Operating Segments, Geographic Analysis and Major Customers

12 Months Ended

Dec. 31, 2019

Operating Segments, Geographic Analysis and Major Customers

Operating Segments, Geographic Analysis and Major Customers

Note 22—Operating Segments, Geographic Analysis and Major Customers

Operating segments—We operate in a single, global market for the provision of contract drilling services to our customers.  The location of our rigs and the allocation of our resources to build or upgrade rigs are determined by the activities and needs of our customers.

Geographic analysis—Operating revenues, presented by country in which they were earned, were as follows (in millions):

	Years ended December 31,
	2019		2018		2017
Operating revenues
U.S.	$	1,264	$	1,496	$	1,527
Norway		775		651		83
Brazil		125		110		335
Other countries (a)		924		761		1,028
Total operating revenues	$	3,088	$	3,018	$	2,973

(a) Other countries represents the aggregate value for countries in which we operate that individually had operating revenues representing less than 10 percent of consolidated operating revenues earned.

Long-lived assets, presented by country in which they were located, were as follows (in millions):

	December 31,
	2019 (a)		2018
Long-lived assets
U.S.	$	6,259	$	6,257
Norway		3,203		3,260
Greece		2,760		1,103
Other countries (b)		7,194		9,788
Total long-lived assets	$	19,416	$	20,408

(a) The aggregate carrying amount includes the combined total of our property and equipment and our right-of-use assets.

(b) Other countries represents the aggregate value for countries in which we operate that individually had long-lived assets representing less than 10 percent of consolidated long-lived assets.

Since the majority of our assets are mobile, the geographic locations of such assets at the end of the periods are not necessarily indicative of the geographic distribution of the operating revenues generated by such assets during the periods presented.  Our international operations are subject to certain political and other uncertainties, including risks of war and civil disturbances or other market disrupting events, expropriation of equipment, repatriation of income or capital, taxation policies, and the general hazards associated with certain areas in which we operate.  Although we are organized under the laws of Switzerland, we have minimal assets in Switzerland, and we do not conduct any operations or have operating revenues in Switzerland.

Major customers—For the year ended December 31, 2019, Royal Dutch Shell plc (together with its affiliates, “Shell”), Equinor ASA (together with its affiliates, “Equinor”) and Chevron Corporation (together with its affiliates, “Chevron”) accounted for approximately 26 percent, 21 percent and 17 percent, respectively, of our consolidated operating revenues.  For the year ended December 31, 2018, Shell, Chevron and Equinor accounted for approximately 26 percent, 21 percent, and 18 percent, respectively, of our consolidated operating revenues.  For the year ended December 31, 2017, Chevron, Shell and Petróleo Brasileiro S.A. accounted for approximately 29 percent, 17 percent and 14 percent, respectively, of our consolidated operating revenues.