Company Quick10K Filing
Quick10K
National Oilwell Varco
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$25.11 386 $9,690
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-05-29 Shareholder Vote
8-K 2019-04-25 Earnings, Exhibits
8-K 2019-04-12 Earnings, Exhibits
8-K 2019-02-06 Earnings, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-05-11 Shareholder Vote
8-K 2018-04-16 Earnings, Exhibits
8-K 2018-02-05 Earnings, Exhibits
8-K 2018-01-19 Other Events, Exhibits
CVX Chevron 230,860
HAL Halliburton 22,680
JKHY Henry Jack & Associates 10,340
CLH Clean Harbors 3,900
BVN Buenaventura Mining 3,830
SAFM Sanderson Farms 3,330
SHO Sears 3,240
DY Dycom Industries 1,530
CPN Calpine 0
SNNY Sunnyside Bancorp 0
NOV 2019-03-31
Part I - Financial Information
Item 1. Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1A. Risk Factors
Item 4. Mine Safety Disclosures
Item 6. Exhibits
EX-10.13 nov-ex1013_354.htm
EX-10.14 nov-ex1014_352.htm
EX-10.15 nov-ex1015_353.htm
EX-31.1 nov-ex311_7.htm
EX-31.2 nov-ex312_10.htm
EX-32.1 nov-ex321_6.htm
EX-32.2 nov-ex322_9.htm
EX-95 nov-ex95_8.htm

National Oilwell Varco Earnings 2019-03-31

NOV 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 nov-10q_20190331.htm 10-Q nov-10q_20190331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-12317

 

NATIONAL OILWELL VARCO, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

76-0475815

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

7909 Parkwood Circle Drive

Houston, Texas

77036-6565

(Address of principal executive offices)

(713) 346-7500

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

NOV

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

Accelerated filer

Non-accelerated filer  

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No

As of April 18, 2019 the registrant had 385,920,426 shares of common stock, par value $0.01 per share, outstanding.

 

 

 


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NATIONAL OILWELL VARCO, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except share data)

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,270

 

 

$

1,427

 

Receivables, net

 

 

1,793

 

 

 

2,101

 

Inventories, net

 

 

3,131

 

 

 

2,986

 

Contract assets

 

 

539

 

 

 

565

 

Prepaid and other current assets

 

 

205

 

 

 

200

 

Total current assets

 

 

6,938

 

 

 

7,279

 

Property, plant and equipment, net

 

 

2,605

 

 

 

2,797

 

Lease right-of-use assets

 

 

789

 

 

 

 

Deferred income taxes

 

 

11

 

 

 

11

 

Goodwill

 

 

6,292

 

 

 

6,264

 

Intangibles, net

 

 

2,942

 

 

 

3,020

 

Investment in unconsolidated affiliates

 

 

299

 

 

 

301

 

Other assets

 

 

126

 

 

 

124

 

Total assets

 

$

20,002

 

 

$

19,796

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

679

 

 

$

722

 

Accrued liabilities

 

 

876

 

 

 

1,088

 

Contract liabilities

 

 

412

 

 

 

458

 

Current portion of lease liabilities

 

 

115

 

 

 

7

 

Current portion of long-term debt and short-term borrowings

 

 

 

 

 

 

Accrued income taxes

 

 

21

 

 

 

66

 

Total current liabilities

 

 

2,103

 

 

 

2,341

 

Lease liabilities

 

 

728

 

 

 

222

 

Long-term debt

 

 

2,483

 

 

 

2,482

 

Deferred income taxes

 

 

565

 

 

 

564

 

Other liabilities

 

 

283

 

 

 

298

 

Total liabilities

 

 

6,162

 

 

 

5,907

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock - par value $.01; 1 billion shares authorized; 385,932,098 and

   383,426,654 shares issued and outstanding at March 31, 2019 and

  December 31, 2018

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

8,408

 

 

 

8,390

 

Accumulated other comprehensive loss

 

 

(1,413

)

 

 

(1,437

)

Retained earnings

 

 

6,766

 

 

 

6,862

 

Total Company stockholders' equity

 

 

13,765

 

 

 

13,819

 

Noncontrolling interests

 

 

75

 

 

 

70

 

Total stockholders’ equity

 

 

13,840

 

 

 

13,889

 

Total liabilities and stockholders’ equity

 

$

20,002

 

 

$

19,796

 

 

See notes to unaudited consolidated financial statements.

2


NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

(In millions, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Revenue

 

$

1,940

 

 

$

1,795

 

Cost of revenue

 

 

1,684

 

 

 

1,508

 

Gross profit

 

 

256

 

 

 

287

 

Selling, general and administrative

 

 

304

 

 

 

288

 

Operating loss

 

 

(48

)

 

 

(1

)

Interest and financial costs

 

 

(25

)

 

 

(24

)

Interest income

 

 

6

 

 

 

7

 

Equity income in unconsolidated affiliates

 

 

 

 

 

2

 

Other income (expense), net

 

 

(18

)

 

 

(47

)

Loss before income taxes

 

 

(85

)

 

 

(63

)

Provision (benefit) for income taxes

 

 

(10

)

 

 

3

 

Net loss

 

 

(75

)

 

 

(66

)

Net income attributable to noncontrolling interests

 

 

2

 

 

 

2

 

Net loss attributable to Company

 

$

(77

)

 

$

(68

)

 

 

 

 

 

 

 

 

 

Net loss attributable to Company per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.20

)

 

$

(0.18

)

Diluted

 

$

(0.20

)

 

$

(0.18

)

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.05

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

380

 

 

 

377

 

Diluted

 

 

380

 

 

 

377

 

 

See notes to unaudited consolidated financial statements.

 

3


NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(In millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Net loss

 

$

(75

)

 

$

(66

)

Currency translation adjustments

 

 

20

 

 

 

36

 

Changes in derivative financial instruments, net of tax

 

 

4

 

 

 

13

 

Changes in defined benefit plans, net of tax

 

 

 

 

 

 

Comprehensive loss

 

 

(51

)

 

 

(17

)

Comprehensive income attributable to noncontrolling interest

 

 

2

 

 

 

2

 

Comprehensive loss attributable to Company

 

$

(53

)

 

$

(19

)

 

See notes to unaudited consolidated financial statements.

 

4


NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

Net loss

 

$

(75

)

 

$

(66

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

177

 

 

 

173

 

Deferred income taxes

 

 

(9

)

 

 

5

 

Equity income in unconsolidated affiliates

 

 

 

 

 

(2

)

Other, net

 

 

35

 

 

 

19

 

Change in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Receivables

 

 

326

 

 

 

(79

)

Inventories

 

 

(152

)

 

 

(146

)

Contract assets

 

 

26

 

 

 

80

 

Prepaid and other current assets

 

 

(4

)

 

 

(20

)

Accounts payable

 

 

(49

)

 

 

14

 

Accrued liabilities

 

 

(234

)

 

 

(279

)

Contract liabilities

 

 

(46

)

 

 

77

 

Income taxes payable

 

 

(45

)

 

 

(46

)

Other assets/liabilities, net

 

 

12

 

 

 

141

 

Net cash used by operating activities

 

$

(38

)

 

$

(129

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(43

)

 

 

(39

)

Business acquisitions, net of cash acquired

 

 

(65

)

 

 

(36

)

Other

 

 

1

 

 

 

14

 

Net cash used in investing activities

 

$

(107

)

 

$

(61

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Cash dividends paid

 

 

(19

)

 

 

(19

)

Other

 

 

(1

)

 

 

1

 

Net cash used in financing activities

 

 

(20

)

 

 

(18

)

Effect of exchange rates on cash

 

 

8

 

 

 

7

 

Increase (decrease) in cash and cash equivalents

 

 

(157

)

 

 

(201

)

Cash and cash equivalents, beginning of period

 

 

1,427

 

 

 

1,437

 

Cash and cash equivalents, end of period

 

$

1,270

 

 

$

1,236

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash payments during the period for:

 

 

 

 

 

 

 

 

Interest

 

$

5

 

 

$

3

 

Income taxes

 

$

29

 

 

$

42

 

 

See notes to unaudited consolidated financial statements.

 

 

 

5


NATIONAL OILWELL VARCO, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In millions)

 

 

 

Shares

Outstanding

 

 

Common

Stock

 

 

Additional

Paid in

Capital

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Retained

Earnings

(Loss)

 

 

Total

Company

Stockholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2018

 

 

383

 

 

$

4

 

 

$

8,390

 

 

$

(1,437

)

 

$

6,862

 

 

$

13,819

 

 

$

70

 

 

$

13,889

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(77

)

 

 

(77

)

 

 

2

 

 

 

(75

)

Other comprehensive income (loss), net

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Cash dividends, $0.05 per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

 

 

(19

)

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Stock-based compensation

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

12

 

Common stock issued

 

 

3

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Balance at March 31, 2019

 

 

386

 

 

$

4

 

 

$

8,408

 

 

$

(1,413

)

 

$

6,766

 

 

$

13,765

 

 

$

75

 

 

$

13,840

 

 

 

 

Shares

Outstanding

 

 

Common

Stock

 

 

Additional

Paid in

Capital

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Retained

Earnings

(Loss)

 

 

Total

Company

Stockholders'

Equity

 

 

Noncontrolling

Interests

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2017

 

 

380

 

 

$

4

 

 

$

8,234

 

 

$

(1,110

)

 

$

6,966

 

 

$

14,094

 

 

$

66

 

 

$

14,160

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(68

)

 

 

(68

)

 

 

 

 

 

(68

)

Other comprehensive income (loss), net

 

 

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

Cash dividends, $0.05 per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

 

 

(19

)

Adoption of new accounting standards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

 

 

 

 

4

 

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Stock-based compensation

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

19

 

Common stock issued

 

 

2

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Balance at March 31, 2018

 

 

382

 

 

$

4

 

 

$

8,256

 

 

$

(1,061

)

 

$

6,883

 

 

$

14,082

 

 

$

69

 

 

$

14,151

 

See notes to unaudited consolidated financial statements.

 

 

6


NATIONAL OILWELL VARCO, INC.

Notes to Consolidated Financial Statements (Unaudited)

 

1.

Basis of Presentation

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accompanying unaudited consolidated financial statements of National Oilwell Varco, Inc. (“NOV” or the “Company”) present information in accordance with GAAP in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with the Company’s 2018 Annual Report on Form 10-K.

In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. Certain reclassifications have been made to the prior year financial statements in order for them to conform with the current presentation, including the reclassification of $229 million from the December 31, 2018 debt balance to leases. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year.

The fair values of cash and cash equivalents, receivables and payables was approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 8, and the fair values of derivative financial instruments are provided in Note 11.

2.

Inventories, net

Inventories consist of (in millions):

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Raw materials and supplies

 

$

627

 

 

$

614

 

Work in process

 

 

556

 

 

 

501

 

Finished goods and purchased products

 

 

1,948

 

 

 

1,871

 

Total

 

$

3,131

 

 

$

2,986

 

 

3.

Accrued Liabilities

Accrued liabilities consist of (in millions):

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Compensation

 

$

189

 

 

$

331

 

Vendor costs

 

 

119

 

 

 

127

 

Warranties

 

 

102

 

 

 

105

 

Taxes (non-income)

 

 

77

 

 

 

124

 

Insurance

 

 

54

 

 

 

55

 

Commissions

 

 

34

 

 

 

34

 

Interest

 

 

27

 

 

 

7

 

Fair value of derivatives

 

 

24

 

 

 

23

 

Other

 

 

250

 

 

 

282

 

Total

 

$

876

 

 

$

1,088

 

 

7


Warranties

 

The Company provides warranties on certain of its products and services. The Company accrues warranty liability based upon specific claims and a review of historical claim experience in accordance with Accounting Standards Codification (“ASC”) Topic 450 “Contingencies”. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered.

 

The changes in the warranty provision are as follows (in millions):

 

Balance at December 31, 2018

 

$

105

 

Net provisions for warranties during the period

 

 

9

 

Amounts incurred

 

 

(12

)

Balance at March 31, 2019

 

$

102

 

 

4.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in millions):

 

 

 

 

 

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

 

Currency

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

 

Translation

 

 

Instruments,

 

 

Plans,

 

 

 

 

 

 

 

Adjustments

 

 

Net of Tax

 

 

Net of Tax

 

 

Total

 

Balance at December 31, 2018

 

$

(1,396

)

 

$

(14

)

 

$

(27

)

 

$

(1,437

)

Accumulated other comprehensive

   income (loss) before reclassifications

 

 

20

 

 

 

3

 

 

 

 

 

 

23

 

Amounts reclassified from accumulated

   other comprehensive income (loss)

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Balance at March 31, 2019

 

$

(1,376

)

 

$

(10

)

 

$

(27

)

 

$

(1,413

)

 

The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

 

 

Currency

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

Currency

 

 

Derivative

 

 

Defined

 

 

 

 

 

 

 

Translation

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

Translation

 

 

Financial

 

 

Benefit

 

 

 

 

 

 

 

Adjustments

 

 

Instruments

 

 

Plans

 

 

Total

 

 

Adjustments

 

 

Instruments

 

 

Plans

 

 

Total

 

Revenue

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(1

)

 

$

 

 

$

(1

)

Cost of revenue

 

 

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Tax effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

$

 

 

$

1

 

 

$

 

 

$

1

 

 

$

 

 

$

(3

)

 

$

 

 

$

(3

)

 

 

The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income (loss). For the three months ended March 31, 2019 and 2018, a majority of these local currencies strengthened against the U.S. dollar, resulting in other comprehensive income of $20 million and $36 million, respectively.  

The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income or loss, net of tax, until the underlying transactions they hedge are realized. The movement in other comprehensive income (loss) from period to period will be the result of the combination of changes in fair value of open derivatives and the outflow of other comprehensive income (loss) related to cumulative changes in the fair value of derivatives that have settled in the current period. The accumulated effect was other comprehensive income of $4 million (net of tax of $1 million) and $13 million (net of tax of $4 million) for the three months ended March 31, 2019 and 2018, respectively.

8


5.

Segments

Financial results by operating segment are as follows (in millions):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Revenue:

 

 

 

 

 

 

 

 

Wellbore Technologies

 

$

807

 

 

$

711

 

Completion & Production Solutions

 

 

581

 

 

 

670

 

Rig Technologies

 

 

603

 

 

 

483

 

Eliminations

 

 

(51

)

 

 

(69

)

Total revenue

 

$

1,940

 

 

$

1,795

 

 

 

 

 

 

 

 

 

 

Operating profit (loss):

 

 

 

 

 

 

 

 

Wellbore Technologies

 

$

19

 

 

 

12

 

Completion & Production Solutions

 

 

(35

)

 

 

16

 

Rig Technologies

 

 

31

 

 

 

18

 

Eliminations and corporate costs

 

 

(63

)

 

 

(47

)

Total operating profit (loss)

 

$

(48

)

 

$

(1

)

 

 

 

 

 

 

 

 

 

Operating profit (loss)%:

 

 

 

 

 

 

 

 

Wellbore Technologies

 

 

2.4

%

 

 

1.7

%

Completion & Production Solutions

 

 

(6.0

%)

 

 

2.4

%

Rig Technologies

 

 

5.1

%

 

 

3.7

%

Total operating profit (loss)%

 

 

(2.5

%)

 

 

(0.1

%)

 

Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations include intercompany transactions conducted between the three reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment.

6.

Revenue

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion