Segment Information (Tables)

12 Months Ended

Dec. 31, 2016

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 “Note 1 – Summary of Significant Accounting Policies”. Included in the income (loss) from operations in MENA/Asia Pacific are losses related to our long-term early production facility construction contracts in Iraq accounted for under the percentage-of-completion method as described in “Note 5 – Percentage of Completion Contracts”.



	Year Ended December 31, 2016
(Dollars in millions)	Net Operating Revenues		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
North America	$	1,878	$	(382	)	$	208	$	35
MENA/Asia Pacific	1,453		5			233		21
Europe/SSA/Russia	939		(11		)	182		34
Latin America	1,059		65			228		20
Subtotal	5,329		(323		)	851		110
Land Drilling Rigs	420		(87		)	89		79
	5,749		(410		)	940		189
Corporate and Research and Development			(298		)	16		15
Long-Lived Asset Impairments, Write-Downs and Other Charges ^(a)			(1,043		)
Restructuring Charges ^(b)			(280		)
Litigation Charges, Net			(220		)
Total	$	5,749	$	(2,251	)	$	956	$	204


(a)	Includes $710 million related to long-lived asset impairments, asset write-downs, receivable write-offs and other charges and credits, $219 million in inventory write-downs and $114 million of pressure pumping related charges.


(b)	Includes restructuring charges of $280 million: $96 million in North America, $56 million in Latin America, $36 million in Europe/SSA/Russia, $33 million in MENA/Asia Pacific, $52 million in Corporate and Research and Development and $7 million in Land Drilling Rigs.



	Year Ended December 31, 2015
(Dollars in millions)	Net Operating Revenues		Income (Loss) from Operations ^(c)			Depreciation and Amortization		Capital Expenditures
North America	$	3,494	$	(308	)	$	362	$	161
MENA/Asia Pacific	1,947		(28		)	254		75
Europe/SSA/Russia	1,533		173			201		132
Latin America	1,746		254			249		227
Subtotal	8,720		91			1,066		595
Land Drilling Rigs	713		(13		)	110		68
	9,433		78			1,176		663
Corporate and Research and Development			(425		)	24		19
Long-Lived Asset Impairment and Other Related Charges ^(d)			(768		)
Equity Investment Impairment			(25		)
Restructuring Charges ^(e)			(232		)
Litigation Charges			(116		)
Loss on Sale of Businesses and Investments, Net			(6		)
Other Items ^(f)			(52		)
Total	$	9,433	$	(1,546	)	$	1,200	$	682

(c)

Includes inventory write-downs of $223 million attributable to the reporting segments as follows: $73 million in North America, $54 million in Latin America, $38 million in MENA/Asia Pacific, $32 million in Europe/SSA/Russia, and $26 million for Land Drilling Rigs. Also includes bad debt expense of $48 million of which $31 million was taken in the fourth quarter attributable to our reporting segments as follows: $20 million in North America, $12 million for Europe/SSA/Russia, $9 million in Latin America, and $7 million in MENA/Asia Pacific.


(d)	Includes $638 million of long-lived asset impairment charges, supply agreement charges related to a non-core business divestiture of $67 million, and pressure pumping related charges of $63 million.


(e)	Includes restructuring charges of $232 million: $52 million in North America, $56 million in MENA/Asia Pacific, $56 million in Europe/SSA/Russia, $40 million in Latin America, $12 million in Land Drilling Rigs and $16 million in Corporate and Research and Development.


(f)	Includes $17 million in professional and other fees, $11 million in divestiture related charges and facility closures and $24 million in other charges.



	Year Ended December 31, 2014
(Dollars in millions)	Net Operating Revenues		Income (Loss) from Operations			Depreciation and Amortization		Capital Expenditures
North America	$	6,852	$	1,005		$	430	$	454
MENA/Asia Pacific	2,406		115			280		183
Europe/SSA/Russia	2,129		367			218		282
Latin America	2,282		339			241		311
Subtotal	13,669		1,826			1,169		1,230
Land Drilling Rigs	1,242		(103		)	179		158
	14,911		1,723			1,348		1,388
Corporate and Research and Development			(468		)	23		62
Long-Lived Asset Impairments			(495		)
Goodwill Impairment			(161		)
Restructuring Charges ^(g)			(331		)
Gain on Sale of Businesses and Investments, Net			349
Other Items ^(h)			(112		)
Total	$	14,911	$	505		$	1,371	$	1,450


(g)	Includes restructuring charges of $331 million: $76 million in North America, $133 million in MENA/Asia Pacific, $35 million in Europe/SSA/Russia, $48 million in Latin America, $9 million in Land Drilling Rigs and $30 million in Corporate and Research and Development.


(h)	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.

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



	Total Assets at December 31,
(Dollars in millions)	2016		2015
North America	$	3,921	$	5,100
MENA/Asia Pacific	2,131		2,536
Europe/SSA/Russia	2,036		2,480
Latin America	2,151		2,684
Land Drilling Rigs	1,419		1,516
Corporate and Research and Development	1,006		444
Total	$	12,664	$	14,760

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,
	2016		2015		2014
Formation Evaluation and Well Construction	57	%	55	%	52	%
Completion and Production	36		37		40
Land Drilling Rigs	7		8		8
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 Ireland were insignificant in each of the years presented. Long-lived assets exclude goodwill and intangible assets as well as deferred tax assets of $81 million and $207 million at December 31, 2016 and 2015, respectively.



	Revenues						Long-lived Assets
(Dollars in millions)	2016		2015		2014		2016		2015
United States	$	1,523	$	2,864	$	5,567	$	1,008	$	1,478
Middle East and North Africa	1,513		1,843		2,038		1,595		1,686
Latin America	1,064		1,782		2,381		903		1,143
Europe/SSA/Russia	939		1,613		2,584		629		862
Asia Pacific	355		701		1,057		354		471
Canada	355		630		1,284		140		191
	$	5,749	$	9,433	$	14,911	$	4,629	$	5,831