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Business Segments
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Business Segments
6. Business Segments

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

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2012     2013     2012  

Revenue:

         

Rig Technology

    $ 2,945      $ 2,547      $ 8,406      $ 7,211   

Petroleum Services & Supplies

      1,809        1,717        5,259        5,197   

Distribution & Transmission

      1,342        1,315        3,864        2,659   

Eliminations

      (307 )      (260 )      (832 )      (711 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Revenue

    $ 5,789      $ 5,319      $ 16,697      $ 14,356   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Profit:

         

Rig Technology

    $ 706      $ 598      $ 1,830      $ 1,699   

Petroleum Services & Supplies

      321        383        849        1,161   

Distribution & Transmission

      74        42        195        131   

Unallocated expenses and eliminations

      (155 )      (125 )      (408 )      (337 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Operating Profit

    $ 946      $ 898      $ 2,466      $ 2,654   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Profit %:

         

Rig Technology

      24.0 %      23.5 %      21.8 %      23.6 % 

Petroleum Services & Supplies

      17.7 %      22.3 %      16.1 %      22.3 % 

Distribution & Transmission

      5.5 %      3.2 %      5.0 %      4.9 % 

Total Operating Profit %

      16.3 %      16.9 %      14.8 %      18.5 % 

Included in Rig Technology revenue and operating profit for the three and nine months ended September 30, 2013, are $102 million in net gains resulting from a legal settlement.

Included in operating profit are certain other costs related to acquisitions. These certain other costs include administration costs and 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,		  
     2013      2012      2013      2012  

Other costs:

            

Rig Technology

    $ 2       $ 12       $ 22       $ 33   

Petroleum Services & Supplies

      3         —           90         3   

Distribution & Transmission

      4         36         19         44   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total other costs

    $ 9       $ 48       $ 131       $ 80   
  

 

 

     

 

 

     

 

 

     

 

 

  

The Company had revenues of 9% and 10% of total revenue from one of its customers for each of the three and nine months ended September 30, 2013 and 2012, 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.