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Business Segments
 9 Months Ended
Sep. 30, 2016
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,		  
     2016     2015     2016     2015  

Revenue:

         

Rig Systems

    $ 470      $ 1,496      $ 1,960      $ 5,949   

Rig Aftermarket

      322        570        1,077        1,946   

Wellbore Technologies

      526        834        1,668        2,961   

Completion & Production Solutions

      543        798        1,639        2,619   

Eliminations

      (215 )      (392 )      (785 )      (1,440 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

    $ 1,646      $ 3,306      $ 5,559      $ 12,035   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit (loss):

         

Rig Systems

    $ (962 )    $ 278      $ (888 )    $ 1,176   

Rig Aftermarket

      72        157        203        514   

Wellbore Technologies

      (94 )      (2 )      (331 )      141   

Completion & Production Solutions

      (61 )      10        (132 )      183   

Eliminations and corporate costs

      (141 )      (209 )      (497 )      (772 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating profit (loss)

    $ (1,186 )    $ 234      $ (1,645 )    $ 1,242   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit (loss)%:

         

Rig Systems

      (204.7 %)      18.6 %      (45.3 %)      19.8 % 

Rig Aftermarket

      22.4 %      27.5 %      18.8 %      26.4 % 

Wellbore Technologies

      (17.9 %)      (0.2 %)      (19.8 %)      4.8 % 

Completion & Production Solutions

      (11.2 %)      1.3 %      (8.1 %)      7.0 % 

Total operating profit (loss) %

      (72.1 %)      7.1 %      (29.6 %)      10.3 % 

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 (loss) are other items primarily related to goodwill and intangible asset impairments; 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 September 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
September 30,		      Nine Months Ended
September 30,		  
     2016      2015      2016      2015  

Other items:

            

Rig Systems

    $ 994       $ 22       $ 1,069       $ 65   

Rig Aftermarket

      3         1         16         11   

Wellbore Technologies

      24         29         112         83   

Completion & Production Solutions

      51         60         123         92   

Eliminations and corporate costs

      6         —           16         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total other items

    $ 1,078       $ 112       $ 1,336       $ 251