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Business Segments and Geographic Areas | 12 Months Ended
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Dec. 31, 2011
Business Segments and Geographic Areas [Abstract] |
Business Segments and Geographic Areas | 15. Business Segments and Geographic Areas The Company’s operations consist of three reportable segments: Rig Technology, Petroleum Services & Supplies and Distribution & Transmission. Within the three reporting segments, the Company has aggregated two business units under Rig Technology, nine business units under Petroleum Services & Supplies and two under Distribution & Transmission for a total of 13 business units, one of which was added during 2011 as a result of the Company’s acquisition of Ameron. Prior to the Company’s acquisition of Ameron in October 2011, the Company’s Distribution & Transmission segment was called Distribution Services with one business unit. Distribution Services was expanded as a result of certain business operations of the Ameron acquisition adding an additional business unit to the segment called Transmission and changing the name of the segment to Distribution & Transmission. The Company has aggregated each of its business units in one of the three reporting segments based on the guidelines of ASC Topic 280, “Segment Reporting” (“ASC Topic 280”). Rig Technology: The Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. The segment offers a comprehensive line of highly-engineered equipment that automates complex well construction and management operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; cranes; and turret mooring systems and other products for Floating Production, Storage and Offloading vessels and other offshore vessels and terminals. Petroleum Services & Supplies: The Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service flowlines and other oilfield tubular goods. The segment manufactures, rents and sells a variety of products and equipment used to perform drilling operations, including drill pipe, transfer pumps, solids control systems, drilling motors, drill bits, reamers and other downhole tools, and mud pump consumables. Oilfield tubular services include the provision of inspection and internal coating services and equipment for drill pipe, line pipe, tubing, casing and pipelines; and the design, manufacture and sale of coiled tubing pipe and advanced fiberglass composite pipe for application in highly corrosive environments. Distribution & Transmission: The Distribution & Transmission segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations worldwide. In addition to its comprehensive network of field locations supporting land drilling operations throughout North America. The segment also supports major offshore drilling contractors through locations in Mexico, the Middle East, Europe, Southeast Asia and South America. Distribution & Transmission employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe. Demand for the segment’s services is determined primarily by the level of drilling, servicing, and oil and gas production activities. Additionally, the Distribution & Transmission segment has global reach in oil and gas, waste water treatment, chemical, food and beverage, paper and pulp, mining, agriculture, and a variety of municipal markets as well as being a leading producers of water transmission lines and fabricated steel products, such as wind towers, specialized materials and products used in infrastructure projects. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies of the Company. The Company evaluates performance of each reportable segment based upon its operating income, excluding non-recurring items. The Company had revenues of 12% and 17% of total revenue from one of its customers for the years ended December 31, 2011 and 2010, respectively. This customer, Samsung Heavy Industries, is a shipyard acting as a general contractor for its customers, who are drillship owners and drilling contractors. This shipyard’s customers have specified that the Company’s drilling equipment be installed on their drillships and have required the shipyard to issue contracts to the Company. Geographic Areas: The following table presents consolidated revenues by country based on sales destination of the use of the products or services (in millions):
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
United States |  | $ | 5,449 |  |  | $ | 4,104 |  |  | $ | 3,444 |
South Korea |  |  | 2,257 |  |  |  | 2,616 |  |  |  | 2,830 |
Canada |  |  | 913 |  |  |  | 656 |  |  |  | 550 |
Singapore |  |  | 721 |  |  |  | 491 |  |  |  | 801 |
Norway |  |  | 689 |  |  |  | 495 |  |  |  | 629 |
United Kingdom |  |  | 465 |  |  |  | 421 |  |  |  | 578 |
Other Countries |  |  | 4,164 |  |  |  | 3,373 |  |  |  | 3,880 |
Total |  | $ | 14,658 |  |  | $ | 12,156 |  |  | $ | 12,712 |
The following table presents long-lived assets by country based on the location (in millions):
|  | December 31, |
|  | 2011 |  |  | 2010 |
United States |  | $ | 1,493 |  |  | $ | 1,045 |
United Kingdom |  |  | 131 |  |  |  | 116 |
Canada |  |  | 113 |  |  |  | 118 |
South Korea |  |  | 97 |  |  |  | 90 |
Brazil |  |  | 92 |  |  |  | 32 |
Singapore |  |  | 86 |  |  |  | 75 |
Norway |  |  | 40 |  |  |  | 40 |
Other Countries |  |  | 393 |  |  |  | 324 |
Total |  | $ | 2,445 |  |  | $ | 1,840 |
Business Segments:
|  | Rig Technology |  |  | Petroleum Services & Supplies |  |  | Distribution & Transmission |  |  | Unallocated/ Eliminations |  |  | Total |
December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 7,788 |  |  | $ | 5,654 |  |  | $ | 1,873 |  |  | $ | (657 | ) |  | $ | 14,658 |
Operating profit |  |  | 2,053 |  |  |  | 1,072 |  |  |  | 135 |  |  |  | (323 | ) |  |  | 2,937 |
Capital expenditures |  |  | 125 |  |  |  | 299 |  |  |  | 17 |  |  |  | 42 |  |  |  | 483 |
Depreciation and amortization |  |  | 120 |  |  |  | 397 |  |  |  | 14 |  |  |  | 24 |  |  |  | 555 |
Goodwill |  |  | 1,959 |  |  |  | 4,089 |  |  |  | 103 |  |  |  | — |  |  |  | 6,151 |
Total assets |  |  | 8,375 |  |  |  | 13,019 |  |  |  | 1,420 |  |  |  | 2,701 |  |  |  | 25,515 |
December 31, 2010: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 6,965 |  |  | $ | 4,182 |  |  | $ | 1,546 |  |  | $ | (537 | ) |  | $ | 12,156 |
Operating profit |  |  | 2,064 |  |  |  | 585 |  |  |  | 78 |  |  |  | (280 | ) |  |  | 2,447 |
Capital expenditures |  |  | 59 |  |  |  | 152 |  |  |  | 2 |  |  |  | 19 |  |  |  | 232 |
Depreciation and amortization |  |  | 95 |  |  |  | 384 |  |  |  | 7 |  |  |  | 21 |  |  |  | 507 |
Goodwill |  |  | 1,854 |  |  |  | 3,859 |  |  |  | 77 |  |  |  | — |  |  |  | 5,790 |
Total assets |  |  | 7,778 |  |  |  | 11,807 |  |  |  | 923 |  |  |  | 2,542 |  |  |  | 23,050 |
December 31, 2009 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 8,093 |  |  | $ | 3,745 |  |  | $ | 1,350 |  |  | $ | (476 | ) |  | $ | 12,712 |
Operating profit |  |  | 2,283 |  |  |  | 301 |  |  |  | 50 |  |  |  | (319 | ) |  |  | 2,315 |
Capital expenditures |  |  | 61 |  |  |  | 161 |  |  |  | 3 |  |  |  | 25 |  |  |  | 250 |
Depreciation and amortization |  |  | 90 |  |  |  | 374 |  |  |  | 8 |  |  |  | 18 |  |  |  | 490 |
Goodwill |  |  | 1,567 |  |  |  | 3,855 |  |  |  | 67 |  |  |  | — |  |  |  | 5,489 |
Total assets |  |  | 7,203 |  |  |  | 11,601 |  |  |  | 781 |  |  |  | 1,947 |  |  |  | 21,532 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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