Business Segment and Geographic Information

3 Months Ended

Mar. 31, 2020

Business Segment and Geographic Information

Business Segment and Geographic InformationWe 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. 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.

The following table presents information on our business segments.


	Three Months Ended March 31
Millions of dollars	2020		2019
Revenue:
Completion and Production	$	2,962	$	3,662
Drilling and Evaluation	2,075		2,075
Total revenue	$	5,037	$	5,737
Operating income (loss):
Completion and Production	$	345	$	368
Drilling and Evaluation	217		123
Total operations	562		491
Corporate and other (a)	(60)		(65)
Impairments and other charges (b)	(1,073)		(61)
Total operating income (loss)	$	(571)	$	365
Interest expense, net of interest income	(134)		(143)
Loss on early extinguishment of debt (c)	(168)		—
Other, net	(23)		(30)
Income (loss) before income taxes	$	(896)	$	192

(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.

(b) For the three months ended March 31, 2020, amount includes approximately $780 million attributable to Completion and Production, $277 million attributable to Drilling and Evaluation, and $16 million attributable to Corporate and other. See Note 2 for further discussion on these impairments and other charges.

(c) During the three months ended March 31, 2020, we recognized a $168 million loss on extinguishment of debt related to the early repurchase of $1.5 billion aggregate principal amount of senior notes. See Note 6 for further discussion on this charge.

Receivables

As of March 31, 2020, 40% of our net trade receivables were from customers in the United States. As of December 31, 2019, 36% of our net trade receivables were from customers in the United States. No other country or single customer accounted for more than 10% of our trade receivables at those dates. As a result of the current market environment, we have an increased risk of delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves a high degree of judgment utilizing significant assumptions, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit agency ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.