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Business Segment and Geographic Information
 6 Months Ended
Jun. 30, 2016
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. 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 within cost of services on our statements of operations, which is part of operating income of the applicable segment.

The following table presents information on our business segments.
 
Three Months Ended
June 30
Six Months Ended
June 30
Millions of dollars
2016
2015
2016
2015
Revenue:
 
 
 
 
Completion and Production
$
2,114

$
3,444

$
4,438

$
7,690

Drilling and Evaluation
1,721

2,475

3,595

5,279

Total revenue
$
3,835

$
5,919

$
8,033

$
12,969

Operating income (loss):
 
 
 
 
Completion and Production
$
(32
)
$
313

$
(2
)
$
775

Drilling and Evaluation
154

400

395

706

Total operations
122

713

393

1,481

Corporate and other (a)
(3,579
)
(153
)
(4,163
)
(261
)
Impairments and other charges (b)
(423
)
(306
)
(3,189
)
(1,514
)
Total operating income (loss)
$
(3,880
)
$
254

$
(6,959
)
$
(294
)
Interest expense, net of interest income (c)
(196
)
(106
)
(361
)
(212
)
Other, net
(31
)
(23
)
(78
)
(247
)
Income (loss) from continuing operations before income taxes
$
(4,107
)
$
125

$
(7,398
)
$
(753
)

(a) Corporate and other includes certain expenses not attributable to a particular business segment such as costs related to support functions and corporate executives and Baker Hughes-related costs for all periods presented, including the $3.5 billion termination fee recognized during the second quarter of 2016.
(b) Impairments and other charges are as follows:
-For the three months ended June 30, 2016, includes $290 million attributable to Completion and Production, $129 million attributable to Drilling and Evaluation, and $4 million attributable to Corporate and other.
-For the six months ended June 30, 2016, includes $2.0 billion attributable to Completion and Production, $1.1 billion attributable to Drilling and Evaluation, and $8 million attributable to Corporate and other.
-For the three months ended June 30, 2015, includes $211 million attributable to Completion and Production, $89 million attributable to Drilling and Evaluation, and $6 million attributable to Corporate and other.
-For the six months ended June 30, 2015, includes $720 million attributable to Completion and Production, $727 million attributable to Drilling and Evaluation, and $67 million attributable to Corporate and other.
(c) Includes $41 million of debt redemption fees and associated expenses related to the $2.5 billion of debt mandatorily redeemed during the second quarter of 2016, as well as additional interest resulting from the senior notes issued in late 2015, in the three and six months ended June 30, 2016.

Receivables
As of June 30, 2016, 21% of our gross trade receivables were from customers in the United States and 11% were from customers in Mexico. As of December 31, 2015, 26% of our gross trade receivables were from customers in the United States. Other than the United States, Mexico, and Venezuela, as further discussed below, 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 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 had previously utilized, resulting in a foreign currency devaluation loss of $199 million. During the first quarter of 2016, the Venezuelan government created a new exchange rate system, replacing the SIMADI with the DICOM, which is intended to be a free floating system. The DICOM had a market rate of 276 Bolívares per United States dollar at March 31, 2016 and 617 Bolívares per United States dollar at June 30, 2016. We are utilizing the DICOM to remeasure our net monetary assets denominated in Bolívares, and the revised system and continued devaluation did not materially affect our financial statements for the three and six months ended June 30, 2016.     

We have continued to experience delays in collecting payments on our receivables from our primary customer in Venezuela. These receivables are not disputed, and we have not historically had material write-offs relating to this customer. Additionally, we routinely monitor the financial stability of our customers. During the second quarter of 2016, we executed a financing agreement with our primary customer in Venezuela in an effort to actively manage these customer receivables, resulting in an exchange of $200 million of outstanding trade receivables for an interest-bearing promissory note. For additional information about the promissory note exchange and Venezuela currency system, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations.”

Subsequent to the promissory note exchange, our total outstanding net trade receivables in Venezuela were $581 million as of June 30, 2016, compared to $704 million as of December 31, 2015, which represents 13% and 14% of total company trade receivables for the respective periods. The majority of our Venezuela receivables are United States dollar-denominated receivables. Of the $581 million of receivables in Venezuela as of June 30, 2016, $134 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. Of the $704 million of receivables in Venezuela as of December 31, 2015, $175 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets. As a result of current conditions in Venezuela and the continued delays in collecting payments on our receivables in the country, we began curtailing activity in Venezuela during the first quarter of 2016.