Business Segments and Geographic Areas

12 Months Ended

Dec. 31, 2020

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 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, BOPs, and tools; onshore production, including fluid processing systems, composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and, offshore production, including fluid processing systems, floating production systems, subsea production technologies, and connectors for conductor pipe.

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

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 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 in Rig Technologies 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.

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,
	2020		2019		2018
United States	$	1,634	$	3,112	$	3,480
Norway		464		512		368
Saudi Arabia		343		436		444
China		288		285		231
Singapore		242		473		321
Brazil		224		269		415
United Kingdom		222		333		309
United Arab Emirates		221		224		248
Canada		168		247		302
South Korea		33		69		169
Other Countries		2,251		2,519		2,166
Total	$	6,090	$	8,479	$	8,453

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

	December 31,
	2020		2019
United States	$	1,011	$	1,257
Saudi Arabia		176		87
Brazil		92		194
United Kingdom		86		112
Denmark		76		111
Canada		73		77
United Arab Emirates		68		52
South Korea		51		77
Mexico		30		43
Singapore		15		28
Russia		13		16
Other Countries		236		300
Total	$	1,927	$	2,354

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, 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
December 31, 2018
Revenue	$	3,235		$	2,931		$	2,575		$	(288	)	$	8,453
Operating profit (loss)(2)		131			166			213			(299	)		211
Capital expenditures		135			87			17			5			244
Depreciation and amortization		374			212			90			14			690
Goodwill		3,011			2,041			1,212			—			6,264
Total assets		7,929			6,233			3,906			1,728			19,796

(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 2020 includes charges for: goodwill, other intangible asset and other long lived asset impairments (Wellbore Technologies $665 million; Completion and Production Solutions $1,010 million; and, Rig Technologies $198 million); inventory write-downs (Wellbore Technologies $50 million; Completion and Production Solutions $101 million; and, Rig Technologies $175 million); and severance and other restructuring costs (Wellbore Technologies $134 million; Completion and Production Solutions $21 million; and, Rig Technologies $29 million). Segment operating loss for 2019 includes charges for: goodwill, other intangible asset and other long lived asset impairments (Wellbore Technologies $3,565 million; Completion and Production Solutions $1,865 million; and, Rig Technologies $389 million); inventory write-downs (Wellbore Technologies $130 million; Completion and Production Solutions $148 million; and, Rig Technologies $355 million); and a voluntary early retirement program (VERP), other severance and facility closure costs (Wellbore Technologies $64 million; Completion and Production Solutions $30 million; and, Rig Technologies $37 million).