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Business Segments
 9 Months Ended
Sep. 30, 2012
Business Segments

6. Business Segments

Operating results by segment are as follows (in millions):

 

     Three Months  Ended
September 30,		     Nine Months Ended
September 30,		  
     2012     2011     2012     2011  

Revenue:

         

Rig Technology

    $ 2,547      $ 1,970      $ 7,211      $ 5,472   

Petroleum Services & Supplies

      1,717        1,460        5,197        4,084   

Distribution & Transmission

      1,315        480        2,659        1,313   

Eliminations

      (260 )      (170 )      (711 )      (470 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Revenue

    $ 5,319      $ 3,740      $ 14,356      $ 10,399   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Profit:

         

Rig Technology

    $ 598      $ 523      $ 1,699      $ 1,456   

Petroleum Services & Supplies

      383        298        1,161        777   

Distribution & Transmission

      42        37        131        90   

Unallocated expenses and eliminations

      (125 )      (86 )      (337 )      (234 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Operating Profit

    $ 898      $ 772      $ 2,654      $ 2,089   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Profit %:

         

Rig Technology

      23.5 %      26.5 %      23.6 %      26.6 % 

Petroleum Services & Supplies

      22.3 %      20.4 %      22.3 %      19.0 % 

Distribution & Transmission

      3.2 %      7.7 %      4.9 %      6.9 % 

Total Operating Profit %

      16.9 %      20.6 %      18.5 %      20.1 % 

Included in operating profit are other costs related to acquisitions, such as the amortization of backlog and inventory that was stepped up to fair value during purchase accounting. Other costs by segment are as follows (in millions):

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2012      2011      2012      2011  

Other costs:

            

Rig Technology

    $ 12       $ 5       $ 33       $ 11   

Petroleum Services & Supplies

      —           1         3         17   

Distribution & Transmission

      36         —           44         1   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total other costs

    $ 48       $ 6       $ 80       $ 29   
  

 

 

     

 

 

     

 

 

     

 

 

  

The Company had revenues of 9% and 10% of total revenue from one of its customers for the three and nine months ended September 30, 2012, respectively, and revenues of 13% and 12% of total revenue from one of its customers for the three and nine months ended September 30, 2011. 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.