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Revenue
 9 Months Ended
Sep. 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 September 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

227

 

 

$

192

 

 

$

70

 

 

$

—

 

 

$

489

 

 

$

132

 

 

$

168

 

 

$

54

 

 

$

—

 

 

$

354

 

International

 

 

264

 

 

 

276

 

 

 

312

 

 

 

—

 

 

 

852

 

 

 

217

 

 

 

424

 

 

 

389

 

 

 

—

 

 

 

1,030

 

Intercompany

 

 

16

 

 

 

10

 

 

 

8

 

 

 

(34

)

 

 

—

 

 

 

12

 

 

 

9

 

 

 

6

 

 

 

(27

)

 

 

—

 

 

 

$

507

 

 

$

478

 

 

$

390

 

 

$

(34

)

 

$

1,341

 

 

$

361

 

 

$

601

 

 

$

449

 

 

$

(27

)

 

$

1,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

370

 

 

$

317

 

 

$

85

 

 

$

—

 

 

$

772

 

 

$

226

 

 

$

346

 

 

$

103

 

 

$

—

 

 

$

675

 

Offshore

 

 

121

 

 

 

151

 

 

 

297

 

 

 

—

 

 

 

569

 

 

 

123

 

 

 

246

 

 

 

340

 

 

 

—

 

 

 

709

 

Intercompany

 

 

16

 

 

 

10

 

 

 

8

 

 

 

(34

)

 

 

—

 

 

 

12

 

 

 

9

 

 

 

6

 

 

 

(27

)

 

 

—

 

 

 

$

507

 

 

$

478

 

 

$

390

 

 

$

(34

)

 

$

1,341

 

 

$

361

 

 

$

601

 

 

$

449

 

 

$

(27

)

 

$

1,384

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

630

 

 

$

563

 

 

$

194

 

 

$

—

 

 

$

1,387

 

 

$

676

 

 

$

574

 

 

$

184

 

 

$

—

 

 

$

1,434

 

International

 

 

708

 

 

 

818

 

 

 

1,094

 

 

 

—

 

 

 

2,620

 

 

 

776

 

 

 

1,280

 

 

 

1,273

 

 

 

—

 

 

 

3,329

 

Intercompany

 

 

45

 

 

 

33

 

 

 

20

 

 

 

(98

)

 

 

—

 

 

 

42

 

 

 

33

 

 

 

25

 

 

 

(100

)

 

 

—

 

 

 

$

1,383

 

 

$

1,414

 

 

$

1,308

 

 

$

(98

)

 

$

4,007

 

 

$

1,494

 

 

$

1,887

 

 

$

1,482

 

 

$

(100

)

 

$

4,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

994

 

 

$

911

 

 

$

289

 

 

$

—

 

 

$

2,194

 

 

$

1,051

 

 

$

1,107

 

 

$

367

 

 

$

—

 

 

$

2,525

 

Offshore

 

 

344

 

 

 

470

 

 

 

999

 

 

 

—

 

 

 

1,813

 

 

 

401

 

 

 

747

 

 

 

1,090

 

 

 

—

 

 

 

2,238

 

Intercompany

 

 

45

 

 

 

33

 

 

 

20

 

 

 

(98

)

 

 

—

 

 

 

42

 

 

 

33

 

 

 

25

 

 

 

(100

)

 

 

—

 

 

 

$

1,383

 

 

$

1,414

 

 

$

1,308

 

 

$

(98

)

 

$

4,007

 

 

$

1,494

 

 

$

1,887

 

 

$

1,482

 

 

$

(100

)

 

$

4,763

 

 

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 $8 million for the three months ended September 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 September 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,153 million. The Company expects to recognize approximately $293 million in revenue for the remaining performance obligations in 2021 and $3,860 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

 

 

(627

)

 

 

678

 

Revenue recognized

 

 

573

 

 

 

(588

)

Currency translation adjustments and other

 

 

(92

)

 

 

(19

)

Balance at September 30, 2021

 

$

466

 

 

$

425

 

 

 

Allowance for Credit Losses

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 September 30, 2021, the allowance for credit losses totaled $93 million.