Business Segment and Geographic Information

3 Months Ended

Mar. 31, 2017

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 using 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 March 31
Millions of dollars	2017			2016
Revenue:
Completion and Production	$	2,604		$	2,324
Drilling and Evaluation	1,675			1,874
Total revenue	$	4,279		$	4,198
Operating income (loss):
Completion and Production	$	147		$	30
Drilling and Evaluation	122			241
Total operations	269			271
Corporate and other (a)	(66		)	(584		)
Impairments and other charges	—			(2,766		)
Total operating income (loss)	$	203		$	(3,079	)
Interest expense, net of interest income (b)	(242		)	(165		)
Other, net	(18		)	(47		)
Loss from continuing operations before income taxes	$	(57	)	$	(3,291	)

(a) Includes certain expenses not attributable to a particular business segment such as costs related to support functions and corporate executives, as well as merger-related costs incurred during the three months ended March 31, 2016.

(b) Includes $104 million of costs related to the early extinguishment of $1.4 billion of senior notes in the three months ended March 31, 2017.

Receivables

As of March 31, 2017, 37% of our gross trade receivables were from customers in the United States and 15% were from customers in Venezuela. As of December 31, 2016, 28% of our gross trade receivables were from customers in the United States and 15% were from customers in Venezuela. Other than the United States and Venezuela, no other country or single customer accounted for more than 10% of our gross trade receivables at these dates.

Venezuela. 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.

Our total outstanding net trade receivables in Venezuela were $636 million as of March 31, 2017, compared to $610 million as of December 31, 2016, which represents 15% of total company trade receivables for both periods. The majority of our Venezuela receivables are United States dollar-denominated receivables. Of the $636 million of receivables in Venezuela as of March 31, 2017, $441 million have been classified as long-term and included within “Other assets” on our condensed consolidated balance sheets.

In addition, we currently hold an interest-bearing promissory note with our primary customer in Venezuela with a par value of $200 million, and we have been receiving quarterly interest payments on this note in accordance with the dates outlined in the agreement. See Note 8 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Business Environment and Results of Operations” for additional information about the promissory note.