XML 81 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Business Segments and Geographic Areas
 12 Months Ended
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