Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Change in Reportable Segments

In the three months ended March 31, 2015, we changed our business structure to better align with management’s current view and future growth objectives. This involved separating our Land Drilling Rigs business into a reportable segment resulting in a total of five reportable segments which are North America, MENA/Asia Pacific, Europe/SSA/Russia, Latin America and Land Drilling Rigs. The operational performance of our segments is reviewed and managed primarily on a geographic basis, and we report the regional segments as separate, distinct reporting segments. In addition, the operations we intend to divest, in the case of our Land Drilling Rigs business, is reviewed and managed apart from our regional segments in the Land Drilling Rigs segment. Our corporate and other expenses that do not individually meet the criteria for group presentation continue to be reported separately as Corporate and Research and Development. Each business reflects a reportable segment led by separate business segment management that reports directly or indirectly to our chief operating decision maker (“CODM”). Our CODM assesses performance and allocates resources on the basis of the five reportable segments. We have revised our business segment reporting to reflect our current management approach and recast prior periods to conform to the current business segment presentation.

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 as presented in our Form 10-K.

	Three Months Ended March 31, 2015
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	1,163	$	(10	)	$	105
MENA/Asia Pacific	533		60			65
Europe/SSA/Russia	417		71			50
Latin America	486		98			61
Subtotal	2,599		219			281
Land Drilling Rigs	195		10			29
	2,794		229			310
Corporate and Research and Development			(120		)	6
Restructuring Charges (a)			(41		)
Gain on Sale of Business, Net			3
Other Items (b)			(21		)
Total	$	2,794	$	50		$	316

(a) For the three months ended March 31, 2015, we recognized restructuring charges of $41 million: $8 million in North America, $6 million in MENA/Asia Pacific, $7 million in Europe/SSA/Russia, $12 million in Latin America, $5 million in Land Drilling Rigs and $3 million in Corporate and Research and Development.

(b) The three months ended March 31, 2015 includes professional fees of $13 million related to the divestiture of our non-core businesses, restatement related litigation, post-settlement monitor and auditor expenses and other charges of $8 million.

	Three Months Ended March 31, 2014
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	1,610	$	196		$	107
MENA/Asia Pacific	619		5			72
Europe/SSA/Russia	516		78			54
Latin America	509		90			58
Subtotal	3,254		369			291
Land Drilling Rigs	342		(27		)	54
	3,596		342			345
Corporate and Research and Development			(116		)	6
Restructuring Charges (c)			(70		)
Other Items (d)			(26		)
Total	$	3,596	$	130		$	351

(c) For the three months ended March 31, 2014, we recognized restructuring charges of $70 million: $9 million in North America, $4 million in MENA/Asia Pacific, $19 million in Europe/SSA/Russia, $19 million in Latin America, $3 million in Land Drilling Rigs and $16 million in Corporate and Research and Development.

(d) The three months ended March 31, 2014 includes professional fees of $23 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations and redomestication and other charges of $3 million.

The following table presents total assets by segment for each period ended:

	Total Assets
	March 31,		December 31,
(Dollars in millions)	2015		2014
North America	$	6,675	$	7,297
MENA/Asia Pacific	3,006		3,022
Europe/SSA/Russia	3,132		3,106
Latin America	3,163		3,211
Subtotal	15,976		16,636
Land Drilling Rigs	1,880		1,907
	17,856		18,543
Corporate and Research and Development	367		346
Total	$	18,223	$	18,889

Total assets in the United States, which is part of our North America segment, were $5.7 billion and $6.1 billion as of March 31, 2015 and December 31, 2014, respectively. The remaining North America total assets balance of $1 billion and $1.2 billion, respectively as of March 31, 2015 and December 31, 2014, is related to our operations in Canada.