XML 28 R15.htm IDEA: XBRL DOCUMENT v3.23.3
Revenue
 9 Months Ended
Sep. 30, 2023
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,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

375

 

 

$

296

 

 

$

126

 

 

$

—

 

 

$

797

 

 

$

385

 

 

$

284

 

 

$

101

 

 

$

—

 

 

$

770

 

International

 

 

401

 

 

 

437

 

 

 

550

 

 

 

—

 

 

 

1,388

 

 

 

338

 

 

 

381

 

 

 

400

 

 

 

—

 

 

 

1,119

 

Eliminations

 

 

23

 

 

 

27

 

 

 

10

 

 

 

(60

)

 

 

—

 

 

 

18

 

 

 

16

 

 

 

10

 

 

 

(44

)

 

 

—

 

 

$

799

 

 

$

760

 

 

$

686

 

 

$

(60

)

 

$

2,185

 

 

$

741

 

 

$

681

 

 

$

511

 

 

$

(44

)

 

$

1,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

576

 

 

$

432

 

 

$

166

 

 

$

—

 

 

$

1,174

 

 

$

551

 

 

$

413

 

 

$

139

 

 

$

—

 

 

$

1,103

 

Offshore

 

 

200

 

 

 

301

 

 

 

510

 

 

 

—

 

 

 

1,011

 

 

 

172

 

 

 

252

 

 

 

362

 

 

 

—

 

 

 

786

 

Eliminations

 

 

23

 

 

 

27

 

 

 

10

 

 

 

(60

)

 

 

—

 

 

 

18

 

 

 

16

 

 

 

10

 

 

 

(44

)

 

 

—

 

 

$

799

 

 

$

760

 

 

$

686

 

 

$

(60

)

 

$

2,185

 

 

$

741

 

 

$

681

 

 

$

511

 

 

$

(44

)

 

$

1,889

 

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Elims.

 

 

Total

 

North America

 

$

1,166

 

 

$

950

 

 

$

340

 

 

$

—

 

 

$

2,456

 

 

$

1,037

 

 

$

733

 

 

$

309

 

 

$

—

 

 

$

2,079

 

International

 

 

1,107

 

 

 

1,211

 

 

 

1,466

 

 

 

—

 

 

 

3,784

 

 

 

933

 

 

 

1,080

 

 

 

1,072

 

 

 

—

 

 

 

3,085

 

Eliminations

 

 

75

 

 

 

70

 

 

 

36

 

 

 

(181

)

 

 

—

 

 

 

45

 

 

 

37

 

 

 

33

 

 

 

(115

)

 

 

—

 

 

$

2,348

 

 

$

2,231

 

 

$

1,842

 

 

$

(181

)

 

$

6,240

 

 

$

2,015

 

 

$

1,850

 

 

$

1,414

 

 

$

(115

)

 

$

5,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,706

 

 

$

1,329

 

 

$

493

 

 

$

—

 

 

$

3,528

 

 

$

1,503

 

 

$

1,122

 

 

$

377

 

 

$

—

 

 

$

3,002

 

Offshore

 

 

567

 

 

 

832

 

 

 

1,313

 

 

 

—

 

 

 

2,712

 

 

 

467

 

 

 

691

 

 

 

1,004

 

 

 

—

 

 

 

2,162

 

Eliminations

 

 

75

 

 

 

70

 

 

 

36

 

 

 

(181

)

 

 

—

 

 

 

45

 

 

 

37

 

 

 

33

 

 

 

(115

)

 

 

—

 

 

$

2,348

 

 

$

2,231

 

 

$

1,842

 

 

$

(181

)

 

$

6,240

 

 

$

2,015

 

 

$

1,850

 

 

$

1,414

 

 

$

(115

)

 

$

5,164

 

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $2 million for the three months ended September 30, 2023 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, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,311 million. The Company expects to recognize approximately $378 million in revenue for the remaining performance obligations in 2023 and $3,933 million in 2024 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, 2022

 

$

685

 

 

$

444

 

Billings

 

 

(1,014

)

 

 

918

 

Revenue recognized

 

 

986

 

 

 

(875

)

Currency translation adjustments and other

 

 

18

 

 

 

1

 

Balance at September 30, 2023

 

$

675

 

 

$

488

 

 

 

 

Royalty Revenue

 

The Company recognizes royalty revenue due under various licenses for the Company's intellectual property, including for technology related to drill bits. The Company recognized revenue for drill bit licenses of approximately $21 million and $62 million for the three and nine months ended September 30, 2023, respectively, and $20 million and $60 million for the three and nine months ended September 30, 2022, respectively. As previously disclosed, the Company is currently pursuing litigation against certain non-paying licensees. See Note 15 for discussion of the ongoing litigation.

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, 2023, the allowance for credit losses totaled $77 million.

 

The changes in the carrying amount of the allowance for credit losses are as follows (in millions):

 

Balance at December 31, 2022

 

$

71

 

Provision for expected credit losses

 

 

21

 

Recoveries collected

 

 

(11

)

Other

 

 

(4

)

Balance at September 30, 2023

 

$

77