Edgar Filing: NATIONAL OILWELL VARCO INC

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

11-K

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

(Mark One)

x	Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934

(No fee required, effective October 7, 1996)

For the fiscal year ended December 31, 2014

¨	Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934

(No fee required)

For the transition period from to

Commission file number 1-12317

A.	Full title of the plan and the address of the plan, if different from that of the issuer named below

National Oilwell Varco, Inc.

401(k) and Retirement Savings Plan

B.	Name of issuer of the securities held pursuant to the plan and the address of its principal executive office

National Oilwell Varco, Inc.

7909 Parkwood Circle Dr.

Houston, Texas 77036

REQUIRED INFORMATION

The National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan (the Plan) is subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA).

Item 4. In lieu of the requirements of Items 1, 2, and 3 of this Form 11-K, the following financial statements of the Plan, notes thereto, and the Report of Independent Registered Public Accounting Firm thereon are being filed in this Report:

(a)

Report of Independent Registered Public Accounting Firm

(b)

Statements of Net Assets Available for Benefits – December 31, 2014 and 2013

(c)

Statement of Changes in Net Assets Available for Benefits – Year ended December 31, 2014; and

(d)

Notes to Financial Statements

The Consent of Independent Registered Public Accounting Firm to the incorporation by reference of the foregoing financial statements in the Registration Statement on Form S-8 (No. 333-46459) pertaining to the Plan is being filed as Exhibit 23.1 to this Report.

FINANCIAL STATEMENTS AND

SUPPLEMENTAL SCHEDULE

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

December 31, 2014 and 2013, and Year Ended December 31, 2014

With Report of Independent Registered Public Accounting Firm

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Financial Statements and Supplemental Schedule

December 31, 2014 and 2013, and Year Ended December 31, 2014

Contents


Report of Independent Registered Public Accounting Firm			1

Financial Statements

Statements of Net Assets Available for Benefits			2
Statement of Changes in Net Assets Available for Benefits			3
Notes to Financial Statements			4

Supplemental Schedule

Schedule H, Line 4(i) – Schedule of Assets (Held At End of Year)			17

Report of Independent Registered Public Accounting Firm

The Benefits Plan Administrative Committee

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

We have audited the accompanying statements of net assets available for benefits of the National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan at December 31, 2014 and 2013, and the changes in its net assets available for benefits for the year ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.

The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan’s financial statements. The information in the supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

Houston, Texas

June 26, 2015

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Statements of Net Assets Available for Benefits


	December 31,
	2014			2013
Assets
Cash	$	3,206,817		$	28,553
Receivables:
Investment income		1,290			1,974
Pending trades		286,717			—
Notes receivable from participants		62,073,829			55,970,370

Total receivables		62,361,836			55,972,344
Investments, at fair value		1,578,641,847			1,518,116,857

Total assets		1,644,210,500			1,574,117,754
Liabilities
Administrative fees payable		223,845			222,677

Total liabilities		223,845			222,677

Net assets reflecting investments at fair value		1,643,986,655			1,573,895,077
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		(6,010,127	)		(4,410,741	)

Net assets available for benefits	$	1,637,976,528		$	1,569,484,336

See accompanying notes.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2014


Additions:
Employer contributions	$	98,047,747
Participant contributions		99,201,106
Participant rollovers		8,154,177
Investment income		28,755,287
Interest income on notes receivable from participants		2,503,173
Net appreciation in fair value of investments		38,941,597

Total additions		275,603,087
Deductions:
Benefits paid to participants		137,813,122
Corrective distributions		8,234
Administrative expenses		1,749,497

Total deductions		139,570,853
Net increase before transfers		136,032,234
Other changes in net assets:
Transfers from qualified plans		137,844,507
Transfers to qualified plans		(205,384,549	)

Total other changes in net assets		(67,540,042	)

Net increase		68,492,192
Net assets available for benefits at:
Beginning of year		1,569,484,336

End of year	$	1,637,976,528

See accompanying notes.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements

December 31, 2014

1. Description of Plan

The following description of the National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan (the Plan) is provided for general information only. Participants should refer to the Summary Plan Description for a more complete description of the Plan’s provisions, a copy of which is available from National Oilwell Varco, L.P. is a wholly owned subsidiary of National Oilwell Varco, Inc., collectively referred to as “the Company.”

General

The Plan was established effective April 1, 1987, for the benefit of the employees of the Company. The Plan is a defined contribution plan covering substantially all domestic employees who have completed one hour of service. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Plan Mergers or Spin-off

On May 30, 2014, the Company completed the spin-off of its distribution business into an independent public company named NOW Inc. As a result of the spin-off, participants invested in the Plan as of May 30, 2014, received one share of NOW Inc. stock for every four shares of Company stock held in the Plan. These new shares were transferred to a new NOW Inc. Stock Fund.

The following plans transferred net assets into or (out of) the Plan as follows:


Plan Name	Effective Date of Merger (Spin-off)	Date of Asset Transfer	Amount of Net Assets Transferred
Robbins & Myers, Inc. Retirement Savings Plan	December 31, 2013	January 2, 2014	$	112,485,798
Robbins & Myers, Inc. 401(k) Savings & Retirement Plan for T-3 Energy Employees	December 31, 2013	January 2, 2014		25,358,709
NOW Inc. 401(k) and Retirement and Savings Plan	May 30, 2014	August 1, 2014		(205,384,549	)

			$	(67,540,042	)

Contributions

Participants may make both pretax and after-tax contributions to the Plan. The Plan allows pretax salary deferral contributions of 1% to 100% (less any after-tax contributions, required withholdings, or other elected deductions) of compensation, subject to certain Internal Revenue Service (IRS) limitations. The Plan allows participants to designate their salary deferral contributions as Roth contributions. After-tax contributions may be made at 1% to 18% of eligible compensation. However, combined pretax and after-tax contributions, required withholdings, and other elected deductions cannot exceed 100% of compensation. The Plan provides for the automatic enrollment and payroll deduction of 4% of a new eligible employee’s compensation as soon as practical following 60 days after employment.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

1. Description of Plan (continued)

The Company matches 100% of the first 4% of each participant’s contribution. The Company may also make a discretionary contribution (the Employer Retirement Contribution) to the Plan. The amount of the Employer Retirement Contribution is determined based upon participants’ eligible salary and years of service. Participants age 50 and older may contribute additional pretax catch-up contributions, subject to IRS limitations. For the year ended December 31, 2014, the Company contributed $46,526,600 of Employer Retirement Contributions. Participants must have completed one year of service in order to receive Company matching and Employer Retirement Contributions.

Each participant may direct the trustee to invest both the participant’s and the Company’s contributions in one or more of the investment options offered by the Plan.

Vesting

Participants are immediately 100% vested in their participant and employer contributions and the related earnings that have been credited to their accounts.

Benefit Payments

The Plan pays lump-sum benefits upon retirement, disability, death, or termination of employment. In-service withdrawals, subject to certain rules and restrictions, may also be made from certain account balances.

Participant Loans

The Plan includes a loan provision that permits participants to borrow a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of the total value of their Plan assets. The loans are payable in principal installments, plus interest, at prime plus one percent through payroll deductions and are due in one- to five-year terms, unless the loan is used to acquire a principal residence, in which case the loan term cannot exceed ten years. Repayments are made ratably through payroll deductions.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

1. Description of Plan (continued)

Participant loans are recorded on the financial statements as notes receivable from participants at their unpaid principal balance plus any accrued but unpaid interest. Interest income on notes receivable from participants is recorded when it is earned. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2014 or 2013. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be a distribution, the participant loan balance is reduced and a benefit payment is recorded.

Administrative Expenses

Certain administrative expenses are paid from the Plan’s assets. All other Plan expenses are paid by the Company.

Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. Participants are 100% vested in their accounts in any event. Assets would be distributed to participants as prescribed by ERISA.

2. Summary of Accounting Policies

Basis of Accounting

The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting. Benefit payments to participants are recorded upon distribution.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements, accompanying notes, and supplemental schedule. Actual results could differ from those estimates.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

2. Summary of Accounting Policies (continued)

Investment Valuation and Income Recognition

Wells Fargo, N.A. serves as the Plan’s trustee and holds all investments of the Plan. Investments held by the Plan are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). See Note 4 for further discussion of fair value measurements.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the record date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Risks and Uncertainties

The Plan provides for investments in various investment securities that, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits and participant account balances.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

3. Investments

Individual investments that represent 5% or more of the Plan’s net assets available for benefits are as follows:


	December 31,
	2014		2013
PIMCO Total Return Instl Fund	$	189,403,697	$	177,609,425
American Funds Growth Fund of America R5		163,297,628		153,707,669
Vanguard Mid Cap Index Ins Fund		158,754,596		133,806,115
Invesco Van Kampen Growth & Income Fund		142,326,789		124,310,727
National Oilwell Varco, Inc. Company Stock		138,968,095		164,308,503
Harris Assoc. Oakmark International Collective Fund		136,321,386		—
Wells Fargo Fixed Income Fund F		110,830,099		109,113,978
Vanguard Institutional Index Fund		100,664,258		86,477,846
Oakmark International I Fund		—		139,216,402

During 2014, the Plan’s investments (including investments purchased, sold, and held during the year) appreciated (depreciated) in fair value as follows:


Common stocks	$	(9,649,735	)
Mutual funds		48,591,332

Net appreciation	$	38,941,597

4. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 – Unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets and liabilities.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

4. Fair Value Measurements (continued)

Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

•

quoted prices for similar assets and liabilities in active markets;

•

quoted prices for identical or similar assets or liabilities in markets that are not active;

•

observable inputs other than quoted prices that are used in the valuation of the asset or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals);

•

inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs for the asset or liability (i.e., supported by little or no market activity). Level 3 inputs include management’s own assumption about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).

The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.

Following is a description of the valuation techniques and inputs used for each major class of assets measured at fair value by the Plan:

Common stocks: Valued at the closing price reported on the active market on which the individual securities are traded.

Mutual funds: Valued at the net asset value (NAV) of shares held by the Plan at year-end.

Common collective trust funds: Valued at the NAV of shares held by the Plan at year-end. The NAV is based on the fair value of the underlying investments held by the fund.

Wrapper contracts: Valued at the present value of the difference between fees being paid for the wrappers and future fees that would be paid for a similar market-based wrapper.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

4. Fair Value Measurements (continued)

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following tables set forth, by level within the fair value hierarchy, the Plan’s assets carried at fair value:


	Assets at Fair Value as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Corporate stock:
National Oilwell Varco, Inc.	$	138,968,095	$	—	$	—	$	138,968,095
NOW Inc.		10,308,236		—		—		10,308,236
Common collective trust funds:
Fixed income funds		—		278,980,088		—		278,980,088
Foreign large blend funds		—		136,321,386		—		136,321,386
Short-term investment funds		—		42,347,297		—		42,347,297
Mutual funds:
Large growth		163,297,628		—		—		163,297,628
Large blend		100,664,258		—		—		100,664,258
Large value		142,326,789		—		—		142,326,789
Mid-cap blend		158,754,596		—		—		158,754,596
Global real estate		25,139,778		—		—		25,139,778
Small growth		52,435,747		—		—		52,435,747
Small value		54,198,953		—		—		54,198,953
Inflation-protected bond		29,393,773		—		—		29,393,773
Intermediate-term bond		189,403,697		—		—		189,403,697
Foreign large blend		54,333,781		—		—		190,655,167
Wrapper contracts		—		—		101,595		101,595
Self-directed brokerage accounts:
Common stocks		976,670		—		—		976,670
Mutual funds		257,794		—		—		257,794
Short-term investment funds		431,686		—		—		431,686

Total assets at fair value	$	1,120,891,481	$	457,648,771	$	101,595	$	1,578,641,847

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

4. Fair Value Measurements (continued)


	Assets at Fair Value as of December 31, 2013
	Level 1		Level 2		Level 3		Total
Corporate stock	$	164,308,503	$	—	$	—	$	164,308,503
Common collective trust funds:
Fixed income funds		—		271,253,429		—		271,253,429
Short-term investment funds		—		57,364,162		—		57,364,162
Mutual funds:
Large growth		153,707,669		—		—		153,707,669
Large blend		86,477,846		—		—		86,477,846
Large value		124,310,727		—		—		124,310,727
Mid-cap blend		133,806,115		—		—		133,806,115
Global real estate		19,726,671		—		—		19,726,671
Small growth		49,411,162		—		—		49,411,162
Small value		55,644,212		—		—		55,644,212
Inflation-protected bond		26,168,434		—		—		26,168,434
Intermediate-term bond		177,609,425		—		—		177,609,425
Foreign large blend		195,086,524		—		—		195,086,524
Wrapper contracts		—		—		98,943		98,943
Self-directed brokerage accounts:
Common stocks		2,062,383		—		—		2,062,383
Mutual funds		579,040		—		—		579,040
Short-term investment funds		501,612		—		—		501,612

Total assets at fair value	$	1,189,400,323	$	328,617,591	$	98,943	$	1,518,116,857

Level 3 Gains and Losses

The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 assets for the year ended December 31, 2014:


	Wrapper Contracts
Balance, beginning of year	$	98,943
Unrealized gains relating to instruments still held at the reporting date		2,652

Balance, end of year	$	101,595

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

5. Investment Contracts

The Plan offers an investment called the National Oilwell Varco Stable Value Fund, which is managed by Galliard Capital Management and is comprised of investments in fixed income security funds that are covered by synthetic guaranteed investment contracts (synthetic GICs), which are fully benefit-responsive investment contracts. Within this structure, the Plan owns both the fixed income security funds and the wrapper contracts.

In a synthetic GIC structure, the Plan makes investments in fixed income security funds. To reduce the risk of losses on these investments, the Plan purchases a wrapper contract from an insurance company or bank, which enables Plan participants to transact at a specified contract value by protecting the principal amount invested over a specific period of time.

Investment contracts held by a defined contribution plan are required to be reported at fair value; however, since these contracts are fully benefit-responsive, an adjustment is reflected in the statements of net assets available for benefits to present these investments at contract value. Contract value is the relevant measurement attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The contract value of the fully benefit-responsive investment contracts represents contributions plus earnings, less participant withdrawals and administrative expenses.

The Plan’s investments covered by the wrapper contracts earn interest at interest crediting rates that are typically reset on a monthly or quarterly basis. These interest crediting rates use a formula that is based on the characteristics of the underlying fixed income portfolio.

Factors that can influence the future average crediting rates are (i) the level of market interest rates; (ii) the amount and timing of participant contributions, transfers, and withdrawals into/out of the investment contract; (iii) the investment returns generated by the fixed income investments that underlie the investment contracts; or (iv) the duration of the investments underlying the investment contracts. The crediting rate formula amortizes the realized and unrealized market value gains and losses over the duration of the underlying investments. The resulting gains and losses in the fair value of the underlying investments relative to the contract value are represented in the statements of net assets available for benefits as the adjustment from fair value to contract value for fully benefit-responsive investment contracts.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

5. Investment Contracts (continued)

The average yield earned by the Plan for all fully benefit-responsive investment contracts for the years ended December 31, 2014 and 2013, was 1.46% and 1.50%, respectively. The average yield earned by the Plan for all fully benefit-responsive investment contracts, with an adjustment to reflect the actual interest rate credited to participants in the Plan, for the years ended December 31, 2014 and 2013, was 1.87% and 1.94%, respectively.

Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (i) amendments to the Plan documents (including complete or partial Plan termination or merger with another plan), (ii) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions, or (iii) bankruptcy of the Plan sponsor or other Plan sponsor events (e.g., divestitures or spin-offs of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA). The Plan administrator does not believe that the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

In some cases, an investment contract issuer may terminate a contract with the Plan and settle at amounts different from the contract value. Examples of these events include the Plan’s loss of its qualified status, material breaches of responsibilities that are not cured, or material and adverse changes to the provisions of the Plan. If one of these events were to occur, the investment contract issuer could terminate the contract at the market value of the underlying investments.

6. Related-Party Transactions

Certain investments of the Plan are managed by Wells Fargo Bank, N.A., the trustee of the Plan; therefore, these transactions qualify as party-in-interest transactions. Additionally, a portion of the Plan’s assets are invested in the Company’s common stock. Because the Company is the plan sponsor, transactions involving the Company’s common stock qualify as party-in-interest transactions. All of these transactions are exempt from the prohibited transactions rules under ERISA.

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

7. Income Tax Status

The Plan has received a determination letter from the IRS dated May 12, 2014, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (IRC) and; therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualified status. The plan sponsor believes the Plan is being operated in compliance with the applicable requirements of the IRC and; therefore, believes that the Plan is qualified and the related trust is tax-exempt.

U.S. generally accepted accounting principles require plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan and has concluded that, as of December 31, 2014, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2011.

8. Reconciliation of Financial Statements to Form 5500

Fully benefit-responsive investment contracts are valued at contract value on the statements of net assets available for benefits, whereas the Form 5500 requires all investments to be valued at fair value.

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:


	December 31,
	2014		2013
Net assets available for benefits per the financial statements	$	1,637,976,528	$	1,569,484,336
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		6,010,127		4,410,741

Net assets available for benefits per the Form 5500	$	1,643,986,655	$	1,573,895,077

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Notes to Financial Statements (continued)

8. Reconciliation of Financial Statements to Form 5500 (continued)

The following is a reconciliation of the net increase in net assets before transfers per the financial statements to the net income per the Form 5500:


	Year Ended December 31, 2014
Net increase in net assets before transfers per the financial statements	$	136,032,234
Adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2014		6,010,127
Adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2013		(4,410,741	)

Net income per the Form 5500	$	137,631,630

Supplemental Schedule

National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan

Plan No. 001 EIN 76-0488987

Schedule H, Line 4(i) – Schedule of Assets

(Held at End of Year)

December 31, 2014


Identity of Issue, Borrower, Lessor, or Similar Party	Description of Investment	Current Value
*National Oilwell Varco, Inc.	2,120,679 shares of common stock	$	138,968,095
*NOW Inc.	533,548 shares of common stock		10,308,236
Allianz Global Investors	Allianz NFJ Small Cap Value Fund		54,198,953
American Funds	Growth Fund of America R5		163,297,628
Van Kampen Funds	Invesco Van Kampen Growth & Income Fund		142,326,789
SEI Trust Company	Harris Assoc. Oakmark Int’l Collective Fund		136,321,386
PIMCO Funds	PIMCO Total Return Instl Fund		189,403,697
Vanguard	Vanguard FTSE All World Inv Fund		54,333,781
Vanguard	Vanguard Inflation Protected Secs Instl Fund		29,393,773
Vanguard	Vanguard Mid Cap Index Fund		158,754,596
Vanguard	Vanguard Small Cap Growth Index Fund		52,435,747
Vanguard	Vanguard Institutional Index Fund		100,664,258
E.I.I. Realty Securities, Inc.	E.I.I. Global Property Fund		25,139,778
*Wells Fargo Bank, N.A.	Fixed Income Fund A		34,546,430
*Wells Fargo Bank, N.A	Fixed Income Fund D		55,304,804
*Wells Fargo Bank, N.A	Fixed Income Fund L		78,298,755
Transamerica Premier Life Ins. Co.	Wrapper Contract #MDA00877TR, 3.22%		101,595
*Wells Fargo Bank, N.A	Fixed Income Fund F		110,830,099
*Wells Fargo Bank, N.A	Short Term Investment Fund S		42,347,297
Various	Self-directed brokerage accounts		1,666,150
*Participant loans	Various maturities and interest rates ranging from 3.25% to 10.5%		62,073,829

		$	1,640,715,676

*	Party in interest.

SIGNATURE

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX


Exhibit Number		Description
23.1		Consent of Independent Registered Public Accounting Firm

National Oilwell Varco, Inc. 401(k) and

Retirement Savings Plan

June 26, 2015

/s/ Scott K. Duff

Scott K. Duff

Member of the National Oilwell

Varco Benefits Plan Administrative Committee