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Business Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2013
Segment Reporting [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; wireline trucks; cranes; flexible pipe for offshore production applications; 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 drill pipe, tubing, casing, 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, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, 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 pipe, maintenance, repair and operating supplies and spare parts to drill sites and production locations, pipeline operations, and processing plants worldwide. In addition to its comprehensive field location network, which supports land drilling operations throughout North America, the segment supports major land and offshore operations for all the major oil and gas producing regions throughout the world. The segment employs advanced information technologies to provide complete procurement, materials management and logistics services to its customers around the globe. The segment also has a global reach in oil and gas, waste water treatment, chemical, food and beverage, paper and pulp, mining, agriculture, and a variety of municipal markets and is a leading producer of water transmission pipe, fabricated steel products and 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 9%, 10% and 12% of total revenue from one of its customers for the years ended December 31, 2013, 2012, and 2011, 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,  
     2013      2012      2011  

United States

    $ 8,003       $ 8,297       $ 5,449   

South Korea

      3,219         3,121         2,257   

Canada

      1,398         1,319         913   

Singapore

      1,850         1,118         721   

Norway

      1,102         736         689   

China

      1,007         533         430   

Brazil

      811         503         397   

United Kingdom

      705         523         465   

Other Countries

      4,774         3,891         3,337   
  

 

 

     

 

 

     

 

 

  

Total

    $ 22,869       $ 20,041       $ 14,658   
  

 

 

     

 

 

     

 

 

  

The following table presents long-lived assets by country based on the location (in millions):

 

     December 31,  
     2013      2012  

United States

    $ 1,830       $ 1,606   

Brazil

      270         162   

United Kingdom

      200         173   

Denmark

      166         174   

Canada

      123         131   

South Korea

      115         112   

Mexico

      101         87   

Singapore

      94         93   

Other Countries

      509         407   
  

 

 

     

 

 

  

Total

    $ 3,408       $ 2,945   
  

 

 

     

 

 

  

 

Business Segments:

 

     Rig
Technology		      Petroleum
Services &
Supplies		      Distribution &
Transmission		      Unallocated/
Eliminations		     Total  

December 31, 2013:

              

Revenues

    $ 11,716       $ 7,184       $ 5,117       $ (1,148 )    $ 22,869   

Operating profit

      2,522         1,212         247         (558 )      3,423   

Capital expenditures

      224         270         84         91        669   

Depreciation and amortization

      178         486         54         37        755   

Goodwill

      2,643         5,683         723         —          9,049   

Total assets

      12,797         15,253         3,311         3,451        34,812   

December 31, 2012:

              

Revenues

    $ 10,107       $ 6,967       $ 3,927       $ (960 )    $ 20,041   

Operating profit

      2,335         1,501         185         (464 )      3,557   

Capital expenditures

      150         310         64         59        583   

Depreciation and amortization

      148         424         25         31        628   

Goodwill

      2,386         4,333         453         —          7,172   

Total assets

      11,758         13,463         2,784         3,479        31,484   

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