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Revenue
 6 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue

6.

Revenue

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions):

 

 

 

 

Three Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

North America

 

$

461

 

 

$

282

 

 

$

127

 

 

$

—

 

 

$

870

 

 

$

449

 

 

$

342

 

 

$

143

 

 

$

—

 

 

$

934

 

International

 

 

375

 

 

 

364

 

 

 

523

 

 

 

—

 

 

 

1,262

 

 

 

326

 

 

 

374

 

 

 

472

 

 

 

—

 

 

 

1,172

 

Eliminations

 

 

14

 

 

 

17

 

 

 

21

 

 

 

(52

)

 

 

—

 

 

 

18

 

 

 

22

 

 

 

36

 

 

 

(76

)

 

 

—

 

 

 

$

850

 

 

$

663

 

 

$

671

 

 

$

(52

)

 

$

2,132

 

 

$

793

 

 

$

738

 

 

$

651

 

 

$

(76

)

 

$

2,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

679

 

 

$

456

 

 

$

171

 

 

$

—

 

 

$

1,306

 

 

$

660

 

 

$

509

 

 

$

208

 

 

$

—

 

 

$

1,377

 

Offshore

 

 

157

 

 

 

190

 

 

 

479

 

 

 

—

 

 

 

826

 

 

 

115

 

 

 

207

 

 

 

407

 

 

 

—

 

 

 

729

 

Eliminations

 

 

14

 

 

 

17

 

 

 

21

 

 

 

(52

)

 

 

—

 

 

 

18

 

 

 

22

 

 

 

36

 

 

 

(76

)

 

 

—

 

 

 

$

850

 

 

$

663

 

 

$

671

 

 

$

(52

)

 

$

2,132

 

 

$

793

 

 

$

738

 

 

$

651

 

 

$

(76

)

 

$

2,106

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

North America

 

$

921

 

 

$

551

 

 

$

268

 

 

$

—

 

 

$

1,740

 

 

$

864

 

 

$

634

 

 

$

278

 

 

 

 

 

 

$

1,776

 

International

 

 

706

 

 

 

660

 

 

 

966

 

 

 

—

 

 

 

2,332

 

 

 

608

 

 

 

732

 

 

 

785

 

 

 

 

 

 

 

2,125

 

Eliminations

 

 

30

 

 

 

33

 

 

 

40

 

 

 

(103

)

 

 

—

 

 

 

32

 

 

 

42

 

 

 

71

 

 

 

(145

)

 

 

—

 

 

 

$

1,657

 

 

$

1,244

 

 

$

1,274

 

 

$

(103

)

 

$

4,072

 

 

$

1,504

 

 

$

1,408

 

 

$

1,134

 

 

$

(145

)

 

$

3,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,344

 

 

$

861

 

 

$

386

 

 

$

—

 

 

$

2,591

 

 

$

1,243

 

 

$

955

 

 

$

380

 

 

 

 

 

 

$

2,578

 

Offshore

 

 

283

 

 

 

350

 

 

 

848

 

 

 

—

 

 

 

1,481

 

 

 

229

 

 

 

411

 

 

 

683

 

 

 

 

 

 

 

1,323

 

Eliminations

 

 

30

 

 

 

33

 

 

 

40

 

 

 

(103

)

 

 

—

 

 

 

32

 

 

 

42

 

 

 

71

 

 

 

(145

)

 

 

—

 

 

 

$

1,657

 

 

$

1,244

 

 

$

1,274

 

 

$

(103

)

 

$

4,072

 

 

$

1,504

 

 

$

1,408

 

 

$

1,134

 

 

$

(145

)

 

$

3,901

 

 

Performance Obligations

Net revenue recognized from performance obligations partially satisfied in previous periods was $34 million and $47 million for the six months ended June 30, 2019 and June 30, 2018, respectively, primarily due to change orders.

Remaining performance obligations represents the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. The Company does not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of June 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,545 million. The Company expects to recognize approximately 23 percent of the remaining performance obligations in 2019 and 77 percent thereafter.  

 

Contract Assets and Liabilities

Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. Contract liabilities consist of customer billings in excess of revenue recognized under over-time contracts, customer advance payments and deferred revenue.   

The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions):

 

 

 

Contract

Assets

 

 

Contract

Liabilities

 

Balance at December 31, 2018

 

$

565

 

 

$

458

 

Billings

 

 

(478

)

 

 

278

 

Revenue recognized

 

 

557

 

 

 

(279

)

Currency translation adjustments and other

 

 

(59

)

 

 

(2

)

Balance at June 30, 2019

 

$

585

 

 

$

455

 

 

There were no impairment losses recorded on contract assets for the periods ending June 30, 2019 or 2018.