Segment Information (Tables)

12 Months Ended

Dec. 31, 2014

Reporting Segments

Our operational performance is reviewed and managed on a geographic basis. We report the following regions, which are our operating segments, as separate, distinct reporting segments: North America; MENA/Asia Pacific; Europe/SSA/Russia; and Latin America. Financial information by segment is summarized below. Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.



	Year Ended December 31, 2014
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization		Capital Expenditures
North America	$	6,852	$	996		$	431	$	454
MENA/Asia Pacific	3,095		85			401		319
Europe/SSA/Russia	2,584		386			259		303
Latin America	2,380		256			257		312
	14,911		1,723			1,348		1,388
Corporate and Research and Development			(468		)	23		62
Long-lived Assets Impairment			(495		)
Goodwill Impairment			(161		)
Restructuring Charges ^(a)			(331		)
Gain on Sale of Businesses and Investments, Net			349
Other Items ^(b)			(112		)
Total	$	14,911	$	505		$	1,371	$	1,450

(a)

We recognized 2014 Plan restructuring charges of $273 million: $42 million in North America, $133 million in MENA/Asia Pacific, $31 million in Europe/SSA/Russia, $37 million in Latin America and $30 million in Corporate and Research and Development. We also recognized $58 million restructuring charges for our 2015 Plan: $32 million in North America, $8 million in MENA/Asia Pacific, $5 million in Europe/SSA/Russia, $12 million in Latin America and $1 million in Corporate and Research and Development.


(b)	Includes professional fees of $107 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations, and our 2014 redomestication from Switzerland to Ireland and other charges of $5 million.



	Year Ended December 31, 2013
(Dollars in millions)	Net Operating Revenues		Income from Operations ^(c)			Depreciation and Amortization		Capital Expenditures
North America	$	6,390	$	820		$	424	$	434
MENA/Asia Pacific	3,344		(96		)	396		526
Europe/SSA/Russia	2,693		288			286		305
Latin America ^(d)	2,836		306			276		247
	15,263		1,318			1,382		1,512
Corporate and Research and Development			(466		)	20		63
U.S. Government Investigation Loss			(153		)
Gain on Sale of Businesses and Investments, Net			24
Other Items ^(e)			(200		)
Total	$	15,263	$	523		$	1,402	$	1,575

(c)

We recognized a charge for bad debt expense of $98 million attributable to our reporting segments as follows: $59 million in Latin America, $27 million in MENA/Asia Pacific, $10 million for Europe/SSA/Russia, and $2 million in North America. See footnote (d) below for additional details for the bad debt expense charge in Latin America of $59 million. During 2013, we recognized a charge for excess and obsolete inventory of $62 million attributable to each reporting segment as follows: $35 million in North America, $7 million in MENA/Asia Pacific, $13 million in Europe/SSA/Russia and $7 million in Latin America.


(d)	On December 17, 2013, we accepted bonds with a face value of $127 million from PDVSA in full settlement of $127 million in trade receivables. Upon receipt, we immediately sold these bonds in a series of transactions recognizing a loss of $58 million.


(e)	Includes $67 million of professional fees and expenses for U.S. government investigations and the remediation of our material weakness related to income taxes, $94 million of severance and $39 million of other items.



	Year Ended December 31, 2012
(Dollars in millions)	Net Operating Revenues		Income from Operations ^(f)			Depreciation and Amortization		Capital Expenditures
North America	$	6,824	$	1,078		$	412	$	744
MENA/Asia Pacific	2,795		34			352		657
Europe/SSA/Russia	2,519		315			255		341
Latin America	3,077		395			238		384
	15,215		1,822			1,257		2,126
Corporate and Research and Development			(453		)	25		51
Goodwill and Equity Investment Impairment			(793		)
U.S. Government Investigation Loss			(100		)
Gain on Sale of Businesses and Investments, Net			28
Other Items ^(g)			(206		)
Total	$	15,215	$	298		$	1,282	$	2,177

(f)

We recognized a charge for excess and obsolete inventory of $53 million attributable to each reporting segment as follows: $21 million in North America, $16 million in MENA/Asia Pacific, $11 million in Europe/SSA/Russia and $5 million in Latin America. We also recognized a charge of $30 million to adjust the carrying value of our guar inventory, a component of certain drilling fluids, to the lower of cost or market, all of which was attributable to the North America reporting segment.


(g)	Includes income tax restatement and material weakness remediation expenses of $103 million, $13 million of costs incurred in connection with U.S. government investigations, $11 million of non-recurring fees and expenses associated with our 2012 debt consent solicitation and severance, exit and other charges of $79 million.

The following table presents total assets by segment at December 31:



	Total Assets at December 31,
(Dollars in millions)	2014		2013
North America	$	7,297	$	7,720
MENA/Asia Pacific	4,736		5,328
Europe/SSA/Russia	3,203		4,346
Latin America	3,307		4,247
Corporate and Research and Development	346		336
Total	$	18,889	$	21,977

Total assets in the United States, which is part of our North America segment, were $6.1 billion and $6.2 billion as of December 31, 2014 and 2013, respectively. The remaining North America total assets balance of $1.2 billion and $1.5 billion, respectively as of December 31, 2014 and 2013, is related to our operations in Canada.

Composition of consolidated revenues by product line

Products and Services

We are one of the world’s leading providers of equipment and services used in the drilling, evaluation, completion, production and intervention of oil and natural gas wells. The composition of our consolidated revenues by product service line group is as follows:



	Year Ended December 31,
	2014		2013		2012
Formation Evaluation and Well Construction	58	%	61	%	56	%
Completion and Production	42		39		44
Total	100	%	100	%	100	%

Financial information by geographic area

Geographic Areas

Financial information by geographic area is summarized below. Revenues from customers and long-lived assets in Switzerland were insignificant in each of the years presented. Long-lived assets exclude goodwill and intangible assets as well as deferred tax assets of $129 million and $33 million at December 31, 2014 and 2013, respectively.



	Revenues						Long-lived Assets
(Dollars in millions)	2014		2013		2012		2014		2013
United States	$	5,567	$	5,146	$	5,465	$	2,114	$	2,212
Canada	1,285		1,244		1,359		264		431
Mexico	479		959		1,274		170		226
Other Countries	7,580		7,914		7,117		4,817		5,285
	$	14,911	$	15,263	$	15,215	$	7,365	$	8,154

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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