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Revenue
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue
7.
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,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

385

 

 

$

284

 

 

$

101

 

 

$

—

 

 

$

770

 

 

$

227

 

 

$

192

 

 

$

70

 

 

$

—

 

 

$

489

 

International

 

 

338

 

 

 

381

 

 

 

400

 

 

 

—

 

 

 

1,119

 

 

 

264

 

 

 

276

 

 

 

312

 

 

 

—

 

 

 

852

 

Eliminations

 

 

18

 

 

 

16

 

 

 

10

 

 

 

(44

)

 

 

—

 

 

 

16

 

 

 

10

 

 

 

8

 

 

 

(34

)

 

 

—

 

 

 

$

741

 

 

$

681

 

 

$

511

 

 

$

(44

)

 

$

1,889

 

 

$

507

 

 

$

478

 

 

$

390

 

 

$

(34

)

 

$

1,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

551

 

 

$

413

 

 

$

139

 

 

$

—

 

 

$

1,103

 

 

$

370

 

 

$

317

 

 

$

85

 

 

$

—

 

 

$

772

 

Offshore

 

 

172

 

 

 

252

 

 

 

362

 

 

 

—

 

 

 

786

 

 

 

121

 

 

 

151

 

 

 

297

 

 

 

—

 

 

 

569

 

Eliminations

 

 

18

 

 

 

16

 

 

 

10

 

 

 

(44

)

 

 

—

 

 

 

16

 

 

 

10

 

 

 

8

 

 

 

(34

)

 

 

—

 

 

 

$

741

 

 

$

681

 

 

$

511

 

 

$

(44

)

 

$

1,889

 

 

$

507

 

 

$

478

 

 

$

390

 

 

$

(34

)

 

$

1,341

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

1,037

 

 

$

733

 

 

$

309

 

 

$

—

 

 

$

2,079

 

 

$

630

 

 

$

563

 

 

$

194

 

 

$

—

 

 

$

1,387

 

International

 

 

933

 

 

 

1,080

 

 

 

1,072

 

 

 

—

 

 

 

3,085

 

 

 

708

 

 

 

818

 

 

 

1,094

 

 

 

—

 

 

 

2,620

 

Intercompany

 

 

45

 

 

 

37

 

 

 

33

 

 

 

(115

)

 

 

—

 

 

 

45

 

 

 

33

 

 

 

20

 

 

 

(98

)

 

 

—

 

 

 

$

2,015

 

 

$

1,850

 

 

$

1,414

 

 

$

(115

)

 

$

5,164

 

 

$

1,383

 

 

$

1,414

 

 

$

1,308

 

 

$

(98

)

 

$

4,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,503

 

 

$

1,122

 

 

$

377

 

 

$

—

 

 

$

3,002

 

 

$

994

 

 

$

911

 

 

$

289

 

 

$

—

 

 

$

2,194

 

Offshore

 

 

467

 

 

 

691

 

 

 

1,004

 

 

 

—

 

 

 

2,162

 

 

 

344

 

 

 

470

 

 

 

999

 

 

 

—

 

 

 

1,813

 

Intercompany

 

 

45

 

 

 

37

 

 

 

33

 

 

 

(115

)

 

 

—

 

 

 

45

 

 

 

33

 

 

 

20

 

 

 

(98

)

 

 

—

 

 

 

$

2,015

 

 

$

1,850

 

 

$

1,414

 

 

$

(115

)

 

$

5,164

 

 

$

1,383

 

 

$

1,414

 

 

$

1,308

 

 

$

(98

)

 

$

4,007

 

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $6 million for the three months ended September 30, 2022 primarily due to change orders.

Remaining performance obligations represent 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, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,151 million. The Company expects to recognize approximately $372 million in revenue for the remaining performance obligations in 2022 and $3,779 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

 

 

(701

)

 

 

780

 

Revenue recognized

 

 

819

 

 

 

(738

)

Currency translation adjustments and other

 

 

13

 

 

 

(3

)

Balance at September 30, 2022

 

$

591

 

 

$

431

 

 

 

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, 2022, the allowance for credit losses totaled $70 million.