation clauses, (3) Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) Rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References+ Details

Common Stock (Tables)

12 Months Ended

Dec. 31, 2010

Common Stock (Tables) [Abstract]

Summary of stock options


	Years Ended December 31,
	2010					2009					2008
	Number			Average		Number			Average		Number			Average
	of			Exercise		of			Exercise		of			Exercise
	Shares			Price		Shares			Price		Shares			Price
Shares under option at beginning of year		10,255,982		$	34.19		7,547,822		$	37.24		7,903,832		$	29.12
Granted		3,485,283			44.03		3,234,400			26.03		2,993,000			48.59
Cancelled		(232,488	)		40.53		(156,356	)		29.79		(218,560	)		30.90
Exercised		(2,469,233	)		30.35		(369,884	)		40.86		(3,130,450	)		27.08


Shares under option at end of year		11,039,544		$	38.01		10,255,982		$	34.19		7,547,822		$	37.24


Exercisable at end of year		5,067,186		$	36.31		5,308,465		$	33.14		3,110,462		$	26.17

Summary of stock option outstanding information


	Weighted-Avg		Options Outstanding				Options Exercisable
	Remaining				Weighted-Avg				Weighted-Avg
Range of Exercise Price	Contractual Life		Shares		Exercise Price		Shares		Exercise Price
8.33 -15.00		2.79		416,027	$	11.42		395,639	$	11.42
15.92 - 33.29		7.25		3,214,610		24.68		1,174,403		22.45
33.57 - 73.98		7.53		7,408,907		45.29		3,497,144		43.89


Total		7.27		11,039,544	$	38.01		5,067,186	$	36.31

Assumption used in determination of fair value of share based payment awards


	Years Ended December 31,
	2010			2009			2008
Valuation Assumptions:
Expected volatility		55.0	%		63.5	%		41.8	%
Risk-free interest rate		2.3	%		1.8	%		2.9	%
Expected dividends	$	0.4		$	—		$	—
Expected term (in years)		3.2			3.4			3.6

Summary of Information and changes in stock options with regard to stock option plans


						Weighted
				Weighted-		Remaining
				Average		Contractual
				Exercise		Term		Aggregate
	Shares			Price		(years)		Intrinsic Value
Outstanding at December 31, 2009		10,255,982		$	34.19
Granted		3,485,283		$	44.03
Exercised		(2,469,233	)	$	30.35
Cancelled		(232,488	)	$	40.53


Outstanding at December 31, 2010		11,039,544		$	38.01		7.27	$	312,423,777


Vested or expected to vest		10,669,951		$	38.01		7.27	$	304,394,486


Exercisable at December 31, 2010		5,067,186		$	36.31		5.69	$	152,742,256

Summary of information regarding outstanding restricted shares


				Weighted-Average
				Grant Date
Restricted Shares	Units			Fair Value
Nonvested at December 31, 2007		1,061,002		$	36.56
Granted		755,535		$	64.33
Vested		(307,905	)	$	68.12
Forfeited		(48,136	)	$	42.32


Nonvested at December 31, 2008		1,460,496		$	47.34
Granted		762,692		$	26.02
Vested		(7,322	)	$	36.05
Forfeited		(34,622	)	$	41.52


Nonvested at December 31, 2009		2,181,244		$	40.51

Granted		558,531		$	43.99
Vested		(921,454	)	$	43.28
Forfeited		(52,484	)	$	35.11


Nonvested at December 31, 2010		1,765,837		$	42.15

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income Taxes (Tables) [Abstract]

Domestic and foreign components of income before income taxes


	Years Ended December 31,
	2010		2009		2008
Domestic	$	727	$	761	$	1,577
Foreign		1,670		1,447		1,384

	$	2,397	$	2,208	$	2,961

Components of the provision for income taxes


	Years Ended December 31,
	2010			2009			2008
Current:
Federal	$	421		$	526		$	691
State		34			35			55
Foreign		448			348			280

Total current income tax provision		903			909			1,026


Deferred:
Federal		(260	)		(249	)		(93	)
State		(8	)		(5	)		(2	)
Foreign		103			80			62

Total deferred income tax provision		(165	)		(174	)		(33	)


Total income tax provision	$	738		$	735		$	993

Difference between the effective tax rate


	Years Ended December 31,
	2010			2009			2008
Federal income tax at U.S. statutory rate	$	839		$	773		$	1,037
Foreign income tax rate differential		(117	)		(120	)		(125	)
State income tax, net of federal benefit		17			18			34
Nondeductible expenses		40			30			12
Tax benefit of manufacturing deduction		(19	)		(17	)		(17	)
Foreign dividends, net of foreign tax credits		15			10			46
Change in contingency reserve and other		(37	)		41			6

Total income tax provision	$	738		$	735		$	993

Components of deferred tax assets and liabilities


	December 31,
	2010			2009			2008
Deferred tax assets:
Allowances and operating liabilities	$	344		$	343		$	364
Net operating loss carryforwards		10			7			6
Postretirement benefits		17			12			12
Capital loss carryforwards		—			—			3
Foreign tax credit carryforwards		220			—			—
Other		75			28			22

		666			390			407
Valuation allowance for deferred tax assets		(9	)		(8	)		(10	)

Total deferred tax assets		657			382			397

Deferred tax liabilities:
Tax over book depreciation		213			168			146
Intangible assets		1,307			1,413			1,542
Deferred income		456			363			215
Accrued U.S. tax on unremitted earnings		149			49			49
Other		211			98			182

Total deferred tax liabilities		2,336			2,091			2,134


Net deferred tax liability	$	1,679		$	1,709		$	1,737

Reconciliation of the beginning and ending amount of unrecognized tax benefits


	2010			2009			2008
Unrecognized tax benefit at beginning of year	$	58		$	61		$	47
Additions based on tax positions related to the current year		1			10			9
Additions for tax positions of prior years		82			—			9
Reductions for tax positions of prior years		(5	)		(12	)		(4	)
Reductions for lapse of applicable statutes of limitations		(18	)		(1	)		—

Unrecognized tax benefit at end of year	$	118		$	58		$	61

Business Segments and Geographic Areas (Tables)

12 Months Ended

Dec. 31, 2010

Business Segments and Geographic Areas (Tables) [Abstract]

Revenues by country based on sales destination of the use of the products or services


	Years Ended December 31,
	2010		2009		2008
United States	$	4,104	$	3,444	$	4,369
South Korea		2,616		2,830		291
Canada		656		550		751
Norway		495		629		603
Singapore		491		801		856
United Kingdom		421		578		497
Other Countries		3,373		3,880		6,064

Total	$	12,156	$	12,712	$	13,431

Long-lived assets by country based on the location


	December 31,
	2010		2009
United States	$	1,045	$	1,082
Canada		118		116
United Kingdom		116		110
Norway		40		41
Other Countries		521		487

Total	$	1,840	$	1,836

Business Segments


			Petroleum
	Rig		Services &		Distribution		Unallocated/
	Technology		Supplies		Services		Eliminations			Total
December 31, 2010:
Revenues	$	6,965	$	4,182	$	1,546	$	(537	)	$	12,156
Operating profit		2,064		585		78		(280	)		2,447
Capital expenditures		59		152		2		19			232
Depreciation and amortization		95		384		7		21			507
Goodwill		1,854		3,859		77		—			5,790
Total assets		7,778		11,807		923		2,542			23,050

December 31, 2009:
Revenues	$	8,093	$	3,745	$	1,350	$	(476	)	$	12,712
Operating profit		2,283		301		50		(319	)		2,315
Capital expenditures		61		161		3		25			250
Depreciation and amortization		90		374		8		18			490
Goodwill		1,567		3,855		67		—			5,489
Total assets		7,203		11,601		781		1,947			21,532

December 31, 2008
Revenues	$	7,528	$	4,651	$	1,772	$	(520	)	$	13,431
Operating profit		1,970		1,044		130		(226	)		2,918
Capital expenditures		79		272		4		24			379
Depreciation and amortization		90		290		9		13			402
Goodwill		1,458		3,705		62		—			5,225
Total assets		9,048		11,153		650		628			21,479

Organization and Basis of Presentation (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Organization and Basis of Presentation (Textuals) [Abstract]
Deferred income taxes, current	$ 451	$ 340

Summary of Significant Accounting Policies (Details) In Millions, unless otherwise specified	Dec. 31, 2010 USD ($)	Dec. 31, 2010 DKK	Dec. 31, 2010 GBP (£)	Dec. 31, 2010 NOK	Dec. 31, 2010 RUB	Dec. 31, 2009 USD ($)	Dec. 31, 2009 RUB	Dec. 31, 2010 Forward Contracts [Member] USD ($)	Dec. 31, 2010 Forward Contracts [Member] DKK	Dec. 31, 2010 Forward Contracts [Member] EUR (€)	Dec. 31, 2010 Forward Contracts [Member] GBP (£)	Dec. 31, 2010 Forward Contracts [Member] KRW	Dec. 31, 2010 Forward Contracts [Member] NOK	Dec. 31, 2009 Forward Contracts [Member] USD ($)	Dec. 31, 2009 Forward Contracts [Member] DKK	Dec. 31, 2009 Forward Contracts [Member] EUR (€)	Dec. 31, 2009 Forward Contracts [Member] GBP (£)	Dec. 31, 2009 Forward Contracts [Member] NOK	Dec. 31, 2009 Forward Contracts [Member] SEK
Outstanding Foreign Currency Forward Contracts
Foreign currency, Cash flow hedging								$ 224	180	€ 199	£ 39	2,317	6,097	$ 247	31	€ 122	£ 4	4,983
Foreign currency, Fair value hedging						52		1
Foreign currency, Non-designated hedging	$ 328	115	£ 8	1,442	780		2,812			€ 97				$ 501	77	€ 106	£ 10	3,096	5

Summary of Significant Accounting Policies (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Asset	$ 40	$ 73
Derivative Designated as Hedging Instrument, Liability	13	46
Total derivatives	47	104
Derivatives not designated as hedging instruments under ASC Topic 815
Derivative Not Designated as Hedging Instrument, Asset	7	31
Derivative Not Designated as Hedging Instrument, Liability	10	9
Total derivatives	23	55
Foreign exchange contracts [Member]
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Asset		73
Derivative Designated as Hedging Instrument, Liability		46
Foreign exchange contracts [Member] \| Prepaid and other current assets [Member]
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Asset	28	56
Derivatives not designated as hedging instruments under ASC Topic 815
Derivative Not Designated as Hedging Instrument, Asset	7	30
Foreign exchange contracts [Member] \| Other Assets [Member]
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Asset	12	17
Derivatives not designated as hedging instruments under ASC Topic 815
Derivative Not Designated as Hedging Instrument, Asset	0	1
Foreign exchange contracts [Member] \| Accrued liabilities [Member]
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Liability	12	39
Derivatives not designated as hedging instruments under ASC Topic 815
Derivative Not Designated as Hedging Instrument, Liability	10	8
Foreign exchange contracts [Member] \| Other Liabilities [Member]
Derivatives designated as hedging instruments under ASC Topic 815
Derivative Designated as Hedging Instrument, Liability	1	7
Derivatives not designated as hedging instruments under ASC Topic 815
Derivative Not Designated as Hedging Instrument, Liability	$ 0	$ 1

Summary of Significant Accounting Policies (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b)	$ 12	$ 4
Amount of Gain (Loss) Recognized in Income on Derivative (a)	8	3
Firm commitments [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative	2	6
Cash Flow Hedging [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) (a)	(25)	164
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(12)	(16)
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b)	9	(24)
Other income (expense), net [Member] \| Cash Flow Hedging [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b)	9	(24)
Cost of revenue [Member] \| Firm commitments [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative		13
Cost of revenue [Member] \| Cash Flow Hedging [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(22)	(42)
Revenue [Member] \| Firm commitments [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative	2	(7)
Revenue [Member] \| Cash Flow Hedging [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	10	26
Foreign exchange contracts [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative	(2)	(6)
Foreign exchange contracts [Member] \| Cash Flow Hedging [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) (a)	(25)	164
Foreign exchange contracts [Member] \| Other income (expense), net [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative (a)	8	3
Foreign exchange contracts [Member] \| Cost of revenue [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative		(13)
Foreign exchange contracts [Member] \| Revenue [Member]
Effect of Derivative Instruments on the Consolidated Statement of Income
Amount of Gain (Loss) Recognized in Income on Derivative	$ (2)	$ 7

Summary of Significant Accounting Policies (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Goodwill is identified by segment
Goodwill, Beginning Balance	$ 5,489	$ 5,225
Goodwill acquired during period	298	240
Translation and other adjustments	3	24
Goodwill, Ending Balance	5,790	5,489
Rig Technology [Member]
Goodwill is identified by segment
Goodwill, Beginning Balance	1,567	1,458
Goodwill acquired during period	287	97
Translation and other adjustments		12
Goodwill, Ending Balance	1,854	1,567
Petroleum Services And Supplies [Member]
Goodwill is identified by segment
Goodwill, Beginning Balance	3,855	3,705
Goodwill acquired during period	2	143
Translation and other adjustments	2	7
Goodwill, Ending Balance	3,859	3,855
Distribution Services [Member]
Goodwill is identified by segment
Goodwill, Beginning Balance	67	62
Goodwill acquired during period	9
Translation and other adjustments	1	5
Goodwill, Ending Balance	$ 77	$ 67

Summary of Significant Accounting Policies (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Identified intangible assets identified by segment
Beginning Balance	$ 4,052	$ 4,300
Additions to intangible assets	299	123
Asset impairment		(147)
Amortization	(245)	(241)
Translation	(3)	17
Ending Balance	4,103	4,052
Rig Technology [Member]
Identified intangible assets identified by segment
Beginning Balance	416	361
Additions to intangible assets	291	86
Amortization	(38)	(36)
Translation	(3)	5
Ending Balance	666	416
Petroleum Services And Supplies [Member]
Identified intangible assets identified by segment
Beginning Balance	3,630	3,933
Additions to intangible assets	8	37
Asset impairment		(147)
Amortization	(206)	(204)
Translation		11
Ending Balance	3,432	3,630
Distribution Services [Member]
Identified intangible assets identified by segment
Beginning Balance	6	6
Amortization	(1)	(1)
Translation		1
Ending Balance	$ 5	$ 6

Summary of Significant Accounting Policies (Details 5) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Identified intangible assets by major classification
Gross	$ 4,908	$ 4,612
Accumulated Amortization	(805)	(560)
Net book value	4,103	4,052	4,300
Customer relationships [Member]
Identified intangible assets by major classification
Gross	2,933	2,819
Accumulated Amortization	(536)	(366)
Net book value	2,397	2,453
Trademarks [Member]
Identified intangible assets by major classification
Gross	677	619
Accumulated Amortization	(95)	(73)
Net book value	582	546
Trade Names [Member]
Identified intangible assets by major classification
Gross	643	643
Accumulated Amortization	0	0
Net book value	643	643
Other finite lived intangible assets [Member]
Identified intangible assets by major classification
Gross	655	531
Accumulated Amortization	(174)	(121)
Net book value	$ 481	$ 410

Summary of Significant Accounting Policies (Details 6) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Changes in the carrying amount of service and product warranties
Beginning Balance	$ 217	$ 114
Net provisions for warranties issued during the year	52	144
Amounts incurred	(45)	(62)
Foreign currency translation and other	(9)	21
Ending Balance	$ 215	$ 217

Summary of Significant Accounting Policies (Details 7) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Numerator:
Net income attributable to Company	$ 440	$ 404	$ 401	$ 422	$ 394	$ 385	$ 220	$ 470	$ 1,667	$ 1,469	$ 1,952
Denominator:
Basic-weighted average common shares outstanding									417	416	397
Dilutive effect of employee stock options and other unvested stock awards									2	1	2
Diluted outstanding shares									419	417	399
Basic earnings attributable to Company per share	$ 1.05	$ 0.97	$ 0.96	$ 1.01	$ 0.95	$ 0.93	$ 0.53	$ 1.13	$ 3.99	$ 3.53	$ 4.91
Diluted earnings attributable to Company per share	$ 1.05	$ 0.96	$ 0.96	$ 1.01	$ 0.94	$ 0.92	$ 0.53	$ 1.13	$ 3.98	$ 3.52	$ 4.90
Cash dividends per share	$ 0.11	$ 0.10	$ 0.10	$ 0.10	$ 1.10				$ 0.41	$ 1.10

- Definition

Aggregate awards of share options and nonvested shares to be issued to an employee under a share-based compensation arrangement are considered options for purposes of computing diluted earnings per share. Such share-based awards shall be considered to be outstanding as of the grant date for purposes of computing diluted earnings per share even though their exercise may be contingent upon vesting. Those share-based awards are included in the diluted Earnings Per Share (EPS) computation even if the employee may not receive (or be able to sell) the stock until some future date. Accordingly, all shares to be issued shall be included in computing diluted EPS if the effect is dilutive. The dilutive effect of share-based compensation arrangements shall be computed using the treasury stock method. If the equity share options or other equity instruments are outstanding for only part of a period, the shares issuable shall be weighted to reflect the portion of the period during which the equity instruments were outstanding.

+ References+ Details

- Definition

The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes.

+ References+ Details

Summary of Significant Accounting Policies (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended
	Mar. 31, 2010	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2008	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Derivatives, Fair Value [Line Items]
Derivative Assets					$ 47	$ 104
Derivative Liabilities					23	55
Identified intangible assets, total					4,100
Summary of Significant Accounting Policies (Textuals) [Abstract]
Maturity period of investments					three months or less at the time of purchase
Minimum Derivative Financial Instrument's Term (Months)					2
Maximum Derivative financial Instrument's Term (Months)					24
Fair Value of Foreign Currency Forward Contracts					24
Amount of interest rate swap					0
Fair value of foreign currency forward contract						52
Allowances for excess and obsolete inventories					270	206
Depreciation expense related to property, plant and equipment					262	249	222
Goodwill, total				5,225	5,790	5,489	5,225
Estimated useful lives of intangible assets, minimum					2
Finite-lived intangible assets, useful life, maximum					30
Amortization expense					260
Number of years as first period of amortization					5
Worldwide average rig count		2,009	2,681	3,395
Percentage decrease comparing previous quarters			25.00%	41.00%
Impairment charge incurred		147				147
Devalued asset charges	27
Written down charges of accounts receivable	11
Net Investment in Venezuela					28
Net foreign currency transaction gains (losses)					30	(79)	50
Net allowances for doubtful accounts					107	95
Compensation cost charged against income for share-based compensation arrangements					66	68	61
Income tax benefit recognized for share-based compensation arrangements					20	21	19
Anti-dilutive stock options outstanding					7.7	4.0	0.4
Impairment of long-lived assets					0	0	0
Accumulated other comprehensive income (loss), reclassified					(14)	(18)
Amount of gain (loss) recognized in income on derivative (ineffective portion)					9	(24)
Amount of gain (loss) recognized in income on derivative (amount excluded from hedge effectiveness)					12	4
Trade Names [Member]
Derivatives, Fair Value [Line Items]
Identified intangible assets, total					643
Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets					47
Derivative Liabilities					$ 23

Grant Prideco Merger (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Apr. 21, 2008 Grant Predico Inc [Member]
Merger Stock Options Assumed and Acquisition Related Transaction Costs
Shares issued totaled approximately 57 million shares at $72.74 per share		$ 4,135
Cash paid at $23.20 per share		2,932
Grant Prideco stock options assumed		56
Merger related transaction costs		76
Total purchase price	$ 500	$ 7,199

Grant Prideco Merger (Details 1) (Grant Predico Inc [Member], USD $) In Millions, unless otherwise specified	Apr. 21, 2008
Grant Predico Inc [Member]
Purchase Price Allocation
Cash and cash equivalents	$ 171
Receivables	420
Assets held for sale, net	784
Inventories	611
Prepaid and other current assets	210
Property, plant and equipment	392
Goodwill	2,775
Intangibles	3,696
Investment in unconsolidated affiliate	512
Other assets	98
Accounts payable and accrued liabilities	(316)
Accrued income taxes	(627)
Long-term debt	(176)
Deferred income taxes	(1,305)
Minority interest	(25)
Other liabilities	(21)
Total purchase price	$ 7,199

Grant Prideco Merger (Details 2) (Grant Predico Inc [Member], USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2008
Grant Predico Inc [Member]
Unaudited Pro Forma Financial Information
Total revenues	$ 14,035
Net income attributable to Company	$ 2,080
Basic net income attributable to Company per share	$ 5.02
Diluted net income attributable to Company per share	$ 4.99

Grant Prideco Merger (Details Textuals) (USD $)	12 Months Ended						12 Months Ended
Grant Prideco Merger (Details Textuals) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2010 Grant Predico Inc [Member]	Dec. 31, 2008 Grant Predico Inc [Member]	Apr. 21, 2008 Grant Predico Inc [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Trade Names [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Patents [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Customer relationships [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Bridge Loan [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Accelerated Vesting Of Stock Based Compensation [Member]	Dec. 31, 2008 Grant Predico Inc [Member] Other Cost [Member]	Dec. 31, 2008 National Oil Well Varco Inc [Member]
Business Acquisition [Line Items]
Number of shares of company common stock issued towards each Grant Predico common share outstanding due to Merger						0.4498
Cash paid towards each Grant Predico common share outstanding due to Merger					$ 23.20
Total number of shares issued in connection with Merger of Grant Predico, Inc.					57,000,000
Total cash paid in connection with Merger						$ 2,932,000,000
Average closing price of the Company's common stock						72,740,000
Total purchase price	500,000,000					7,199,000,000
Stock option granted	3,485,283	3,234,400	2,993,000		320,500								250,402
Restricted stock granted, shares	558,531	762,692	755,535		388,000								303,212
Merger related transaction costs						76,000,000
Transaction costs related to Merger					11,000,000					4,000,000	6,000,000	1,000,000
Inventory charges				89,000,000
Number of businesses to be sold				4
Proceeds from sales of tubular businesses				800,000,000
Taxes related to disposition				256,000,000
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles						3,696,000,000	1,200,000,000
Intangible assets								300,000,000	2,200,000,000
Minimum estimated useful lives							40 years
Maximum estimated useful lives							Indefinite life
Minimum useful lives patents and customer relationships	2							5	16
Maximum useful lives patents and customer relationships	30							15	17
Intangible assets associated with tradenames indefinite life							$ 800,000,000

Other Acquisitions and Investments (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Fair values of the assets acquired and liabilities
Long-term debt	$ 0
Other Acquisitions [Member]
Fair values of the assets acquired and liabilities
Current assets, net of cash acquired	136	404	33
Cost in excess of billing	71
Property, plant and equipment	38	149	61
Intangible assets	299	115	38
Goodwill	298	198	76
Other assets	8	5
Total assets acquired	850	871	208
Current liabilities	142	242	11
Billing in excess of cost	41
Long-term debt		48	26
Other liabilities	111	8
Total liabilities	294	298	37
Cash consideration, net of cash acquired	$ 556	$ 573	$ 171

Other Acquisitions and Investments (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of acquisitions
Cash paid, net of cash acquired	$ (556)	$ (573)	$ (3,008)
Other Acquisitions [Member]
Summary of acquisitions
Fair value of assets acquired, net of cash acquired	850	871	208
Cash paid, net of cash acquired	556	573	171
Liabilities assumed, debt issued and minority interest	294	298	37
Excess purchase price over fair value of net assets acquired	$ 298	$ 198	$ 76

Other Acquisitions and Investments (Details Textuals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Acquisitions and Investments (Textuals) [Abstract]
Aggregate purchase price of acquisitions	$ 500
Weighted average life	5
Other Acquisitions [Member]
Other Acquisitions and Investments (Textuals) [Abstract]
Number of acquisitions	12	9	9
Aggregate purchase price of acquisitions	556	573	171
Percentage of IntelliServ operations, sold		45.00%
Intangible assets	299	115	38
Weighted average life	18	11	9
Customer relationships [Member] \| Other Acquisitions [Member]
Other Acquisitions and Investments (Textuals) [Abstract]
Intangible assets	116	60	30
Weighted average life	15	9	15
Trademarks [Member] \| Other Acquisitions [Member]
Other Acquisitions and Investments (Textuals) [Abstract]
Intangible assets	59	46	1
Weighted average life	30	18	16
Other intangible assets [Member] \| Other Acquisitions [Member]
Other Acquisitions and Investments (Textuals) [Abstract]
Intangible assets	$ 124	$ 9	$ 7
Weighted average life	15	7	4

Inventories, net (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Inventories
Raw materials and supplies	$ 661	$ 739
Work in process	953	1,326
Finished goods and purchased products	1,774	1,425
Total	$ 3,388	$ 3,490

Property, Plant and Equipment (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Property, plant and equipment
Property, plant and equipment Gross	$ 2,903	$ 2,701
Less: Accumulated Depreciation	(1,063)	(865)
Property, plant and equipment Net	1,840	1,836
Land and Building [Member]
Property, plant and equipment
Estimated Useful Lives	5-35 Years
Property, plant and equipment Gross	736	678
Operating Equipment [Member]
Property, plant and equipment
Estimated Useful Lives	3-15 Years
Property, plant and equipment Gross	1,539	1,429
Rental Equipment [Member]
Property, plant and equipment
Estimated Useful Lives	3-12 Years
Property, plant and equipment Gross	$ 628	$ 594

Accrued Liabilities (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Accrued Liabilities
Compensation	$ 403	$ 272
Customer prepayments and billings	387	500
Warranty	215	217	114
Interest	11	11
Taxes (non income)	93	95
Insurance	49	58
Accrued vendor costs	597	853
Fair value of derivatives	22	61
Other	328	200
Total	$ 2,105	$ 2,267

Costs and Estimated Earnings on Uncompleted Contracts (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Costs and Estimated Earnings on Uncompleted Contracts
Costs incurred on uncompleted contracts	$ 6,676	$ 6,276
Estimated earnings	4,665	3,735
Costs and estimated earnings on uncompleted contracts, Gross	11,341	10,011
Less: Billings to date	11,037	10,361
Total net estimate billing on uncompleted contracts	304	(350)
Costs and estimated earnings in excess of billings on uncompleted contracts	815	740
Billings in excess of costs and estimated earnings on uncompleted contracts	$ (511)	$ (1,090)

Long-Term Debt (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Debt
Other	$ (853)	$ 26
Total debt	887	883
Less current portion	373	7
Long-term debt	514	876
6.5% interest payable semiannually on Senior Notes due on March 15, 2011 [Member]
Debt
Senior Notes	150	150
7.25% interest payable semiannually on Senior Notes due on May 1, 2011 [Member]
Debt
Senior Notes	201	205
5.65% interest payable semiannually on Senior Notes due on November 15, 2012 [Member]
Debt
Senior Notes	200	200
5.5% interest payable semiannually on Senior Notes due on November 19, 2012 [Member]
Debt
Senior Notes	151	151
6.125% interest payable semiannually on Senior Notes due on August 15, 2015 [Member]
Debt
Senior Notes	$ 151	$ 151

Long-Term Debt (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Principal payments of debt
2011	$ 373
2012	355
2013	5
2014	2
2015	151
Thereafter	1
Total debt	$ 887	$ 883

Long-Term Debt (Details Textuals) (USD $)	12 Months Ended
Long-Term Debt (Details Textuals) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Apr. 21, 2008
Long-Term Debt (Textuals) [Abstract]
Funds borrowed to finance the cash portion of the Grant Prideco acquisition			$ 2,000,000,000
Outstanding letters of credit	477,000,000
Funds available under revolving credit facility	1,523,000,000
Outstanding letters of credit under various bilateral committed letter of credit facilities	1,366,000,000
Promissory notes included in other debt	(853,000,000)	26,000,000
Interest rate under multicurrency facility	LIBOR, NIBOR or EURIBOR plus 0.26%
6.5% interest payable semiannually on Senior Notes due on March 15, 2011 [Member]
Long-Term Debt (Textuals) [Abstract]
Senior notes interest rate	6.50%
7.25% interest payable semiannually on Senior Notes due on May 1, 2011 [Member]
Long-Term Debt (Textuals) [Abstract]
Senior notes interest rate	7.25%
5.65% interest payable semiannually on Senior Notes due on November 15, 2012 [Member]
Long-Term Debt (Textuals) [Abstract]
Senior notes interest rate	5.65%
5.5% interest payable semiannually on Senior Notes due on November 19, 2012 [Member]
Long-Term Debt (Textuals) [Abstract]
Senior notes interest rate	5.50%
6.125% interest payable semiannually on Senior Notes due on August 15, 2015 [Member]
Long-Term Debt (Textuals) [Abstract]
Senior notes interest rate	6.125%
Existing Unsecured revolving credit facility [Member]
Long-Term Debt (Textuals) [Abstract]
Unsecured revolving credit facility			500,000,000
New Unsecured revolving credit facility [Member]
Long-Term Debt (Textuals) [Abstract]
Funds borrowed to finance the cash portion of the Grant Prideco acquisition			3,000,000,000
Five year revolving credit facility [Member]
Long-Term Debt (Textuals) [Abstract]
Unsecured revolving credit facility			2,000,000,000
Outstanding letters of credit		0
364-day revolving credit facility [Member]
Long-Term Debt (Textuals) [Abstract]
Unsecured revolving credit facility			$ 1,000,000,000

Employee Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Change in benefit obligation, plan assets and the funded status of the defined benefit pension plans
Acquisitions/divestitures, net	$ 0
Fair value of plan assets at beginning of year	193
Fair value of plan assets at end of year	203
Pension Plans [Member]
Change in benefit obligation, plan assets and the funded status of the defined benefit pension plans
Benefit obligation at beginning of year	262	214
Service cost	5	5
Interest cost	14	14
Actuarial loss (gain)	10	19
Benefits paid	(12)	(10)
Participants contributions	1	1
Exchange rate loss (gain)	(7)	19
Other	(1)
Benefit obligation at end of year	272	262
Accumulated benefit obligation at end of year	254	244
Fair value of plan assets at beginning of year	193	153
Actual return	18	21
Company contributions	8	12
Exchange rate (loss) gain	(4)	16
Acquisitions/divestitures, net	0
Other	(1)
Fair value of plan assets at end of year	203	193
Funded status	(69)	(69)
Postretirement benefits [Member]
Change in benefit obligation, plan assets and the funded status of the defined benefit pension plans
Benefit obligation at beginning of year	39	20
Service cost	0
Interest cost	2	2
Actuarial loss (gain)	(3)	1
Benefits paid	(5)	(2)
Participants contributions	0
Exchange rate loss (gain)	0	18
Other	0
Benefit obligation at end of year	33	39
Accumulated benefit obligation at end of year	0
Fair value of plan assets at beginning of year	0	0
Actual return	0
Company contributions	5	2
Exchange rate (loss) gain	0
Acquisitions/divestitures, net	0
Other	0
Fair value of plan assets at end of year	0	0
Funded status	$ (33)	$ (39)

Employee Benefit Plans (Details 1)	Dec. 31, 2010	Dec. 31, 2009
United States plan [Member]
Assumption rates used for benefit obligations
Discount rate:	4.95%	5.26%
International plans [Member]
Assumption rates used for benefit obligations
Discount rate:		5.25%
Discount rate minimum:	5.25%
Discount rate maximum:	5.50%	5.75%
Salary increase minimum:	2.50%	2.50%
Salary increase maximum:	4.33%	4.25%

Employee Benefit Plans (Details 2)	12 Months Ended
Employee Benefit Plans (Details 2)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
United States plan [Member]
Assumption rates used for net periodic benefit costs
Discount rate:	5.26%	6.23%	6.34%
Expected return on assets:	7.50%	7.75%	7.75%
International plans [Member]
Assumption rates used for net periodic benefit costs
Discount rate minimum:	5.25%	5.75%	5.50%
Discount rate maximum:	5.75%	6.50%	5.75%
Salary increase minimum:	2.50%	2.50%	2.50%
Salary increase maximum:	4.25%	4.50%	4.50%
Expected return on assets, minimum:	6.00%	6.00%	5.50%
Expected return on assets, maximum:	6.85%	6.85%	6.86%

Employee Benefit Plans (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	$ 203	$ 193
Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	19	16
Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	152	145
Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	32	32	24
Equity Securities [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	66	70
Equity Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Equity Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	66	70
Equity Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Bonds [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	58	53
Bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	58	53
Bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Mutual Funds [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	19	36
Mutual Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	19	16
Mutual Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	20
Mutual Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Other Contract [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	54	32
Other Contract [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Other Contract [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	22	0
Other Contract [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	32	32
Total Investments [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	197	191
Total Investments [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	19	16
Total Investments [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	146	143
Total Investments [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	32	32
Cash [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	6	2
Cash [Member] \| Fair Value, Inputs, Level 1 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	0	0
Cash [Member] \| Fair Value, Inputs, Level 2 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	6	2
Cash [Member] \| Fair Value, Inputs, Level 3 [Member]
Plan's Assets Carried at Fair Value
Total Fair Value Measurements	$ 0	$ 0

Employee Benefit Plans (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Summary of Changes in Fair Value of Plan's Level 3 Assets
Fair value of plan assets at end of year	$ 203	$ 193
Fair Value, Inputs, Level 3 [Member]
Summary of Changes in Fair Value of Plan's Level 3 Assets
Fair value of plan assets at beginning of year	32	24
Actual return on plan assets still held at reporting date	1	2
Purchases, sales and settlements		1
Currency impact	(1)	5
Fair value of plan assets at end of year	$ 32	$ 32

Employee Benefit Plans (Details Textuals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Employee Benefit Plans (Textuals) [Abstract]
Expenses for defined-contribution plans	$ 41	$ 39	$ 37
Number of U.S. retirees and spouses participate in defined benefit health care plans	677
Net periodic benefit cost	10	12	7
Expected future benefit amounts to pay	16million to 17 million for each of the next five years
Expected future benefit amounts to pay, total	$ 163

Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Components of Accumulated Other Comprehensive Income (Loss)
Defined Benefit Plans, Beginning balance	$ (49)	$ (40)	$ (20)
Cumulative Currency Translation Adjustment, Beginning balance	120	20	196
Derivative Financial Instruments, Beginning balance	19	(141)	19
Total, Beginning balance	90	(161)	195
Defined Benefit Plans, Current period activity	1	(14)	(30)
Cumulative Currency Translation Adjustment, Current period activity	19	150	(265)
Derivative Financial Instruments, Current period activity	(17)	223	(241)
Total, Current period activity	3	359	(536)
Defined Benefit Plans, Tax effect	0	5	10
Cumulative Currency Translation Adjustment, Tax effect	(6)	(50)	89
Derivative Financial Instruments, Tax effect	4	(63)	81
Total, Tax effect	(2)	(108)	180
Defined Benefit Plans, Ending balance	(48)	(49)	(40)
Cumulative Currency Translation Adjustment, Ending balance	133	120	20
Derivative Financial Instruments, Ending balance	6	19	(141)
Total, Ending balance	$ 91	$ 90	$ (161)

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more
2011	$ 130
2012	94
2013	72
2014	56
2015	49
Thereafter	238
Total future lease commitments	639
Commitments and Contingencies (Textuals) [Abstract]
Rental expense related to operating leases	$ 215	$ 199	$ 184

Common Stock (Details) (USD $)	12 Months Ended
Common Stock (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of stock options
Number of shares under stock option, Beginning of the year	10,255,982	7,547,822	7,903,832
Number of shares granted	3,485,283	3,234,400	2,993,000
Number of shares cancelled	232,488	(156,356)	(218,560)
Number of shares exercised	(2,469,233)	(369,884)	(3,130,450)
Number of stock options vested and expected to be vest, exercisable	5,067,186	5,308,465	3,110,462
Weighted average exercise price, Beginning of year	$ 34.19	$ 37.24	$ 29.12
Stock options granted, weighted average exercise price	$ 44.03	$ 26.03	$ 48.59
Stock options cancelled, weighted average exercise price	$ 40.53	$ 29.79	$ 30.90
Stock options exercised, weighted average exercise price	$ 30.35	$ 40.86	$ 27.08
Weighted average exercise price, End of the year	$ 38.01	$ 34.19	$ 37.24
Stock options exercisable, weighted average exercise price	$ 36.31	$ 33.14	$ 26.17
Number of shares under stock option, End of the year	11,039,544	10,255,982	7,547,822

Common Stock (Details 1) (USD $)	12 Months Ended		12 Months Ended
Common Stock (Details 1) (USD $)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2010 Range One [Member]	Dec. 31, 2010 Range Two [Member]	Dec. 31, 2010 Range Three [Member]
Summary of stock option outstanding information
Stock option, minimum range	$ 8.33		$ 8.33	$ 15.92	$ 33.57
Stock option, maximum range	$ 73.98		$ 15.00	$ 33.29	$ 73.98
Stock Option Weighted-Avg Remaining Contractual Life		7.27	2.79	7.25	7.53
Stock options outstanding, shares		11,039,544	416,027	3,214,610	7,408,907
Stock options outstanding, Weighted-Avg Exercise Price		38.01	$ 11.42	$ 24.68	$ 45.29
Stock options exercisable, shares		5,067,186	395,639	1,174,403	3,497,144
Stock option exercisable, Weighted-Avg Exercise Price		36.31	$ 11.42	$ 22.45	$ 43.89

Common Stock (Details 2) (USD $)	12 Months Ended
Common Stock (Details 2) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Assumption used in determination of fair value of share based payment awards
Share based payment awards, expected volatility rate	55.00%	63.50%	41.80%
Share based payment awards, risk free interest rate	2.30%	1.80%	2.90%
Share based payment awards, expected dividends	$ 0.4
Share based payment awards, expected term	3.2	3.4	3.6

Common Stock (Details 3) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of Information and changes in stock options with regard to stock option plans
Number of shares under stock option, Beginning of the year	10,255,982	7,547,822	7,903,832
Stock option granted	3,485,283	3,234,400	2,993,000
Stock option exercised	(2,469,233)	(369,884)	(3,130,450)
Stock option cancelled	232,488	(156,356)	(218,560)
Number of shares under stock option, End of the year	11,039,544	10,255,982	7,547,822
Number of stock options vested and expected to be vest	10,669,951
Number of stock options vested and expected to be vest, exercisable	5,067,186	5,308,465	3,110,462
Weighted average exercise price, Beginning of year	$ 34.19	$ 37.24	$ 29.12
Stock options granted, weighted average exercise price	$ 44.03
Stock options exercised, weighted average exercise price	$ 30.35
Stock options cancelled, weighted average exercise price	$ 40.53
Weighted average exercise price, End of the year	$ 38.01	$ 34.19	$ 37.24
Stock options vested or expected to be vest, weighted average exercise price	$ 38.01
Stock options vested or expected to be vest exercisable, weighted average exercise price	$ 36.31	$ 33.14	$ 26.17
Weighted Remaining Contractual Term, Outstanding	7.27
Weighted Remaining Contractual Term, Vested	7.27
Weighted Remaining Contractual Term, Exercisable	5.69
Stock options aggregate intrinsic value	$ 312,423,777
Stock options, vested and expected to vest, aggregate intrinsic value	304,394,486
Stock options, vested and expected to vest exercisable, aggregate intrinsic value	$ 152,742,256

Common Stock (Details 4) (USD $)	12 Months Ended
Common Stock (Details 4) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of information regarding outstanding restricted shares
Restricted shares outstanding, Beginning balance	2,181,244	1,460,496	1,061,002
Restricted stock granted, shares	558,531	762,692	755,535
Restricted stock vested, shares	(921,454)	(7,322)	(307,905)
Restricted stock forfeited, shares	(52,484)	(34,622)	(48,136)
Restricted shares outstanding, Ending balance	1,765,837	2,181,244	1,460,496
Weighted-average grant date fair value of restricted stock, Beginning balance	$ 40.51	$ 47.34	$ 36.56
Restricted stock granted, Weighted-average grant date fair value	$ 43.99	$ 26.02	$ 64.33
Restricted stock vested, Weighted-average grant date fair value	$ 43.28	$ 36.05	$ 68.12
Restricted stock forfeited, Weighted-average grant date fair value	$ 35.11	$ 41.52	$ 42.32
Weighted-average grant date fair value of restricted stock, Ending balance	$ 42.15	$ 40.51	$ 47.34

Common Stock (Details Textuals) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended					1 Months Ended		12 Months Ended			1 Months Ended		12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	May 12, 2010 Restricted stock [Member]	Feb. 16, 2010 Restricted stock [Member]	Dec. 31, 2010 Restricted stock [Member]	Dec. 31, 2009 Restricted stock [Member]	Dec. 31, 2008 Restricted stock [Member]	May 12, 2010 Restricted stock [Member] Non Employee [Member]	Feb. 16, 2010 Performance-base restricted stock [Member]	Dec. 31, 2010 Performance-base restricted stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted, exercise price	$ 44.03	$ 26.03		$ 44.03	$ 44.03	$ 26.03	$ 48.59			$ 0
Restricted stock granted, shares				558,531	558,531	762,692	755,535	1,440	543,035				14,056	171,400
Period of option vested over grant date				Option generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant	Option generally vest over a three-year period starting one year from the date of grant and expire ten years from the date of grant					equal thirds over three years on the anniversary of the grant date					36 months from the date of grant
Weighted-average grant day fair value of RSA's granted					$ 43.99	$ 26.02	$ 64.33			$ 43.99	$ 26.02	$ 64.16
Restricted stock vested, shares				(921,454)	(921,454)	(7,322)	(307,905)			921,454	7,322	307,905
Total unrecognized compensation cost related to nonvested stock options	$ 47			$ 47	$ 47					$ 22
Weighted-average period recognition of unrecognized compensation cost related to nonvested RSA's				2	2					2
Common Stock (Textuals) [Abstract]
Number of common stock, authorized	500,000,000			500,000,000	500,000,000
Common stock, par value	$ 0.01	$ 0.01		$ 0.01	$ 0.01	$ 0.01
Common stock, shares issued	421,141,751	418,451,731		421,141,751	421,141,751	418,451,731
Common stock, shares outstanding	421,141,751	418,451,731		421,141,751	421,141,751	418,451,731
Number of preferred stock, authorized	10,000,000			10,000,000	10,000,000
Preferred stock, par value	$ 0.01			$ 0.01	$ 0.01
Preferred stock, shares issued	0			0	0
Preferred stock, shares outstanding	0			0	0
Dividend declared per share				$ 0.11	$ 0.41	$ 1.10
Cash dividend paid	46	460			(172)	(460)
Earlier authorized shares under stock based compensation				25,500,000	25,500,000
Remaining shares available for future grants under the Plan	8,000,000			8,000,000	8,000,000
Stock option, exercise price Minimum			$ 8.33
Stock option, exercise price maximum			$ 73.98
Weighted-average fair value of options granted					$ 16.73	$ 11.89	$ 22.16
Total intrinsic value of options exercised					60	6
Total fair value of stock options vested	78	40		78	78	40	43
Cash received from option exercises					73	8	78
Tax benefit realized for the tax deductions from option exercises					$ 16	$ 2	$ 46

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Domestic and foreign components of income before income taxes
Domestic	$ 727	$ 761	$ 1,577
Foreign	1,670	1,447	1,384
Total	2,397	2,208	2,961
Current:
Federal	421	526	691
State	34	35	55
Foreign	448	348	280
Total current income tax provision	903	909	1,026
Deferred:
Federal	(260)	(249)	(93)
State	(8)	(5)	(2)
Foreign	103	80	62
Total deferred income tax provision	(165)	(174)	(33)
Total income tax provision	$ 738	$ 735	$ 993

Income Taxes (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Difference between the effective tax rate
Federal income tax at U.S. federal statutory rate	$ 839	$ 773	$ 1,037
Foreign income tax rate differential	(117)	(120)	(125)
State income tax, net of federal benefit	17	18	34
Nondeductible expenses	40	30	12
Tax benefit of manufacturing deduction	(19)	(17)	(17)
Foreign dividends, net of foreign tax credits	15	10	46
Change in contingency reserve and other	(37)	41	6
Provision for income taxes	$ 738	$ 735	$ 993

Income Taxes (Details 2) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Deferred tax assets:
Allowances and operating liabilities	$ 344	$ 343	$ 364
Operating loss carryforward potential benefit	10	7	6
Foreign tax credit carryforwards	220	0	0
Postretirement benefits	17	12	12
Capital loss carryforwards	0	0	3
Other	75	28	22
Deferred Tax Assets, Gross	666	390	407
Valuation allowance for deferred tax assets	(9)	(8)	(10)
Total deferred tax assets	657	382	397
Deferred tax liabilities:
Tax over book depreciation	213	168	146
Intangible assets	1,307	1,413	1,542
Deferred income	456	363	215
Accrued U.S. tax on unremitted earnings	149	49	49
Other	211	98	182
Total deferred tax liabilities	2,336	2,091	2,134
Net deferred tax liability	$ 1,679	$ 1,709	$ 1,737

Income Taxes (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Reconciliation of beginning and ending amount of unrecognized tax benefits
Unrecognized tax benefit at beginning of year	$ 58	$ 61	$ 47
Increase in balance of unrecognized tax benefits associated with reduction in tax	1	10	9
Increase in unrecognized tax benefits associated with foreign tax position	82		9
Reductions for tax positions of prior years	(5)	(12)	(4)
Reductions for lapse of applicable statutes of limitations	(18)	(1)
Unrecognized tax benefit at end of year	$ 118	$ 58	$ 61

Income Taxes (Details Textuals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Income Taxes (Textuals) [Abstract]
Unrecognized tax benefit	$ 118	$ 58	$ 61	$ 47
Deferred tax asset unrecognized tax benefits	73
Unrecognized tax benefits decreases resulting from settlements with taxing authorities and from lapse of applicable statute of limitations	23
Net increase in the balance of unrecognized tax benefit	60
Unrecognized tax benefits period increase decrease recorded as increase in goodwill	10
Unrecognized Tax Benefits Period Increase Decrease Recorded as Reduction in income tax expense	23
Reduction in income tax expense if unrecognized tax benefit accrued were realized	39
Income tax interest and penalities related to unrecognized tax benefit	3
Accrued income tax interest and penalities related to unrecognized tax benefit	8
Net operating loss carryforward foreign	20
Operating loss carryforward valuation allowance foreign	7
Foreign tax credit	220
Excess foreign tax credit, valuation allowance	1
Undistributed earnings of foreign subsidiaries	503	2,764
Business Acquisition [Line Items]
Net deferred tax liabilities	2,336	2,091	2,134
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward foreign	20
Operating loss carryforward potential benefit	10	7	6
Operating loss carryforward valuation allowance foreign	7
Income Tax Contingency [Line Items]
Increase in unrecognized tax benefits associated with foreign tax position	82		9
Increase in balance of unrecognized tax benefits associated with reduction in tax	1	10	9
Foreign Country [Member]
Income Tax Contingency [Line Items]
Increase in unrecognized tax benefits associated with foreign tax position	73
Increase in balance of unrecognized tax benefits associated with reduction in tax	10
Foreign Country [Member]
Income Taxes (Textuals) [Abstract]
Net operating loss carryforward foreign	10
Operating loss carryforward valuation allowance foreign	1
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward foreign	10
Operating loss carryforward potential benefit	3
Operating loss carryforward valuation allowance foreign	1
Grant Predico Inc [Member]
Business Acquisition [Line Items]
Net deferred tax liabilities	$ 98

Business Segments and Geographic Areas (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues by country based on sales destination of the use of the products or services
Total Revenue	$ 3,172	$ 3,011	$ 2,941	$ 3,032	$ 3,134	$ 3,087	$ 3,010	$ 3,481	$ 12,156	$ 12,712	$ 13,431
United States [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									4,104	3,444	4,369
South Korea [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									2,616	2,830	291
Canada [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									656	550	751
Norway [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									495	629	603
Singapore [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									491	801	856
United Kingdom [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									421	578	497
Other Countries [Member]
Revenues by country based on sales destination of the use of the products or services
Total Revenue									$ 3,373	$ 3,880	$ 6,064

Business Segments and Geographic Areas (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Long-lived assets by country based on the location
Total long-lived asset	$ 1,840	$ 1,836
United States [Member]
Long-lived assets by country based on the location
Total long-lived asset	1,045	1,082
Canada [Member]
Long-lived assets by country based on the location
Total long-lived asset	118	116
Norway [Member]
Long-lived assets by country based on the location
Total long-lived asset	116	110
United Kingdom [Member]
Long-lived assets by country based on the location
Total long-lived asset	40	41
Other Countries [Member]
Long-lived assets by country based on the location
Total long-lived asset	$ 521	$ 487

Business Segments and Geographic Areas (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Business Segments
Total Revenue	$ 3,172	$ 3,011	$ 2,941	$ 3,032	$ 3,134	$ 3,087	$ 3,010	$ 3,481	$ 12,156	$ 12,712	$ 13,431
Operating profit									2,447	2,315	2,918
Capital expenditures									232	250	379
Depreciation and amortization									507	490	402
Goodwill	5,790				5,489				5,790	5,489	5,225
Total assets	23,050				21,532				23,050	21,532	21,479
Rig Technology [Member]
Business Segments
Total Revenue									6,965	8,093	7,528
Operating profit									2,064	2,283	1,970
Capital expenditures									59	61	79
Depreciation and amortization									95	90	90
Goodwill	1,854				1,567				1,854	1,567	1,458
Total assets	7,778				7,203				7,778	7,203	9,048
Petroleum Services And Supplies [Member]
Business Segments
Total Revenue									4,182	3,745	4,651
Operating profit									585	301	1,044
Capital expenditures									152	161	272
Depreciation and amortization									384	374	290
Goodwill	3,859				3,855				3,859	3,855	3,705
Total assets	11,807				11,601				11,807	11,601	11,153
Distribution Services [Member]
Business Segments
Total Revenue									1,546	1,350	1,772
Operating profit									78	50	130
Capital expenditures									2	3	4
Depreciation and amortization									7	8	9
Goodwill	77				67				77	67	62
Total assets	923				781				923	781	650
Business Intersegment, Eliminations [Member]
Business Segments
Total Revenue									(537)	(476)	(520)
Operating profit									(280)	(319)	(226)
Capital expenditures									19	25	24
Depreciation and amortization									21	18	13
Goodwill	0				0				0	0	0
Total assets	$ 2,542				$ 1,947				$ 2,542	$ 1,947	$ 628

Business Segments and Geographic Areas (Details Textuals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Business Segments and Geographic Areas (Textuals) [Abstract]
Revenue from shipyard customer	17.00%	17.00%
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 507	$ 490	$ 402
Petroleum Services And Supplies [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization	384	374	290
Grant Predico Inc [Member] \| Petroleum Services And Supplies [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization			$ 114

Quarterly Financial Data (Unaudited) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summarized quarterly results
Revenues	$ 3,172	$ 3,011	$ 2,941	$ 3,032	$ 3,134	$ 3,087	$ 3,010	$ 3,481	$ 12,156	$ 12,712	$ 13,431
Gross profit	997	945	928	962	979	891	875	1,039	3,832	3,784	4,072
Net income attributable to Company	$ 440	$ 404	$ 401	$ 422	$ 394	$ 385	$ 220	$ 470	$ 1,667	$ 1,469	$ 1,952
Net income attributable to Company per basic share	$ 1.05	$ 0.97	$ 0.96	$ 1.01	$ 0.95	$ 0.93	$ 0.53	$ 1.13	$ 3.99	$ 3.53	$ 4.91
Net income attributable to Company per diluted share	$ 1.05	$ 0.96	$ 0.96	$ 1.01	$ 0.94	$ 0.92	$ 0.53	$ 1.13	$ 3.98	$ 3.52	$ 4.90
Cash dividends per share	$ 0.11	$ 0.10	$ 0.10	$ 0.10	$ 1.10				$ 0.41	$ 1.10

- Definition

+ References+ Details

Valuation and Qualifying Accounts (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Allowance for Doubtful Accounts [Member]
Valuation of Qualifying Accounts
Beginning balance	$ 95	$ 73	$ 45
Additions (Deductions) charged to costs and expenses	39	53	25
Charge off's and other	(27)	(31)	3
Ending balance	107	95	73
Valuation Allowance for Deferred Tax Assets [Member]
Valuation of Qualifying Accounts
Beginning balance	8	10	14
Additions (Deductions) charged to costs and expenses	1	0	0
Charge off's and other	0	(2)	(4)
Ending balance	9	8	10
Warranty Reserves [Member]
Valuation of Qualifying Accounts
Beginning balance	217	114	92
Additions (Deductions) charged to costs and expenses	52	144	81
Charge off's and other	(54)	(41)	(59)
Ending balance	215	217	114
Inventory Valuation and Obsolescence [Member]
Valuation of Qualifying Accounts
Beginning balance	206	123	99
Additions (Deductions) charged to costs and expenses	106	100	27
Charge off's and other	(42)	(17)	(3)
Ending balance	$ 270	$ 206	$ 123

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Cash dividends, per common share	$ 0.11	$ 1.10
Retained Earnings
Cash dividends, per common share	$ 0.41	$ 1.10
Total Company Stockholders' Equity
Cash dividends, per common share	$ 0.41	$ 1.10