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Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue

14. Revenue

Disaggregation of Revenue

 

The following tables disaggregate our revenue by destinations, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In the tables below, North America includes only the U.S. and Canada (in millions):

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

North America

 

$

1,530

 

 

$

1,238

 

 

$

488

 

 

$

—

 

 

$

3,256

 

International

 

 

1,547

 

 

 

1,704

 

 

 

2,076

 

 

 

—

 

 

 

5,327

 

Eliminations

 

 

95

 

 

 

92

 

 

 

44

 

 

 

(231

)

 

 

—

 

 

$

3,172

 

 

$

3,034

 

 

$

2,608

 

 

$

(231

)

 

$

8,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

2,295

 

 

$

1,784

 

 

$

706

 

 

$

—

 

 

$

4,785

 

Offshore

 

 

782

 

 

 

1,158

 

 

 

1,858

 

 

 

—

 

 

 

3,798

 

Eliminations

 

 

95

 

 

 

92

 

 

 

44

 

 

 

(231

)

 

 

—

 

 

$

3,172

 

 

$

3,034

 

 

$

2,608

 

 

$

(231

)

 

$

8,583

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

North America

 

$

1,407

 

 

$

1,024

 

 

$

448

 

 

$

—

 

 

$

2,879

 

International

 

 

1,306

 

 

 

1,511

 

 

 

1,541

 

 

 

—

 

 

 

4,358

 

Eliminations

 

 

64

 

 

 

53

 

 

 

45

 

 

 

(162

)

 

 

—

 

 

$

2,777

 

 

$

2,588

 

 

$

2,034

 

 

$

(162

)

 

$

7,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

2,066

 

 

$

1,538

 

 

$

543

 

 

$

—

 

 

$

4,147

 

Offshore

 

 

647

 

 

 

997

 

 

 

1,446

 

 

 

—

 

 

 

3,090

 

Eliminations

 

 

64

 

 

 

53

 

 

 

45

 

 

 

(162

)

 

 

—

 

 

$

2,777

 

 

$

2,588

 

 

$

2,034

 

 

$

(162

)

 

$

7,237

 

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

Completion

 

 

 

 

 

 

 

 

 

 

 

 

Wellbore

 

 

& Production

 

 

Rig

 

 

 

 

 

 

 

 

 

Technologies

 

 

Solutions

 

 

Technologies

 

 

Eliminations

 

 

Total

 

North America

 

$

904

 

 

$

789

 

 

$

275

 

 

$

—

 

 

$

1,968

 

International

 

 

991

 

 

 

1,131

 

 

 

1,434

 

 

 

—

 

 

 

3,556

 

Eliminations

 

 

64

 

 

 

43

 

 

 

30

 

 

 

(137

)

 

 

—

 

 

$

1,959

 

 

$

1,963

 

 

$

1,739

 

 

$

(137

)

 

$

5,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,423

 

 

$

1,250

 

 

$

390

 

 

$

—

 

 

$

3,063

 

Offshore

 

 

472

 

 

 

670

 

 

 

1,319

 

 

 

—

 

 

 

2,461

 

Eliminations

 

 

64

 

 

 

43

 

 

 

30

 

 

 

(137

)

 

 

—

 

 

$

1,959

 

 

$

1,963

 

 

$

1,739

 

 

$

(137

)

 

$

5,524

 

 

The Company did not have any customers with revenues greater than 10% of total revenue for the years ended December 31, 2023, 2022, or 2021.

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. There were no impairment losses recorded on contract assets for the years ending December 31, 2023, 2022 and 2021.

Contract liabilities consist of advance payments, billings in excess of revenue recognized 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

 

Provision, net

 

 

(1

)

 

 

—

 

Billings

 

 

(1,396

)

 

 

1,386

 

Revenue recognized

 

 

1,403

 

 

 

(1,315

)

Currency translation adjustments and other

 

 

48

 

 

 

17

 

Balance at December 31, 2023

 

$

739

 

 

$

532

 

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 accrued revenue for drill bit licenses of approximately $78 million and $80 million for years ended December 31, 2023 and 2022, respectively. As previously disclosed above, the Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. As such, during the fourth quarter of 2023, the Company reclassified the royalty receivables from short-term to long-term, recognizing a non-cash discount charge of approximately $25 million to reflect the delayed timing of future cash collection. As of December 31, 2023, the receivables of $72 million, net of related allowances for credit losses of $9 million and $22 million for the remaining timing related discount, are included in Other Assets on the Consolidated Balance Sheets. These GAAP adjustments do not impact the amount the Company is entitled to recover on its claims from the licensees in litigation. While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the credit quality of the receivables in accordance with the policy described in Note 2. Also see Note 12 to the Consolidated Financial Statements 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. See Note 2 to the Consolidated Financial Statements for discussion of credit risk. As of December 31, 2023, the allowance for credit losses totaled $72 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

 

 

28

 

Recoveries collected

 

 

(15

)

Other

 

 

(12

)

Balance at December 31, 2023

 

$

72