v3.24.3
Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segments

5. Segments

Effective January 1, 2024, NOV consolidated its reporting structure into two segments: Energy Products and Services, and Energy Equipment. Segment disclosures pertaining to prior periods have been restated to reflect the change in reportable segments.

Financial results by operating segment are as follows (in millions):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

1,003

 

 

$

1,034

 

 

$

3,070

 

 

$

3,004

 

Energy Equipment

 

 

1,219

 

 

 

1,195

 

 

 

3,601

 

 

 

3,364

 

Eliminations

 

 

(31

)

 

 

(44

)

 

 

(109

)

 

 

(128

)

Total revenue

 

$

2,191

 

 

$

2,185

 

 

$

6,562

 

 

$

6,240

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit:

 

 

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

114

 

 

$

145

 

 

$

363

 

 

$

413

 

Energy Equipment

 

 

129

 

 

 

98

 

 

 

456

 

 

 

250

 

Eliminations and corporate costs

 

 

(49

)

 

 

(60

)

 

 

(150

)

 

 

(173

)

Total operating profit

 

$

194

 

 

$

183

 

 

$

669

 

 

$

490

 

 

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 two reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment.

 

Total other items included in operating profit were an expense of $5 million for the three months ended September 30, 2024, primarily related to severance pay, and a credit of $116 million for the nine months ended September 30, 2024, primarily related to gains from divestiture of the Company's Pole Products business in the Energy Equipment segment. For the three months ended September 30, 2023, total other items included in operating profit were an expense of $7 million, primarily related to a voluntary early retirement program, and a credit of $4 million for the nine months ended September 30, 2023, primarily related to gains on the sale of previously reserved inventory.