Business Segment and Geographic Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segment and Geographic Information

Business Segment and Geographic Information

We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment.

The following table presents information on our business segments. “Corporate and other” includes expenses related to support functions and corporate executives. Also included are certain expenses not attributable to a particular business segment, such as costs related to the pending Baker Hughes acquisition that were incurred during the first quarter of 2015.

Intersegment revenue was immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for by the equity method of accounting are included in revenue and operating income of the applicable segment.

	Three Months Ended March 31
Millions of dollars	2015			2014
Revenue:
Completion and Production	$	4,246		$	4,420
Drilling and Evaluation	2,804			2,928
Total revenue	$	7,050		$	7,348
Operating income (loss):
Completion and Production	$	462		$	661
Drilling and Evaluation	306			398
Total operations	768			1,059
Corporate and other	(108		)	(89		)
Impairments and other charges (a)	(1,208		)	—
Total operating income (loss)	$	(548	)	$	970
Interest expense, net of interest income	(106		)	(93		)
Other, net	(224		)	(31		)
Income (loss) from continuing operations before income taxes	$	(878	)	$	846

(a) Includes $510 million attributable to Completion and Production, $638 million attributable to Drilling and Evaluation, and $60 million attributable to Corporate and other during the three months ended March 31, 2015.

Receivables

As of March 31, 2015, 36% of our gross trade receivables were from customers in the United States. As of December 31, 2014, 39% of our gross trade receivables were from customers in the United States. No other country or single customer accounted for more than 10% of our gross trade receivables at these dates.

Venezuela. During the first quarter of 2015, we began utilizing the new SIMADI exchange rate mechanism to remeasure our net monetary assets denominated in Bolívares, at a market rate of 192 Bolívares per United States dollar as compared to the official exchange rate of 6.3 Bolívares per United States dollar we historically utilized. As a result, the United States dollar value of our trade receivables in Venezuela significantly declined. Our total outstanding trade receivables in Venezuela were $437 million, or approximately 7% of our gross trade receivables, as of March 31, 2015, compared to $670 million, or approximately 9% of our gross trade receivables, as of December 31, 2014. Of the $437 million of receivables in Venezuela as of March 31, 2015, $130 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. Of the $670 million of receivables in Venezuela as of December 31, 2014, $256 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. For additional information about the new currency system, see Note 3 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations.”