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Revenue
 3 Months Ended
Mar. 31, 2022
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 March 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

306

 

 

$

213

 

 

$

88

 

 

$

—

 

 

$

607

 

 

$

188

 

 

$

162

 

 

$

55

 

 

$

—

 

 

$

405

 

International

 

 

290

 

 

 

308

 

 

 

343

 

 

 

—

 

 

 

941

 

 

 

211

 

 

 

264

 

 

 

369

 

 

 

—

 

 

 

844

 

Eliminations

 

 

12

 

 

 

9

 

 

 

10

 

 

 

(31

)

 

 

—

 

 

 

14

 

 

 

13

 

 

 

7

 

 

 

(34

)

 

 

—

 

 

 

$

608

 

 

$

530

 

 

$

441

 

 

$

(31

)

 

$

1,548

 

 

$

413

 

 

$

439

 

 

$

431

 

 

$

(34

)

 

$

1,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

434

 

 

$

322

 

 

$

123

 

 

$

—

 

 

$

879

 

 

$

294

 

 

$

265

 

 

$

91

 

 

$

—

 

 

$

650

 

Offshore

 

 

162

 

 

 

199

 

 

 

308

 

 

 

—

 

 

 

669

 

 

 

105

 

 

 

161

 

 

 

333

 

 

 

—

 

 

 

599

 

Eliminations

 

 

12

 

 

 

9

 

 

 

10

 

 

 

(31

)

 

 

—

 

 

 

14

 

 

 

13

 

 

 

7

 

 

 

(34

)

 

 

—

 

 

 

$

608

 

 

$

530

 

 

$

441

 

 

$

(31

)

 

$

1,548

 

 

$

413

 

 

$

439

 

 

$

431

 

 

$

(34

)

 

$

1,249

 

 

 

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $6 million for the three months ended March 31, 2022 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 March 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,193 million. The Company expects to recognize approximately $1,043 million in revenue for the remaining performance obligations in 2022 and $3,150 million in 2023 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, 2021

 

$

461

 

 

$

392

 

Provision

 

 

(1

)

 

 

—

 

Billings

 

 

(253

)

 

 

326

 

Revenue recognized

 

 

252

 

 

 

(251

)

Currency translation adjustments and other

 

 

(26

)

 

 

(64

)

Balance at March 31, 2022

 

$

433

 

 

$

403

 

 

 

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 March 31, 2022, the allowance for credit losses totaled $98 million.