Business Context and Reporting Period
Company: Weatherford International Plc
Filing Type: Form 8-K (Current Report)
Date of Report: January 29, 2018
Reporting Period: The filing addresses organizational changes implemented in the fourth quarter of 2017, effective for the fourth quarter 2017 results and the Annual Report on Form 10-K for the year ended December 31, 2017.
Key Financial Metrics
This filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on a change in the methodology for reporting segment financial performance.
Material Changes Versus Prior Period
- Segment Restructuring: The Company revised its reportable segments from multiple regional segments to two primary segments:
- Western Hemisphere: Combines prior North America and Latin America segments, plus land drilling rigs operations in Colombia and Mexico.
- Eastern Hemisphere: Combines prior MENA/Asia Pacific and Europe/SSA/Russia segments, plus land drilling rigs operations in the Eastern Hemisphere.
- Profitability Measure: Segment operating income is now the measure of segment profitability. Research and development expenses are included within these segment operating incomes.
- Recasting: Prior period financial results have been recast to conform to this new segment presentation.
- Corporate Expenses: Expenses not meeting segment criteria continue to be reported separately as Corporate expenses.
Guidance, Outlook, and Management Commentary
Management Rationale: The restructuring was announced at the end of the third quarter of 2017 and implemented in the fourth quarter to flatten the organizational structure, reduce costs, and accelerate decision-making processes.
Exhibit Reference: Detailed recasted quarterly segment financial results are provided in Exhibit 99.1 (Weatherford Reporting Segments Presentation).
Important Facts for Investor Verification
- Verify the specific financial impact of the segment recasting by reviewing Exhibit 99.1 attached to this filing.
- Confirm that future quarterly and annual reports will utilize the new two-segment structure (Western and Eastern Hemisphere).
- Note that this 8-K filing is for Regulation FD disclosure purposes and the information is not deemed "filed" under Section 18 of the Exchange Act.