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Business Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2016
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 one business unit under Rig Systems, one business unit under Rig Aftermarket, and aggregated six business units under Wellbore Technologies and nine business units under Completion & Production Solutions, for a total of 17 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.

To achieve higher efficiencies and reduce costs in the current market, the Company combined the Rig Offshore and Rig Land reporting units during the third quarter of 2016. See Note 2.

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 did not have any customers with revenues greater than 10% of total revenue for the years ended December 31, 2016, 2015, or 2014.

 

Geographic Areas:

The following table presents consolidated revenues by country based on sales destination of the products or services (in millions):

 

     Years Ended December 31,  
     2016      2015      2014  

United States

    $ 1,961      $ 3,640      $ 6,097  

China

      557        1,623        1,905  

South Korea

      495        1,835        3,472  

Singapore

      340        1,035        1,157  

Norway

      339        555        881  

United Arab Emirates

      334        532        459  

United Kingdom

      299        634        715  

Saudi Arabia

      258        416        444  

Brazil

      242        605        1,299  

Canada

      217        365        645  

Other Countries

      2,209        3,517        4,366  
  

 

 

     

 

 

     

 

 

  

Total

    $ 7,251      $ 14,757      $ 21,440  
  

 

 

     

 

 

     

 

 

  

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

 

     December 31,  
     2016      2015  

United States

    $ 1,810      $ 1,735  

Brazil

      281        226  

United Kingdom

      137        163  

Denmark

      120        128  

South Korea

      94        102  

United Arab Emirates

      90        58  

Russia

      88        68  

Canada

      82        78  

Mexico

      77        93  

Singapore

      63        78  

Other Countries

      308        395  
  

 

 

     

 

 

  

Total

    $ 3,150      $ 3,124  
  

 

 

     

 

 

  

 

Business Segments:

The following table presents selected financial data by business segment (in millions):

 

     Rig Systems     Rig
Aftermarket		      Wellbore
Technologies		     Completion &
Production
Solutions		     Eliminations
and
Corporate
Costs (1)		     Total  

December 31, 2016

              

Revenue

    $ 2,386      $ 1,416       $ 2,199      $ 2,241      $ (991 )    $ 7,251   

Operating profit (loss)

      (969 )      229         (770 )      (266 )      (635 )      (2,411 ) 

Capital expenditures

      20        4         124        61        75        284   

Depreciation and amortization

      72        22         384        209        16        703   

Goodwill

      258        877         2,874        2,058        —          6,067   

Total assets

      3,255        2,072         7,911        5,765        2,137        21,140   

December 31, 2015

              

Revenue

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

Operating profit

      1,322        652         (1,573 )      187        (978 )      (390 ) 

Capital expenditures

      81        10         180        87        95        453   

Depreciation and amortization

      84        23         403        223        14        747   

Goodwill

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

Total assets

      6,772        2,455         8,766        5,916        2,061        25,970   

December 31, 2014

              

Revenue

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

Operating profit

      2,118        935         1,000        730        (1,170 )      3,613   

Capital expenditures

      133        12         262        184        108        699   

Depreciation and amortization

      86        26         438        223        5        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   

 

(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.