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Business Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2023
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, managed pressure drilling, drilling fluids, premium drillpipe, wired pipe, drilling optimization services, tubular inspection and coating services, instrumentation, downhole tools, 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 integrates technologies for well completions, oil and gas production, and industrial markets. This includes 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; cementing products for pumping, mixing, transport, and storage; onshore production, including fluid processing, composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, including integrated 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 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):

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

United States

 

$

2,933

 

 

$

2,603

 

 

$

1,760

 

Saudi Arabia

 

 

729

 

 

 

488

 

 

 

316

 

Brazil

 

 

605

 

 

 

495

 

 

 

316

 

Norway

 

 

473

 

 

 

351

 

 

 

365

 

Canada

 

 

324

 

 

 

277

 

 

 

207

 

United Kingdom

 

 

277

 

 

 

199

 

 

 

204

 

China

 

 

248

 

 

 

296

 

 

 

222

 

Argentina

 

 

247

 

 

 

211

 

 

 

151

 

United Arab Emirates

 

 

224

 

 

 

157

 

 

 

130

 

Australia

 

 

211

 

 

 

229

 

 

 

88

 

Denmark

 

 

160

 

 

 

78

 

 

 

—

 

Other Countries

 

 

2,152

 

 

 

1,853

 

 

 

1,765

 

Total

 

$

8,583

 

 

$

7,237

 

 

$

5,524

 

 

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

 

 

 

December 31,

 

 

 

2023

 

 

2022

 

United States

 

$

906

 

 

$

883

 

Saudi Arabia

 

 

258

 

 

 

240

 

Brazil

 

 

101

 

 

 

94

 

United Kingdom

 

 

80

 

 

 

72

 

United Arab Emirates

 

 

73

 

 

 

64

 

Denmark

 

 

72

 

 

 

68

 

South Korea

 

 

66

 

 

 

66

 

Norway

 

 

60

 

 

 

56

 

Canada

 

 

51

 

 

 

50

 

Mexico

 

 

31

 

 

 

27

 

Indonesia

 

 

20

 

 

 

18

 

Other Countries

 

 

147

 

 

 

143

 

Total

 

$

1,865

 

 

$

1,781

 

 

 

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, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,172

 

 

$

3,034

 

 

$

2,608

 

 

$

(231

)

 

$

8,583

 

Operating profit (2)

 

 

423

 

 

 

188

 

 

 

314

 

 

 

(274

)

 

 

651

 

Capital expenditures

 

 

174

 

 

 

63

 

 

 

29

 

 

 

17

 

 

 

283

 

Depreciation and amortization

 

 

155

 

 

 

66

 

 

 

66

 

 

 

15

 

 

 

302

 

Goodwill

 

 

327

 

 

 

483

 

 

 

752

 

 

 

—

 

 

 

1,562

 

Total assets

 

 

3,419

 

 

 

2,973

 

 

 

3,675

 

 

 

1,227

 

 

 

11,294

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,777

 

 

$

2,588

 

 

$

2,034

 

 

$

(162

)

 

$

7,237

 

Operating profit (2)

 

 

304

 

 

 

69

 

 

 

144

 

 

 

(253

)

 

 

264

 

Capital expenditures

 

 

109

 

 

 

59

 

 

 

34

 

 

 

12

 

 

 

214

 

Depreciation and amortization

 

 

150

 

 

 

62

 

 

 

73

 

 

 

16

 

 

 

301

 

Goodwill

 

 

313

 

 

 

480

 

 

 

712

 

 

 

—

 

 

 

1,505

 

Total assets

 

 

2,992

 

 

 

2,748

 

 

 

3,074

 

 

 

1,321

 

 

 

10,135

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,959

 

 

$

1,963

 

 

$

1,739

 

 

$

(137

)

 

$

5,524

 

Operating profit

 

 

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

 

 

(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 profit for 2023 includes charges, net of related credits, for: voluntary early retirement program (VERP) (Wellbore Technologies $19 million; Completion & Production Solutions $18 million; and, Rig Technologies $11 million); non-cash discount charge on royalty receivables (Wellbore Technologies $25 million); credits related to gains on sales of previously reserved inventory (Completion & Production Solutions $(2) million; and, Rig Technologies $(18) million); credit related to release of an earnout accrual (Rig Technologies $25 million); and severance and other restructuring costs (Completion & Production Solutions $10 million; and, Rig Technologies $1 million). Segment operating profit for 2022 includes charges, net of related credits, for: Russia impairment and other charges (Wellbore Technologies $60 million; Completion & Production Solutions $39 million; and, Rig Technologies $24 million); credits related to gains on sales of previously reserved inventory (Completion & Production Solutions $(8) million; and, Rig Technologies $(27) million); and severance and other restructuring costs (Completion & Production Solutions $5 million; and, Rig Technologies $3 million).