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Business Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segments and Geographic Areas

16. Business Segments. and Geographic Areas

The Company’s operations are organized into three operating segments: Wellbore Technologies, Completion & Production Solutions and Rig Technologies.     

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; portable power generation; drill pipe; wired pipe; drilling optimization and automation services; tubular inspection, repair and coating services; instrumentation; measuring and monitoring; downhole and fishing tools; steerable technologies; 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 services equipment and technologies needed for hydraulic fracture stimulation, including downhole multistage fracturing tools, 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; well construction, including premium connections and liner hangers; 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. The segment also manufactures industrial pumps and mixers.

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 segment also designs and manufactures equipment for industrial markets. This includes specialized, technology-driven progressive cavity pumps and mixers for a wide breadth of industrial end markets with high failure costs,

premium pole products to support connectivity, lighting, and power for municipal and residential applications including 5G, smart-city infrastructure, roads and highways, and energy-grid modernization. Demand for these products is driven by general industrial activity and infrastructure spend.

Rig Technologies

The Company’s Rig Technologies segment manufactures and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore as well as other marine-based markets, including offshore wind vessels. 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 the segment provides to customers include: substructures, derricks, and masts; cranes; jacking systems; 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; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; major equipment components for offshore wind construction vessels; and pipelay and construction 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 segment also designs and builds equipment for wind turbine installation companies, where demand is dependent on global investment into offshore wind energy developments.

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,

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

1,760

 

 

$

1,634

 

 

$

3,112

 

Norway

 

 

365

 

 

 

464

 

 

 

512

 

Saudi Arabia

 

 

316

 

 

 

343

 

 

 

436

 

Brazil

 

 

316

 

 

 

224

 

 

 

269

 

China

 

 

222

 

 

 

288

 

 

 

285

 

Canada

 

 

207

 

 

 

168

 

 

 

247

 

United Kingdom

 

 

204

 

 

 

222

 

 

 

333

 

Singapore

 

 

143

 

 

 

242

 

 

 

473

 

United Arab Emirates

 

 

130

 

 

 

221

 

 

 

224

 

South Korea

 

 

32

 

 

 

33

 

 

 

69

 

Other Countries

 

 

1,829

 

 

 

2,251

 

 

 

2,519

 

Total

 

$

5,524

 

 

$

6,090

 

 

$

8,479

 

 

 

The following table presents plant, property and equipment by country based on the location (in millions):

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

United States

 

$

898

 

 

$

1,011

 

Saudi Arabia

 

 

231

 

 

 

176

 

Brazil

 

 

87

 

 

 

92

 

United Kingdom

 

 

84

 

 

 

86

 

Denmark

 

 

72

 

 

 

76

 

Canada

 

 

59

 

 

 

73

 

United Arab Emirates

 

 

65

 

 

 

68

 

South Korea

 

 

60

 

 

 

51

 

Mexico

 

 

28

 

 

 

30

 

Singapore

 

 

14

 

 

 

15

 

Russia

 

 

10

 

 

 

13

 

Other Countries

 

 

215

 

 

 

236

 

Total

 

$

1,823

 

 

$

1,927

 

 

Business Segments:

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

 

 

 

Wellbore Technologies

 

 

Completion & Production Solutions

 

 

Rig Technologies

 

 

Eliminations and

corporate (1)

 

 

Total

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,959

 

 

$

1,963

 

 

$

1,739

 

 

$

(137

)

 

$

5,524

 

Operating profit (loss)(2)

 

 

74

 

 

 

(65

)

 

 

43

 

 

 

(186

)

 

 

(134

)

Capital expenditures

 

 

77

 

 

 

46

 

 

 

74

 

 

 

4

 

 

 

201

 

Depreciation and amortization

 

 

158

 

 

 

62

 

 

 

71

 

 

 

15

 

 

 

306

 

Goodwill

 

 

342

 

 

 

473

 

 

 

712

 

 

 

—

 

 

 

1,527

 

Total assets

 

 

2,670

 

 

 

2,465

 

 

 

2,621

 

 

 

1,794

 

 

 

9,550

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,867

 

 

$

2,433

 

 

$

1,919

 

 

$

(129

)

 

$

6,090

 

Operating profit (loss)(2)

 

 

(858

)

 

 

(977

)

 

 

(362

)

 

 

(228

)

 

 

(2,425

)

Capital expenditures

 

 

87

 

 

 

48

 

 

 

80

 

 

 

11

 

 

 

226

 

Depreciation and amortization

 

 

187

 

 

 

75

 

 

 

77

 

 

 

13

 

 

 

352

 

Goodwill

 

 

308

 

 

 

473

 

 

 

712

 

 

 

-

 

 

 

1,493

 

Total assets

 

 

2,665

 

 

 

2,472

 

 

 

2,923

 

 

 

1,869

 

 

 

9,929

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,214

 

 

$

2,771

 

 

$

2,682

 

 

$

(188

)

 

$

8,479

 

Operating profit (loss)(2)

 

 

(3,551

)

 

 

(1,934

)

 

 

(524

)

 

 

(270

)

 

 

(6,279

)

Capital expenditures

 

 

123

 

 

 

64

 

 

 

31

 

 

 

15

 

 

 

233

 

Depreciation and amortization

 

 

284

 

 

 

150

 

 

 

87

 

 

 

12

 

 

 

533

 

Goodwill

 

 

843

 

 

 

1,054

 

 

 

910

 

 

 

—

 

 

 

2,807

 

Total assets

 

 

4,078

 

 

 

3,826

 

 

 

3,758

 

 

 

1,487

 

 

 

13,149

 

 

(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.

(2)

Segment operating loss for 2021 includes charges, net of related credits, for: inventory write-downs (Wellbore Technologies $(2) million; Completion & Production Solutions $(12) million; and, Rig Technologies $1 million); and severance and other restructuring costs (Wellbore Technologies $32 million; Completion & Production Solutions $12 million; and, Rig Technologies $19 million). Segment operating loss for 2020 includes charges, net of related credits, for: goodwill, other intangible asset and other long lived asset impairments (Wellbore Technologies $665 million; Completion & Production Solutions $1,010 million; and, Rig Technologies $198 million); inventory write-downs (Wellbore Technologies $50 million; Completion & Production Solutions $101 million; and, Rig Technologies $175 million); and severance and other restructuring costs (Wellbore Technologies $134 million; Completion & Production Solutions $21 million; and, Rig Technologies $29 million).