Halliburton 2015 Annual Report Download - page 51

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34
OPERATING INCOME: Favorable Percentage
Millions of dollars 2014 2013 (Unfavorable) Change
Completion and Production $ 3,670 $ 2,875 $ 795 28%
Drilling and Evaluation 1,740 1,770 (30) (2)
Corporate and other (184) (1,507) 1,323 (88)
Impairments and other charges (129)
—
(129) 100
Total operating income $ 5,097 $ 3,138 $ 1,959 62%
By geographic region:
Completion and Production:
North America $ 2,618 $ 1,916 $ 702 37%
Latin America 214 211 3 1
Europe/Africa/CIS 389 356 33 9
Middle East/Asia 449 392 57 15
Total 3,670 2,875 795 28
Drilling and Evaluation:
North America 598 656 (58) (9)
Latin America 217 307 (90) (29)
Europe/Africa/CIS 300 334 (34) (10)
Middle East/Asia 625 473 152 32
Total 1,740 1,770 (30) (2)
Total operating income by region
(excluding Corporate and other):
North America 3,216 2,572 644 25
Latin America 431 518 (87) (17)
Europe/Africa/CIS 689 690 (1)
—
Middle East/Asia 1,074 865 209 24
Consolidated revenue in 2014 increased 12% compared to 2013, primarily as a result of higher stimulation activity in
the United States land market and increased activity in almost all of our product service lines in the Eastern Hemisphere, which
were partially offset by lower activity in Latin America. Revenue outside of North America was 46% of consolidated revenue in
2014 and 48% of consolidated revenue in 2013.
The $2.0 billion increase in consolidated operating income compared to 2013 was primarily a result of various
corporate expense items in 2013 as well as increased stimulation activity in the United States land market and growth in Middle
East/Asia in 2014, which more than offset lower activity and margins experienced in Latin America. Operating income in 2014
was positively impacted by $195 million of Macondo-related items as a result of a reduction of our loss contingency liability
and an expected insurance recovery, offset by $129 million of impairments and other charges related to severance and asset
write-offs and $17 million of Baker Hughes acquisition-related costs. Operating income in 2013 was negatively impacted by
the following pre-tax items: a $1.0 billion increase in our loss contingency liability related to Macondo and a $55 million
charge related to a charitable contribution to the National Fish and Wildlife Foundation, partially offset by a $28 million value-
added tax refund receivable in Brazil.