Halliburton 2011 Annual Report Download - page 68

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53
OPERATING INCOME: Favorable Percentage
Millions of dollars 2011 2010 (Unfavorable) Change
Completion and Production $ 3,733 $ 2,032 $ 1,701 84%
Drilling and Evaluation 1,403 1,213 190 16
Corporate and other (399) (236) (163) 69
Total operating income $ 4,737 $ 3,009 $ 1,728 57%
By geographic region:
Completion and Production:
North America $ 3,341 $ 1,423 $ 1,918 135%
Latin America 159 115 44 38
Europe/Africa/CIS 48 301 (253) (84)
Middle East/Asia 185 193 (8) (4)
Total 3,733 2,032 1,701 84
Drilling and Evaluation:
North America 641 453 188 42
Latin America 305 175 130 74
Europe/Africa/CIS 191 283 (92) (33)
Middle East/Asia 266 302 (36) (12)
Total 1,403 1,213 190 16
Total operating income by region
(excluding Corporate and other):
North America 3,982 1,876 2,106 112
Latin America 464 290 174 60
Europe/Africa/CIS 239 584 (345) (59)
Middle East/Asia 451 495 (44) (9)
The 38% increase in consolidated revenue in 2011 compared to 2010 was primarily due to higher
rig count and increased demand for our services and products in North America. We experienced a 63%
increase in North America revenue compared to an approximate 21% increase in average North America
rig count during 2011 compared to 2010. Revenue outside of North America was 42% of consolidated
revenue in 2011 and 51% of consolidated revenue in 2010.
The 57% increase in consolidated operating income compared to 2010 was mainly due to
improved pricing and increased demand in North America, particularly in our Completion and Production
division. Operating income in 2011 was adversely impacted by a $25 million, pre-tax, impairment charge
on an asset held for sale in the Europe/Africa/CIS region during the third quarter of 2011, $11 million, pre-
tax, of employee separation costs in the Eastern Hemisphere during the second quarter of 2011, and a $59
million, pre-tax, charge in Libya, to reserve for certain doubtful accounts receivable and inventory during
the first quarter of 2011. Operating income in 2010 was adversely impacted by a $50 million non-cash
impairment charge for an oil and natural gas property in Bangladesh in the third quarter of 2010.