Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2019

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. 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	2019			2018			2017
Revenue:
Completion and Production	$	14,031		$	15,973		$	13,077
Drilling and Evaluation	8,377			8,022			7,543
Total revenue	$	22,408		$	23,995		$	20,620
Operating income:
Completion and Production	$	1,671		$	2,278		$	1,625
Drilling and Evaluation	642			745			726
Total operations	2,313			3,023			2,351
Corporate and other (a)	(255		)	(291		)	(330		)
Impairments and other charges (b)	(2,506		)	(265		)	(647		)
Total operating income (loss)	$	(448	)	$	2,467		$	1,374
Interest expense, net of interest income	$	(569	)	$	(554	)	$	(593	)
Other, net	(105		)	(99		)	(99		)
Income (loss) from continuing operations before income taxes	$	(1,122	)	$	1,814		$	682
Capital expenditures:
Completion and Production	$	800		$	1,364		$	1,111
Drilling and Evaluation	728			657			261
Corporate and other	2			5			1
Total	$	1,530		$	2,026		$	1,373
Depreciation, depletion and amortization:
Completion and Production	$	1,049		$	1,058		$	953
Drilling and Evaluation	552			512			563
Corporate and other	24			36			40
Total	$	1,625		$	1,606		$	1,556

(a) Includes certain expenses not attributable to a particular business segment, such as costs related to support functions and corporate executives, operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.

(b) Impairments and other charges are as follows:

-For the year ended December 31, 2019, amount includes approximately $1.6 billion attributable to Completion and Production, $849 million attributable to Drilling and Evaluation, and $56 million attributable to Corporate and other.

-For the years ended December 31, 2018 and December 31, 2017, we recorded aggregate charges of $265 million and $647 million, respectively, to write-down our investment in Venezuela.



	December 31
Millions of dollars	2019		2018
Total assets:
Completion and Production (a)	$	11,894	$	13,231
Drilling and Evaluation (a)	8,059		8,037
Corporate and other (b)	5,424		4,714
Total	$	25,377	$	25,982

(a) Assets associated with specific segments primarily include receivables, inventories, property, plant and equipment, operating lease right-of-use assets, equity in and advances to related companies and goodwill.

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

Operations by geographic region

The following tables present information by geographic area. In 2019, 2018 and 2017, based on the location of services provided and products sold, 51%, 58% and 53%, respectively, of our consolidated revenue was from the United States. As of December 31, 2019 and December 31, 2018, 59% and 62% 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	2019		2018		2017
Revenue:
North America	$	11,884	$	14,431	$	11,564
Latin America	2,364		2,065		2,116
Europe/Africa/CIS	3,285		2,945		2,781
Middle East/Asia	4,875		4,554		4,159
Total	$	22,408	$	23,995	$	20,620



	December 31
Millions of dollars	2019		2018
Net property, plant and equipment:
North America	$	4,666	$	5,621
Latin America	754		937
Europe/Africa/CIS	772		936
Middle East/Asia	1,118		1,379
Total	$	7,310	$	8,873