Stock Analysis on Net

National Oilwell Varco Inc. (NYSE:NOV)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 3, 2016.

Analysis of Reportable Segments

Microsoft Excel

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Segment Profit Margin

National Oilwell Varco Inc., profit margin by reportable segment

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


Rig Systems Profit Margin
The Rig Systems segment shows a fluctuating profit margin over the reported periods. Starting at 23.81% in 2012, the margin decreased to 18.86% in 2013, then slightly recovered to 20.27% in 2014 before declining again to 17.32% in 2015. This indicates a downward trend overall, with some variability year to year.
Rig Aftermarket Profit Margin
The Rig Aftermarket segment maintained relatively stable profit margins over the years. The margin was 27.78% in 2012, dipped slightly to 27.08% in 2013, rose marginally to 27.37% in 2014, and then declined to 24.06% in 2015. Despite a modest decrease in 2015, this segment showed the most consistent profitability among the four segments.
Wellbore Technologies Profit Margin
The Wellbore Technologies segment experienced a gradual decline in profit margin from 18.96% in 2012 to 16.38% in 2014. However, in 2015, there was a dramatic and unprecedented drop to -43.38%, indicating a significant loss in that year. This sharp reversal signals potential operational or market challenges impacting this segment severely in 2015.
Completion & Production Solutions Profit Margin
The Completion & Production Solutions segment exhibited a downward trend from 17.13% in 2012 to 14.23% in 2013. Following this, there was a slight improvement to 14.85% in 2014, but a sharp decline occurred in 2015, with the margin falling to 4.78%. While this segment remained profitable throughout, the significant reduction by 2015 suggests increasing cost pressures or declining revenue efficiency.
Overall Observations
Across all segments, there is a general trend of decreasing profit margins from 2012 to 2015, with the exception of Rig Aftermarket which showed more stability, albeit with a slight decline in 2015. The most notable changes involve the Wellbore Technologies segment, which shifted from positive profitability to a substantial loss in 2015, and Completion & Production Solutions, which also experienced a sharp profit margin decrease in the final year. The Rig Systems segment also decreased steadily but less severely. These patterns suggest challenges within the industry or company operations that intensified particularly in 2015.

Segment Profit Margin: Rig Systems

National Oilwell Varco Inc.; Rig Systems; segment profit margin calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Revenue
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Revenue
= 100 × ÷ =


Operating Profit (Loss)
The operating profit demonstrated fluctuations over the reported periods. Starting from a value of 1,685 million US dollars in 2012, it decreased slightly to 1,594 million in 2013. Subsequently, there was a notable increase to 1,996 million in 2014, followed by a significant decline to 1,206 million in 2015. This pattern suggests variability in operational efficiency or market conditions impacting profitability within the segment.
Revenue
Revenue displayed an upward trend from 7,077 million US dollars in 2012 to a peak of 9,848 million in 2014. However, this was followed by a substantial reduction to 6,964 million in 2015. The initial growth phase corresponds with expanding sales or contracts, while the sharp decline in the final year may imply reduced demand or contract completion in the segment.
Segment Profit Margin
The segment profit margin showed a declining trend across the observed years. Starting at 23.81% in 2012, the margin dropped to 18.86% in 2013 and recovered modestly to 20.27% in 2014 before falling again to 17.32% in 2015. This downward trend, despite revenue fluctuations, points toward increasing costs or pressures on pricing within the segment.
Summary
Overall, the segment experienced growth in revenue and profit up to 2014, followed by a contraction in both measures in 2015. The declining profit margins indicate potential challenges in cost management or competitive pressure affecting profitability. The variability in operating profit reflects changing market dynamics or operational factors influencing the segment’s financial performance during the period reviewed.

Segment Profit Margin: Rig Aftermarket

National Oilwell Varco Inc.; Rig Aftermarket; segment profit margin calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Revenue
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Revenue
= 100 × ÷ =


Revenue Trends
Revenue for the segment exhibited a consistent upward trend from 2012 to 2014, increasing from 2,138 million US dollars to a peak of 3,222 million US dollars in 2014. However, in 2015, revenue declined to 2,515 million US dollars, representing a significant reduction of approximately 22% compared to the previous year.
Operating Profit (Loss) Trends
Operating profit showed a positive trajectory from 2012 through 2014, rising from 594 million US dollars to 882 million US dollars. This increase aligns with the revenue growth during the same period. Conversely, in 2015, operating profit decreased sharply to 605 million US dollars, following the decline in revenue.
Segment Profit Margin Trends
The segment profit margin demonstrated relative stability from 2012 to 2014, maintaining a range between 27.08% and 27.78%. In 2015, the margin declined to 24.06%, reflecting a decrease of roughly 3.3 percentage points from the 2014 margin. This reduction suggests increased cost pressures or less favorable pricing impacting profitability alongside the revenue fall.
Overall Insights
The segment experienced growth in both revenue and operating profit over three consecutive years, indicating strong performance and operational efficiency during that period. The drop in both revenue and operating profit in 2015, as well as the contraction in profit margin, signals a downturn in business activity or market conditions affecting the segment adversely. The decline in profit margin alongside lower revenues highlights potential challenges in maintaining cost efficiency or pricing power in the most recent year.

Segment Profit Margin: Wellbore Technologies

National Oilwell Varco Inc.; Wellbore Technologies; segment profit margin calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Revenue
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Revenue
= 100 × ÷ =


The financial data for the segment exhibits notable fluctuations across the reported periods. Revenue demonstrated an overall increase from 2012 through 2014, rising from 5,184 million US dollars to 5,722 million US dollars. However, this upward trend reversed sharply in 2015, with revenue decreasing to 3,718 million US dollars.

Operating profit followed a somewhat similar trajectory. It reached 983 million US dollars in 2012, followed by a minor decrease in the subsequent years, registering 915 million and 937 million US dollars in 2013 and 2014, respectively. In 2015, operating profit swung dramatically to a loss of 1,613 million US dollars.

The segment profit margin percentage mirrored the trends seen in both revenue and operating profit. Margins declined gradually from 18.96% in 2012 to 16.38% in 2014, indicating a decrease in profitability relative to revenue. This trend sharply worsened in 2015, with the margin plunging to a negative 43.38%, reflecting substantial operational challenges or cost pressures.

Overall, the data shows a period of stable to slightly declining profitability through 2014, followed by a significant downturn in 2015 affecting revenue, operating profit, and margin. This suggests an adverse shift in market conditions or operational efficiency impacting the segment during the final year reported.

Revenue Trend
Increased steadily from 2012 to 2014, then declined sharply in 2015.
Operating Profit Trend
Moderate decline from 2012 to 2014, followed by a major loss in 2015.
Profit Margin Trend
Gradual decrease through 2014, with a steep negative margin in 2015 indicating operational difficulties.

Segment Profit Margin: Completion & Production Solutions

National Oilwell Varco Inc.; Completion & Production Solutions; segment profit margin calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Revenue
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment profit margin = 100 × Operating profit (loss) ÷ Revenue
= 100 × ÷ =


Operating Profit (Loss)
The operating profit for the segment showed an initial increase from 684 million US dollars in 2012 to a peak of 690 million in 2014. However, in 2015, there was a significant decline to 161 million US dollars, indicating a sharp reduction in profitability in that year.
Revenue
Revenue demonstrated a consistent upward trend from 3,994 million US dollars in 2012 to 4,645 million in 2014. Nevertheless, there was a notable decrease to 3,365 million US dollars by the end of 2015, suggesting a reduction in sales or demand in the final year of the period analyzed.
Segment Profit Margin
The segment profit margin percentage followed a decreasing trend overall. It declined from 17.13% in 2012 to 14.23% in 2013, then experienced a slight increase to 14.85% in 2014 before falling sharply to 4.78% in 2015. This indicates a significant reduction in profitability relative to revenue during the last year.

Segment Return on Assets (Segment ROA)

National Oilwell Varco Inc., ROA by reportable segment

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


Rig Systems
The return on assets (ROA) for the Rig Systems segment shows a fluctuating pattern within the period analyzed. Starting at 25.67% in 2012, it declined to 20.83% in 2013. The figure recovered somewhat in 2014, reaching 24.79%, before decreasing again to 17.81% in 2015. Overall, this segment experienced volatility with a noticeable decline by the end of the period.
Rig Aftermarket
This segment demonstrated relatively strong and stable ROA figures early on, with 30.78% in 2012 and a slight decrease to 29.45% in 2013. In 2014, the ROA increased to its peak at 31.62%, followed by a significant decline to 24.64% in 2015. Despite the downward trend in the final year, the segment generally maintained higher profitability than others across the reported periods.
Wellbore Technologies
The Wellbore Technologies segment exhibited low and diminishing returns during the period. ROA decreased from 8.91% in 2012 to 7.71% in 2013, showing a mild decline. A slight improvement occurred in 2014, reaching 8.02%, but this was followed by a drastic drop to -18.4% in 2015, indicating a negative return on assets and potentially significant operational challenges or asset impairments.
Completion & Production Solutions
ROA for the Completion & Production Solutions segment displayed a steady decline across the period. It started at 11.05% in 2012, decreasing to 8.41% in 2013 and modestly rising to 9.76% in 2014, before dropping sharply to 2.72% in 2015. The trend suggests diminishing profitability and possibly increasing costs or inefficiencies within this segment over time.

Segment ROA: Rig Systems

National Oilwell Varco Inc.; Rig Systems; segment ROA calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Total assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =


Operating Profit (Loss)
The operating profit for the segment showed a fluctuating trend over the observed period. It increased from 1,685 million USD in 2012 to 1,996 million USD in 2014, representing a peak in profitability during the period. However, in 2015, the operating profit declined significantly to 1,206 million USD, indicating a decrease in operational efficiency or potential market challenges.
Total Assets
The total assets of the segment experienced growth from 6,563 million USD in 2012 to a high point of 8,052 million USD in 2014. This growth suggests investments in asset base or acquisitions. In 2015, total assets decreased markedly to 6,772 million USD, which may imply asset disposals, impairments, or revaluations.
Segment Return on Assets (ROA)
The segment ROA exhibited a variable pattern, starting at 25.67% in 2012, followed by a decline to 20.83% in 2013. It rebounded to 24.79% in 2014, coinciding with the peak in operating profit and total assets. In 2015, ROA dropped to 17.81%, reflecting reduced profitability relative to the asset base and aligning with the decline in operating profit and total assets.
Summary of Trends
Overall, the data indicate that the segment performed strongly between 2012 and 2014, with increasing operating profit, expanding asset base, and relatively high ROA. The year 2015 was marked by a downturn in operating profit, contraction in total assets, and lower ROA, which collectively suggest a decline in segment performance and efficiency. The trends may point to external factors affecting the business environment or internal strategic decisions impacting asset management and profitability.

Segment ROA: Rig Aftermarket

National Oilwell Varco Inc.; Rig Aftermarket; segment ROA calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Total assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =


The annual financial data for the Rig Aftermarket segment reveals several important trends between 2012 and 2015.

Operating Profit (Loss)
Operating profit exhibited a growth trend from 2012 to 2014, increasing from $594 million to $882 million. This upward movement indicates improving profitability during this period. However, in 2015, the operating profit decreased to $605 million, suggesting a downturn in segment performance after three years of growth.
Total Assets
Total assets in the segment rose steadily from 2012 through 2014, starting at $1,930 million and peaking at $2,789 million. This increase points to asset growth, possibly reflecting investments or expansion activities. In 2015, total assets decreased to $2,455 million, indicating a reduction or reallocation of resources within the segment.
Segment Return on Assets (ROA)
The segment ROA was strong throughout the period, staying above 24% in all reported years. It started at 30.78% in 2012, showed a slight decrease to 29.45% in 2013, then rose again to 31.62% in 2014. In 2015, the ROA fell significantly to 24.64%, corresponding with the decline in operating profit and total assets. This decrease suggests less efficient asset utilization or lower profitability relative to assets at the end of the period.

Overall, the segment demonstrated robust profitability and asset growth from 2012 to 2014, followed by a noticeable decline in 2015. The reduction in operating profit alongside a drop in total assets and segment ROA indicates challenges or changing conditions impacting this segment in the latter year.


Segment ROA: Wellbore Technologies

National Oilwell Varco Inc.; Wellbore Technologies; segment ROA calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Total assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =


The analysis of the Wellbore Technologies segment over the reported five-year period reveals several significant trends in profitability, asset base, and return on assets (ROA).

Operating Profit (Loss)
The segment displayed profitability from 2012 through 2014, with operating profits of $983 million in 2012, decreasing to $915 million in 2013, and then increasing slightly to $937 million in 2014. However, in 2015, a marked reversal occurred, with the segment reporting a substantial operating loss of $1,613 million. This indicates a sharp deterioration in operational results in the final year, contrasting significantly with the prior three years of positive earnings.
Total Assets
Total assets showed a modest upward trend from 2012 to 2013, increasing from $11,032 million to $11,862 million. The asset base then slightly decreased to $11,687 million in 2014, followed by a more pronounced decline to $8,766 million in 2015. This reduction in total assets during 2015 coincides with the sharp operating loss experienced in the same year, possibly reflecting asset impairments, divestitures, or other restructuring activities within the segment.
Segment Return on Assets (ROA)
The segment ROA followed a pattern consistent with operating profit trends. In 2012, ROA was 8.91%, which decreased gradually to 7.71% in 2013 and rose slightly to 8.02% in 2014, indicating relatively stable efficiency in generating returns from assets during this period. In 2015, however, ROA plummeted to -18.4%, reflecting the severe negative operating results and reduction in asset base. This dramatic decline marks a significant deterioration in asset profitability.

In summary, the data highlights a stable and profitable segment from 2012 through 2014, followed by a sudden and significant downturn in 2015 characterized by a substantial operating loss, decrease in total assets, and negative ROA. These changes suggest operational and financial challenges that emerged in the final year of the reported period.


Segment ROA: Completion & Production Solutions

National Oilwell Varco Inc.; Completion & Production Solutions; segment ROA calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating profit (loss)
Total assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment ROA = 100 × Operating profit (loss) ÷ Total assets
= 100 × ÷ =


Operating Profit (Loss)
The operating profit demonstrates a fluctuating trend over the analyzed period. It increased significantly from 684 million USD in 2012 to 690 million USD in 2014, indicating a period of improved profitability. However, a sharp decline occurred in 2015, with operating profit reducing to 161 million USD, suggesting challenges in maintaining earlier profit levels or possible operational difficulties during that year.
Total Assets
Total assets rose from 6,192 million USD in 2012 to a peak of 7,287 million USD in 2013, indicating an expansion phase. This was followed by a slight decline to 7,072 million USD in 2014 and a more pronounced decrease to 5,916 million USD in 2015. The reduction in total assets toward the end of the period may reflect asset disposals, impairments, or changes in strategic asset management.
Segment Return on Assets (ROA)
The segment ROA, expressing the efficiency in generating profit from assets, shows a declining trend overall. It decreased from 11.05% in 2012 to 8.41% in 2013, then slightly recovered to 9.76% in 2014 before sharply dropping to 2.72% in 2015. This pattern suggests decreasing asset efficiency and profitability, particularly in 2015, paralleling the considerable fall in operating profit and total assets.

Segment Asset Turnover

National Oilwell Varco Inc., asset turnover by reportable segment

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


The analysis of the annual reportable segment asset turnover ratios reveals distinct trends across the four segments over the period from 2012 to 2015.

Rig Systems
The asset turnover ratio for the Rig Systems segment shows an initial increase from 1.08 in 2012 to 1.10 in 2013, followed by a more pronounced rise to 1.22 in 2014. However, in 2015, the ratio declines to 1.03. This indicates that the segment improved its efficiency in utilizing assets to generate revenue through 2014 but experienced a reduction in asset turnover efficiency in 2015.
Rig Aftermarket
This segment exhibits a similar pattern to Rig Systems. The asset turnover ratio slightly decreases from 1.11 in 2012 to 1.09 in 2013, then recovers to 1.16 in 2014, demonstrating an improvement in asset utilization efficiency. A significant drop follows in 2015, with the ratio falling to 1.02, suggesting a decline in the segment's operational efficiency in that year.
Wellbore Technologies
Wellbore Technologies consistently reports notably lower asset turnover ratios compared to the Rig Systems and Rig Aftermarket segments. The ratio decreases steadily from 0.47 in 2012 to 0.44 in 2013, then rises slightly to 0.49 in 2014 before declining again to 0.42 in 2015. This pattern indicates limited and fluctuating efficiency in asset utilization, with no clear sustained improvement over the years.
Completion & Production Solutions
The asset turnover ratio for Completion & Production Solutions shows a declining trend overall. From 0.65 in 2012, the ratio dips to 0.59 in 2013, improves marginally to 0.66 in 2014, and then decreases again to 0.57 in 2015. This suggests that the segment's efficiency in generating revenue from its assets has weakened over the analyzed period, despite a slight recovery in 2014.

In summary, the Rig Systems and Rig Aftermarket segments demonstrated relatively higher asset turnover ratios with some volatility but experienced a decline in efficiency in 2015. Conversely, Wellbore Technologies and Completion & Production Solutions consistently showed lower asset turnover ratios, with both segments exhibiting modest fluctuations and an overall downward trend in asset utilization efficiency during the period.


Segment Asset Turnover: Rig Systems

National Oilwell Varco Inc.; Rig Systems; segment asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenue
Total assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =


Revenue
The revenue exhibits an increasing trend from 2012 to 2014, rising from $7,077 million to $9,848 million. However, in 2015, there is a notable decline to $6,964 million, representing a significant reduction compared to the previous year.
Total assets
Total assets follow a similar pattern as revenue, increasing from $6,563 million in 2012 to $8,052 million in 2014, then decreasing to $6,772 million in 2015. This decline in assets in 2015 corresponds with the decrease observed in revenue during the same period.
Segment asset turnover
The segment asset turnover ratio shows a gradual improvement from 1.08 in 2012 to 1.22 in 2014, indicating increased efficiency in utilizing assets to generate revenue. In 2015, the ratio declines to 1.03, reflecting reduced efficiency possibly linked to the drop in both revenue and total assets that year.

Segment Asset Turnover: Rig Aftermarket

National Oilwell Varco Inc.; Rig Aftermarket; segment asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenue
Total assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =


The segment data reveals several notable trends over the period from 2011 to 2015. Revenue displayed a growth trajectory from 2012 through 2014, increasing from 2,138 million USD to a peak of 3,222 million USD. However, in 2015, there was a marked decline in revenue, falling to 2,515 million USD, which represents a significant contraction compared to the prior year.

Total assets followed a generally upward trend from 2012 to 2014, rising from 1,930 million USD to 2,789 million USD. Similar to revenue, total assets declined in 2015, decreasing to 2,455 million USD. This suggests a scaling back of asset allocation or divestiture aligned with reduced operational scale or strategic adjustments.

The segment asset turnover ratio, which measures the efficiency of asset use in generating revenue, remained relatively stable throughout the period, fluctuating slightly around 1.1. It peaked modestly at 1.16 in 2014, indicating optimal asset utilization in that year. The decrease to 1.02 in 2015 aligns with the downturn in revenue, reflecting a reduction in operational efficiency or lower demand impacting asset productivity.

Revenue
Steady growth from 2012 to 2014 followed by a significant decline in 2015.
Total Assets
Increased over three years until 2014, then contracted in 2015.
Segment Asset Turnover
Relatively stable with a slight peak in 2014; declined in 2015 reflecting reduced asset efficiency.

Overall, the data indicates that the segment experienced expansion in the early part of the period, with improving scale and asset utilization, but faced challenges in 2015 that led to decreased revenue, reduced asset base, and a drop in operational efficiency.


Segment Asset Turnover: Wellbore Technologies

National Oilwell Varco Inc.; Wellbore Technologies; segment asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenue
Total assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =


The segment under review shows a variable yet generally declining trend in revenue over the analyzed period. Starting with a revenue figure of 5184 million USD in 2012, the revenue remains relatively stable in 2013 at 5211 million USD and increases in 2014 to 5722 million USD. However, a significant decline occurs in 2015, with revenue dropping sharply to 3718 million USD. This marks a considerable decrease from the previous year and may indicate market challenges or operational difficulties within the segment.

Total assets exhibit a consistent upward trajectory from 2012 through 2014, increasing from 11032 million USD to a peak of 11862 million USD in 2013, followed by a slight decrease to 11687 million USD in 2014. However, in 2015, total assets decline notably to 8766 million USD, reflecting a substantial reduction in asset base. This sudden drop could be indicative of asset disposals, impairments, or other strategic decisions affecting the asset composition of the segment.

The segment asset turnover ratio displays some fluctuation but generally remains below 0.5 throughout the observed years, pointing to relatively low efficiency in the use of assets to generate revenue. The ratio decreases slightly from 0.47 in 2012 to 0.44 in 2013, then rises to 0.49 in 2014 before falling again to 0.42 in 2015. The downward movement in 2015, coupled with the sharp decline in revenue and assets, suggests a reduced efficiency in asset utilization during this period.

Overall, the data reveal growth and strengthening of the asset base in the earlier years followed by shrinking assets and revenues in the final year. The asset turnover ratio shows limited improvement, indicating persistent challenges in optimizing asset productivity. These trends underscore a period of contraction and reduced operational effectiveness in the latest year reviewed.

Revenue
Stable from 2012 to 2013, increased in 2014, then sharply declined in 2015.
Total Assets
Increased steadily from 2012 to 2013, slightly decreased in 2014, followed by a significant drop in 2015.
Segment Asset Turnover
Fluctuated below 0.5, peaking in 2014 and declining thereafter, indicating declining asset productivity in 2015.

Segment Asset Turnover: Completion & Production Solutions

National Oilwell Varco Inc.; Completion & Production Solutions; segment asset turnover calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Revenue
Total assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =


Revenue Trends
Revenue in the segment exhibited a rising trend from 2012 to 2014, increasing from $3,994 million to a peak of $4,645 million. However, in 2015, there was a significant decline to $3,365 million, indicating a notable reduction in sales or demand within the segment during that year.
Total Assets Movements
Total assets associated with the segment showed an initial increase from $6,192 million in 2012 to $7,287 million in 2013, followed by a slight decrease to $7,072 million in 2014. A more pronounced decrease occurred in 2015, dropping to $5,916 million. This pattern suggests some level of asset optimization or divestiture in 2015.
Asset Turnover Ratio Analysis
The segment asset turnover ratio demonstrated some variability across the period, starting at 0.65 in 2012, then declining to 0.59 in 2013, before rebounding to 0.66 in 2014. In 2015, the ratio decreased again to 0.57. This ratio reflects the efficiency with which the assets generate revenue; thus, the fluctuation indicates varying operational efficiency, with 2015 reflecting a reduced capacity to generate sales from assets.
Overall Insights
The examined period reveals growth in both revenue and asset base until 2014, accompanied by moderate fluctuations in asset turnover efficiency. The sharp decline in both revenue and total assets in 2015, along with a decrease in asset turnover ratio, suggests a challenging operational environment or strategic changes impacting the segment's performance and asset utilization efficiency.

Segment Capital Expenditures to Depreciation

National Oilwell Varco Inc., capital expenditures to depreciation by reportable segment

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


The analysis of the annual reportable segment capital expenditures to depreciation ratios over the period from 2012 to 2015 reveals distinct trends for each segment.

Rig Systems
This segment shows a fluctuating pattern. In 2012, the ratio is relatively high at 1.27, indicating capital expenditures exceeded depreciation. However, it declines sharply to 0.74 in 2013, then rises again to a peak of 1.51 in 2014, before dropping to 0.84 in 2015. The overall trend suggests variability in investment relative to asset depreciation, with 2014 marking significant capital spending.
Rig Aftermarket
The ratio in this segment demonstrates a declining trend over the period. It starts at 0.72 in 2012, increases slightly to 0.92 in 2013, but then declines consistently to 0.44 in 2014 and further to 0.33 in 2015. This indicates a reduction in capital expenditures relative to depreciation over time, potentially reflecting a scaling back of investment in this segment or improved asset efficiency.
Wellbore Technologies
This segment exhibits a generally decreasing trajectory. Beginning at 0.63 in 2012, the ratio decreases to 0.54 in 2013, experiences a modest increase to 0.60 in 2014, and then falls to 0.45 in 2015. The pattern suggests relatively lower capital investment compared to depreciation over the observed years, which may imply a mature asset base or restrained growth spending.
Completion & Production Solutions
The segment starts with a high ratio of 1.17 in 2012, indicating substantial capital expenditure relative to depreciation. However, the ratio declines steadily to 1.01 in 2013, 0.82 in 2014, and drops sharply to 0.39 in 2015. This significant decrease may reflect a strategic reduction in capital investments or a depreciation increase due to asset aging or write-downs.

Overall, the data indicates that capital expenditures relative to depreciation vary considerably by segment, with most segments showing a declining or fluctuating ratio over the given period. The trends suggest cautious capital investment approaches especially after 2013, with 2014 often serving as a turning point for increased or decreased relative spend depending on the segment. The variability underscores potentially differing strategic priorities or responses to market conditions across the segments.


Segment Capital Expenditures to Depreciation: Rig Systems

National Oilwell Varco Inc.; Rig Systems; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures exhibited variability over the five-year period, starting at $81 million in 2012, declining to $61 million in 2013, then substantially increasing to $133 million in 2014 before returning to $81 million in 2015. This pattern suggests fluctuations in investment levels, with a significant peak in 2014.
Depreciation and Amortization
Depreciation and amortization expenses showed a consistent upward trend throughout the years analyzed. Beginning at $64 million in 2012, the expense increased steadily each year to reach $96 million by 2015. This indicates growing capital asset base or changes in asset lives impacting amortization.
Segment Capital Expenditures to Depreciation Ratio
The ratio of capital expenditures to depreciation reflected notable volatility. It decreased from 1.27 in 2012 to 0.74 in 2013, then surged to 1.51 in 2014, followed by a decline to 0.84 in 2015. The fluctuations highlight inconsistent reinvestment relative to asset depreciation, suggesting periods of aggressive investment followed by lower capital spending relative to asset wear.

Segment Capital Expenditures to Depreciation: Rig Aftermarket

National Oilwell Varco Inc.; Rig Aftermarket; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


The capital expenditures in the Rig Aftermarket segment exhibited fluctuations over the five-year period. Beginning with an unreported value for 2011, capital expenditures increased to 13 million US dollars in 2012, then further rose to 24 million US dollars in 2013. Subsequently, there was a decline, with capital expenditures reducing to 12 million US dollars in 2014 and 10 million US dollars in 2015, indicating a downward trend in investment activity after 2013.

Depreciation and amortization expenses showed a consistent upward trajectory. Starting at 18 million US dollars in 2012, these expenses increased yearly to reach 26 million US dollars in 2013, 27 million US dollars in 2014, and peaked at 30 million US dollars in 2015. This steady increase suggests a growing allocation of expense related to the consumption of capital assets in the segment.

The ratio of segment capital expenditures to depreciation revealed a noticeable decline over the observed years. From 0.72 in 2012, the ratio rose modestly to 0.92 in 2013, indicating capital spending nearly matched the depreciation expense for that year. However, from 2013 onward, the ratio dropped significantly to 0.44 in 2014 and further to 0.33 in 2015. This declining ratio signifies that capital expenditures were increasingly insufficient relative to the depreciation recorded, implying a reduction in asset replenishment or acquisition compared to asset consumption.

Summary of Trends
Capital expenditures peaked in 2013 and then declined, while depreciation steadily increased throughout the period.
The decreasing ratio of capital expenditures to depreciation after 2013 suggests that the segment may be underinvesting in capital assets relative to the consumption and aging of existing assets.
This pattern could point to potential challenges in maintaining or expanding the asset base in the Rig Aftermarket segment.

Segment Capital Expenditures to Depreciation: Wellbore Technologies

National Oilwell Varco Inc.; Wellbore Technologies; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


The analysis of the Wellbore Technologies segment financial data over the period from 2011 to 2015 reveals several important trends and patterns.

Capital Expenditures
Capital expenditures were absent or not reported at the end of 2011. From 2012, capital expenditures began at $247 million, decreasing slightly to $226 million in 2013, followed by an increase to $262 million in 2014. However, a notable decline occurred in 2015, with expenditures falling to $180 million. Overall, capital expenditures showed variability but exhibited a downward trend by the end of the period.
Depreciation and Amortization
Depreciation and amortization expenses were also unreported for 2011. From 2012 onwards, these expenses increased steadily, beginning at $389 million in 2012, rising to $420 million in 2013, and then $439 million in 2014, before a decrease to $400 million in 2015. Despite the slight decline in 2015, the general trend over the period reflects a gradual increase in depreciation and amortization.
Segment Capital Expenditures to Depreciation Ratio
This ratio, which serves as an indicator of investment relative to asset depreciation, was not reported in 2011. In 2012, the ratio stood at 0.63, reflecting a higher investment level compared to asset depreciation. The ratio then declined to 0.54 in 2013, rose slightly to 0.60 in 2014, and decreased again to 0.45 in 2015. The overall trend demonstrates a general decrease in capital investments relative to depreciation expenses, suggesting diminishing reinvestment rates in the segment’s assets by the end of the observed period.

Segment Capital Expenditures to Depreciation: Completion & Production Solutions

National Oilwell Varco Inc.; Completion & Production Solutions; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures exhibited variability over the observed period, increasing from 169 million USD in 2012 to a peak of 212 million USD in 2013. Following this peak, there was a decline to 184 million USD in 2014 and a more significant decrease to 87 million USD in 2015, indicating a reduction in investment activities within the segment during this time frame.
Depreciation and Amortization
Depreciation and amortization expenses showed a rising trend from 145 million USD in 2012 to 224 million USD in 2014, followed by a slight decrease to 221 million USD in 2015. This pattern suggests increasing allocation of costs related to asset usage up to 2014, with a marginal reduction thereafter.
Segment Capital Expenditures to Depreciation Ratio
The ratio of capital expenditures to depreciation declined steadily over the period. Starting at 1.17 in 2012, the ratio decreased to 1.01 in 2013, then further to 0.82 in 2014, and reached a low of 0.39 in 2015. This trend indicates that capital investments have been decreasing at a faster rate relative to the depreciation charges, which may reflect a lowering of asset replacement or expansion efforts relative to the wear and tear accounted for in depreciation.
Overall Interpretation
The data reflects a segment experiencing a reduction in investment expenditures from its peak in 2013, while maintaining relatively high levels of depreciation and amortization. The declining capital expenditures to depreciation ratio points to a potential shift toward reduced asset growth or renewal, accompanied by ongoing asset depreciation costs, which may impact the segment's operational capacity and long-term asset base.

Revenue

National Oilwell Varco Inc., revenue by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions
Eliminations
Total

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


Revenue Trends by Segment

The Rig Systems segment exhibited a fluctuating revenue pattern from 2012 to 2015. Starting at $7,077 million in 2012, the revenue increased steadily to $8,450 million in 2013 and further to a peak of $9,848 million in 2014. However, there was a significant decline to $6,964 million in 2015, representing a notable decrease from the previous year.

The Rig Aftermarket segment showed consistent growth from 2012 through 2014, with revenues rising from $2,138 million to $2,692 million and then to $3,222 million. This upward trend reversed in 2015, as revenues declined to $2,515 million.

Wellbore Technologies revenues remained relatively stable from 2012 to 2013, increasing slightly from $5,184 million to $5,211 million. A more pronounced growth occurred in 2014, reaching $5,722 million, before experiencing a sharp decline to $3,718 million in 2015.

The Completion & Production Solutions segment demonstrated growth from 2012 to 2014, progressing from $3,994 million to $4,309 million and then to $4,645 million. Similar to other segments, it underwent a considerable drop in 2015 to $3,365 million.

Eliminations

The eliminations recorded negative values throughout the period, reflecting inter-segment sales or adjustments. The amounts increased in absolute value from -$1,199 million in 2012 to -$1,441 million in 2013, reaching -$1,997 million in 2014, then slightly decreasing in magnitude to -$1,805 million in 2015.

Total Revenue

Total revenue followed an upward trajectory from 2012 through 2014, growing from $17,194 million to $19,221 million and then to $21,440 million. In 2015, total revenue declined sharply to $14,757 million, marking a significant reduction compared to the previous year.

Overall Analysis

The data indicates strong revenue growth across most segments from 2012 to 2014, suggesting broad expansion during this period. However, in 2015, all key segments experienced notable revenue declines, contributing to an overall decrease in total revenue. The pattern may reflect adverse market conditions or operational challenges impacting the company's performance in that year.


Operating profit (loss)

National Oilwell Varco Inc., operating profit (loss) by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions
Eliminations
Total

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


The annual reportable segment operating profit (loss) data reveals notable fluctuations and trends across the periods analyzed. The overall total operating profit experienced a positive trend from 2012 through 2014, followed by a significant decline in 2015, resulting in a substantial loss.

Rig Systems
The operating profit for the Rig Systems segment increased from 1,685 million US dollars in 2012 to a peak of 1,996 million in 2014. However, this was followed by a sharp decline to 1,206 million in 2015, indicating a contraction in profitability within this segment during the final year reported.
Rig Aftermarket
This segment demonstrated a steady increase from 594 million in 2012 to 882 million in 2014, reflecting growing profitability. Despite this, there was a decline in 2015 to 605 million, though the decrease was less severe compared to Rig Systems, suggesting some resilience in aftermarket operations.
Wellbore Technologies
Operating profits in this segment showed a downward trend from 983 million in 2012 to 915 million in 2013, followed by a slight recovery to 937 million in 2014. In 2015, the segment reported a significant operating loss of 1,613 million, marking a dramatic reversal and indicating serious operational or market challenges.
Completion & Production Solutions
This segment's operating profit declined progressively from 684 million in 2012 to 613 million in 2013, with a modest recovery to 690 million in 2014. The year 2015 saw a steep drop to 161 million, signaling a sharp reduction in profitability.
Eliminations
Eliminations consistently showed negative values across all periods, increasing in magnitude from -557 million in 2012 to -892 million in 2014 before decreasing slightly to -749 million in 2015. This suggests ongoing internal offsetting adjustments affecting the consolidated results.
Total Operating Profit (Loss)
The aggregated operating profit rose from 3,389 million in 2012 to 3,613 million in 2014, indicating overall growth in profitability across segments. However, 2015 saw a pronounced shift to a loss of 390 million, primarily driven by the significant negative performance in Wellbore Technologies and declines in multiple other segments.

In summary, the data indicates a period of growth and strong profitability from 2012 to 2014, followed by a substantial downturn in 2015. The most critical impact arose from the Wellbore Technologies segment's transition to a large operating loss, coupled with declines in Rig Systems, Rig Aftermarket, and Completion & Production Solutions. These trends suggest challenges in market conditions or internal operations affecting the company’s overall profitability during the final reporting year.


Capital expenditures

National Oilwell Varco Inc., capital expenditures by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions
Eliminations
Total

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


Capital Expenditures Trends Overview
The overall capital expenditures demonstrate a fluctuating pattern during the observed periods from 2012 to 2015, with a peak in 2014 and a subsequent decline in 2015.
Rig Systems Segment
Capital expenditures in the Rig Systems segment initially decreased from 81 million USD in 2012 to 61 million USD in 2013. A significant increase to 133 million USD was recorded in 2014, followed by a sharp decline back to 81 million USD in 2015. This pattern suggests variability in investment levels, possibly linked to changing operational priorities or market conditions.
Rig Aftermarket Segment
The Rig Aftermarket expenditures show a decrease over the years, peaking at 24 million USD in 2013 before dropping consistently to 12 million USD in 2014 and further to 10 million USD in 2015. This downward trend may reflect reduced demand or a strategic shift away from this segment.
Wellbore Technologies Segment
Wellbore Technologies experienced a decrease from 247 million USD in 2012 to 226 million USD in 2013, followed by an increase to 262 million USD in 2014. However, the segment saw a notable reduction to 180 million USD in 2015. This variation may indicate response to technological development cycles or market fluctuations.
Completion & Production Solutions Segment
There was a steady increase in capital expenditures from 169 million USD in 2012 to 212 million USD in 2013, followed by a decline to 184 million USD in 2014 and a significant drop to 87 million USD in 2015. This reduction in the last year points to possible operational adjustments or budget reallocation.
Eliminations
The eliminations category consistently rose from 59 million USD in 2012 to 108 million USD in 2014, then marginally decreased to 95 million USD in 2015, indicating changing inter-segment adjustments affecting net capital expenditures.
Total Capital Expenditures
Total capital expenditures increased steadily from 569 million USD in 2012 to a peak of 699 million USD in 2014, before declining sharply to 453 million USD in 2015. This overall decrease after 2014 may suggest tightening capital budgets or shifting strategic priorities across the company.

Depreciation and amortization

National Oilwell Varco Inc., depreciation and amortization by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions
Total

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


The data on depreciation and amortization across the reportable segments exhibits distinct trends over the analyzed periods. The figures begin from 2012, as no values are recorded for 2011.

Rig Systems
This segment demonstrates a consistent upward trend in depreciation and amortization expenses, rising steadily from 64 million US dollars in 2012 to 96 million US dollars in 2015. This increase suggests ongoing investments or capital expenditures in this segment, potentially indicating growth or upgrading of rig system assets over the period.
Rig Aftermarket
The depreciation and amortization expenses in this segment also show a gradual increase from 18 million in 2012 to 30 million in 2015. Although the absolute values are smaller compared to other segments, the steady increase implies consistent asset additions or enhancements related to aftermarket activities.
Wellbore Technologies
Wellbore Technologies holds the largest share of depreciation and amortization expenses, starting at 389 million in 2012 and peaking at 439 million in 2014 before declining to 400 million in 2015. This fluctuation may indicate asset disposals, reduced capital expenditure, or efficiency gains during the last year of the period, reflecting possible changes in operational strategy or asset utilization.
Completion & Production Solutions
The segment records a significant increase in expenses from 145 million in 2012 to a peak of 224 million in 2014, followed by a slight decrease to 221 million in 2015. The initial growth suggests expanding capital assets or intensified asset depreciation, while the subsequent plateau or marginal decline could signify stabilization in asset base or improved asset lifespan management.
Total
The aggregate depreciation and amortization expenses for all segments combined rise from 616 million in 2012 to a peak of 778 million in 2014, followed by a decrease to 747 million in 2015. This overall trend reflects a period of increasing capital investment or capitalized costs until 2014, followed by a moderate reduction, which could be due to a combination of asset disposals, slower capital expenditure, or adjustments in depreciation policies.

In summary, the data depicts a general growth in depreciation and amortization expenses across most segments from 2012 to 2014, with some signs of tapering or decline in 2015. Wellbore Technologies remains the dominant contributor to total expenses, though it experiences a notable decrease in the final year examined. These trends may provide insights into the company's asset management strategies, investment priorities, and life cycle of capital assets within each segment.


Total assets

National Oilwell Varco Inc., total assets by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Rig Systems
Rig Aftermarket
Wellbore Technologies
Completion & Production Solutions
Eliminations
Discontinued operations
Total

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).


Total Assets Trend
The total reportable segment assets demonstrate a fluctuating pattern over the observed periods. There is a marked increase from 2012 to 2013, rising from 31,484 million US dollars to 34,812 million. However, subsequent years see a decline, with total assets decreasing to 33,562 million in 2014 and further dropping to 26,725 million by the end of 2015.
Rig Systems Segment
Assets in the Rig Systems segment increased notably from 6,563 million in 2012 to a peak of 8,052 million in 2014, reflecting growth in this area. However, 2015 saw a significant decrease to 6,772 million, indicating a contraction or asset reduction within this segment.
Rig Aftermarket Segment
This segment reveals a consistent upward trend from 2012 through 2014, with assets growing from 1,930 million to 2,789 million. In 2015, however, there is a decline to 2,455 million, suggesting a potential slowdown or divestment.
Wellbore Technologies Segment
The Wellbore Technologies segment exhibits steady asset increases from 11,032 million in 2012 to a high of 11,862 million in 2013. It experiences a slight dip to 11,687 million in 2014 and a more pronounced decrease to 8,766 million in 2015, indicating a notable reduction in asset base within this sector during the final year of the period.
Completion & Production Solutions Segment
Assets in this segment climbed from 6,192 million in 2012 to 7,287 million in 2013. Thereafter, a decline is evident, with assets diminishing to 7,072 million in 2014 and further to 5,916 million in 2015. This trend suggests decreasing investment or valuation in this segment.
Eliminations
The eliminations account remains relatively stable with minor fluctuations, registering values of 3,394 million in 2012, slightly decreasing to 3,351 million in 2013, then rising to 3,962 million in 2014 before dropping to 2,816 million in 2015. The significant decrease in 2015 could reflect adjustments or changes in inter-segment transactions.
Discontinued Operations
Discontinued operations are reported with data only for 2012 and 2013, showing a decline from 2,373 million to 2,183 million. No data is provided for 2014 and 2015, indicating likely cessation of this reporting category or disposal of these assets.