Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

In the first quarter of 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. Our corporate and other expenses that do not individually meet the criteria for segment reporting 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.

Certain leased equipment of our Land Drilling Rigs and North America pressure pumping business includes contractual residual value guarantees at September 30, 2015. We maintain a liability of $80 million related to these guarantees which is recorded as “Other Non-Current Liabilities” on our Condensed Consolidated Balance Sheets. Certain of our supply agreements contain minimum purchase commitments and we maintain a liability at September 30, 2015, of $78 million, of which $65 million is recorded as “Other Current Liabilities” and $13 million as “Other Non-Current Liabilities” on our Condensed Consolidated Balance Sheets.

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 September 30, 2015
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	824	$	(54	)	$	87
MENA/Asia Pacific	445		2			62
Europe/SSA/Russia	361		43			52
Latin America	421		73			63
Subtotal	2,051		64			264
Land Drilling Rigs	186		16			28
	2,237		80			292
Corporate and Research and Development			(101		)	6
Long-Lived Assets Impairment and Other Related Charges (a)			(17		)
Restructuring Charges (b)			(49		)
Other Items (c)			(11		)
Total	$	2,237	$	(98	)	$	298

(a) For the three months ended September 30, 2015 includes pressure pumping business related charges of $15 million and supply agreement charges related to a non-core business divestiture of $2 million.

(b) For the three months ended September 30, 2015, we recognized restructuring charges of $49 million: $9 million in North America, $5 million in MENA/Asia Pacific, $11 million in Europe/SSA/Russia, $10 million in Latin America, $6 million in Land Drilling Rigs and $8 million in Corporate and Research and Development.

(c) The three months ended September 30, 2015 includes professional and other fees of $7 million, facility closure fees of $2 million, and divestiture related charges of $2 million.

	Three Months Ended September 30, 2014
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	1,814	$	288		$	108
MENA/Asia Pacific	633		66			67
Europe/SSA/Russia	555		118			52
Latin America	591		96			57
Subtotal	3,593		568			284
Land Drilling Rigs	284		7			37
	3,877		575			321
Corporate and Research and Development			(117		)	6
Goodwill Impairment			4
Restructuring Charges (d)			(154		)
Gain on Sale of Business, Net			38
Other Items (e)			(28		)
Total	$	3,877	$	318		$	327

(d) For the three months ended September 30, 2014, we recognized restructuring charges of $154 million: $16 million in North America, $111 million in MENA/Asia Pacific, $9 million in Europe/SSA/Russia, $13 million in Latin America and $5 million in Land Drilling Rigs.

(e) The three months ended September 30, 2014 includes professional fees related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations and other charges.

	Nine Months Ended September 30, 2015
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	2,795	$	(156	)	$	289
MENA/Asia Pacific	1,494		45			193
Europe/SSA/Russia	1,196		179			155
Latin America	1,370		247			186
Subtotal	6,855		315			823
Land Drilling Rigs	566		30			84
	7,421		345			907
Corporate and Research and Development			(326		)	18
Long-Lived Assets Impairment and Other Related Charges (a)			(208		)
Equity Investment Impairment			(20		)
Restructuring Charges (b)			(159		)
Litigation Charges			(112		)
Loss on Sale of Businesses, Net			(2		)
Other Items (c)			(30		)
Total	$	7,421	$	(512	)	$	925

(a) The nine months ended September 30, 2015 includes asset impairment charges of $124 million, pressure pumping business related charges of $52 million and supply agreement charges related to a non-core business divestiture of $32 million.

(b) For the nine months ended September 30, 2015, we recognized restructuring charges of $159 million: $38 million in North America, $40 million in MENA/Asia Pacific, $32 million in Europe/SSA/Russia, $26 million in Latin America, $12 million in Land Drilling Rigs and$11 million in Corporate and Research and Development.

(c) The nine months ended September 30, 2015 includes professional and other fees of $18 million, facility closure fees of $5 million, and divestiture related charges of $7 million.

	Nine Months Ended September 30, 2014
(Dollars in millions)	Net Operating Revenues		Income from Operations			Depreciation and Amortization
North America	$	5,083	$	728		$	322
MENA/Asia Pacific	1,831		132			210
Europe/SSA/Russia	1,632		301			163
Latin America	1,618		262			176
Subtotal	10,164		1,423			871
Land Drilling Rigs	1,020		(16		)	145
	11,184		1,407			1,016
Corporate and Research and Development			(353		)	17
Long-Lived Assets Impairment			(143		)
Goodwill Impairment			(121		)
Restructuring Charges (d)			(283		)
Gain on Sale of Business, Net			38
Other Items (e)			(72		)
Total	$	11,184	$	473		$	1,033

(d) For the nine months ended September 30, 2014, we recognized restructuring charges of $283 million: $44 million in North America, $128 million in MENA/Asia Pacific, $36 million in Europe/SSA/Russia, $36 million in Latin America, $9 million in Land Drilling Rigs and$30 million in Corporate and Research and Development.

(e) The nine months ended September 30, 2014 includes professional fees of $64 million related to the divestiture of our non-core businesses, restatement related litigation, the settlement of the U.S. government investigations, the remediation of our material weakness related to income taxes and our 2014 redomestication from Switzerland to Ireland and other charges of $8 million.