National Oilwell Varco 2015 Annual Report Download - page 103

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Table of Contents
aggregated two business units under Rig Systems, one business unit under Rig Aftermarket, six business units under Wellbore Technologies and six business
units under Completion & Production Solutions for a total of 15 business units. The Company has aggregated each of its business units in one of the four
reporting segments based on the guidelines of ASC Topic 280, “Segment Reporting” (“ASC Topic 280”).
Rig Systems
The Company’s Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and
offshore. The segment designs, manufactures and sells land rigs, offshore drilling equipment packages, including installation and commissioning services,
and drilling rig components that mechanize and automate the drilling process and rig functionality.
Equipment and technologies in Rig Systems include: substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid
transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems, including drives and
generators; and rig instrumentation and control systems.
Rig Systems supports land and offshore drillers. Demand for the segment’s products depends on drilling contractors’ and oil and gas companies’ capital
spending plans, specifically capital expenditures on rig construction and refurbishment.
Rig Aftermarket
The Company’s Rig Aftermarket segment provides comprehensive aftermarket products and services to support land and offshore rigs, and drilling rig
components manufactured by the Company’s Rig Systems segment.
The segment provides spare parts, repair, and rentals as well as technical support, field service and first well support, field engineering, and customer training
through a network of aftermarket service and repair facilities strategically located in major areas of drilling operations.
Rig Aftermarket supports land and offshore drillers. Demand for the segment’s products and services depends on overall levels of oilfield drilling activity,
which drives demand for spare parts, service, and repair for Rig Systems’ large installed base of equipment; and secondarily on drilling contractors’ and oil
and gas companies’ capital spending plans, specifically capital expenditures on rig refurbishment and re-certification.
Wellbore Technologies
The Company’s Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling
operations, and offers services that optimize their performance, including: solids control and waste management equipment and services; drilling fluids;
portable power generation; premium drill pipe; wired pipe; drilling optimization and automation services; tubular inspection, repair and coating services;
rope access inspection; instrumentation; measuring and monitoring; downhole and fishing tools; steerable technologies; hole openers; and drill bits.
Wellbore Technologies focuses on oil and gas companies and supports drilling contractors, oilfield service companies, and oilfield equipment rental
companies. Demand for the segment’s products and services depends on the level of oilfield drilling activity by oil and gas companies, drilling contractors,
and oilfield service companies.
Completion & Production Solutions
The Company’s Completion & Production Solutions segment integrates technologies for well completions and oil and gas production. The segment designs,
manufactures, and sells equipment and technologies needed for hydraulic fracture stimulation, including pressure pumping trucks, blenders, sanders,
hydration units,
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