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Business Segments
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segments
6. Business Segments

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

 

     Three Months Ended
March 31,		  
     2017     2016  

Revenue:

     

Rig Systems

    $ 393     $ 926  

Rig Aftermarket

      321       391  

Wellbore Technologies

      555       631  

Completion & Production Solutions

      648       558  

Eliminations

      (176 )      (317 ) 
  

 

 

    

 

 

  

Total revenue

    $ 1,741     $ 2,189  
  

 

 

    

 

 

  

Operating profit (loss):

     

Rig Systems

    $ 9     $ 67  

Rig Aftermarket

      61       69  

Wellbore Technologies

      (57 )      (91 ) 

Completion & Production Solutions

      8       (38 ) 

Eliminations and corporate costs

      (118 )      (196 ) 
  

 

 

    

 

 

  

Total operating profit (loss)

    $ (97 )    $ (189 ) 
  

 

 

    

 

 

  

Operating profit (loss)%:

     

Rig Systems

      2.3 %      7.2 % 

Rig Aftermarket

      19.0 %      17.6 % 

Wellbore Technologies

      (10.3 %)      (14.4 %) 

Completion & Production Solutions

      1.2 %      (6.8 %) 

Total operating profit (loss) %

      (5.6 %)      (8.6 %) 

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 costs associated with severance, facility closures, and Voluntary Early Retirement Plans (“VERP”) established by the Company during the first quarter of 2016. As of March 31, 2017, the Company had approximately $47 million accrued for the VERP postretirement medical benefits. Other items by segment are as follows (in millions):

 

     Three Months Ended
March 31,		  
     2017      2016  

Other items:

      

Rig Systems

    $ 7      $ 52  

Rig Aftermarket

      5        8  

Wellbore Technologies

      —          38  

Completion & Production Solutions

      15        34  

Eliminations and corporate costs

      —          9  
  

 

 

     

 

 

  

Total other items

    $ 27      $ 141