Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2018

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. For more information about the product service lines included in each segment, see Part I, Item 1, "Business.” The business operations of our divisions are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS and Middle East/Asia. Intersegment revenue and revenue between geographic areas are immaterial. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.

Operations by business segment

The following tables present financial information on our business segments.




	Year Ended December 31
Millions of dollars	2018			2017			2016
Revenue:
Completion and Production	$	15,973		$	13,077		$	8,882
Drilling and Evaluation	8,022			7,543			7,005
Total revenue	$	23,995		$	20,620		$	15,887
Operating income (loss):
Completion and Production	$	2,278		$	1,625		$	108
Drilling and Evaluation	745			726			801
Total operations	3,023			2,351			909
Corporate and other (a)	(291		)	(330		)	(4,322		)
Impairments and other charges (b)	(265		)	(647		)	(3,357		)
Total operating income (loss)	$	2,467		$	1,374		$	(6,770	)
Interest expense, net of interest income	$	(554	)	$	(593	)	$	(639	)
Other, net	(99		)	(99		)	(216		)
Income (loss) from continuing operations before income taxes	$	1,814		$	682		$	(7,625	)
Capital expenditures:
Completion and Production	$	1,364		$	1,111		$	500
Drilling and Evaluation	657			261			297
Corporate and other	5			1			1
Total	$	2,026		$	1,373		$	798
Depreciation, depletion and amortization:
Completion and Production	$	1,058		$	953		$	900
Drilling and Evaluation	512			563			569
Corporate and other	36			40			34
Total	$	1,606		$	1,556		$	1,503

(a) Includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions. Also includes merger-related costs and a termination fee during the year ended December 31, 2016.

(b) Impairments and other charges are as follows:

-For the year ended December 31, 2018, the aggregate charge of $265 million represents a write-down of all of our remaining investment in Venezuela, consisting of receivables, fixed assets, inventory and other assets and liabilities.

-For the year ended December 31, 2017, the aggregate charge of $647 million represents a fair market value adjustment on our existing promissory note with our primary customer in Venezuela and a full reserve against our other accounts receivable with this customer.

-For the year ended December 31, 2016, the aggregate charge of $3.4 billion consisted of fixed asset impairments and write-offs, inventory write-downs, impairments of intangible assets, severance costs, country and facility closures, and other charges related to the energy downturn. This included $2.1 billion attributable to Completion and Production, $1.2 billion attributable to Drilling and Evaluation and $10 million attributable to Corporate and other.



	December 31
Millions of dollars	2018		2017
Total assets:
Completion and Production (a)	$	13,231	$	12,276
Drilling and Evaluation (a)	8,037		7,837
Corporate and shared assets (b)	4,714		4,972
Total	$	25,982	$	25,085

(a) Assets associated with specific segments primarily include receivables, inventories, certain identified property, plant and equipment (including field service equipment), equity in and advances to related companies and goodwill.

(b) Corporate and other shared assets primarily include cash and equivalents and deferred tax assets.

Operations by geographic region

The following tables present information by geographic area. In 2018, 2017 and 2016, based on the location of services provided and products sold, 58%, 53% and 41% of our consolidated revenue was from the United States. As of December 31, 2018 and December 31, 2017, 62% and 56% of our property, plant and equipment was located in the United States. No other country accounted for more than 10% of our revenue or property, plant and equipment during the periods presented.




	Year Ended December 31
Millions of dollars	2018		2017		2016
Revenue:
North America	$	14,431	$	11,564	$	6,770
Latin America	2,065		2,116		1,860
Europe/Africa/CIS	2,945		2,781		2,993
Middle East/Asia	4,554		4,159		4,264
Total	$	23,995	$	20,620	$	15,887



	December 31
Millions of dollars	2018		2017
Net property, plant and equipment:
North America	$	5,672	$	4,922
Latin America	974		945
Europe/Africa/CIS	938		1,098
Middle East/Asia	1,377		1,556
Total	$	8,961	$	8,521