National Oilwell Varco 2015 Annual Report Download - page 105

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Table of Contents
Business Segments:








 


December 31, 2015:
Revenue $6,964 $ 2,515 $ 3,718 $ 3,365 $ (1,805) $ — $14,757
Operating profit (loss) 1,206 605 (1,613) 161 (749) — (390)
Capital expenditures 81 10 180 87 95 — 453
Depreciation and amortization 96 30 400 221 — — 747
Goodwill 1,232 877 2,874 1,997 — — 6,980
Total assets 6,772 2,455 8,766 5,916 2,816 — 26,725
December 31, 2014:
Revenue $9,848 $ 3,222 $ 5,722 $ 4,645 $ (1,997) $ — $21,440
Operating profit 1,996 882 937 690 (892) — 3,613
Capital expenditures 133 12 262 184 108 — 699
Depreciation and amortization 88 27 439 224 — — 778
Goodwill 1,236 877 4,357 2,069 — — 8,539
Total assets 8,052 2,789 11,687 7,072 3,962 — 33,562
December 31, 2013:
Revenue $8,450 $ 2,692 $ 5,211 $ 4,309 $ (1,441) $ — $19,221
Operating profit 1,594 729 915 613 (652) — 3,199
Capital expenditures 61 24 226 212 91 — 614
Depreciation and amortization 82 26 420 210 — — 738
Goodwill 1,279 906 4,425 2,106 — 333 9,049
Total assets 7,654 2,475 11,862 7,287 3,351 2,183 34,812
(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 four reporting segments
that are eliminated in consolidation. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also
included in the eliminations column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed
assets.

On May 30, 2014, the Company completed the previously announced spin-off of its distribution business into an independent public company named NOW
Inc., which trades on the New York Stock Exchange under the symbol “DNOW”. After the close of the New York Stock Exchange on May 30, 2014, the
stockholders of record as of May 22, 2014 (the “Record Date”) received one share of NOW Inc. common stock for every four shares of NOV common stock
held on the Record Date. No fractional shares of NOW Inc. common stock were distributed. Instead, the transfer agent aggregated any fractional shares into
whole shares, sold those whole shares in the open market at prevailing rates and distributed the net cash proceeds, after deducting any taxes required to be
withheld and any amount equal to all brokerage charges and commissions, pro rata to each holder who would otherwise have been entitled to receive
fractional shares in the distribution.
104