CAM Cameron International Corp.

Cameron

Consolidated Condensed Balance Sheets

($ millions)

December 31, 2015

December 31, 2014

(unaudited)

ASSETS

Cash and cash equivalents

$

1,775

$

1,513

Short-term investments

584

113

Receivables, net

1,964

2,389

Inventories, net

2,360

2,929

Other current assets

333

391

Assets held for sale

102

217

Total current assets

7,118

7,552

Plant and equipment, net

1,717

1,964

Goodwill

1,764

2,461

Intangibles, net

582

728

Other assets

319

187

Total assets

$

11,500

$

12,892

LIABILITIES AND STOCKHOLDERS' EQUITY

Short-term debt

$

284

$

263

Accounts payable and accrued liabilities

2,793

3,748

Accrued income taxes

127

168

Liabilities held for sale

2

90

Total current liabilities

3,206

4,269

Long-term debt

2,542

2,819

Deferred income taxes

212

193

Other long-term liabilities

150

167

Total liabilities

6,110

7,448

Stockholders' equity:

Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at December 31, 2015 and 2014

3

3

Capital in excess of par value

3,265

3,255

Retained earnings

6,132

5,631

Accumulated other elements of comprehensive income (loss)

(877)

(540)

Less: Treasury stock at cost, 71,931,558 shares at December 31, 2015 and 68,139,027 shares at December 31, 2014

(3,969)

(3,794)

   Total Cameron stockholders' equity

4,554

4,555

Noncontrolling interests

836

889

   Total equity

5,390

5,444

   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

11,500

$

12,892

Cameron

Unaudited Consolidated Condensed Statements of Cash Flows

($ millions)

Three months ended December 31,

Twelve months ended December 31,

2015

2014

2015

2014

Cash flows from operating activities:

Net income

$

149

$

262

$

568

$

848

Adjustments to reconcile net income to net cash provided by operating activities:

   Asset impairment and other charges

68

—

654

44

   Pre-tax gain on sale of compression businesses

—

—

(681)

(95)

   Depreciation

67

78

293

296

   Amortization

11

15

49

64

   Non-cash stock compensation expense

14

11

49

54

   Gain from remeasurement of prior interest in equity method investment

—

—

—

(8)

   Deferred income taxes and tax benefit of stock compensation plan transactions

17

(8)

(50)

(48)

Changes in assets and liabilities, net of translation, and non-cash items:

   Receivables

145

124

390

166

   Inventories

256

139

362

(144)

   Accounts payable and accrued liabilities

(43)

274

(913)

(17)

   Other assets and liabilities, net

(187)

43

(13)

33

   Net cash provided by operating activities

497

938

708

1,193

Cash flows from investing activities:

Proceeds from sales and maturities of short-term investments

249

24

923

65

Purchases of short-term investments

(512)

(22)

(1,394)

(137)

Capital expenditures

(95)

(126)

(285)

(385)

Net proceeds received from sale of compression businesses, net

—

—

831

547

Other dispositions (acquisitions), net

—

—

—

(7)

Proceeds from sales of plant and equipment

3

2

14

13

Net cash provided by (used for) investing activities

(355)

(122)

89

96

Cash flows from financing activities:

Issuance of senior debt

—

—

—

500

Debt issuance costs

—

—

—

(4)

Early retirement of senior notes

—

—

—

(253)

Short-term loan borrowings (repayments), net

(2)

(138)

(222)

(34)

Purchase of treasury stock

—

(191)

(240)

(1,747)

Contributions from (distributions to) noncontrolling interest owners

—

(2)

(3)

(42)

Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions

15

1

20

40

Excess tax benefits from stock compensation plan transactions

1

—

2

6

Principal payments on capital leases

(3)

(5)

(18)

(20)

Net cash used for financing activities

11

(335)

(461)

(1,554)

Effect of translation on cash

(5)

(26)

(74)

(35)

Increase (decrease) in cash and cash equivalents

148

455

262

(300)

Cash and cash equivalents, beginning of year

1,627

1,053

1,513

1,813

Cash and cash equivalents, end of year

$

1,775

$

1,513

$

1,775

$

1,513

Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions, except per share amounts)

Three Months Ended December 31, 2015

After Tax

Diluted EPS⁽¹⁾

Net income attributable to Cameron from continuing operations

$

125

$

0.65

Adjustments:

Asset charges & loss on disposal of assets

50

Facility closures & severance

32

All other

1

   Net income attributable to Cameron, excluding charges

$

208

$

1.08

⁽¹⁾ Based on 193 million diluted shares

Three Months Ended December 31, 2014

After Tax

Diluted EPS⁽¹⁾

Net income attributable to Cameron from continuing operations

$

258

$

1.30

Adjustments:

Asset charges & loss on disposal of assets

1

Facilities closures and severance

3

All other

4

   Net income attributable to Cameron, excluding charges

$

266

$

1.34

⁽¹⁾ Based on 198 million diluted shares

Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions, except per share amounts)

Twelve months ended December 31, 2015

After Tax

Diluted EPS⁽¹⁾

Net income attributable to Cameron from continuing operations

$

70

$

0.36

Adjustments:

Asset charges and loss on disposal of assets

616

Facility closures and severance

63

All other

23

   Net income attributable to Cameron, excluding charges

$

772

$

4.00

⁽¹⁾ Based on 193 million diluted shares

Twelve months ended December 31, 2014

After Tax

Diluted EPS⁽¹⁾

Net income attributable to Cameron from continuing operations

$

785

$

3.83

Adjustments:

Asset charges and loss on disposal of assets

52

Facility closures, severance, and restructuring

10

All other

2

   Net income attributable to Cameron, excluding charges

$

849

$

4.14

⁽¹⁾ Based on 205 million diluted shares