Business Segments

6 Months Ended

Jun. 30, 2017

6. Business Segments

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Revenue:
Rig Systems	$	346		$	564		$	739		$	1,490
Rig Aftermarket		341			364			662			755
Wellbore Technologies		614			511			1,169			1,142
Completion & Production Solutions		652			538			1,300			1,096
Eliminations		(194	)		(253	)		(370	)		(570	)

Total revenue	$	1,759		$	1,724		$	3,500		$	3,913

Operating profit (loss):
Rig Systems	$	(7	)	$	7		$	2		$	74
Rig Aftermarket		76			62			137			131
Wellbore Technologies		(24	)		(146	)		(81	)		(237	)
Completion & Production Solutions		27			(33	)		35			(71	)
Eliminations and corporate costs		(134	)		(160	)		(252	)		(356	)

Total operating profit (loss)	$	(62	)	$	(270	)	$	(159	)	$	(459	)

Operating profit (loss)%:
Rig Systems		(2.0	%)		1.2	%		0.3	%		5.0	%
Rig Aftermarket		22.3	%		17.0	%		20.7	%		17.4	%
Wellbore Technologies		(3.9	%)		(28.6	%)		(6.9	%)		(20.8	%)
Completion & Production Solutions		4.1	%		(6.1	%)		2.7	%		(6.5	%)
Total operating profit (loss) %		(3.5	%)		(15.7	%)		(4.5	%)		(11.7	%)

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 June 30, 2017, the Company had approximately $45 million accrued for the VERP postretirement medical benefits.