15. Business Segments and Geographic Areas

The Company’s operations are organized into three reportable segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. Within the three reporting segments, the Company has six business units under Wellbore Technologies, nine business units under Completion & Production Solutions and two under Rig Technologies, for a total of 17 business units. The Company has aggregated each of its business units in one of the three reporting segments based on the guidelines of ASC Topic 280, “Segment Reporting” (“ASC Topic 280”).

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, and manifolds; 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.

Rig Technologies

To achieve higher efficiencies and reduce costs in the current market, the Company combined the Rig Systems and Rig Aftermarket segments during the fourth quarter of 2017. See Note 2.

The Company’s Rig Technologies 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 Technologies 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. The segment also provides spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training through an extensive network of aftermarket service and repair facilities strategically located in major areas of drilling operations around the world.

Rig Technologies 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; and secondarily on the overall level of oilfield drilling activity, which drives demand for spare parts, service, and repair for the segment’s large installed base of equipment.

The Company did not have any customers with revenues greater than 10% of total revenue for the years ended December 31, 2017, 2016, or 2015.

The Company’s revenue from rentals for 2017, 2016 and 2015 was 12%, 8% and 7%, respectively, of total revenue.

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,
	2017		2016		2015
United States	$	2,760	$	1,961	$	3,640
Brazil		498		242		605
Saudi Arabia		310		258		416
China		298		557		1,623
Norway		295		339		555
Canada		286		217		365
United Kingdom		279		299		634
South Korea		261		495		1,835
United Arab Emirates		223		334		532
Singapore		188		340		1,035
Other Countries		1,906		2,209		3,517

Total	$	7,304	$	7,251	$	14,757

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


	December 31,
	2017		2016
United States	$	1,675	$	1,810
Brazil		269		281
United Kingdom		140		137
Denmark		128		120
South Korea		97		94
Russia		90		88
Canada		84		82
Mexico		71		77
United Arab Emirates		65		90
Singapore		59		63
Other Countries		324		308

Total	$	3,002	$	3,150

Business Segments:

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


	Wellbore Technologies			Completion & Production Solutions			Rig Technologies			Eliminations and corporate costs (1)			Total
December 31, 2017
Revenue	$	2,577		$	2,672		$	2,252		$	(197	)	$	7,304
Operating profit (loss)		(102	)		98			(14	)		(259	)		(277	)
Capital expenditures		99			69			16			8			192
Depreciation and amortization		379			215			88			16			698
Goodwill		2,956			2,122			1,149			—			6,227
Total assets		7,848			5,782			4,625			1,951			20,206

December 31, 2016
Revenue	$	2,199		$	2,241		$	3,110		$	(299	)	$	7,251
Operating profit		(770	)		(266	)		(1,033	)		(342	)		(2,411	)
Capital expenditures		124			61			24			75			284
Depreciation and amortization		384			209			94			16			703
Goodwill		2,874			2,058			1,135			—			6,067
Total assets		7,911			5,765			5,327			2,137			21,140

December 31, 2015
Revenue	$	3,718		$	3,365		$	8,279		$	(605	)	$	14,757
Operating profit		(1,573	)		187			1,501			(505	)		(390	)
Capital expenditures		180			87			91			95			453
Depreciation and amortization		403			223			107			14			747
Goodwill		2,874			1,997			2,109			—			6,980
Total assets		8,766			5,916			9,227			2,061			25,970

(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 and corporate costs include intercompany transactions conducted between the three reporting segments that are eliminated in consolidation, as well as corporate costs not allocated to the segments. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets.