National Oilwell Varco 2002 Annual Report Download - page 47

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12. Business Segments and Geographic Areas
National Oilwell’s operations consist of two segments: Products and Technology and Distribution
Services. The Products and Technology segment designs and manufactures a variety of oilfield
equipment for use in oil and gas drilling, completion and production activities. The Distribution
Services segment distributes an extensive line of oilfield supplies and equipment. Intersegment
sales and transfers are accounted for at commercial prices and are eliminated in consolidation.
The accounting policies of the reportable segments are the same as those described in the
summary of significant accounting policies of the Company. The Company evaluates
performance of each reportable segment based upon its operating income, excluding non-
recurring items.
No single customer accounted for 10% or more of consolidated revenues during the three years
ended December 31, 2002.
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