Operating Segments, Geographic Analysis and Major Customers

12 Months Ended

Dec. 31, 2016

Operating Segments, Geographic Analysis and Major Customers

Operating Segments, Geographic Analysis and Major Customers

Note 21—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 by country were as follows (in millions):

	Years ended December 31,
	2016		2015		2014
Operating revenues
U.S.	$	1,977	$	2,416	$	2,410
U.K.		551		1,139		1,194
Brazil		453		673		651
Norway		214		650		1,036
Other countries (a)		966		2,508		3,894
Total operating revenues	$	4,161	$	7,386	$	9,185

(a) Other countries represent countries in which we operate that individually had operating revenues representing less than 10 percent of total operating revenues earned.

Long‑lived assets by country were as follows (in millions):

	December 31,
	2016		2015
Long-lived assets
U.S.	$	6,181	$	7,451
Trinidad		3,977		1,766
Korea		1,459		2,048
Other countries (a)		9,476		9,544
Total long-lived assets	$	21,093	$	20,809

(a) Other countries represents countries in which we operate that individually had long‑lived assets representing less than 10 percent of total long‑lived assets.

A substantial portion of our assets are mobile.  Asset locations at the end of the period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the periods.  Although we are organized under the laws of Switzerland, we do not conduct any operations and do not have operating revenues in Switzerland.  At December 31, 2016 and 2015, the aggregate carrying amount of our long‑lived assets located in Switzerland was $2 million.

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.

Major customers—For the year ended December 31, 2016, Chevron Corporation (together with its affiliates, “Chevron”), BP, Royal Dutch Shell plc (together with its affiliates, “Shell”) and Petróleo Brasileiro S.A. (“Petrobras”), accounted for approximately 24 percent, 12 percent, 12 percent and 11 percent, respectively, of our consolidated operating revenues.  For the year ended December 31, 2015, Chevron and Shell accounted for approximately 14 percent and 10 percent, respectively, of our consolidated operating revenues from continuing operations.  For the year ended December 31, 2014, Chevron and BP accounted for approximately 11 percent and nine percent, respectively, of our consolidated operating revenues.