NOV(NOV) - 2020 Q4 - Annual Report

Financial Performance - The backlog for Completion & Production Solutions as of December 31, 2020, was $0.7 billion, down from $1.3 billion in 2019 and $0.9 billion in 2018[51] - The backlog for Rig Technologies as of December 31, 2020, was $2.7 billion, compared to $3.0 billion in 2019 and $3.1 billion in 2018[51] - The company reported foreign currency losses of $2 million, $36 million, and $52 million for the years ended December 31, 2020, 2019, and 2018, respectively[215] - The company estimates that a hypothetical 10% movement in foreign currency exchange rates could affect net income by $40 million and Other Comprehensive Income by $29 million[215] Workforce and Diversity - The company has a global workforce of 27,631 employees, with 35% based in the United States and 25% in Europe[52] - The company maintains a diverse workforce, with women making up 16% of all employees and 20% of the C-Suite[59] Safety and Operational Programs - The company has implemented various safety programs, including Stop Work Authority and Life Saving Rules, to enhance workplace safety[55] Material Costs - The company has experienced rising prices for specialty alloy materials, driven primarily by increases in the price of alloying agents[50] Borrowings and Financial Strategy - As of December 31, 2020, long-term borrowings totaled $1,764 million, consisting of $1,089 million in 3.95% Senior Notes, $493 million in 3.60% Senior Notes, and $182 million in 2.60% Senior Notes[216] - The company has no commercial paper borrowings and no borrowings against its revolving credit facility[216] - The credit facility may involve borrowings in multiple currencies, exposing the company to market risk from exchange rate movements[216] - Interest rates on borrowings under the credit facility are based on a spread over LIBOR, NIBOR, or CDOR, or at the U.S. prime rate[216] - The company can fix the interest rate for certain borrowings for periods ranging from 30 days to six months[216] - The company aims to maintain a portion of its debt in variable rate borrowings for flexibility in early repayment without penalties[216] - Variable rate borrowings are expected to lower overall costs compared to fixed-rate borrowings[216] Spending Trends - The company has seen a pronounced level of spending during the fourth quarter, which it attributes to annual budgetary cycles[45]