XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.22.4

Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2022
Retirement Benefits [Abstract] |
Employee Benefit Plans | 10. Employee Benefit Plans We have benefit plans covering substantially all our employees. Defined-contribution retirement plans cover most of the U.S. and Canadian employees, and benefits are generally based on employee deferrals and matching on those employee contributions. We also have defined contribution plans in Norway and the United Kingdom. For the years ended December 31, 2022, 2021 and 2020, expenses for defined-contribution retirement plans were $67 million, $34 million, and $51 million, respectively, and all funding is current. In 2021, NOV announced and filed for the defined benefit plan in the United States to be settled. As part of that process, the benefit accrual for the 20 employees represented by a collective bargaining agreement was ended as of November 30, 2021. The plan settlement, which would result in the full settlement of the Company’s obligations, is expected to be completed in early 2023. Plan participants will receive their full accrued benefits from plan assets through annuity contracts with a qualifying third-party annuity provider. Upon settlement, we expect to recognize pre-tax pension settlement charges that will include (1) a non-cash charge for the recognition of all pre-tax actuarial losses accumulated in accumulated other comprehensive loss ($8 million as of December 31, 2022) and (2) any cash contributions to settle the Plan’s obligations ($5 million net projected benefit obligation as of December 31, 2022). The actual amount of the settlement charges and any potential cash contribution will depend on various factors, including interest rates and plan asset returns. In the third quarter of 2022, the Company offered a new benefit plan providing retiree medical coverage in the United States, and approximately 8,600 employees are eligible for this coverage. In addition, approximately 1,000 U.S. retirees and/or spouses participate in plans that provide post-retirement healthcare and/or life insurance benefits. Net periodic benefit income (cost) for our Defined Benefit pension plans aggregated $1 million, $3 million, and $3 million for the years ended December 31, 2022, 2021 and 2020, respectively. The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2022 and 2021, is as follows (in millions):
|  | Pension benefits |  |  | Postretirement benefits |
At year end |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Benefit obligation at beginning of year |  | $ | 594 |  |  | $ | 641 |  |  | $ | 34 |  |  | $ | 43 |
Service cost |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | — |
Interest cost |  |  | 9 |  |  |  | 11 |  |  |  | 1 |  |  |  | 1 |
Actuarial loss (gain) |  |  | (135 | ) |  |  | (5 | ) |  |  | (5 | ) |  |  | 4 |
Benefits paid |  |  | (62 | ) |  |  | (29 | ) |  |  | (8 | ) |  |  | (14 | )
Exchange rate loss (gain) |  |  | (25 | ) |  |  | (12 | ) |  |  | — |  |  |  | — |
Plan amendments |  |  | — |  |  |  | — |  |  |  | 27 |  |  |  | — |
Settlements |  |  | — |  |  |  | (13 | ) |  |  | — |  |  |  | — |
Benefit obligation at end of year |  | $ | 382 |  |  | $ | 594 |  |  | $ | 50 |  |  | $ | 34 |
Fair value of plan assets at beginning of year |  | $ | 571 |  |  | $ | 584 |  |  | $ | — |  |  | $ | — |
Actual return |  |  | (105 | ) |  |  | 32 |  |  |  | — |  |  |  | — |
Benefits paid |  |  | (62 | ) |  |  | (29 | ) |  |  | (8 | ) |  |  | (15 | )
Company contributions |  |  | 3 |  |  |  | 4 |  |  |  | 8 |  |  |  | 15 |
Exchange rate gain (loss) |  |  | (26 | ) |  |  | (7 | ) |  |  | — |  |  |  | — |
Settlements |  |  | — |  |  |  | (13 | ) |  |  | — |  |  |  | — |
Fair value of plan assets at end of year |  | $ | 381 |  |  | $ | 571 |  |  | $ | — |  |  | $ | — |
Funded status |  | $ | (1 | ) |  | $ | (23 | ) |  | $ | (50 | ) |  | $ | (34 | )
Accumulated benefit obligation at end of year |  | $ | 381 |  |  | $ | 592 |  |  |  |  |  |  |
Liabilities associated with the funded status of the defined benefit pension plans are included in the balances of accrued liabilities and other liabilities in the Consolidated Balance Sheet. 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:
|  | Year Ended December 31,
|  | 2022 |  | 2021
Discount rate: |  |  |  |
United States plan |  | 4.74% - 5.20% |  | 1.80% - 2.20%
International plans |  | 3.30% - 4.80% |  | 1.00% - 1.90%
Salary increase: |  |  |  |
United States plan |  | N/A |  | N/A
International plans |  | 2.50% - 3.75% |  | 2.50% - 3.40%
The assumption rates used for net periodic benefit costs are as follows:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Discount rate: |  |  |  |  |  |
United States plan |  | 1.80% - 2.20% |  | 1.20% - 2.40% |  | 2.50% - 3.20%
International plans |  | 1.00% - 1.90% |  | 0.70% - 1.80% |  | 0.00% - 2.30%
Salary increase: |  |  |  |  |  |
United States plan |  | N/A |  | N/A |  | N/A
International plans |  | 2.50% - 3.40% |  | 1.75% - 2.90% |  | 1.80% - 3.10%
Expected return on assets: |  |  |  |  |  |
United States plan |  | 1.84% |  | 3.90% |  | 4.80%
International plans |  | 1.00% - 4.00% |  | 0.80% - 3.40% |  | 0.00% - 4.50%
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 pension plans of approximately $11 million for each of the next five years and aggregate payments of $114 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, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 8 |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |
Bonds |  |  | 372 |  |  |  | — |  |  |  | 372 |  |  |  | — |
Other (insurance contracts) |  |  | 191 |  |  |  | — |  |  |  | 132 |  |  |  | 59 |
Total Fair Value Measurements |  | $ | 571 |  |  | $ | — |  |  | $ | 512 |  |  | $ | 59 |
December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 4 |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |
Bonds |  |  | 79 |  |  |  | — |  |  |  | 79 |  |  |  | — |
Other (insurance contracts) |  |  | 298 |  |  |  | — |  |  |  | 260 |  |  |  | 38 |
Total Fair Value Measurements |  | $ | 381 |  |  | $ | — |  |  | $ | 343 |  |  | $ | 38 |
Level 3 inputs are unobservable (i.e., supported by little or no market activity). Level 3 inputs include management’s own judgement about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). 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 December 31, 2020 |  | $ | 66 |
Actual return on plan assets still held at reporting date |  |  | (2 | )
Purchases, sales and settlements |  |  | (1 | )
Currency translation adjustments |  |  | (4 | )
Balance at December 31, 2021 |  | $ | 59 |
Actual return on plan assets still held at reporting date |  |  | (16 | )
Purchases, sales and settlements |  |  | (1 | )
Currency translation adjustments |  |  | (4 | )
Balance at December 31, 2022 |  | $ | 38 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI https://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration