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Business Segments
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Business Segments

6. Business Segments

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

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
     2016     2015     2016     2015  

Revenue:

         

Rig Systems

    $ 564      $ 1,930      $ 1,490      $ 4,453   

Rig Aftermarket

      364        657        755        1,376   

Wellbore Technologies

      511        956        1,142        2,127   

Completion & Production Solutions

      538        873        1,096        1,821   

Eliminations

      (253 )      (507 )      (570 )      (1,048 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

    $ 1,724      $ 3,909      $ 3,913      $ 8,729   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit (loss):

         

Rig Systems

    $ 7      $ 421      $ 74      $ 898   

Rig Aftermarket

      62        153        131        357   

Wellbore Technologies

      (146 )      48        (237 )      143   

Completion & Production Solutions

      (33 )      85        (71 )      173   

Eliminations and corporate costs

      (160 )      (269 )      (356 )      (563 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating profit (loss)

    $ (270 )    $ 438      $ (459 )    $ 1,008   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit (loss)%:

         

Rig Systems

      1.2 %      21.8 %      5.0 %      20.2 % 

Rig Aftermarket

      17.0 %      23.3 %      17.4 %      25.9 % 

Wellbore Technologies

      (28.6 %)      5.0 %      (20.8 %)      6.7 % 

Completion & Production Solutions

      (6.1 %)      9.7 %      (6.5 %)      9.5 % 

Total operating profit (loss) %

      (15.7 %)      11.2 %      (11.7 %)      11.5 % 

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.

Included in operating profit are other items primarily related to costs associated with Voluntary Early Retirement Plans (“VERP”) established by the Company during the first quarters of 2016 and 2015 and certain costs related to severance and facility closures. As of June 30, 2016, the Company had approximately $72 million accrued for the VERP postretirement medical benefits. Other items by segment are as follows (in millions):

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2016      2015      2016      2015  

Other items:

            

Rig Systems

    $ 23       $ 3       $ 75       $ 43   

Rig Aftermarket

      5         2         13         10   

Wellbore Technologies

      50         9         88         54   

Completion & Production Solutions

      38         3         72         32   

Eliminations and corporate costs

      1         —           10         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total other items

    $ 117       $ 17       $ 258       $ 139