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SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Operating Information by Segment

Operating Information by Segment

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCSA

 

$

1,090

 

 

$

1,516

 

 

$

3,729

 

 

$

2,609

 

EARC

 

 

248

 

 

 

77

 

 

 

588

 

 

 

151

 

MENA

 

 

520

 

 

 

473

 

 

 

1,299

 

 

 

1,287

 

APAC

 

 

125

 

 

 

75

 

 

 

413

 

 

 

332

 

Technology

 

 

138

 

 

 

148

 

 

 

440

 

 

 

253

 

Total revenues

 

$

2,121

 

 

$

2,289

 

 

$

6,469

 

 

$

4,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCSA

 

$

(1,405

)

 

$

97

 

 

$

(1,317

)

 

$

148

 

EARC

 

 

(250

)

 

 

(13

)

 

 

(239

)

 

 

(24

)

MENA

 

 

69

 

 

 

89

 

 

 

164

 

 

 

256

 

APAC

 

 

1

 

 

 

9

 

 

 

16

 

 

 

125

 

Technology

 

 

30

 

 

 

20

 

 

 

100

 

 

 

45

 

Total segment operating income

 

 

(1,555

)

 

 

202

 

 

 

(1,276

)

 

 

550

 

Corporate

 

 

(129

)

 

 

(73

)

 

 

(456

)

 

 

(308

)

Total operating (loss) income

 

$

(1,684

)

 

$

129

 

 

$

(1,732

)

 

$

242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill impairment (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCSA

 

$

1,111

 

 

$

-

 

 

$

1,111

 

 

$

-

 

EARC

 

 

259

 

 

 

-

 

 

 

259

 

 

 

-

 

MENA

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Technology

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total goodwill impairment

 

$

1,370

 

 

$

-

 

 

$

1,370

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCSA

 

$

16

 

 

$

21

 

 

$

47

 

 

$

37

 

EARC

 

 

3

 

 

 

5

 

 

 

10

 

 

 

8

 

MENA

 

 

14

 

 

 

19

 

 

 

39

 

 

 

35

 

APAC

 

 

3

 

 

 

3

 

 

 

10

 

 

 

12

 

Technology

 

 

17

 

 

 

45

 

 

 

54

 

 

 

59

 

Corporate

 

 

10

 

 

 

14

 

 

 

40

 

 

 

36

 

Total depreciation and amortization

 

$

63

 

 

$

107

 

 

$

200

 

 

$

187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCSA

 

$

1

 

 

$

2

 

 

$

6

 

 

$

4

 

EARC

 

 

1

 

 

 

-

 

 

 

2

 

 

 

-

 

MENA

 

 

3

 

 

 

2

 

 

 

11

 

 

 

9

 

APAC

 

 

1

 

 

 

4

 

 

 

6

 

 

 

9

 

Technology

 

 

1

 

 

 

-

 

 

 

1

 

 

 

-

 

Corporate

 

 

25

 

 

 

11

 

 

 

39

 

 

 

40

 

Total Capital expenditures

 

$

32

 

 

$

19

 

 

$

65

 

 

$

62

 

 

Assets by Segment

 

 

 

 

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

 

(In millions)

 

Segment assets:

 

 

 

 

 

 

 

 

NCSA

 

$

2,355

 

 

$

3,257

 

EARC

 

 

1,008

 

 

 

1,169

 

MENA

 

 

1,657

 

 

 

1,472

 

APAC

 

 

1,169

 

 

 

1,147

 

Technology

 

 

2,747

 

 

 

2,752

 

Corporate (4)

 

 

(182

)

 

 

(357

)

Total assets

 

$

8,754

 

 

$

9,440

 

 

(1)

Operating results for NCSA and EARC for the three and nine months ended September 30, 2019 include the impacts of the goodwill and intangible assets impairments discussed below. In addition, NCSA operating results for the nine months ended September 30, 2019 include a $101 million loss on the sale of APP, discussed in Note 4, Acquisition and Disposition Transactions.

Corporate operating results for the three and nine months ended September 30, 2019 included:

 

•

$14 million and $103 million of restructuring and integration costs, respectively;

 

•

$14 million and $29 million of transaction costs, respectively; and

 

•

$18 million of vessel and marine operations related impairment charges, see Note 16, Fair Value Measurements.

Corporate operating results for the three and nine months ended September 30, 2018 included:

 

•

$31 million and $106 million of restructuring and integration costs, respectively; and

 

•

$5 million and $45 million of transaction costs, respectively.

See Note 11, Restructuring and Integration Costs and Transaction Costs, for further discussion.

(2)

Represents impairment of goodwill associated with our NCSA and EARC reporting units, resulting from our interim impairment assessment during the third quarter of 2019. In addition, in the third quarter of 2019 we recorded $143 million of impairment associated with NCSA intangible assets. The goodwill impairment values are included within the applicable operating segment’s operating loss. See Note 9, Goodwill and Other Intangible Assets, for further discussion.

 

(3)

Capital expenditures reported represent cash purchases. As of September 30, 2019, we had approximately $127 million of accrued and unpaid capital expenditures reported in property, plant and equipment; the balance as of September 30, 2018 was not material.

 

(4)

Corporate assets as of September 30, 2019 and December 31, 2018 include negative cash balances associated with our international cash pooling program.