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Revenue
 6 Months Ended
Jun. 30, 2021
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,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

215

 

 

$

209

 

 

$

69

 

 

$

—

 

 

$

493

 

 

$

183

 

 

$

181

 

 

$

53

 

 

$

—

 

 

$

417

 

International

 

 

233

 

 

 

278

 

 

 

413

 

 

 

—

 

 

 

924

 

 

 

246

 

 

 

419

 

 

 

414

 

 

 

—

 

 

 

1,079

 

Eliminations

 

 

15

 

 

 

10

 

 

 

5

 

 

 

(30

)

 

 

—

 

 

 

13

 

 

 

11

 

 

 

9

 

 

 

(33

)

 

 

—

 

 

 

$

463

 

 

$

497

 

 

$

487

 

 

$

(30

)

 

$

1,417

 

 

$

442

 

 

$

611

 

 

$

476

 

 

$

(33

)

 

$

1,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

330

 

 

$

329

 

 

$

113

 

 

$

—

 

 

$

772

 

 

$

296

 

 

$

345

 

 

$

113

 

 

$

—

 

 

$

754

 

Offshore

 

 

118

 

 

 

158

 

 

 

369

 

 

 

—

 

 

 

645

 

 

 

133

 

 

 

255

 

 

 

354

 

 

 

—

 

 

 

742

 

Eliminations

 

 

15

 

 

 

10

 

 

 

5

 

 

 

(30

)

 

 

—

 

 

 

13

 

 

 

11

 

 

 

9

 

 

 

(33

)

 

 

—

 

 

 

$

463

 

 

$

497

 

 

$

487

 

 

$

(30

)

 

$

1,417

 

 

$

442

 

 

$

611

 

 

$

476

 

 

$

(33

)

 

$

1,496

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

403

 

 

$

371

 

 

$

124

 

 

$

—

 

 

$

898

 

 

$

544

 

 

$

406

 

 

$

130

 

 

$

—

 

 

$

1,080

 

International

 

 

444

 

 

 

542

 

 

 

782

 

 

 

—

 

 

 

1,768

 

 

 

559

 

 

 

856

 

 

 

884

 

 

 

—

 

 

 

2,299

 

Eliminations

 

 

29

 

 

 

23

 

 

 

12

 

 

 

(64

)

 

 

—

 

 

 

30

 

 

 

24

 

 

 

19

 

 

 

(73

)

 

 

—

 

 

 

$

876

 

 

$

936

 

 

$

918

 

 

$

(64

)

 

$

2,666

 

 

$

1,133

 

 

$

1,286

 

 

$

1,033

 

 

$

(73

)

 

$

3,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

624

 

 

$

594

 

 

$

204

 

 

$

—

 

 

$

1,422

 

 

$

825

 

 

$

761

 

 

$

264

 

 

$

—

 

 

$

1,850

 

Offshore

 

 

223

 

 

 

319

 

 

 

702

 

 

 

—

 

 

 

1,244

 

 

 

278

 

 

 

501

 

 

 

750

 

 

 

—

 

 

 

1,529

 

Eliminations

 

 

29

 

 

 

23

 

 

 

12

 

 

 

(64

)

 

 

—

 

 

 

30

 

 

 

24

 

 

 

19

 

 

 

(73

)

 

 

—

 

 

 

$

876

 

 

$

936

 

 

$

918

 

 

$

(64

)

 

$

2,666

 

 

$

1,133

 

 

$

1,286

 

 

$

1,033

 

 

$

(73

)

 

$

3,379

 

 

Rig Technologies’ second quarter 2021 revenue included $74 million related to the cancelation of offshore rig projects.

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $9 million for the three months ended June 30, 2021 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. We do 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, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $3,867 million. The Company expects to recognize approximately $594 million in revenue for the remaining performance obligations in 2021 and $3,273 million in 2022 and 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, 2020

 

$

611

 

 

$

354

 

Provision

 

 

(1

)

 

 

—

 

Billings

 

 

(414

)

 

 

492

 

Revenue recognized

 

 

427

 

 

 

(374

)

Currency translation adjustments and other

 

 

(89

)

 

 

(80

)

Balance at June 30, 2021

 

$

534

 

 

$

392

 

 

 

Contract Assets and Liabilities

The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of Receivables and Contract Assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of June 30, 2021, allowance for credit losses totaled $98 million.