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Revenue | 12 Months Ended
--- | ---
Dec. 31, 2024
Revenue from Contract with Customer [Abstract] |
Revenue | 14. Revenue Disaggregation of Revenue The following tables disaggregate our revenue by destinations and revenue streams, 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 millions). In the tables below, North America includes only the U.S. and Canada:
|  | Year Ended December 31, 2024 |
|  | Energy Products |  |  | Energy |  |  |  |  |  |  |
|  | and Solutions |  |  | Equipment |  |  | Eliminations |  |  | Total |
North America |  | $ | 2,105 |  |  | $ | 1,201 |  |  | $ | — |  |  | $ | 3,306 |
International |  |  | 1,935 |  |  |  | 3,629 |  |  |  | — |  |  |  | 5,564 |
Intersegment revenue |  |  | 90 |  |  |  | 58 |  |  |  | (148 | ) |  |  | — |
|  | $ | 4,130 |  |  | $ | 4,888 |  |  | $ | (148 | ) |  | $ | 8,870 |
Land |  | $ | 3,088 |  |  | $ | 1,800 |  |  | $ | — |  |  | $ | 4,888 |
Offshore |  |  | 952 |  |  |  | 3,030 |  |  |  | — |  |  |  | 3,982 |
Intersegment revenue |  |  | 90 |  |  |  | 58 |  |  |  | (148 | ) |  |  | — |
|  | $ | 4,130 |  |  | $ | 4,888 |  |  | $ | (148 | ) |  | $ | 8,870 |
|  | Year Ended December 31, 2023 |
|  | Energy Products |  |  | Energy |  |  |  |  |  |  |
|  | and Solutions |  |  | Equipment |  |  | Eliminations |  |  | Total |
North America |  | $ | 2,019 |  |  | $ | 1,237 |  |  | $ | — |  |  | $ | 3,256 |
International |  |  | 1,954 |  |  |  | 3,373 |  |  |  | — |  |  |  | 5,327 |
Intersegment revenue |  |  | 104 |  |  |  | 59 |  |  |  | (163 | ) |  |  | — |
|  | $ | 4,077 |  |  | $ | 4,669 |  |  | $ | (163 | ) |  | $ | 8,583 |
Land |  | $ | 2,921 |  |  | $ | 1,864 |  |  | $ | — |  |  | $ | 4,785 |
Offshore |  |  | 1,052 |  |  |  | 2,746 |  |  |  | — |  |  |  | 3,798 |
Intersegment revenue |  |  | 104 |  |  |  | 59 |  |  |  | (163 | ) |  |  | — |
|  | $ | 4,077 |  |  | $ | 4,669 |  |  | $ | (163 | ) |  | $ | 8,583 |
|  | Year Ended December 31, 2022 |
|  | Energy Products |  |  | Energy |  |  |  |  |  |  |
|  | and Solutions |  |  | Equipment |  |  | Eliminations |  |  | Total |
North America |  | $ | 1,845 |  |  | $ | 1,034 |  |  | $ | — |  |  | $ | 2,879 |
International |  |  | 1,629 |  |  |  | 2,729 |  |  |  | — |  |  |  | 4,358 |
Eliminations |  |  | 63 |  |  |  | 56 |  |  |  | (119 | ) |  |  | — |
|  | $ | 3,537 |  |  | $ | 3,819 |  |  | $ | (119 | ) |  | $ | 7,237 |
Land |  | $ | 2,620 |  |  | $ | 1,527 |  |  | $ | — |  |  | $ | 4,147 |
Offshore |  |  | 854 |  |  |  | 2,236 |  |  |  | — |  |  |  | 3,090 |
Eliminations |  |  | 63 |  |  |  | 56 |  |  |  | (119 | ) |  |  | — |
|  | $ | 3,537 |  |  | $ | 3,819 |  |  | $ | (119 | ) |  | $ | 7,237 |
In the table below, the revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products. The revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services.
| Year Ended December 31, |
| 2024 |  |  | 2023 |  |  | 2022 |
Energy Products and Services: |  |  |  |  |  |  |  |
Services & rental | $ | 1,996 |  |  | $ | 1,959 |  |  | $ | 1,740 |
Capital equipment |  | 1,238 |  |  |  | 1,336 |  |  |  | 1,148 |
Product sales |  | 806 |  |  |  | 678 |  |  |  | 586 |
Intersegment revenue |  | 90 |  |  |  | 104 |  |  |  | 63 |
Total |  | 4,130 |  |  |  | 4,077 |  |  |  | 3,537 |
Energy Equipment: |  |  |  |  |  |  |  |
Capital equipment |  | 2,625 |  |  |  | 2,556 |  |  |  | 2,173 |
Aftermarket |  | 2,205 |  |  |  | 2,054 |  |  |  | 1,590 |
Intersegment revenue |  | 58 |  |  |  | 59 |  |  |  | 56 |
Total |  | 4,888 |  |  |  | 4,669 |  |  |  | 3,819 |
Eliminations |  | (148 | ) |  |  | (163 | ) |  |  | (119 | )
Total consolidated | $ | 8,870 |  |  | $ | 8,583 |  |  | $ | 7,237 |
The Company did not have any customers with revenues greater than 10% of total revenue for the years ended December 31, 2024, 2023, or 2022. 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, 2024, 2023 and 2022. 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, 2023 |  | $ | 739 |  |  | $ | 532 |
Billings |  |  | (1,553 | ) |  |  | 1,261 |
Revenue recognized |  |  | 1,490 |  |  |  | (1,247 | )
Currency translation adjustments and other |  |  | (99 | ) |  |  | (54 | )
Balance at December 31, 2024 |  | $ | 577 |  |  | $ | 492 |
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 $67 million, $78 million, and $80 million for years ended December 31, 2024, 2023, and 2022, respectively. The Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. As such, revenue and the related receivables are recorded at a discount to reflect the delayed timing of future cash collections. As of December 31, 2024, the receivables of $121 million, net of allowances of $26 million for credit losses and $14 million for the remaining timing related discount, are included in Other Assets on the Consolidated Balance Sheets. These allowances 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. 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, 2024, the allowance for credit losses totaled $67 million. The changes in the carrying amount of the allowance for credit losses are as follows (in millions):
Balance at December 31, 2023 |  | $ | 72 |
Provision for expected credit losses |  |  | 40 |
Recoveries collected |  |  | (13 | )
Reclass for long-term receivables |  |  | (17 | )
Writeoffs |  |  | (13 | )
Other |  |  | (2 | )
Balance at December 31, 2024 |  | $ | 67 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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