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Business Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segments and Geographic Areas

15. Business Segments and Geographic Areas

The Company’s operations are organized into four reportable segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. Within the four reporting segments, the Company has aggregated two business units under Rig Systems, one business unit under Rig Aftermarket, six business units under Wellbore Technologies and six business units under Completion & Production Solutions for a total of 15 business units. The Company has aggregated each of its business units in one of the four reporting segments based on the guidelines of ASC Topic 280, “Segment Reporting” (“ASC Topic 280”).

Rig Systems

The Company’s Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The segment designs, manufactures and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality.

Equipment and technologies in Rig Systems include: substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems, including drives and generators; and rig instrumentation and control systems.

Rig Systems supports land and offshore drillers. Demand for the segment’s products depends on drilling contractors’ and oil and gas companies’ capital spending plans, specifically capital expenditures on rig construction and refurbishment.

Rig Aftermarket

The Company’s Rig Aftermarket segment provides comprehensive aftermarket products and services to support land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment.

The segment provides spare parts, repair, and rentals as well as technical support, field service and first well support, field engineering, and customer training through a network of aftermarket service and repair facilities strategically located in major areas of drilling operations.

Rig Aftermarket supports land and offshore drillers. Demand for the segment’s products and services depends on overall levels of oilfield drilling activity, which drives demand for spare parts, service, and repair for Rig Systems’ large installed base of equipment; and secondarily on drilling contractors’ and oil and gas companies’ capital spending plans, specifically capital expenditures on rig refurbishment and re-certification.

Wellbore Technologies

The Company’s Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance, including: solids control and waste management equipment and services; drilling fluids; portable power generation; premium drill pipe; wired pipe; drilling optimization and automation services; tubular inspection, repair and coating services; rope access inspection; instrumentation; measuring and monitoring; downhole and fishing tools; steerable technologies; hole openers; and drill bits.

Wellbore Technologies focuses on oil and gas companies and supports drilling contractors, oilfield service companies, and oilfield equipment rental companies. Demand for the segment’s products and services depends on the level of oilfield drilling activity by oil and gas companies, drilling contractors, and oilfield service companies.

Completion & Production Solutions

The Company’s Completion & Production Solutions segment integrates technologies for well completions and oil and gas production. The segment designs, manufactures, and sells equipment and technologies needed for hydraulic fracture stimulation, including pressure pumping trucks, blenders, sanders, hydration units, injection units, flowline, manifolds and wellheads; well intervention, including coiled tubing units, coiled tubing, and wireline units and tools; onshore production, including composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and, offshore production, including floating production systems and subsea production technologies.

Completion & Production Solutions supports service companies and oil and gas companies. Demand for the segment’s products depends on the level of oilfield completions and workover activity by oilfield service companies and drilling contractors, and capital spending plans by oil and gas companies and oilfield service companies.

The Company had revenues of 4%, 7% and 11% of total revenue from one of its customers for the years ended December 31, 2015, 2014, and 2013, 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,  
     2015      2014      2013  

United States

    $ 3,640       $ 6,097       $ 5,140   

South Korea

      1,835         3,472         3,219   

China

      1,623         1,905         1,007   

Singapore

      1,035         1,157         1,850   

United Kingdom

      634         715         705   

Brazil

      605         1,299         811   

Norway

      555         881         1,102   

Canada

      365         645         625   

Other Countries

      4,465         5,269         4,762   
  

 

 

     

 

 

     

 

 

  

Total

    $ 14,757       $ 21,440       $ 19,221   
  

 

 

     

 

 

     

 

 

  

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

 

     December 31,  
     2015      2014  

United States

    $ 1,735       $ 1,818   

Brazil

      226         290   

United Kingdom

      163         196   

Denmark

      128         144   

South Korea

      102         113   

Mexico

      93         110   

Canada

      78         99   

Singapore

      78         87   

Other Countries

      521         505   
  

 

 

     

 

 

  

Total

    $ 3,124       $ 3,362   
  

 

 

     

 

 

  

 

Business Segments:

 

    Rig
Systems		     Rig
Aftermarket		     Wellbore
Technologies		     Completion &
Production
Solutions		     Eliminations (1)     Discontinued
Operations		     Total  

December 31, 2015:

              

Revenue

   $ 6,964      $ 2,515      $ 3,718      $ 3,365      $ (1,805 )    $ —        $ 14,757   

Operating profit (loss)

     1,206        605        (1,613 )      161        (749 )      —          (390 ) 

Capital expenditures

     81        10        180        87        95        —          453   

Depreciation and amortization

     96        30        400        221        —          —          747   

Goodwill

     1,232        877        2,874        1,997        —          —          6,980   

Total assets

     6,772        2,455        8,766        5,916        2,816        —          26,725   

December 31, 2014:

              

Revenue

   $ 9,848      $ 3,222      $ 5,722      $ 4,645      $ (1,997 )    $ —        $ 21,440   

Operating profit

     1,996        882        937        690        (892 )      —          3,613   

Capital expenditures

     133        12        262        184        108        —          699   

Depreciation and amortization

     88        27        439        224        —          —          778   

Goodwill

     1,236        877        4,357        2,069        —          —          8,539   

Total assets

     8,052        2,789        11,687        7,072        3,962        —          33,562   

December 31, 2013:

              

Revenue

   $ 8,450      $ 2,692      $ 5,211      $ 4,309      $ (1,441 )    $ —        $ 19,221   

Operating profit

     1,594        729        915        613        (652 )      —          3,199   

Capital expenditures

     61        24        226        212        91        —          614   

Depreciation and amortization

     82        26        420        210        —          —          738   

Goodwill

     1,279        906        4,425        2,106        —          333        9,049   

Total assets

     7,654        2,475        11,862        7,287        3,351        2,183        34,812   

 

(1) Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the company. Eliminations include intercompany transactions conducted between the four reporting segments that are eliminated in consolidation. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets.