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Derivative Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2012
Outstanding Foreign Currency Forward Contracts | The Company had the following outstanding foreign currency forward contracts that were entered into to hedge nonfunctional currency cash flows from forecasted revenues and expenses (in millions):
|  | Currency Denomination |
Foreign Currency |  | September 30, 2012 |  |  | December 31, 2011 |
Norwegian Krone |  | NOK | 7,035 |  |  | NOK | 6,639 |
U.S. Dollar |  | $ | 393 |  |  | $ | 402 |
Euro |  | € | 383 |  |  | € | 456 |
Mexican Peso |  | MXN | 102 |  |  | MXN | — |
Danish Krone |  | DKK | 112 |  |  | DKK | 98 |
Singapore Dollar |  | SGD | 16 |  |  | SGD | 10 |
British Pound Sterling |  | £ | 11 |  |  | £ | 2 |
|  | Currency Denomination |
Foreign Currency |  | September 30, 2012 |  |  | December 31, 2011 |
Norwegian Krone |  | NOK | 1,717 |  |  | NOK | 2,310 |
Russian Ruble |  | RUB | 1,266 |  |  | RUB | 786 |
U.S. Dollar |  | $ | 936 |  |  | $ | 483 |
Euro |  | € | 253 |  |  | € | 161 |
Danish Krone |  | DKK | 217 |  |  | DKK | 67 |
Brazilian Real |  | BRL | 99 |  |  | BRL | — |
Singapore Dollar |  | SGD | 43 |  |  | SGD | 5 |
British Pound Sterling |  | £ | 12 |  |  | £ | 9 |
Canadian Dollar |  | CAD | 2 |  |  | CAD | — |
Swedish Krone |  | SEK | — |  |  | SEK | 4 |
Derivative Instruments and Balance Sheet Classifications | The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): NATIONAL OILWELL VARCO, INC. Fair Values of Derivative Instruments (In millions)
|  | Asset Derivatives |  |  | Liability Derivatives |
|  |  |  | Fair Value |  |  |  |  | Fair Value |
|  | Balance Sheet |  | September 30, |  |  | December 31, |  |  | Balance Sheet |  | September 30, |  |  | December 31, |
|  | Location |  | 2012 |  |  | 2011 |  |  | Location |  | 2012 |  |  | 2011 |
Derivatives designated as hedging instruments under ASC Topic 815 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid and other current assets |  | $ | 42 |  |  | $ | 16 |  |  | Accrued liabilities |  | $ | 16 |  |  | $ | 62 |
Foreign exchange contracts |  | Other Assets |  |  | 22 |  |  |  | 1 |  |  | Other Liabilities |  |  | 1 |  |  |  | 13 |
Total derivatives designated as hedging instruments under ASC Topic 815 |  |  |  | $ | 64 |  |  | $ | 17 |  |  |  |  | $ | 17 |  |  | $ | 75 |
Derivatives not designated as hedging instruments under ASC Topic 815 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid and other current assets |  | $ | 17 |  |  | $ | 9 |  |  | Accrued liabilities |  | $ | 17 |  |  | $ | 21 |
Total derivatives not designated as hedging instruments under ASC Topic 815 |  |  |  | $ | 17 |  |  | $ | 9 |  |  |  |  | $ | 17 |  |  | $ | 21 |
Total derivatives |  |  |  | $ | 81 |  |  | $ | 26 |  |  |  |  | $ | 34 |  |  | $ | 96 |
Effect of Derivative Instruments on Consolidated Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements 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) |
|  | Nine Months Ended September 30, |  |  |  |  | Nine Months Ended September 30, |  |  |  |  | Nine Months Ended September 30, |
|  | 2012 |  |  | 2011 |  |  |  |  | 2012 |  |  | 2011 |  |  |  |  | 2012 |  |  | 2011 |
|  |  |  |  |  |  |  |  |  | Revenue |  |  | (9 | ) |  |  | 11 |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  |  | 69 |  |  |  | 6 |  |  | Cost of revenue |  |  | (22 | ) |  |  | 38 |  |  | Other income (expense), net |  |  | 5 |  |  |  | 11 |
Total |  |  | 69 |  |  |  | 6 |  |  |  |  |  | (31 | ) |  |  | 49 |  |  |  |  |  | 5 |  |  |  | 11 |
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 |
|  |  |  | Nine Months Ended September 30, |
|  |  |  | 2012 |  |  | 2011 |
Foreign exchange contracts |  | Other income (expense), net |  |  | 8 |  |  |  | 0 |
Total |  |  |  |  | 8 |  |  |  | 0 |
(a) | The Company expects that $11 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 $(1) million and $11 million related to the ineffective portion of the hedging relationships for the nine months ended September 30, 2012 and 2011, respectively, and $6 million and $13 million related to the amount excluded from the assessment of the hedge effectiveness for the nine months ended September 30, 2012 and 2011, respectively.

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- Definition Outstanding foreign currency forward contracts. + References No definition available. + Details
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- Definition Tabular disclosure of gains and losses on derivative instruments included in an entity's trading activities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4F -Subparagraph (a),(b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624186-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph c -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 55 -Paragraph 184 -URI http://asc.fasb.org/extlink&oid=7485890&loc=SL5634876-113961 + Details
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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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