Halliburton 2011 Annual Report Download - page 73

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58
Following is a discussion of our results of operations by reportable segment.
Completion and Production increase in revenue compared to 2009 was primarily a result of higher
activity in North America. North America revenue increased 72%, primarily due to increased activity in the
United States in cementing services and production enhancement. Latin America revenue decreased 5%
due to declines in all product service lines from reduced activity in Mexico and Venezuela, partially offset
by increased activity in Argentina and Colombia. Europe/Africa/CIS revenue was flat, as price discounts in
the United Kingdom and decreased demand for production enhancement services in Europe and the
Caspian partially offset higher activity levels across Africa. Middle East/Asia revenue was also flat, as job
delays and a decrease in demand for production enhancement services in the Middle East partially offset
increased demand for production enhancement services in Southeast Asia. Revenue outside of North
America was 38% of total segment revenue in 2010 and 52% of total segment revenue in 2009.
The Completion and Production segment operating income increase compared to 2009 was
primarily due to the North America region, where operating income grew by $1.2 billion, largely due to
increases in demand for production enhancement and cementing services which benefitted from increased
rig count associated with higher horizontal drilling activity and improved pricing. Latin America operating
income fell 33%, primarily due to lower activity across all product services lines in Mexico.
Europe/Africa/CIS operating income declined 4% from declines in Europe in completion tools and
production enhancement services. Middle East/Asia operating income decreased 25% due to activity
declines throughout the region.
Drilling and Evaluation revenue increased compared to 2009 primarily as a result of increased
activity in North America, where revenue grew 28%. Latin America revenue grew 7% as increased demand
for all products and services in Brazil and Colombia was offset by lower activity in Venezuela and lower
demand for wireline and perforating services in Mexico. Europe/Africa/CIS revenue was relatively flat for
the period, as higher drilling activity and increased demand for drilling fluid services in Norway and the
Commonwealth of Independent States (CIS) was offset by lower drilling activity and decreased demand for
drilling fluid services throughout Africa. Middle East/Asia revenue rose 7% as increased demand for
drilling fluid services in Southeast Asia and the commencement of activity in Iraq offset decreased demand
for drilling services throughout most of the region. Revenue outside North America was 67% of total
segment revenue in 2010 and 71% of total segment revenue in 2009.
Segment operating income compared to 2009 was relatively flat due to increased activity in North
America being offset by lower activity internationally. North America operating income increased $275
million from improved pricing and increased demand for nearly all products and services. Latin America
operating income fell 6%, primarily due to lower drilling activity in Mexico. The Europe/Africa/CIS region
operating income fell 26% as decreased demand and higher costs for drilling services, wireline and
perforating services, and drilling fluid services in Africa offset increased demand for drilling fluid services
in Norway. Middle East/Asia operating income decreased 31% due to a $50 million non-cash impairment
charge to an oil and gas property in Bangladesh, higher costs throughout most of the region, lower drilling
services in Saudi Arabia, and decreased demand for drilling services and wireline and perforating services
in most of Asia Pacific.
Corporate and other expenses were $236 million in 2010 compared to $205 million in 2009. The
2009 results included $5 million in employee separation costs. The 15% increase was primarily related to
higher legal costs.